Mortgage 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 ContentMortgage interest rates are going down…but for how long? November 30, 2007
The conforming 30 year fixed rate is at a 2 year low…how long will this last? No one knows for certain and this is why I always recommend locking in your rate and not floating. A week from today is the first Friday in December which means it’s also the day the Jobs Report data is released. Following this on December 11, we will see if the Fed cuts rates again; which the market is all ready betting on. The Fed cutting rates at their next meeting has all ready been priced into mortgage rates; if the Fed cuts more or less than expected; you’ll see dramatic changes to mortgage interest rates.
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). Conforming rate quote below based on owner occupied, “full doc” with minimum credit scores of 680 with an 80% loan to value or lower and a loan amount of $400,000. Rates quoted are priced based on a 45 day lock with 1 point and there are no prepayment penaltieson any of the rates quoted below.
30 Year Fixed: 5.625% (APR 5.761%). Payment per $1000 = $5.76.
30 Year Fixed with 10 Year Interest Only: 6.000% (APR 6.137%). Payment per $1000 = $5.00.
40 Year Fixed: 6.125% (APR 6.263%). Payment per $1000 = $5.59.
5/1 ARM (2/2/6 caps): 5.625% (APR 5.761%). Payment per $1000 = $5.76.
5/1 ARM 10 Year Interest Only Payments: 5.750% (APR 5.886%). Payment per $1000 = $4.79.
FHA/VA 30 Year Fixed: 6.000% (APR 6.654%). Payment per $1000 = $6.00. (not including 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: 6.750% (APR 6.901%). Payment per $1000 = $6.49.
30 Year Fixed with 10 Year Interest Only Payments: 6.875% (APR 7.026%). Payment per $1000 = $5.73.
5/1 ARM: 6.250% (APR 6.396%). Payment per $1000 = $6.16.
5/1 ARM Interest Only: 6.250% (APR 6.396%). Payment per $1000 = $5.21.
This is a small sample available of rates and products. Rates are as of Friday, November 29, 2007 at 11:45 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. For your personal rate quote or for loan amounts over $650,000, please contact me.
Sphere: Related ContentMortgage Rates for Black Friday November 23, 2007
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). Conforming rate quote below based on owner occupied, “full doc” with minimum credit scores of 680 with an 80% loan to value or lower and a loan amount of $400,000. 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: 5.875% (APR 6.011%). Payment per $1000 = $5.92.
30 Year Fixed with 10 Year Interest Only: 6.250% (APR 6.386%). Payment per $1000 = $5.10.
40 Year Fixed: 6.375% (APR 6.517%). Payment per $1000 = $5.77.
5/1 ARM (2/2/6 caps): 5.625% (APR 5.761%). Payment per $1000 = $5.76.
5/1 ARM 10 Year Interest Only Payments: 5.750% (APR 5.886%). Payment per $1000 = $4.79.
FHA/VA 30 Year Fixed: 6.125% (APR 6.779%). Payment per $1000 = $6.08. (not including 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: 6.750% (APR 6.901%). Payment per $1000 = $6.49.
30 Year Fixed with 10 Year Interest Only Payments: 6.875% (APR 7.026%). Payment per $1000 = $5.73.
5/1 ARM: 6.250% (APR 6.396%). Payment per $1000 = $6.16.
5/1 ARM Interest Only: 6.250% (APR 6.396%). Payment per $1000 = $5.21.
This is just a small sample available of rates and products. Rates are as of Friday, November 23, 2007 at 9:00 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. For your personal rate quote or for loan amounts over $650,000, please contact me.
Sphere: Related ContentRain City Rates: 30 Year Under 6 and Jumbo 30 improved by 0.5% since last Friday! October 19, 2007
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). Conforming rate quote below based on owner occupied, “full doc” with minimum credit scores of 680 with an 80% loan to value or lower and a loan amount of $400,000. 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: 5.875% (APR 6.011%). Payment per $1000 = $5.92. (improved 0.25%).
