Mortgage Rates With and Without Points

Rhonda Porter on 05 30, 2008

When I posted rates last week, I said I didn’t expect rates this low to last and sure enough, the rates I’m posting one week later are 0.25% higher.   Sometimes I hate it when I’m right!  :)    I expect rates to continue their upward trend due to inflation fears.  Today, one of the Fed’s favored indicators of inflation was released; the Core PCE and Personal Consumption Expenditures, reporting slightly better figures for April than March.  Also, don’t forget that next week is the first Friday of the month which means we will have the Jobs Report to contend with.

Just as Dustin is looking to make a few changes with RCG, I’m making a few with how I post rates.  I’m going to start posting rates priced with zero discount and/or origination fees.  Borrowers can still have their rates priced with points–in most cases, paying points may not make financial sense.   Today…I’ll post rates with and without points…but next Friday, we’ll be pointless.  ;)

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 minimum credit score of 720, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000.  This scenario includes reserves (taxes & insurance) not being waived.   Rates quoted are priced based on a 30 day lock with no prepayment penalties on any of the rates quoted below. 

30 Year Fixed @ 1 Pt:  6.000% (APR 6.157%)

30 Year Fixed @ 0 Pt:  6.250% (APR 6.313%)

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30 Year Fixed with 10 Year Interest Only @ 1 Pt:  6.250%  (APR 6.394%)

30 Year Fixed with 10 Year Interest Only @ 0 Pt:  6.500%  (APR 6.559%)

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15 Year Fixed @ 1 Pt: 5.625% (APR 5.882%)

15 Year Fixed @ 0 Pt:  5.875% (APR 5.949%)

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5/1 ARM – LIBOR @ 1 Pt:  5.250%  (APR 6.903%)

5/1 ARM – LIBOR @ 0 Pt:  5.625% (APR 6.955%)

Conforming-Jumbo 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.  (For other conforming-jumbo loan limits in Washington state, click here); specifically priced for a sales price of $650,000 and a $520,000 loan amount.

30 Year Fixed @ 1 Pt: 6.125% (APR 6.275%)

30 Year Fixed @ 0 Pt:  6.375% (APR 6.431%) 

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30 Year Fixed with 10 Year Interest Only @ 1 Pt:  6.500% (APR 6.640%)

30 Year Fixed with 10 Year Interest Only @ 0 Pt:  6.875% (APR 6.947%)

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5/1 ARM @ 1 Pt:  5.250% (APR 6.893%)

5/1 ARM @ 0 Pt:  5.625% (APR 6.946%)

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).   The specific scenario used to price the rates below is a sales price of $850,000 with a loan amount of $680,000.

30 Year Fixed @ 1 Pt:  7.125% (APR 7.298%)

30 Year Fixed @ 0 Pt:  7.500% (APR 7.758%)

FHA.  Pricing based on credit score of 620 or better and loan amounts up to $362,790 for FHA in King, Snohomish and Pierce Counties with 1 point.

30 Year Fixed:  6.250% (APR 7.032%). 

FHA-Jumbo. Pricing based on loan amounts from $362,791 – $567,500 for King, Snohomish and Pierce Counties.  For other loan limits in Washington State, click here.

30 Year Fixed: 6.375% (APR 7.160%)

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.  Contact your local Mortgage Professional for more information.

30 Year Fixed:  6.375% (APR 6.700%)

Prime Rate (what HELOCs are based on):  5.000%  

This is just a small sample available of rates and products.  Rates are as of Friday, May 30, 2008 at 12:30 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.   To see live rate quotes for various scenarios, check out my Twitter page.

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 is a Licensed Loan Originator 510-LO-32047 (MLO-121324). Rhonda is also the Chairperson for the Social Media Committee for WAMP (Washington Association of Mortgage Professionals). Inman News named Rhonda one of the Top 50 Online Influencers of 2009. She was recognized in Seattle Weekly's Best of 2009 issue as the Best Twitting Mortgage Broker http://www.twitter.com/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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