Friday Rates May 9, 2008
Good news: conforming-jumbo rates have come down significantly! In fact, the 30 year fixed rate for mortgages priced between $417,001 - $567,500 (for King, Pierce and Snohomish Counties) are the lowest since I’ve started publishing rates at RCG.
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). The conforming rate quote below is based on owner occupied with a minimum credit score of 720, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000. This scenario includes reserves (taxes & insurance) not being waived. Rates quoted are priced based on a 45 day lock with 1 origination/discount point and there are no prepayment penalties on any of the rates quoted below.
30 Year Fixed: 5.750% (APR 5.902%)
30 Year Fixed with 10 Year Interest Only: 6.000% (APR 6.140%)
15 Year Fixed: 5.250% (APR 5.500%)
7/1 ARM - LIBOR: 5.250% (APR 6.502%)
5/1 ARM - LIBOR: 4.875% (APR 6.756%)
Conforming-Jumbo Rates. Pricing is based on the same criteria above except where the loan amount is $417,001 - $567,500 for properties in King, Snohomish or Pierce Counties. (For other conforming-jumbo loan limits in Washington state, click here); specifically priced for a sales price of $650,000 and a $520,000 loan amount.
30 Year Fixed: 5.875% (APR 6.021%)
30 Year Fixed with 10 Year Interest Only: 6.375% (APR 6.513%)
JUMBO (Non-Conforming) Rates. Pricing is based on the same criteria above, with the exception that the loan amount is $417,001-$650,000 (20% down). The specific scenario used to price the rates below is a sales price of $850,000 with a loan amount of $680,000.
30 Year Fixed: 7.500% (APR 7.758%)
FHA. Pricing based on credit score of 620 or better and loan amounts up to $362,790 for FHA in King, Snohomish and Pierce Counties.
30 Year Fixed: 5.750% (APR 6.527%).
FHA-Jumbo. Pricing based on loan amounts from $362,791 - $567,500 for King, Snohomish and Pierce Counties. For other loan limits in Washington State, click here.
30 Year Fixed: 6.000% (APR 6.776%)
VA. Pricing based on credit scores of 620 or better based on loan amounts up to $417,000.
30 Year Fixed: 5.875% (APR 6.188%)
Prime Rate (what HELOCs are based on): 5.000%
This is just a small sample available of rates and products. Rates are as of Friday, May 9, 2008 at 12:30 p.m. and may change at any time. I’ve all ready seen many lenders issue two rate sheets so far today. Follow me on Twitter to see rates I’m quoting. Available programs may change at anytime as well. This is not a guarantee nor is it a commitment of interest rate.
Sphere: Related ContentFriday’s Rates May 2, 2008
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). The conforming rate quote below is based on owner occupied, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000. This scenario includes reserves (taxes & insurance) not being waived. Rates quoted are priced based on a 45 day lock with 1 point and there are no prepayment penalties on any of the rates quoted below.
30 Year Fixed: 5.750% (APR 5.902%)
30 Year Fixed with 10 Year Interest Only: 6.125% (APR 6.267%)
15 Year Fixed: 5.375% (APR 5.627%)
5/1 ARM - LIBOR: 5.375% (APR 6.945%)
5/1 ARM with 10 Year Interest Only - LIBOR: 5.500% (APR 7.035%)
Conforming-Jumbo Rates. Pricing is based on the same criteria above except where the loan amount is $417,001 - $567,500 for properties in King, Snohomish or Pierce Counties; specifically priced for a sales price of $650,000 and a $520,000 loan amount.
30 Year Fixed: 6.125% (APR 6.373%)
30 Year Fixed with 10 Year Interest Only: 6.625% (APR 6.813%)
JUMBO (Non-Conforming) Rates. Pricing is based on the same criteria above, with the exception that the loan amount is $417,001-$650,000 (20% down). The specific scenario used to price the rates below is a sales price of $850,000 with a loan amount of $680,000.
30 Year Fixed: 7.500% (APR 7.758%)
FHA. Pricing based on credit score of 620 or better and loan amounts up to $362,790 for FHA in King, Snohomish and Pierce Counties.
