Friday’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.
Sphere: Related ContentNew FHA Mortgage Limits March 6, 2008
Hot off the press for single family dwellings, revised FHA Loan Limits:
King County, Snohomish and Pierce Counties
Single Family: $567,500
Two Family: $726,500
Three Family: $878,150
Four Family: $1,091,350
FHA mortgages allow for minimum down payment (roughly 3%) and does require FHA mortgage insurance.
The Wall Street Journal reports that “the [FHA] upper mortgage limits also will apply to loans purchased or guaranteed by government-sponsored mortgage companies Fannie Mae and Freddie Mac, FHA officials said”
More information to follow soon. 
I just had to share this breaking news.
Friday’s Rates for Leap Day February 29, 2008
Today, negative economic news caused a significant sell off and traders “leaped” from stocks to the security of bonds, such as mortgage backed securities. Rates have improved by roughly an 0.125% since this morning. Mortgage rates remain highly volatile and (as always) I recommend locking over floating…especially as we get closer to the FOMC meeting on March 18, 2008. It’s highly anticipated that the Fed will once again cut rates; this is viewed as inflationary which tends to have a negative reaction to bonds (mortgage rates).
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: 5.625%. (APR 5.769%)
30 Year Fixed with 10 Year Interest Only: 5.875% (APR 6.007%). Tip: Check out the 10/1 Interest Only ARM below if you are considering this product. Both of these programs offer fixed rates for 10 years–the 10/1 ARM offers a lower rate by a full half point.
10/1 ARM Interest Only: 5.250% (APR 6.308%).
10/1 ARM: 5.250% (APR 6.257%)
15 Year Fixed: 4.875%% (APR 5.107%).
7/1 ARM: 4.750% (APR 6.360%).
5/1 ARM: 4.625% (APR 6.652%).
FHA/VA 30 Year Fixed: 5.875%% (APR 6.404%). 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: 6.625% (APR 6.781%)
10/1 ARM: 5.875% (APR 6.656%).
10/1 ARM Interest Only Payments: 6.625% (APR 7.164%).
7/1 ARM Interest Only Payments: 6.375% (APR 7.203%).
7/1 ARM: 5.250% (APR 6.606%).
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, February 29, 2008 at 2:00 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 or for loan amounts over $650,000, please contact me.
Sphere: Related ContentFriday’s Rates February 22, 2008
Conforming Rates: based on a sales price of $500,000 with a loan amount of $400,000 and minimum credit score of 680, full-doc mortgage with reserves (taxes and insurance included in the mortgage payments). Rates are priced based on a 45 day lock and are priced with 1 discount/origination point.
30 Year Fixed: 6.000% (APR 6.156%)
15 Year Fixed: 5.375% (APR 5.627%)
10/1 ARM - 5/2/5 Caps: 5.625% (APR 6.503%)
10/1 ARM Interest Only - 5/2/5/ Caps: 5.625% (6.541%)
7/1 ARM - 5/2/5 Caps: 5.125% (APR 6.551%)
FHA/VA 30 Year Fixed: 6.125% (APR 6.654%)
Jumbo (Non-Conforming Rates). Pricing based on purchase with 20% down and minimum loan amount of $417,001 with a minimum credit score of 680, full document loan with reserves and a 45 day lock.
30 Year Fixed: 6.875% (APR 7.020%)
10/1 ARM: 6.125% (APR 6.805%)
10/1 ARM Interest Only: 6.750% (APR 7.230%)
7/1 ARM Interest Only: 6.375% (APR 7.205%)
5/1 ARM: 5.500% (APR 7.036%)
Prime Rate (what HELOCs are based on): 6.000%
Rates are as of Friday, February 22, 2008 at 3:00 p.m. This is not a guarantee nor is it a commitment to interest rate. For your personal rate quote or for loan amounts over $650,000; please contact your Mortgage Professional.
Sphere: Related ContentMortgage rates heading up February 15, 2008
Mortgage rates continue their trend upward and they don’t look like they’re coming back down soon. This market is still very volatile and as I always, I encourage you to lock and not float your interest rates if you a closing within the next 4-6 weeks. If you’re hunkering for more updates on the market than what I post here every Friday, you can follow me with my updates on Twitter.
