Friday’s Mortgage Interest Rates

Rhonda Porter on 12 14, 2007

Earlier this week I told you about how Fannie and Freddie are increasing the cost of mortgages for anyone with credit scores under 680 using less than 30% down. This impacts A LOT of people. Since I posted that article, I have received many memos from some lenders saying that they are implementing this pricing immediately instead of waiting until March 1, 2008.

Please do use my rates as a guide to help make sure you are receiving competitive pricing. With different lenders reacting to the guidelines changes at different times, you may wind up with a higher rate because (1) that’s all your lender can provide; or (2) your Loan Originator (or their company) is making a handsome profit on the back-end of the loan if they still have the better pricing available.

Mortgage interest rates are continuing to trend upwards on the heals of the just released Consumer Price Index (CPI) showing higher than expected inflation and the Feds actions on Tuesday. Inflation is the arch enemy to bonds and the market is reacting accordingly. Conforming 30 year fixed rates are up approx. 0.375% in rate (or 1.2% in fee) from November 30’s low of 5.625%. As always, I recommend locking your mortgage interest rate if you’re closing before 60 days.

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” 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 (discount or origination; 1% of your loan amount cost the same and buys you the same rate). There are no prepayment penalties on any of the rates quoted below.

30 Year Fixed: 5.990% (APR 6.127%). Payment per $1000 = $5.99.

30 Year Fixed with 10 Year Interest Only: 6.375% (APR 6.515%). Payment per $1000 = $5.31.

40 Year Fixed: 6.500% (APR 6.641%). Payment per $1000 = $5.68. (0.125% increase)

5/1 ARM (2/2/6 caps): 5.750% (APR 7.115%). Payment per $1000 = $5.84.

5/1 ARM 10 Year Interest Only Payments: 5.875% (APR 7.195%). Payment per $1000 = $4.90.

FHA/VA 30 Year Fixed: 6.250% (APR 6.904%). Payment per $1000 = $6.16. (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 7.027%). Payment per $1000 = $5.73.

5/1 ARM: 6.375% (APR 7.355%). Payment per $1000 = $6.24.

5/1 ARM Interest Only: 6.375% (APR 7.374%). Payment per $1000 = $5.31.

This is just a small sample available of rates and products. Rates are as of Friday, December 14, 2007 at 9:00 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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