30 Year Fixed: 6.000% (APR 6.782%).
FHA-Jumbo. Pricing based on loan amounts from $362,791 - $567,500 for King, Snohomish and Pierce Counties.
30 Year Fixed: 6.250% (APR 7.030%)
VA. Pricing based on credit scores of 620 or better based on loan amounts up to $417,000.
30 Year Fixed: 6.25% (APR 6.572%)
Prime Rate (what HELOCs are based on): 5.000%
This is just a small sample available of rates and products. Rates are as of Friday, May 2, 2008 at 2:30 p.m. and may change at any time. Available programs may change at anytime as well. This is not a guarantee nor is it a commitment of interest rate. For your personal rate quote for your Washington State property, please contact your local Mortgage Professional.
Sphere: Related ContentThe Future of Mortgage Brokers April 30, 2008
The reputation of mortgage brokers as a group has been tarnished by local and nationwide “brokers gone wild” stories that don’t need to be rehashed here. We all know there are some exceptionally fine mortgage brokers who perform exemplary for their clients. This blog article is not another attempt to throw mortgage brokers under the bus but to ponder the future of the mortgage broker.
We all have witnessed the closure of over 254, and counting, wholesale lenders. Brokers who are not actively thinking about the possibilities of more wholesale lines disappearing must still be living in denial. From the CR4RE Newsletter:
“Depository lenders who wish to commit portfolio dollars to keeping their origination operations going will do so only in the retail channel. This not only cuts loose brokers; it cuts loose a lot of correspondent lending in which smaller depositories (like community banks and credit unions) have been off-loading mortgages onto the big aggregators (who are currently shutting down their correspondent operations). There’s never been any upside of carrying a wholesale operation in a downturn—the whole point of wholesale lending is that it can be thrown off in a downturn, since brokers aren’t your employees—but it has never made less sense than it does today to stay in that channel. This has “tightening” effects in and of itself, beyond guideline or price tightening: more loans are being made by an originator who has some stake in the outcome (not as much as they ought, but more than a broker does).”
As more wholesalers shut down, some mortgage brokers and LOs will give up and try to obtain work at a bank or credit union where they may find the culture radically different. This could turn out to be a very good fit for some folks.
Some mortgage brokers will believe that the market will come back (mini refi booms tend to fuel that belief) but we are already hearing now that not all these inquiries and refi applications will translate into closed deals. Some customers simply no longer qualify due to continuous tightening of underwriting guidelines. Beyond the conforming purchase money loans and refis, there are three growth areas that are easy to see: FHA, hard money lending, and working with investors.
Mortgage brokers with correspondent lines of credit, with FHA approval in place, with in-house underwriting, compliance, auditing, and training all in place will be able to weather the storm and I predict the cream of the crop will survive. The key will be how well capitalized they are against lender buyback provisions, and if they control and maintain their own database of existing clients. Mortgage brokers who have largely left the client database maintenance in the hands of their LOs might lose access to those (hopefully very well served) clients if their loan originators cannot make the transition from writing, say 25 slam dunk stated income refis per month to 3 FHA deals a month.
Brokers who rely mainly on radio advertising and direct mail may keep the phones ringing with incoming leads. However, brokers are casting a very wide net at a relatively high cost. The ROI must be justified and that may mean cutting staff or giving fewer leads to fewer LOs, lowering LO compensation split, or pushing the lead cost onto the LO.
We would all hope that consumers are starting to wise up about not responding to mortgage spam, unsolicited mortgage offers that sound too good to be true, and lead generation sites. I recently noticed that lowermybills.com took a step into the gutter and moved from the world of deceptive banner ads to my junk mail folder.
FHA lending means making a commitment to compliance and training. This takes time, money, and an internal motivation to transform a brokerage from small to medium and actually hire real people to do the job of “compliance officer” and pay taxes on your W-2 employees. Not all brokers will make the decision to seek FHA approval. “Hey, conforming loan limit increases are going to be approved! Why bother with FHA?” In the future world of the mortgage broker that is already here, underwriting guidelines are nowhere near the good old days nor will we find them at the conforming lenders anytime soon. That leaves hard money.
