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. Rates are priced based on a low-mid credit score 740 or higher unless otherwise noted. This scenario includes reserves (taxes & insurance)not being waived. Rates quoted are priced based on a 45 day lock with no prepayment penalties.
Refi's are requiring a 60 day lock and therefore, a rate-term refi is approx. 0.125% higher in rate or higher in fee (points)...cash out refi's are a whole other story with Fannie/Freddie price hits.
30 Year Fixed Priced w/1 Pt: 4.875% (APR 5.030%).
15 Year Fixed Priced w/1 Pt: 4.375% (APR 4.637%).
10/1 ARM 5/2/5 CAPS w/1 Pt: 4.375% (APR 5.731%).
7/1 ARM LIBOR 5/2/5 CAPS w/1 Pt: 4.250% (APR 6.136%).
5/1 ARM LIBOR 5/2/5 CAPS w/1 Pt: 3.875% (APR 6.389%) ~ priced with 0 points: 4.125% (APR 6.393%).
Conforming High Balance. 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; specifically priced for a sales price of $625,000 and a $506,000 loan amount.
30 Year Fixed w/ 1 Pt: 5.000% (APR 5.147%).
Jumbo/Non-Conforming. I now have jumbo loans available up to 1 million. The quotes below are based on a loan amount of $650,000 with 80% loan to value and 740+ credit scores.
30 Year Fixed w/ 1 Pt: 6.125% (APR 6.369%)
7/1 ARM w/ 1 Pt: 5.750% (APR 6.862%)
5/1 ARM w/ 1 Pt: 5.125% (APR 6.849%)
FHA. Pricing based on credit score of 620 or better and loan amount of $417,000 for FHA in King, Snohomish and Pierce Counties.
30 Year Fixed @ 1 Pt: 5.000% (APR 5.841%)
FHA 203(k) Rehab - Streamline. Pricing based on credit score of 620 or better and loan amount of $417,000 for FHA in King, Snohomish and Pierce Counties.
30 Year Fixed @ 1 Pt: 5.375% (APR 6.246%)
FHA-High Balance. Pricing based on 1 discount/origination point and loan amounts from $417,001 - $567,500 for King, Snohomish and Pierce Counties with credit scores of 660 or higher.
30 Year Fixed @ 1 Pt: 5.250% (APR 6.087%).
USDA Rural Housing. 100% financing subject to income and location of home (generally available in towns of 10,000 or less in a rural area).
30 Year Fixed @ 1 Pt: 5.250% (APR 5.584%)
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: 5.000% (APR 5.118%)
Prime Rate(what HELOCs are based on): 3.250%.
Rates are as of Thursday, July 10, 2009 at 2:30 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.
We are currently averaging several rate sheets per day in this volatile market with new rate sheets being issued about every 3 hours. For your personal rate quote with or without points, please contact me.
Most rates quotes above are priced with 1 point; 1 percent of the loan amount as an origination fee reflected a majority of the time on line 801 (line 808 in the rare event the mortgage is brokered and not closed in our credit line) of the Good Faith Estimate/HUD-1 Settlement Statement. Zero points means no points are paid or reflected on lines 801, 802 (Discount Points) or 808 of the GFE/HUD.
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).
I recently received a phone call from a home buyer who was anxious because her mortgage originator had informed her that her credit score was below 720 and according to her LO, she no longer qualified for private mortgage insurance for the home she was in the process of buying.
Your credit scores are constantly changing. When your credit report is pulled, it's only a snap shot of your scores at that time. Recently, conventional lenders shortened the amount of time they will allow for a credit report to be used from 120 days to 90 days from the date the credit report was pulled. If your credit report is expiring before your transaction is closing, it may impact you for better or worse--with underwriting guidelines and/or pricing of your mortgage rate. Depending on what your loan to value is (how much home equity you have or down payment you're using) an expiring credit report with a dropping score can be detrimental to your loan approval.
Here are some steps you can take to try to make sure that your credit scores remain steady during your transaction.
Do not make changes to your credit profile including:
It's possible to do something as innocent as paying a collection on an overdue library book only to have your credit score drop.
You might consider meeting with your mortgage professional well before entering a mortgage transaction (refi or purchase) to review your credit and to see if there are actions you can take to improve your credit score.
