Now is a good time to work with a Mortgage Professional who has access to various banks, such as a Correspondent Lender or Mortgage Broker, instead of a large mortgage bank. Why? Conforming risked based pricing is all ready being factored by some (but not all) lenders. If you go to a bank who is all ready factoring in this price adjustment, then your rate may be too high. As I price out rates this morning, reviewing all of lending resources we work with at Mortgage Master, I can see a great differences in rates. This gap will narrow the closer we near October 1, 2009 (the effective date for the price adjustment on loans purchased by Fannie Mae). However at this moment, some lenders are and some are not factoring in this price hit. Going to a mortgage-bank which only has one set of rates (theirs) will limit your choices. Correspondent lenders and mortgage brokers have the ability to shop various banks for you.
If you're a long time reader of my blog, you know I'm opposed to selecting your Mortgage Professional by rate. At this time, there is a difference. I recommend working with a correspondent lender over a mortgage broker...click here to learn why.
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 no origination or discount points (for your personal rate quote with or without points, please contact me) and there are no prepayment penalties on any of the rates quoted below.
30 Year Fixed @ 0 Pts: 6.625% (APR 6.566) ~ Priced w/1 Pt: 6.375% (APR 6.535.%).
30 Year Fixed with 10 Year Interest Only @ 0 Pts: 6.750% (APR 6.686%) ~ Priced w/1 Pt: 6.500% (APR 6.648%).
15 Year Fixed @ 0 Pts: 6.125% (APR 6.201%) ~ Priced w/1 Pt: 5.875% (APR 6.135%).
5/1 ARM - LIBOR @ 0 Points: 6.250% (APR 7.203%). Priced w/1 Point: 5.875% (APR 7.150%).
Conforming-Jumbo Rates. Pricing is based on the same criteria above (including zero points) 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 @ 0 Pt: 6.625% (APR 6.686%) ~ Priced w/1 Pt: 6.375% (APR 6.531%).
30 Year Fixed with 10 Year Interest Only @ 0 Pts: 7.000% (APR 7.058%) ~ Priced w/1 Pt: 6.750% (APR 6.896%).
5/1 ARM - LIBOR @ 0 Pt: 6.875% (APR 7.453%) ~ Priced at 1 Pt: 6.125% (APR 7.243%).
JUMBO (Non-Conforming) Rates. Pricing is based on the same criteria above (zero points), 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 @ 0 Pt: 8.125% (APR 8.188%).
30 Year Fixed @ 1 Pt: 7.750% (APR 7.916%).
FHA. Pricing based on credit score of 620 or better and loan amount of $362,790 for FHA in King, Snohomish and Pierce Counties with 1 discount/origination point.
30 Year Fixed @ 1 Pt: 6.500% (APR 7.287%).
FHA-Jumbo. Pricing based on 1 discount/origination point and 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 @ 1 Pt: 6.500% (APR 7.283%).
VA. Pricing based on credit scores of 620 or better based on loan amount of $417,000. For VA loan amounts over $417,000, please contact me.
30 Year Fixed @ 1 Pt: 6.500% (APR 6.824%).
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, August 15, 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.
Mortgage rates continue to be very volatile. Stay tuned with what's going on in the market by subscribing to Mortgage Porter (upper left corner) and Mortgage Porter Twitter for live rate updates (click Follow).
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