Another growth area for mortgage brokers that do not want to seek out FHA approval is to become experts at finding private financing or hard money lending for their clients. Yes interest rates are going to be higher and documentation will be heavier. Yes, loan-to-value ratios will be tougher and appraisers aren’t as easily threatened with retaliation if values aren’t met. However, mortgage brokers who want to specialize in finding hard money or private money for consumers who do not meet FHA or GSE conforming guidelines can create a niche market for themselves and grow their business. This is a good opportunity for brokers who do not want to compete in the conforming market. Caveat: Make sure you have a competent attorney on retainer who is familiar with the Consumer Loan Law, Usury Law, and, well, everything in here. Trust me on this one.
Both FHA and hard money lending will require an investment in regulatory education. This means having systems put into place to make sure your loan originators are actually following state and federal lending laws on a daily basis and not just saying “This is HOEPA, meeting adjourned.” This means moving beyond just giving LOs a laptop with mortgage software and a lead sheet. Not all brokers are positioned to make this shift.
Also from the CR4RE Newsletter:
“The upside for the serious real estate investor is the elimination of unqualified buyer competition…smaller lenders with better service provision and local smarts may again be able to compete on rate. The bad news is that no one will compete on product: you’ll likely get the same terms offered from any lender you choose, unless you’re willing to pay a hefty premium for something “out of the box.”
Working with real estate investors is another niche market for mortgage brokers as a future growth area for the end of 2009 and 2010 as we have yet to see home prices bottom out.
We are all living through changes of historic proportion in the mortgage market. The future of today’s mortgage broker depends on the broker’s ability to adapt to what lies ahead. With heavy competition from banks in the conforming loan market, brokers who can reach consumers in small communities that banks can’t reach, will still be able to compete effectively for conforming market share. FHA lending, private money and investors are all growth areas for brokers.
What has been most challenging for me is to watch it all happen in slow motion. We know what’s coming. The waiting is the hardest part. Here’s a little Tom Petty for you.
Note: You can access the full January edition of the CR4RE newsletter at no cost here, (link opens PDF) which is written by Calculated Risk and Tanta. Quotes in this blog article are used with their permission. Annual subscription is $60.
Sphere: Related ContentFriday’s Rates April 25, 2008
Mortgage bonds have a negative reaction to inflation and we’re seeing high food and oil prices and rates continue to be very volatile…next week, the drama promises to deliver with the FOMC meeting on Tuesday and the Jobs Report on Friday. I know I sound like a broken record…but here goes: THE FED DOES NOT DIRECTLY CONTROL MORTGAGE INTEREST RATES. Sorry for shouting (but feel so much better). 
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). The conforming rate quote below is based on owner occupied, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000. This scenario includes reserves (taxes & insurance) not being waived. Rates quoted are priced based on a 45 day lock with 1 point and there are no prepayment penalties on any of the rates quoted below and are based on a minimum mid-credit score of 720.
30 Year Fixed: 5.875% (APR 6.023%)
30 Year Fixed with 10 Year Interest Only: 6.250% (APR 6.388%)
15 Year Fixed: 5.500% (APR 5.743%)
5/1 ARM - LIBOR 2/2/6 Caps: 5.375% (APR 6.945%)
Conforming-Jumbo Rates. Pricing is based on the same criteria above except where the loan amount is $417,001 - $567,500 for properties in King, Snohomish or Pierce Counties; specifically priced for a sales price of $650,000 and a $520,000 loan amount.
30 Year Fixed: 6.375% (APR 6.524%)
30 Year Fixed with 10 Year Interest Only: 6.875% (APR 7.018%)
JUMBO (Non-Conforming) Rates. Pricing is based on the same criteria above, with the exception that the loan amount is $417,001-$650,000 (20% down).
30 Year Fixed priced with 1.5% discount/origination points: 7.625% (APR 7.841%)
30 Year Fixed priced with 1 discount/origination point: 8.000% (8.169%)
FHA. Pricing based on credit score of 620 or better and loan amounts up to $362,790 for FHA in King, Snohomish and Pierce Counties.