30 Year Fixed with 10 Year Interest Only: 6.125% (APR 6.263%). Payment per $1000 = $5.10. (improved 0.25%).
40 Year Fixed: 6.375% (APR 6.517%). Payment per $1000 = $5.77. (improved 0.125%).
5/1 ARM (2/2/6 caps): 5.500% (APR 5.633%). Payment per $1000 = $5.68. (improved 0.25%).
5/1 ARM 10 Year Interest Only Payments: 5.625% (APR 5.759%). Payment per $1000 = $4.69. (improved 0.25%).
FHA/VA 30 Year Fixed: 6.375% (APR 7.020%). Payment per $1000 = $6.24. (not including MI for FHA). (improved 0.125%).
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 6.669%). Payment per $1000 = $6.32. (improved 0.5%)!
30 Year Fixed with 10 Year Interest Only Payments: 6.625% (APR 7.779%). Payment per $1000 = $5.52. (improved 0.5%)
5/1 ARM: 6.250% (APR 6.389%). Payment per $1000 = $6.16. (improved 0.375%).
5/1 ARM Interest Only: 6.250% (APR 6.389). Payment per $1000 = $5.21. (improved 0.375%).
This is just a small sample available of rates and products. Rates are as of Friday, October 19, 2007 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 ContentMortgage rates slightly up following a strong Jobs Report October 5, 2007
This morning’s positive Jobs Report came in higher than expected with 110,000 new jobs. Somebody at the Labor Department needs a new calculator because August’s Jobs Report was increased by 93,000 from minus 4,000 to 89,000. All of this good news can be bad news for bonds, which mortgage rates are based on. The bond market will be closed on October 8, 2007 in observance of Columbus Day (stock market remains open). It’s hit or miss if your bank or mortgage company will be open for biz on Monday. Loans will not be funding (the Fed is closed), but recordings can still take place (the County is open). Rates are slightly up from 8:00 a.m. this morning due to the positive Jobs Report.
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). Conforming rate quote below based on owner occupied, “full doc” with minimum credit scores of 680 with an 80% loan to value or lower and a loan amount of $400,000. 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: 6.250% (APR 6.401%). Payment per $1000 = $6.16.
30 Year Fixed with 10 Year Interest Only: 6.375% (APR 6.527%). Payment per $1000 = $5.31.
40 Year Fixed: 6.500% (APR 6.641%). Payment per $1000 = $5.85.
5/1 ARM (2/2/6 caps): 5.875% (APR 6.%). Payment per $1000 = $5.92.
5/1 ARM 10 Year Interest Only Payments: 6.000% (APR 6.2%). Payment per $1000 = $5.00.
FHA/VA 30 Year Fixed: 6.500% (APR 7.119%). Payment per $1000 = $6.32 (not including 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: 7.125% (APR 7.284%). Payment per $1000 = $6.74.
30 Year Fixed with interest only: 7.125% (APR 7.284%). Payment per $1000 = $5.94.
5/1 ARM: 6.625% (APR 6.779). Payment per $1000 = $6.40.
5/1 ARM Interest Only: 6.625% (APR 6.782). Payment per $1000 = $5.52.
This is just a small sample available of rates and products. Rates are as of Friday, October 5, 2007 at 10:00 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. For your personal rate quote or for loan amounts over $650,000, please contact me.
Sphere: Related ContentReserves and Prepaids on the Good Faith Estimate May 22, 2007
Sandy asked a series of great questions regarding her good faith estimate that she’s received for the financing of a home she’s going to purchase. I should have answered all 7 questions in a post…I got down to the last question and here I am!
