Mortgage interest rates are going down…but for how long?

Rhonda Porter on 11 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 7.065%). Payment per $1000 = $5.76.

5/1 ARM 10 Year Interest Only Payments: 5.750% (APR 7.148%). 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 7.306%). Payment per $1000 = $6.16.

5/1 ARM Interest Only: 6.250% (APR 7.327%). 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.

About the Author: Rhonda Porter

Rhonda Porter began her mortgage career on April 1, 2000 at Mortgage Master Service Corporation, a family-owned correspondent lender that has been lending in the Pacific Northwest for over 30 years. Prior to mortgage, she was in title industry for 14 years where she managed an escrow branch and gained an invaluable insight to the real estate industry. Rhonda Porter has a CMPS designation and is a Licensed Loan Originator 510-LO-32047. Rhonda is also the Chairperson for the Social Media Committee for WAMP (Washington Association of Mortgage Professionals). She was recognized in Seattle Weekly's Best of 2009 issue as the Best Twitting Mortgage Broker (check at her Twitter @mortgageporter) and Sellsius 2007 Top 12 Women Real Estate Bloggers and 2007-2008 Maginficent 7 Consumer Articles. Rhonda originates mortgages for homes located in Washington State. You can reach Rhonda at rhonda@mortgageporter.com or by calling (206) 718-9488. NOTE: Rhonda Porter and Mortgage Master Service Corporation are not affiliated with any real estate brokerages.

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