30 Year Fixed: 6.125% (APR 6.910%).
FHA-Jumbo. Pricing based on loan amounts from $362,791 - $567,500 for King, Snohomish and Pierce Counties.
30 Year Fixed: 6.375% (APR 7.158%)
VA. Pricing based on credit scores of 620 or better with loan amounts up to $417,000.
30 Year Fixed: 6.375% (APR 6.572%)
Prime Rate (what HELOCs are based on): 5.250%
Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR. These programs all have the same closing costs so you can see APR is not a valuable tool.
This is just a small sample available of rates and products. Rates are as of Friday, April 25, 2008 at 1:00 p.m. and may change at any time. Available programs may change at anytime as well. This is not a guarantee nor is it a commitment of interest rate. For your personal rate quote please contact your local Mortgage Professional. For more frequent rate updates via what I’m currently quoting my clients, follow me on Twitter.
Sphere: Related ContentFriday’s Rates April 18, 2008
Long term fixed conforming rates are slightly improved since this morning…however rates across the board are up compared to last Friday’s rate post. The markets continue to be very volatile and those who play the “floating game” with their rate, may get washed up.
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). The conforming rate quote below is based on owner occupied, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000. This scenario includes reserves (taxes & insurance) not being waived. Rates quoted are priced based on a 45 day lock with 1 point and there are no prepayment penalties on any of the rates quoted below and are based on a minimum mid-credit score of 720.
30 Year Fixed: 5.875% (APR 6.023%)
30 Year Fixed with 10 Year Interest Only: 6.250% (APR 6.388%)
15 Year Fixed: 5.375% (APR 5.616%)
5/1 ARM - LIBOR 2/2/6 Caps: 5.250% (APR 6.895%)
Conforming-Jumbo Rates. Pricing is based on the same criteria above except where the loan amount is $417,001 - $567,500 for properties in King, Snohomish or Pierce Counties; specifically priced for a sales price of $650,000 and a $520,000 loan amount.
30 Year Fixed: 6.375% (APR 6.524%)
JUMBO (Non-Conforming) Rates. Pricing is based on the same criteria above, with the exception that the loan amount is $417,001-$650,000 (20% down).
30 Year Fixed: 7.375% (APR 7.536%)
FHA. Pricing based on credit score of 620 or better and loan amounts up to $362,790 for FHA in King, Snohomish and Pierce Counties.
30 Year Fixed: 6.125% (APR 6.910%).
FHA-Jumbo. Pricing based on loan amounts from $362,791 - $567,500 for King, Snohomish and Pierce Counties.
30 Year Fixed: 6.375% (APR 7.158%)
VA. Pricing based on credit scores of 620 or better with loan amounts up to $417,000.
30 Year Fixed: 6.375% (APR 6.572%)
VA-Jumbo (loan amounts of $417,001 - $950,000).
30 Year Fixed: 6.375% (APR 6.700%)
Prime Rate (what HELOCs are based on): 5.250%
Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR. These programs all have the same closing costs so you can see APR is not a valuable tool.
This is just a small sample available of rates and products. Rates are as of Friday, April 18, 2008 at 1:15 p.m. and may change at any time. Available programs may change at anytime as well. This is not a guarantee nor is it a commitment of interest rate. For your personal rate quote please contact your local Mortgage Professional.
Sphere: Related ContentRates for Friday April 11, 2008
With the new credit score based pricing, rates below are based on a 720 credit score. Most mortgage rates are now credit score based. Mortgage rates continue to be very volatile and often change several times a day.
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). The conforming rate quote below is based on owner occupied, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000. This scenario includes reserves (taxes & insurance) not being waived. Rates quoted are priced based on a 45 day lock with 1 point and there are no prepayment penalties on any of the rates quoted below.