“Typically do the pre-paid items involve a) interest for 3 days b) real estate taxes for 5 months c) hazard insurance premium d) hazard insurance for 2 months? Does this sound right?”
a) If a Loan Originator does not have a closing date, they typically use 15 days for interest under the prepaid section of the Good Faith Estimate (GFE). This is prorated interest based on the day the new mortgage (Deed of Trust) is recorded. Some LOs might use less days to make their closing cost appear lower in the “bottom line” to the borrower. However, if the Loan Originator knows that you’re closing at the end of a month, then using 3 days interest on the GFE is fine. I would rather show a couple extra days so that the borrower is prepared to bring in a little extra cash at closing than the opposite.
b) The number of months of property taxes collected for impounds depends on when the first mortgage payment will be due. If your LO is telling you that 5 months are due for prepaids, this probably means that your mortgage is closing in July with a first payment due on September 1. Here’s an example of how many months of property taxes are collected for conventional loans.
| FIRST PAYMENT DUE | RESERVE AMOUNT REQUIRED |
| JANUARY | 3 MONTHS |
| FEBRUARY | 4 MONTHS |
| MARCH | 5 MONTHS |
| APRIL | PAY 1ST HALF, RESERVE 1 MONTH |
| MAY | PAY 1ST HALF, RESERVE 1 MONTH |
| JUNE | 2 MONTHS |
| JULY | 3 MONTHS |
| AUGUST | 4 MONTHS |
| SEPTEMBER | 5 MONTHS |
| OCTOBER | PAY 2ND HALF, RESERVE 1 MONTH |
| NOVEMBER | PAY 2ND HALF, RESERVE 1 MONTH |
| DECEMBER | 2 MONTHS |
c) and d) If you’re having taxes and insurance collected in your mortgage payment, one year of your insurance premium plus 2 months is collected for the prepaids/reserve account for a purchase. This varies when you have a refinance depending on when your next premium is due.
You may to opt to pay your taxes and insurance separate and not have a reserve account. To waive your reserve account, there is a fee of 0.25% which is either charged to the borrower or the Loan Originator factors it into the rate. Unless you’re going to invest the funds that are going towards starting the reserve account, investing the monthly tax amount and making a gain over the 0.25% fee, you may want to just allow the lender to collect the taxes and insurance in your payment. It is your choice if you’re putting 20% or more down towards your next home (or if you’re refinancing and you have 20% or more equity).
Sounds right, Sandy! ;)
Sphere: Related Content
Why Selecting a Lender by Rate Alone is Not in Your Best Interest March 11, 2007
When Ardell suggested that I post rates on Friday, I was a bit reluctant to do so. Why? Because it promotes rate shopping and I don’t believe that is the best way for consumers to select the professional who will be advising them on one of the largest financial transactions they will make in their lifetime. But I must admit, the posts have created a lot of very interesting comments and kudos to Ardell for putting me on the spot to post rates.
Recently, one of RCG’s frequent readers added a comment on Mortgage Rates for Friday Morning that brings home why you should not shop mortgage professionals by rates and that you should select your mortgage professional by referrals instead:
I got a GFE from a broker recommended to me by my boss. She was smart and knowledgeable, but not particularly personable.
I also got one from a guy who worked with my Realtor who called himself a Home Mortgage Consultant (with BIG BANK Mortgage). Personable, but not that sharp.
I also called a few other brokers off the net and paper - straight APR shopping.
The first broker, the one recommended, had the best rate. Because I liked my Realtor, I gave the (Bank) guy a shot to match her rate, which he did.
He made numerous mistakes, and I was forced to go over my docs repeatedly with a fine tooth comb to make sure they were correct.
In retrospect I should have gone with the recommended broker, though perhaps not, given that she was angry with me and showed it.
In the end, however, I am going to go with the reputable person who gives me the lowest rate in an apples-to-apples comparison. A quarter point could mean 10s of thousands of dollars over the life of a loan. That’s going to trump loyalty every time, and you are fooling yourself if you think otherwise.
There are many issues with shopping lenders by rate:
- You must shop all of the lenders at the same time on the same day. There can be several price changes throughout a day. You cannot compare apples to apples if 5 minutes after you receive one quote, you call the next lender and rates have changed up or down. Brian Brady did an excellent post: You’ll Never Get the Lowest Rate.
- Unless you’re prepared to lock in the rate the moment you’re dialing for dollars, the rate that is being quoted to you may very well not be the rate you receive when you decide to lock. If it’s not a confirmed locked in rate, you don’t have it. It’s a quote, not a guarantee.