If you find that your credit score has dropped during a transaction, take action immediately. Find out how this may impact your loan approval and/or interest rate and learn what your options are.
Mortgage Master is closing early today at 2:00 pm in observance of Independence Day. We will reopen for business as usual on Monday, July 6, 2009.
Angle Lake neighbors used to light this replica of the Statue of Liberty fondly named "The Lady of the Lake" to celebrate Independence Day...this is from many years ago...this local event has sadly since ceased. It's fun to remember.
Typically I post interest rates for home loans every Friday...but Independence Day on Saturday, the markets and many offices (including Mortgage Master) will be closed so I'm providing you this rate update a little earlier than usual. Also a day earlier than the norm is the Jobs Report, which came in worse than expected. Bad economic news typically means that mortgage rates improve as investors pull funds from stocks to seek the safety of bonds, such as mortgage backed securities. We are seeing a slight improvement in our current rates from last week.
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. Rates are priced based on a low-mid credit score 740 or higher unless otherwise noted. This scenario includes reserves (taxes & insurance)not being waived. Rates quoted are priced based on a 45 day lock with no prepayment penalties.
Refi's are requiring a 60 day lock and therefore, a rate-term refi is approx. 0.125% higher in rate or higher in fee (points)...cash out refi's are a whole other story with Fannie/Freddie price hits.
30 Year Fixed Priced w/1 Pt: 5.000% (APR 5.157%).
15 Year Fixed Priced 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 LIBOR 5/2/5 CAPS w/1 Pt: 4.500% (APR 5.885%).
5/1 ARM LIBOR 5/2/5 CAPS w/1 Pt: 3.875% (APR 6.389%) ~ priced with 0 points: 4.375% (APR 6.487%).
Conforming High Balance. 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; specifically priced for a sales price of $625,000 and a $506,000 loan amount.
30 Year Fixed w/ 1 Pt: 5.125% (APR 5.381%)
Jumbo/Non-Conforming. I now have jumbo loans available up to 1 million. The quotes below are based on a loan amount of $650,000 with 80% loan to value and 740+ credit scores.
30 Year Fixed w/ 1 Pt: 6.125% (APR 6.369%)
7/1 ARM w/ 1 Pt: 5.875% (APR 6.926%)
5/1 ARM w/ 1 Pt: 5.375% (APR 6.947%)
FHA. Pricing based on credit score of 620 or better and loan amount of $417,000 for FHA in King, Snohomish and Pierce Counties.
30 Year Fixed @ 1 Pt: 5.250% (APR 6.091%)
FHA 203(k) Rehab - Streamline. Pricing based on credit score of 620 or better and loan amount of $417,000 for FHA in King, Snohomish and Pierce Counties.
30 Year Fixed @ 1 Pt: 5.500% (APR 6.346%)
FHA-High Balance. Pricing based on 1 discount/origination point and loan amounts from $417,001 - $567,500 for King, Snohomish and Pierce Counties with credit scores of 660 or higher.
30 Year Fixed @ 1 Pt: 5.250% (APR 6.087%).
USDA Rural Housing. 100% financing subject to income and location of home (generally available in towns of 10,000 or less in a rural area).
30 Year Fixed @ 1 Pt: 5.500% (APR 5.828%)
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: 5.250% (APR 5.360%)
Prime Rate(what HELOCs are based on): 3.250%.
Rates are as of Thursday, July 2, 2009 at 1:00 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.
We are currently averaging several rate sheets per day in this volatile market with new rate sheets being issued about every 3 hours. For your personal rate quote with or without points, please contact me.
Most rates quotes above are priced with 1 point; 1 percent of the loan amount as an origination fee reflected a majority of the time on line 801 (line 808 in the rare event the mortgage is brokered and not closed in our credit line) of the Good Faith Estimate/HUD-1 Settlement Statement. Zero points means no points are paid or reflected on lines 801, 802 (Discount Points) or 808 of the GFE/HUD.
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).
Adjustable rate mortgages are becoming attractive once again for those who do not plan on retaining their mortgage beyond the fixed period or who can stomach the unknown of what exactly their rate may be once the fixed period is over.