The conforming loan limit is still $417,000. HUD has less than a month to publish what the values are for specific areas that the temporary conforming limit will be. The figure that is being whispered for the tri-county area is around $493,000. Count on Fannie and Freddie having an add to rate for loans from $417,001 - $[the tempoary loan limit]. This add could be anywhere from 0.25% to 1.00% to RATE. With FHA loan limits also being increased, FHA insured loans could become “the new jumbo”. Bottom line, we won’t know until this information is published and made available. At this point, there is a lot of speculation. If you have a potential mortgage with a possible loan amount from $417,001-$493,000; it may or may not be worth waiting for the loan limit to lifted.
Conforming Mortgage Rates (for the criteria I used to price these rates, check out last Friday’s rate post):
30 Year Fixed: 5.875% (APR 6.109%)
15 Year Fixed: 5.125% (APR 5.357%)
10/1 ARM Interest Only: 5.375% (APR 6.381%)
7/1 ARM: 5.000% (APR 6.479%)
5/1 ARM: 4.875% (APR 6.746%)
FHA/VA 30 Year Fixed: 6.000% (APR 6.529%)
Jumbo (Non-Conforming) Rates. For pricing criteria, please review the jumbo rate section from last Friday’s rates.
30 Year Fixed: 6.625% (APR 6.774%)
10/1 ARM Interest Only: 5.875% (APR 6.682%)
7/1 ARM: 5.375% (APR 6.659%)
Prime Rate (what HELOCs are based on): 6.00%
This is just a small sample of available rates and products for consumers with a minimum mid-credit score of 680, going full-doc with 20% down for a home purchase. The above rates are priced with 1 point and are based on a 45 day lock. Rates are as of Friday, February 15, 2008 at 12:00 p.m. 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 a Mortgage Professional.
Sphere: Related ContentFriday’s Rates February 8, 2008
We are closer to the conforming loan limits being increased through the end of 2008. After President Bush signs HR 5140 into law, HUD will have 30 days to publish what will be used for median home prices. The temporary conforming limits will be based on 125% of the median home price.
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: 5.500% (APR 5.640%).
30 Year Fixed with 10 Year Interest Only: 5.875% (APR 6.004%).
15 Year Fixed: 4.875% (APR 5.104%).
7/1 ARM (5/2/5 caps - 2.25 margin): 4.875% (APR 6.427%).
7/1 ARM 10 Year Interest Only Payments (5/2/5 caps - 2.25 margin): 5.125% (APR 6.601%).
FHA/VA 30 Year Fixed: 5.750% (APR 6.279%)
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: 6.375% (APR 6.530%). Payment per $1000 = $6.24.
30 Year Fixed with 10 Year Interest Only Payments: 6.750% (APR 6.901%).
7/1 ARM (5/2/5 caps - 2.25 margin): 5.250% (APR 6.599%).
7/1 ARM Interest Only: 5.375% (APR 6.725%).
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. This is just a small sample available of rates and products. Rates are as of Friday, February 8, 2008 at 3:00 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 or for loan amounts over $650,000, please contact me.
Sphere: Related ContentFriday’s Rates February 1, 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 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: 5.375% (APR 5.533%). Payment per $1000 = $5.60.
30 Year Fixed with 10 Year Interest Only: 5.750% (APR 6.866%). Payment per $1000 = $4.79.
40 Year Fixed: 5.750% (APR 5.878%). Payment per $1000 = $5.33.
7/1 ARM (5/2/5 caps - 2.25 margin): 4.875% (APR 5.878%). Payment per $1000 = $5.33.
7/1 ARM 10 Year Interest Only Payments (5/2/5 caps - 2.25 margin): 5.000% (APR 6.522%). Payment per $1000 = $4.17.
FHA/VA 30 Year Fixed: 5.625% (APR 6.154%). Payment per $1000 = $5.76. (not factoring upfront or monthly MI for FHA).
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: 6.500% (APR 6.657%). Payment per $1000 = $6.32.