- The lender who is “quoting” (remember it’s not locked yet) the lowest rate, may not be the most qualified professional to advise you on your mortgage and to see the transactions closes smoothly.
This method is also flawed because of the loan originator who is providing the rate quote. Unless the person is referred to you by someone you all ready know and trust, you really have no idea who the person providing your mortgage is.
- Are they knowledgeable?
- Do they have ethics?
- Do they work for a company who can provide the programs and resources you need for your transaction?
- Are they dedicated?
- Are they going to gamble with your rate?
You cannot measure a lender’s qualities by a low rate quote over the phone (or internet). And the interest rate is just one (albeit important) piece of your mortgage. You will also be spending around 30 days with the loan originator during the transaction.
Ardell asks the reader, “Why was she (the mortgage broker he did not select) angry?”
Because she spent time educating me, running numbers, preparing 3 GFEs, gave me the best rate, and I didn’t go with her.
Her final response was “Why would you go with someone who didn’t quote you the best rate initially, but only after you asked for it?”
I didn’t have a response to that. She was right.
If you are working with someone who has been referred to you (I recommend interviewing three referrals from three different sources), then you should wind up with the best of both worlds—a mortgage professional who is equipped to care for your mortgage needs with the best product suited for you along with the most competitive rate.
Sphere: Related ContentPuget Sound’s Market Conditions Update January 11, 2007
Every New Year, my husband’s family makes a trip to Ocean Shores with most of his brothers and sisters and nieces and nephews. It is a tradition that we look forward to which includes as much bowl games you can cram into a weekend, razor clamming, go karts and I get to read the newspaper from front to back while everyone else in our hotel room is still sleeping.
To my delight in the Dec. 30, 2006 issue of The Seattle Times, there is an article forecasting the local 2007 real estate market called “Looking ahead: The sky isn’t falling for the Puget Sound market”. In a nutshell, the article states that there is still “good job growth and in-migration in our region and that our limited land availability, means we’re likely protected from a drop off in home values in the near future.
In addition, Seattle and Bellevue area homes are anticipated to appreciate about 10% this year with farther out areas having around a 7% appreciation “because there’s intrinsically a value to our time.” I guess you’ll have something to smile about the next time you’re stuck in traffic if you’re commuting from Seattle or Bellevue!
Other predictions from the article are that mortgage interest rates should stay stable and, barring any wild-card impacts such as terrorist attacks, should remain below 7%. This is point seems to be supported by others the industry, including Barry Habib, of Mortgage Market Guide and who often makes appearances on CNBC. Barry predicts “for 2007, we actually see interest rates slightly lower, within a range of 5.75% and 6.75%, with a sweet spot between 6.00% and 6.375%.”
Rental rates are also expected to increase, which will aid in keeping local housing values strong.
All of this really puts a burden on first time home buyers. “Only 40 percent of people in this category can afford a single-family starter home in King County, and only about half can in Pierce and Snohomish counties.” In my opinion, first time home buyers need to lower their expectations for what they are considering buying. Many of the FTHB’s I know are buying (or trying to) MUCH nicer homes than I first did.
If current conditions hold up, 2007 will be another strong year in our local housing market.
Sphere: Related ContentInterest Rates are Down August 16, 2006
I’ve been working on listings more than buyers for a bit until recently. I had two offers to write yesterday, and was surprised to see the 30 year conforming at 6.125 and the jumbo at 6.375.
My perception was that interest rates were climbing, but looks like they are back down. Would love to hear from some lender types on this board with regard to what’s happening with rates. Last I heard the prediction was they are going up, up and up again. So I was surprised to see them so low. Anyone have any news about what’s happening with rates generally?
Sphere: Related ContentAre the rates going up or down — I’ll be watching you… June 14, 2006
For all you econ majors and those who are cringing as our new Fed Chairman adjust to his new role this is a great little paradogy from the Columbia School of Business.
Every Breath You Take
Dean Glenn Hubbard
Parody: Follies Student Comedy Revue