Today I quoted the following rates for a home buyer in Seattle with a 740+ mid-credit score who is buying a home with just over 20% down payment to have a loan amount at $417,000.
30 Year Fixed: 5.125% with 1 point (APR 5.281%) Principal and interest payment of $2,270.51.
10/1 ARM: 4.625% with 1 point (APR 5.883%). Principal and interest payment of $2,143.96.
5/1 ARM: 4.125% with 1 point (APR 6.480%) Principal and interest payment of $2,020.99.
Let me begin by saying there is nothing wrong with a 30 year fixed rate in the low 5s. In fact, historically speaking, it's a great rate. What I'm most excited about is the return of the 10/1 ARM. The 10/1 ARM offers a long term at a lower rate. Based on this scenario, the monthly savings is $122.97. Over a five year term, if you put that savings into a mattress; this is a savings of $7,378.20. Use this amount to pay off non-tax preferred debt or to apply towards reducing the principal balance and it's even more beneficial.
Do factor how long you're planning on staying in your home and/or retaining the mortgage. Remember that "life happens" and should you opt for a shorter period ARM, such as the 5/1 ARM, with intentions of moving--you may find yourself dealing with an adjustment that you were not planning on. It's all about knowing what your options are, understanding your choices and the terms of the mortgage and making an informed decision.
I've recently made a few tweaks to Mortgage Porter...hopefully one's that will be beneficial! The most significant change is that Mortgage Master has changed the provider of our secure on-line loan application around mid-June. If you began a loan application prior to mid-June 2009, you may need to re-do it here (please contact me first). Note: I am only licensed to lend on homes located in Washington State.
A few of my smaller adjustments include swapping my profile photo to an introductory video (in the upper right corner) and moving up my Facebook Fan Page--if you haven't signed up as a "fan", please do! I've also redirected my url of www.rhondaporter.comto my Facebook page (this is different than my profile). You can still assess my blog, The Mortgage Porter, by www.mortgageporter.com.
I've been trying to "clean up" the look of my blog, so many links have been moved to back pages--you can assess them by the links along the top of Mortgage Porter.
Last, on my "about me" page (link found under the video in the upper right corner) there is a list of places you can find me in the "social media" world that I have recently updated. Let's connect!
Do you have any suggestions about Mortgage Porter, or if you notice anything wonky, please let me know.
Next week we have more Furlough day's with King, Snohomish, Pierce and Kitsap counties. If you have a real estate transaction closing during that time, you may want to (hug your escrow officer) click here to make sure the county is open to record your deed and/or deed of trust.
Next week is a short week in observance of Independence day. The data from the Jobs Report will be released on Thursday, July 2, 2009. Mortgage Master will be closed on Friday, July 3, 2009 along with government offices.
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. Rates are priced based on a low-mid credit score 740 or higher unless otherwise noted. This scenario includes reserves (taxes & insurance)not being waived. Rates quoted are priced based on a 45 day lock with no prepayment penalties. Most rates quotes below are priced with 1 point; 1 percent of the loan amount as an origination fee reflected a majority of the time on line 801 (line 808 in the rare event the mortgage is brokered and not closed in our credit line) of the Good Faith Estimate/HUD-1 Settlement Statement. Zero points means no points are paid or reflected on lines 801, 802 (Discount Points) or 808 of the GFE/HUD.
Refi's are requiring a 60 day lockand therefore, a rate-term refi is approx. 0.125% higher in rate or higher in fee (points)...cash out refi's are a whole other story with Fannie/Freddie price hits.
We are currently averaging 4-5 rate sheets per day in this volatile market with new rate sheets being issued about every 4 hours. For your personal rate quote with or without points, please contact me.
30 Year Fixed Priced w/1 Pt: 5.125% (APR 5.283%).
15 Year Fixed Priced w/1 Pt: 4.500% (APR 4.764%).
10/1 ARM 5/2/5 CAPS w/1 Pt: 4.625% (APR 5.885%).
7/1 ARM LIBOR 5/2/5 CAPS w/1 Pt: 4.500% (APR 5.885%).
5/1 ARM LIBOR 5/2/5 CAPS w/1 Pt: 4.125% (APR 6.483%) ~ priced with 0 points: 4.625% (APR 6.582%).
