Rain City Guide

Rates, Rumors and Reaction

Rhonda Porter on 07 11, 2008

This morning began with rumors of a possible Government take over of Fannie and Freddie which caused the GSEs stocks to further tumble.  Later in the day Reuters reported that the Fed was going to open the emergency discount window to the GSE’s (Fannie/Freddie)…following that announcement, Reuters admitted that the source of this information was from a “source of a source” close to Freddie Mac.   The latest spin…is that Dow Jones is reporting that the Fed says there is no official talk between the GSEs and the Fed.

Add in the world tensions with Israel and Iran, rebel threats in Nigeria…and record oil prices–we had a very volatile day in the markets.   One lender that I work with has issued 5 different rate sheets (changes to rate) so far today losing approx. 0.50% in fee or 0.125-0.250% in conforming fixed rates since this morning.  Rates are improved over what I posted 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 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:  6.125% (APR 6.283%)

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

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

5/1 ARM – LIBOR @ 1 Pt:  5.375%  (APR 6.952%).  

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; specifically priced for a sales price of $650,000 and a $520,000 loan amount.

30 Year Fixed @ 1 Pt: 6.250% (APR 6.401%)

30 Year Fixed with 10 Year Interest Only @ 1 Pt:  6.625% (APR 6.767%).

5/1 ARM @ 1 Pt: 5.375% (APR 6.943%)

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: 7.625% (APR 7.789%)

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.

30 Year Fixed @ 1 Pt: 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 @ 1 Pt: 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 @ 1 Pt:  6.375% (APR 6.700%)

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

Sorry, I don’t have enough time today to post both rates priced both with and without points.

This is just a small sample available of rates and products.  Rates are as of Friday, July 11, 2008 at 1:30 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

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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.