30 Year Fixed: 5.625% (APR 5.769%)
30 Year Fixed with 10 Year Interest Only: 6.000% (APR 6.149%)
5/1 ARM: 5.125% (APR 6.846%)
Conforming-Jumbo Rates. Pricing is based on the same criteria above except where the loan amount is $417,001 - $567,500 for properties in King, Snohomish or Pierce Counties. (For other conforming-jumbo loan limits in Washington state, click here); specifically priced for a sales price of $650,000 and a $520,000 loan amount.
30 Year Fixed: 6.000% (APR 6.143%)
JUMBO (Non-Conforming) Rates. Pricing is based on the same criteria above, with the exception that the loan amount is $417,001-$650,000 (20% down).
30 Year Fixed: 7.375% (APR 7.536%)
FHA/VA. Pricing based on credit score of 620 or better and loan amounts up to $362,790 for FHA in King, Snohomish and Pierce Counties and up to $417,000 for VA.
30 Year Fixed: 5.75% (APR 6.018%).
FHA-Jumbo. Pricing based on loan amounts from $362,791 - $567,500 for King, Snohomish and Pierce Counties. For other loan limits in Washington State, click here.
30 Year Fixed: 6.000% (APR 6.775%)
VA-Jumbo (loan amounts of $417,001 - $950,000).
30 Year Fixed: 6.000% (APR 6.317%)
Prime Rate (what HELOCs are based on): 5.250%
Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR. These programs all have the same closing costs so you can see APR is not a valuable tool.
This is just a small sample available of rates and products. Rates are as of Friday, April 11, 2008 at 2:30 p.m. and may change at any time. Available programs may change at anytime as well. This is not a guarantee nor is it a commitment of interest rate. For your personal rate quote please contact your local Mortgage Professional.
Sphere: Related ContentFriday’s Rates April 4, 2008
Rates improved slightly from this morning following the Jobs Report today. With the new credit score based pricing, rates below are based on a 720 credit score. For your personal rate quote, please contact your local Mortgage Professional.
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). The conforming rate quote below is based on owner occupied, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000. This scenario includes reserves (taxes & insurance) not being waived. Rates quoted are priced based on a 45 day lock with 1 point and there are no prepayment penalties on any of the rates quoted below.
30 Year Fixed: 5.500% (APR 5.643%)
30 Year Fixed with 10 Year Interest Only: 6.000% (APR 6.149%)
15 Year Fixed: 5.125% (APR 5.363%)
5/1 ARM: 5.250% (APR 6.943%)
Conforming-Jumbo Rates. Pricing is based on the same criteria above except where the loan amount is $417,001 - $567,500 for properties in King, Snohomish or Pierce Counties specifically priced for a sales price of $650,000 and a $520,000 loan amount.
30 Year Fixed: 6.250% (APR 6.399%)
5/1 ARM Interest Only: 6.625% (APR 7.458%)
JUMBO (Non-Conforming) Rates. Pricing is based on the same criteria above, with the exception that the loan amount is $417,001-$650,000 (20% down).
30 Year Fixed: 7.375% (APR 7.536%)
FHA/VA. Pricing based on loan amounts up to $362,790 for FHA in King, Snohomish and Pierce Counties and up to $417,000 for VA.
30 Year Fixed: 5.750% (APR 6.018%).
FHA-Jumbo. Pricing based on loan amounts from $362,791 - $567,500 for King, Snohomish and Pierce Counties.
30 Year Fixed: 5.875% (APR 6.647%)
VA-Jumbo (loan amounts over $417,001 - $950,000).
30 Year Fixed: 6.000% (APR 6.317%)
Prime Rate (what HELOCs are based on): 5.250%
Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR. These programs all have the same closing costs so you can see APR is not a valuable tool.
This is just a small sample available of rates and products. Rates are as of Friday, April 4, 2008 at 3:30 p.m. and may change at any time. Available programs may change at anytime as well. This is not a guarantee nor is it a commitment of interest rate.
Sphere: Related ContentFHA Jumbo April 1, 2008
I thought it might be helpful to provide some information for you to use for when I quote rates on Friday for the FHA Jumbo mortgage. There are other criteria to be considered beyond looking at the rate. You may not have considered FHA before due to loan limits, now it’s more attractive: how else can you buy a home priced at $584,000 with 3% down and credit scores below 720?