Conforming High Balance. Pricing is based on the same criteria above (including zero points) except where the loan amount is $417,001 - $567,500for properties in King, Snohomish or Pierce Counties; specifically priced for a sales price of $625,000 and a $506,000 loan amount.
30 Year Fixed w/ 1 Pt: 5.250% (APR 5.399%)
Jumbo/Non-Conforming. I now have jumbo loans available up to 1 million. The quotes below are based on a loan amount of $650,000 with 80% loan to value and 740+ credit scores.
30 Year Fixed w/ 1 Pt: 6.125% (APR 6.369%)
7/1 ARM w/ 1 Pt: 5.875% (APR 6.926%)
5/1 ARM w/ 1 Pt: 5.375% (APR 6.947%)
FHA. Pricing based on credit score of 620 or better and loan amount of $417,000 for FHA in King, Snohomish and Pierce Counties.
30 Year Fixed @ 1 Pt: 5.375% (APR 6.221%)
FHA 203(k) Rehab - Streamline. Pricing based on credit score of 620 or better and loan amount of $417,000 for FHA in King, Snohomish and Pierce Counties.
30 Year Fixed @ 1 Pt: 5.500% (APR 6.346%)
FHA-High Balance. Pricing based on 1 discount/origination point and loan amounts from $417,001 - $567,500 for King, Snohomish and Pierce Counties.
30 Year Fixed @ 1 Pt: 5.500% (APR 6.342%).
USDA Rural Housing. 100% financing subject to income and location of home (generally available in towns of 10,000 or less in a rural area).
30 Year Fixed @ 1 Pt: 5.500% (APR 5.828%)
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: 5.500% (APR 5.612%)
Prime Rate(what HELOCs are based on): 3.250%.
Rates are as of Friday, June 26, 2009 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.
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).
Aubrey Cohen of the Seattle PI wrote an article interviewing several mortgage professionals about HVCC and how it's impacting local real estate transactions, including me. From the article:
But even Porter had one transaction held up for more than two weeks because of a [a bank's] appraisal management company review, jeopardizing the transaction's interest-rate lock.
"It's creating havoc for people who are trying to sell their homes and not allowing some homeowners to refinance at lower rates (possibly preventing a future foreclosure)," Porter wrote in an e-mail.
Mortgage Master is a Correspondent Lender and HVCC allows correspondent lenders to create their own appraisal department as long as it meets HVCC's criteria. I, as a mortgage originator, cannot have any say in selecting who the appraiser will be and I do not know who the appraiser will be on my transactions until I receive the appraisal. Appraisals are ordered by a separate department that is removed from origination or production.
What happened in the situation referenced above had to do with an appraisal that was ordered prior to HVCC's effective date. The bank the mortgage is being sold to required a field review by their AMC (even though the home came in at a slightly higher value than what we needed for the transaction). The AMC's value actually came in slightly higher than what our appraisal did--costing my client $250 in field review fees, delaying the transaction by a couple weeks and creating anxiety over a lock potentially expiring.
HVCC is hampering home values. Everyone should care about this issue and contact their representatives in Congress today...especially if you're considering buying, selling or refinancing your home. If home's in your neighborhood are appraising and selling for less due to bad appraisals, it impacts your home's appraised value--your neighbor's homes may become the sales comparables that your appraiser will have to rely on to arrive at a value of your home.
If you have transactions scheduled for closings in these counties on the dates below, please contact your real estate professional.
July 1, 2009 - Snohomish County closes early at 3:30 pm. [updated 6/30/2009]
July 2, 2009 ~ Snohomish County's Recorder's Office is closed.
July 3, 2009 ~ King, Pierce and Snohomish Counties recorder's office will be closed in observance of Independence Day.
July 6, 2009 ~ King County's Recorder's Office will be closed.
Closing in the first week of July are really going to be pinched on time in Snohomish and King Counties due to the combined furlough and holiday closure.
This means you need to be extra sweet to your funders and escrow officers before and after a furlough day...missing that extra day to record a transaction is enough to cause a few furrowed brows!
Don't forget, Kitsap County's Recorder's office is closed every Friday for the remainder of the year!
Me with my Dad. Check out the encyclopedias tucked away in the corner.