This week is loaded with scheduled economic data that may influence mortgage rates ending with the big daddy: The Jobs Report. Remember, good news that causes the stock market to rally may cause mortgage rates to deteriorate and the reverse may be true. This is because investors will trade the safety of bonds for stocks and vice versa. Signs of inflation may also drive mortgage rates higher. Here's whats on deck for this week:
Monday, January 30: PCE (Personal Consumption Expenditure)
Tuesday, January 31: ECI (Employment Cost Index), Chicago PMI and Consumer Confidence
Wednesday, February 1: ADP National Employment Report and ISM Index
Thursday, February 2: Initial Jobless Claims and Productivity
Friday, February 3: THE JOBS REPORT and ISM Services Index
As I write this portion of my post (8:35 am) the DOW is down about 78 with concerns of Greece impacting the markets again.
FHA misc: the difference in rate between a 700-719 mid-credit score and 720 or higher is 0.25% in fee.
To see if a condo is currently approved for FHA financing, use HUD's site and enter the city and zip code and look for your condo's name/phase. Sometimes entering too much info may not produce the results you're looking for.
The difference between a townhome and a condo (or townhome legally described as a condo) is 0.75% in fee if you're using conventional financing with a mortgage term longer than 15 years and loan to value over 75%. If you are considering buying a condo, the property and association will need to meet lender guidelines - this process is easier with a Homepath property.
11:00 am quoting scenarios for a townhome in Seattle (non-condo) based on a sales price of $200,000 for an investor using a 30 year fixed rate with credit scores of 740 or higher. With an investment property, the seller can contribute up to 2% of the sales price towards closing cost.
- 4.875% for a Fannie Mae Homepath with no appraisal and no pmi and 10% down payment (apr 5.064). P&I is $952.57 with $4170 in closing cost.
- 4.125% for a Fannie Mae Homepath with no appraisal and 20% down payment (apr 4.324). P&I is 775.44 with $4170 in closing cost OR 4.500% with p&i of $810.70 and closing cost of $1960 (apr 4.608).
- 4.125% for a Fannie Mae Homepath with no appraisal and 25% down payment with a p&i of $726.97 and closing cost of $2800 (apr 4.258).
Same scenario as above except the townhome is not eligible for Fannie Mae Homepath financing (not a Fannie Mae foreclosure). Minimum down payment required for an investment property is 20% and an appraisal will be required.
- 4.500% with 20% down payment and p&i of $810.70 and closing cost of $5120 (4.758).
- 4.125% with 25% down payment and p&i of $725.97 and closing cost of $3820 (apr 4.317).
11:50 DOW is down 21.68.
Quoting 4.250% for Home Affordable Refi - Fannie Mae DU Plus in Renton with a loan amount of $401,000 subordinating a second mortgage with loan to values of 81/106. P&I is $1972.69 (apr 4.330).
12:10 pm: Quoting 4.250% for a cash-out refinance in Seattle (apr 4.325). Loan amount is $318,750 with a loan to value estimated at 75%. Principal and interest of $1568.06 and closing cost of $3046. Credit score estimated at 700 - 719.
Speaking of cash-out refinances, did you hear that Bank of America is reported as no longer offering cash-out refinances? We offer cash-out refinances at Mortgage Master Service Corporation.
Rates change constantly. If you would like a mortgage rate quote for your home located anywhere in Washington, click here.