30 Year Fixed with 10 Year Interest Only Payments: 6.625% (APR 6.769%). Payment per $1000 = $5.52.
5/1 ARM - 5/2/5 caps - 2.25 margin: 5.500% (APR 6.995%). Payment per $1000 = $5.68.
5/1 ARM Interest Only - 5/2/5 caps - 2.25 margin: 5.500% (APR 7.063%). Payment per $1000 = $4.58.
Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR. This is just a small sample available of rates and products. Rates are as of Friday, February 1, 2008 at 2:00 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 or for loan amounts over $650,000, please contact me.
Sphere: Related ContentFriday’s Rates: 30 Year returns to the Mid to Low 5’s January 25, 2008
T.G.I.F! Mortgage interest rates have improved slightly since this morning by 0.125% across the board. Jumbo rates jumped up significantly on Wednesday. And as if this week didn’t provide enough drama, next week is packed with events that assures another volatile ride with mortgage interest rates. As always, I strongly recommend locking. In this market, rates may change as soon as I’ve posted them (one lender I work with provided 6 rate sheets on Wednesday alone).
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 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: 5.375% (APR 5.533%). Payment per $1000 = $5.60.
30 Year Fixed with 10 Year Interest Only: 5.750% (APR 6.866%). Payment per $1000 = $4.79.
40 Year Fixed: 5.875% (APR 6.005%). Payment per $1000 = $5.42.
7/1 ARM (5/2/5 caps - 2.25 margin): 5.000% (APR 6.481%). Payment per $1000 = $5.37.
7/1 ARM 10 Year Interest Only Payments (5/2/5 caps - 2.25 margin): 5.125% (APR 6.603%). Payment per $1000 = $4.27.
FHA/VA 30 Year Fixed: 5.750% (APR 6.279%). Payment per $1000 = $5.84. (not factoring upfront or monthly MI for FHA).
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: 6.625% (APR 6.782%). Payment per $1000 = $6.40.
30 Year Fixed with 10 Year Interest Only Payments: 6.750% (APR 6.894%). Payment per $1000 = $5.63.
7/1 ARM - 5/2/5 caps - 2.25 margin: 5.250% (APR 6.606%). Payment per $1000 = $4.38.
7/1 ARM Interest Only - 5/2/5 caps - 2.25 margin: 5.375% (APR 6.721%). Payment per $1000 = $4.48.
Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR. This is just a small sample available of rates and products. Rates are as of Friday, January 25, 2008 at 12:00 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 or for loan amounts over $650,000, please contact me.
Sphere: Related ContentFriday’s Rates — Still low! January 18, 2008
Mortgage rates continue to be very attractive, however this may change at a moment’s notice. A rule of thumb to watch for is when the stock markets are tanking, mortgage rates may be improving. This is because investors will seek the safety of bonds (with mortgage rates are based on). The reverse may also be true: when the stock market is hot, mortgage rates may increase. In just this week alone, the Dow has lost 507 points. Mortgage rates are slightly improved over last week’s rates. We did reach 5.25% earlier this week and rates have since inched up slightly. Monday, January 21, 2008 is a holiday to honor Martin Luther King, the markets and many offices (including ours) will be closed.
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 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: 5.375% (APR 5.533%). Payment per $1000 = $5.60.
30 Year Fixed with 10 Year Interest Only: 5.750% (APR 6.866%). Payment per $1000 = $4.79.
40 Year Fixed: 5.875% (APR 6.005%). Payment per $1000 = $5.42.
5/1 ARM (5/2/5 caps - 2.25 margin): 4.875% (APR 6.756%). Payment per $1000 = $5.29.
5/1 ARM 10 Year Interest Only Payments (5/2/5 caps - 2.25 margin): 5.125% (APR 6.903%). Payment per $1000 = $4.27.
FHA/VA 30 Year Fixed: 5.750% (APR 6.279%). Payment per $1000 = $5.84. (not factoring upfront or monthly MI for FHA).
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: 6.250% (APR 6.403%). Payment per $1000 = $6.16.