FHA Mortgage Insurance
FHA charges both upfront and monthly mortgage insurance regardless of how much money you’re putting down. Seriously, if you’re putting 50% down and using an FHA insured mortgage, you’re paying mortgage insurance. FHA mortgage insurance does not cancel out automatically when your home has an 80% loan to value. You will pay the FHA mortgage insurance for a minimum of 5 years and 78% of the original value (lesser of sales price or appraised value) of the home.
Upfront Mortgage Insurance
Upfront mortgage insurance for a FHA insured mortgage is 1.5% of the loan amount. With an FHA mortgage, you have a base loan amount and the adjusted loan amount (after you add in the upfront mortgage insurance). For example, if your base loan amount is at the current King, Snohomish and Pierce County level of $567,500, your adjusted loan amount will be $576,012 (567,500 plus 1.5% or 8,512). Once upon a time, FHA upfront mortgage insurance could be refunded if the mortgage was terminated early with a balance of the mortgage insurance premium remaining, this is no longer the case for new FHA mortgages (which I believe is part of the reason FHA fell from favor during the subprime boom). The adjusted loan amount is what your principal and interest payment is based on. So if the rate going for a FHA Jumbo was 6.500% (this is not a rate quote; this is for example only), the principal and interest payment would be $3,640.79 (57012 amortized for 30 years at 6.5%).
Monthly Mortgage Insurance
Yes…as if paying that 1.5% upfront MI wasn’t enough…FHA has monthly mortgage insurance as well…the good news is that it is at a low rate compared to traditional private mortgage insurance (especially factoring in a jumbo loan amount, higher loan to value and credit scores below 720). The rate for FHA mortgage insurance is 0.5% of the base loan amount. Using our current example, your monthly mortgage insurance would be $236.46 (base loan amount x 0.5% divided by 12).
Low Down Payment
FHA Jumbos allow for as little as a 3% down payment. This means you could be a home priced at $ with the base loan amount of $567,500. Your down payment must be fully sourced and seasoned. Be prepared to hand over your last 2-3 months of bank statements and any asset accounts (all pages) and to explain any large deposits that are not from your source of income.
The Seller may contribute up to 6% towards closing costs however the buyer has a minimum investment required of 3%. Family members can gift funds towards closing costs as well which counts towards the buyer’s required 3%.
Speaking of documentation…
FHA is a fully documented mortgage loan. You will need to provide 2 years of W2s (tax returns if self employed) and your most recent paystubs covering 30 days of income. Any gaps of employment during the past 24 months will need to be explained. There are no income limitations and the DTI is roughly 43%.
I’ve covered FHA before…and the guidelines for traditional FHA are pretty true for the temporary Jumbo FHA mortgages as well. Here are a few more pointers for our current market:
* FHA does not have price or loan to value limits for geographical areas determined to be soft or declining.
* FHA does not have credit score risked based pricing for credit scores above 620. (Lenders may have their own risk based pricing for credit scores under 620).
Sellers with homes priced around the new FHA jumbo loan limits should consider buyers utilizing FHA financing. A sales price of $584,000 would allow for a minimum down FHA insured mortgage. However a home buyer could always use more towards down payment and opt for a FHA mortgage meaning that if your home is priced higher, you may still want to consider allowing FHA buyers as they may be considering FHA over the price hits conforming has if their score is below 720.
Condo’s are acceptable for FHA financing as well. They may not be on the FHA approved list, however, if the condo meets the requirements for a “spot approval”, they can still qualify for FHA financing.
Act fast…FHA Jumbo is only here until December 31, 2008.
Sphere: Related ContentMortgage Rates on a Good Friday March 21, 2008
I’m not anticipating any rate changes today (but anything could happen in the mortgage world these days) as the markets are closed in observance of Good Friday. Pricing of mortgage rates is definitely going through a limbo phase with the addition of “jumbo-conforming” and “jumbo-FHA”. ARMs are simply not attractive right now and therefore I’m not pricing them today. With the new credit score based pricing, rates below are based on a 720 credit score. Most mortgage rates are now credit score based. For your personal rate quote, contact your Mortgage Professional.
