Rain City Guide

Friday’s Rates are Up and Down and Up and….

Rhonda Porter on 10 24, 2008

Rates have been so volatile lately it’s insane.  On Tuesday, I was quoting 5.875% (apr 6.133); Wednesday rates dropped to 5.625% (apr 5.818) then popped back up on Thursday.  This morning I quoted 6.00% (apr 6.155) all for 30 year fixed conventional with 720-739 mid scores priced w/1 point; now it’s 0.125% higher.  I’ve seen rates bounce around a 0.5% change to rate just this week (that’s 2 points to fee).

If you are seeking a mortgage, I recommend asking your loan originator if they have the ability to renegotiate locks should rates improve (most do).   This will allow you to lock in at contract which provides you a ceiling for your rate, with the possibility of floating down to a lower rate during this turbulent market.

Next week is jam packed full of events and reports that will impact mortgage interest rates (we won’t even discuss the stock market–ouch) including a FOMC meeting.  

Also important to be aware of in early November, we are anticipating the new median home values to be released.  2009 conforming jumbo and FHA jumbo loan limits will be based off of 115% of the new values (currently the factor is 125%, HR 3221 has reduced the %).  Based on the current data, the new loan limit would be around $522,100…but we won’t know for certain until we have the data that will be used for 2009.  I’ll let you know as soon as we have it available.

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 mid-low credit score of 720-739, “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 45 day lock with no prepayment penalties on any of the rates quoted below.   

30 Year Fixed @ 1 Pt:  6.125% (APR 6.564%) unchanged since last Friday’s post.  

30 Year Fixed with 10 Year Interest Only @ 1 Pt: 7.125% (APR 7.282%) unchanged

15 Year Fixed @ 1 Pt: 5.875% (APR 6.133%) unchanged

5/1 ARM – LIBOR @ 1 Pt:  6.250%  (APR 7.301%)   0.25% to rate

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.%)  0.25% to rate from last week (up 0.25% from this morning!)

5/1 LIBOR @ 1 Pt:  6.25% (APR 7.292%)  0.125% to rate

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: 6.500% (APR 7.191%)   0.125% to rate

FHA-Jumbo. Pricing based on loan amounts from $362,791 – $567,500 for King, Snohomish and Pierce Counties.  

30 Year Fixed @ 1 Pt: 6.750% (APR 7.191%) unchanged

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.  

30 Year Fixed @ 1 Pt:  6.625% (APR 6.750%) unchanged

Non-owner occupied/Investment Property.  Pricing based on 25% down payment with a $400,000 sales price and credit scores between 720-739.

30 Year Fixed @ 1 Pt:  7.250% (APR 7.434%).  New addition to rates at Rain City Guide.

Prime Rate (what HELOCs are based on):  4.500%  unchanged.  Note: the next scheduled FOMC meeting is October 28-29, 2008. 

12 Month LIBOR (what a majority of ARMs are based on): 3.509%.   New addition to rates at RCG.

This is just a small sample available of rates and products.  Rates are as of Friday, October 24, 2008 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.

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.