Happy New Year! This year should continue to be very interesting for those of us in the mortgage industry and those of you who are considering obtaining a mortgage to purchase or refinance your home. Effective immediately, we have HUD's long anticipated Good Faith Estimate packed with plenty of RESPA reform. As a consumer, you'll notice a difference with how a mortgage professional can provide you a rate quote and the application process...reform does not mean "streamlined" by any stretch of the imagination. HUD is allowing mortgage originators a couple of months to get used to this new form...even though I've been studying it for months I can't say I'm looking forward to using it (except for using the new GFE means that I'm originating mortgage...which is what I'm here to do).
Here is a sampling of th economic data being released this week which can impact bonds, such as mortgage backed securities:
Monday, January 4: ISM Index
Tuesday, January 5: Pending Home Sales
Thursday, January 7: Initial Jobless Claims.
Friday, January 8: The Jobs Report
This is just a real short list of some of the potential scheduled reports which can move mortgage rates. Simple day to day activities with the stock market can also impact mortgage interest rates.
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 mid-low credit score of 740 or higher, "full doc" purchase with a sales price of $500,000 and a loan amount of $400,000 single family dwelling (non condo). This scenario includes reserves (taxes & insurance) not being waived. Rates quoted are priced based on a 30-40 day closing with no prepayment penalties on any of the rates quoted below.
30 Year Fixed w/1 Point*: 4.875% (APR 5.030%).
15 Year Fixed w/1 Pt: 4.375% (APR 4.637%).
10/1 ARM 5/2/5 CAPS w/1 Pt: 4.625% (APR 5.885%).
7/1 ARM 5/2/5 CAPS w/1 Pt: 4.250% (APR 6.136%).
5/1 ARM 5/2/5 CAPS with 1 Point: 3.750% (APR 6.344%).
Conforming High Balance 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 $625,000 and a $500,000 loan amount.
30 Year Fixed @ 1 Pt: 5.125% (APR 5.274%).
Jumbo/Non-Conforming. Loan amounts up to 1 million for ARMs and 1.5 million for the 30 year fixed. The quotes below are based on 740 or higher credit scores with 80% loan to value with a loan amount of $650,000.
30 Year Fixed at 1 point: 5.875% (APR 6.026%).
7/1 ARM 5/2/5 CAPS @ 1 Pt: 5.250% (APR 6.609%).
5/1 ARM 5/2/5 CAPS @ 1 Pt: 4.750% (APR 6.706%).
FHA. Pricing based on credit score of 660 or better and loan amounts up to $417,000 for FHA in King, Snohomish and Pierce Counties. (Mid-credit scores 620-659 has a 0.25% hit to pricing).
30 Year Fixed @ 1 Pt: 5.000% (APR 5.671%).
FHA-Jumbo/High Balance. Pricing based on loan amounts from $417,001 - $567,500 for King, Snohomish and Pierce Counties with a 660 or higher mid-credit score.
30 Year Fixed @ 1 Pt: 5.125% (APR 5.761%).
VA. Pricing based on credit scores of 620 or better based on loan amounts up to $417,000. VA loan amounts over $417,000 are also available.
30 Year Fixed w/1 Pt: 5.125% (APR 5.424%).
USDA Rural Housing. 100% financing with income limits and properties must be located within a specific area (this program is generally available in rural towns with populations of 10,000 or less). For eligibility, click here. Priced with 60 day lock.
30 Year Fixed w/1 Pt: 5.250% (APR 5.568%).
Prime Rate (what HELOCs are based on): 3.25%
This is just a small sample available of rates and products. This is not a guarantee nor is it a commitment of interest rate. New rate sheets are currently issued around every 4 hours.
*For purposes of this post: "1 point" is 1% of the loan amount and would be reflected in line 801 or 808 (depending on whether the loan is brokered or not). Unless the rate is bought down; there are zero discount points referenced which would be reflected on line 802 of the HUD-1 Settlement Statement. Zero points means no points are paid on lines 801, 802 or 808 (this applies to all rates quoted on this post).
Rates are as of January 4, 2010 at 12:30 p.m. and may change at any time. Available programs may change at anytime as well. To see rates that I'm quoting "live" click here.