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). The rate quote below is based on owner occupied, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000. This scenario includes reserves (taxes & insurance) not being waived. Rates quoted are priced based on a 45 day lock with 1 point and there are no prepayment penalties on any of the rates quoted below.
30 Year Fixed: 5.500% (APR 5.643%)
30 Year Fixed with 10 Year Interest Only: 6.375% (APR 6.514%)
15 Year Fixed: 5.000% (APR 5.166%)
Conforming-Jumbo Rates. Pricing is based on the same criteria above except where the loan amount is $417,001 - $567,500 for properties in King, Snohomish or Pierce Counties. (For other conforming-jumbo loan limits in Washington state, click here).
30 Year Fixed: 6.25% (APR 6.400%)
JUMBO (Non-Conforming) Rates. Pricing is based on the same criteria above, with the exception that the loan amount is $417,001-$650,000 (20% down).
30 Year Fixed: 7.375% (APR 7.536%)
30 Year Fixed 10 Year Interest Only Payments: 7.375% (APR 7.542%)
FHA/VA. Pricing based on loan amounts up to $362,790 for FHA in King, Snohomish and Pierce Counties and up to $417,000 for VA.
30 Year Fixed: 5.75% (APR 6.018%).
FHA-Jumbo. Pricing based on loan amounts from $362,791 - $567,500 for King, Snohomish and Pierce Counties. For other loan limits in Washington State, click here.
30 Year Fixed: 6.00% (APR 6.741%)
VA-Jumbo (loan amounts over $417,001 - $950,000).
30 Year Fixed: 5.75% (APR 6.061%)
Prime Rate (what HELOCs are based on): 5.250%
Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR. These programs all have the same closing costs so you can see APR is not a valuable tool.
This is just a small sample available of rates and products. Rates are as of Friday, March 21, 2008 at 8:30 a.m. and may change at any time. Available programs may change at anytime as well. This is not a guarantee nor is it a commitment of interest rate.
Sphere: Related ContentFriday’s Rates are in Limbo March 7, 2008
We are in “limbo” while we wait for Fannie/Freddie and the lenders to figure out what the pricing will be for the temporary 
conforming loan limits.
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). The conforming rate quote below is based on owner occupied, “full doc” purchase with minimum credit scores of 680 with an 80% loan to value or lower, a loan amount of $400,000, and with reserves (taxes & insurance) not being waived. Rates quoted are priced based on a 45 day lock with 1 point and there are no prepayment penalties on any of the rates quoted below.
30 Year Fixed: 6.00%. (APR 6.149%)
30 Year Fixed with 10 Year Interest Only: 6.375%. (APR 6.514%)
10/1 ARM: (is currently higher than the 30 year fixed).
5/1 ARM: 5.250% (APR 6.895%)
5/1 ARM 10 Year Interest Only: 5.625% (APR 7.081%)
FHA/VA 30 Year Fixed: 6.000%% (APR 6.529%). Payment per $1000 = $5.92. (not including FHA mortgage insurance).
JUMBO (Non-Conforming) Rates. Pricing is based on the same criteria above, with the exception that the loan amount is $417,001-$650,000 (20% down).
30 Year Fixed: 7.000% (APR 7.161%)
7/1 ARM: 6.125% (APR 7.051%).
Prime Rate (what HELOCs are based on): 6.00%
Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR. These programs all have the same closing costs so you can see APR is not a valuable tool. If you were considering a conforming product that offered a 10 year fixed period with interest only payments and relied solely on APR, you would wind up choosing the mortgage with a higher note rate by 0.75%! This is $250 more per month on a $400,000 mortgage.
This is just a small sample available of rates and products. Rates are as of Friday, March 7, 2008 at 3:15 p.m. and may change at any time. Available programs may change at anytime as well. This is not a guarantee nor is it a commitment of interest rate. For your personal rate quote or for loan amounts over $650,000, please contact me.
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