30 Year Fixed with 10 Year Interest Only Payments: 6.375% (APR 6.515%). Payment per $1000 = $5.31.
7/1 ARM - 5/2/5 caps - 2.25 margin: 5.000% (APR 6.483%). Payment per $1000 = $5.37.
7/1 ARM Interest Only - 5/2/5 caps - 2.25 margin: 5.375% (APR 6.772%). Payment per $1000 = $4.48.
Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR. This is just a small sample available of rates and products. Rates are as of Friday, January 18, 2008 at 2:00 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 or for loan amounts over $650,000, please contact me.
Sphere: Related ContentCredit Scores, Government Loans and 100% Financing January 14, 2008
Today’s guidelines are changing so quickly that it really keeps you on your toes as a Mortgage Professional so I was not surprised to receive this email from a Real Estate Agent:
Just had a client tell me she can’t get a VA loan with less than a 720 score. Huh? These clients were ready to put an offer in on a house they really liked when the lender told them that….is there a minimum for VA/FHA or does it all depend on the look of the whole package? Also, can folks still get 100% financing? If so, what’s the score needed?
I’m guessing the lender referenced above does not have the option of offering FHA or VA loans because FHA and VA insured loans currently do not have credit score requirements. Some lenders are opting to exercise credit score minimums and/or risk based credit score pricing (720 would be a very high standard). For example, a memo I received last week from a lender stated that that for FHA/VA loans with a mid-credit score below 585 pricing will increase from 0.50 - 0.75 in fee. Brokers looking to protect themselves from buying back loans, may decide to use credit score limits and are implementing maximum debt to income ratios regardless of what the response is from automated underwriting (the computer). Before you start shreeking about how people with credit scores below 585 should not have a mortgage, please keep in mind that the borrower needa to have clean credit for the past 12 months in order to qualify for FHA or VA financing and I’m certain their file will reviewed with a fine tooth comb.
On a side note, since we’re talking government loans, VA loans are no longer restricted by conforming loan limits. New loan limits vary from lender to lender. The highest VA loan limit I’ve seen from the lenders that I work with is a cool million.
Folks can still get 100% financing and they don’t have to utilize a VA loan. Freddie Mac offers Home Possible and Fannie Mae offers MyCommunity and Flex with LTVs up to 100% of the sales price. These programs provide financing with credit scores as low as 575. With a Fannie Mae Flex 100, the rate is around 1-1.5% higher than what I quote for a 30 year fix plus private mortgage insurance (pmi). This is not a bad deal however the higher the ltv and lower your credit score is, the more expensive pmi is.
“A Minus” pmi is pricey! With a 575 credit score (assuming the loan is approved) the pmi rate is 2.57% of the loan amount (divide by 12 months to determine the monthly premium) as compared to a 620 score which would provide you a rate of 1.42% or a 680 mid score at 0.96%.
Here are some payment examples based on a purchase price and loan amount of $400,000 (this is not intended as a rate quote) utilizing a 30 year fixed Fannie Mae Flex with Borrower Paid PMI:
575 Mid Score Borrower: p&i @ 6.75% = $2594.39 plus pmi @ 2.57% = $856.67. Total payment (not including taxes and insurance) = $3,451.06.
620 Mid Score Borrower: p&i @ 6.50% = $2,528.27 plus pmi @1.42% = $473.33. Total payment (not including taxes and insurance) = $3,001.60.
680 Mid Score Borrower: p&i @ 5.875% = $2,366.15 plus pmi @ 0.96% = $320.00. Total payment (not including taxes and insurance) = $2,686.15.
The Seller can contribute up to 3% of allowable closing costs for ltv’s greater than 90%. Please keep in mind that any of these programs can have their guidelines changed (such as credit scores increased or loan to value decreased) or lenders may stop offering them in this market.
The “whole package” for a borrower is more important than ever with lenders adding guidelines to automated findings (which I can’t argue with). Even with a down payment, Fannie Mae and Freddie Mac’s Loan Level Price Adjustments will cost you if your credit score if off by one digit. It’s crucial for anyone considering buying a home (or refinancing) with credit scores under 700 to start early with a Mortgage Professional. Improving your credit scores can save you big time with your mortgage payment.
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