Mortgage Rates — More Changes Coming Soon!
Rhonda Porter on 01 9, 2009
Mortgage rates have improved but continue to be volatile. Today’s rates are actually up about 0.125% from yesterday. Very important to note that Fannie Mae announced their revised LLPA (hit to fees with rates) will be implemented by April 1, 2009. This means that lenders will start factoring these adds any day in order to make sure their loans will be purchased from Fannie without having to absorb the price difference. Are you a condo owner? Add 0.75% in fee if you’re eyeing a 30 year fixed rate with a loan to value of 75% or higher. Although we’re benefiting in mortgage interest rates from the Fed buying MBS, they’ll really have to dump some extra dough to make up for the difference caused by Fannie’s adds to keep rates at this level.
Something else to be aware of, it can be very challenging to lock during these times. It’s not uncommon for bank websites to shut down or collapse due to the volumes of locks. Gee, I feel like Little Miss Sunshine!
Who get’s the lowest conforming rate? Those with 40% down (home equity), 740 plus credit scores with taxes and insurance included in their mortgage payment. The criteria below is not based on this type of borrower. Rates do vary when any factor is changed.
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 30 day lock with no prepayment penalties on any of the rates quoted below.
30 Year Fixed @ 1 Pt: 4.750% (APR 4.885%) 
0.125% to rate from last Friday’s rate post.
15 Year Fixed @ 1 Pt: 4.375% (APR 4.605%) 0.25% to rate
Conforming-Jumbo/High Balance Rates. Pricing is based on the same criteria above except where the loan amount is $417,001 – $506,000 for properties in King, Snohomish or Pierce Counties; specifically priced for a sales price of $625,000 and a $500,000 loan amount.
30 Year Fixed @ 1 Pt: 5.125% (APR 5.258%) 0.125% to rate
FHA. Pricing based on credit score of 620 or better and loan amounts up to $417,000 for FHA in King, Snohomish and Pierce Counties.
30 Year Fixed @ 1 Pt: 5.000% (APR 5.673%). 0.375% to rate
FHA-Jumbo/High Balance. Pricing based on loan amounts from $417,001 – $506,000 for King, Snohomish and Pierce Counties.
30 Year Fixed @ 1 Pt: 5.000% (APR 6.668%) 0.875% to rate
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: 5.000% (APR 5.107%). 0.375% to rate
Prime Rate (what HELOCs are based on): 3.25%
12 Month LIBOR (what a majority of ARMs are based on): 1.92500% per WSJ.
This is just a small sample available of rates and products. Rates are as of Friday, January 9, 2009 at 12:00 p.m. and may change at any time. Available programs may change at anytime as well. Check out RCG’s new Mortgage Info page for live rate quotes via my Twitter feed.
This is not a guarantee nor is it a commitment of interest rate.
About the Author: Rhonda Porter
- Author's website: http://www.mortgageporter.com
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11 Responses to “Mortgage Rates — More Changes Coming Soon!”
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Wow, back down to 4.75% @1pt for a 30 year. I’d be thrilled if I had a place to re-fi.
Quick question (or no so quick), can someone point me to a good summary of the process of purchasing a home in Washington? Something that includes all fees, the usual process of bids/binders/contracts, what to expect at closing, etc.?
Thanks!
Gene, I’m happy to write about the mortgage side of it, perhaps ARDELL will tackle the agent side…great idea for a series of posts…thanks!
Gene,
Here is an Anatomy of a Real Estate Transaction from the time the offer is accepted until you move in to your new house. I wrote it when I first started blogging almost three years ago. But I think it is still fairly accurate.
It starts at the end, so you read it from bottom to top. It’s color coded by who does what.
http://www.realtown.com/Ardell/blog/the-escrow-process/ardells-anatomy-of-a-real-estate-transaction
Here’s one on Closing and Keys
http://www.realtown.com/Ardell/blog/closing-and-keys
You can poke around this index for buyers for other topics
http://www.realtown.com/Ardell/blog/buying-a-home
If you give me a rounded purchase price and % down, I’ll do the Cash to Close for you as a generic post.
Here’s one I did for a specific client:
http://www.realtown.com/Ardell/blog/first-time-home-buyer/closing-costs-for-adrianna
Hope that’s helpful. Feel free to ask for more after look at that. I’d be happy to answer any questions in an additional blog post.
Is that .75% condo fee a one time fee, or an increase to the annual rate? And is that entirely new?
Kary, the 0.75% fee to condos is either worked into the rate or the condo owner can pay it as a discount fee (this scenario would be for buying or refinancing).
For example, Borrower A has a house, his rate for a 30 year fixed is 4.75% with 1 point.
Another Borrower B has a condo, his rate for for the same at 4.75% would cost 1.75% OR the 0.75% could be financed with “rebate pricing” (which has a larger spread these days) and be around 5.125-5.25% (roughly) with 1 point.
Thanks Ardell and Rhonda!
A series of posts that covers the process start to finish (even on finding an agent), from both sides of the transaction would be a fantastic resource. Even though I’ll next be in the position of a buyer, it’s good to know there are things like a real estate excise tax when I go to sell.
No pressure or anything though…!
Thanks,
Gene
Gene,
I’ll work on a post from the lender’s side.
Gene,
The seller’s costs are part of the equation for a buyer too, as those costs often influence the price you pay to the seller so that the seller can pay those costs.
Looks like Fannie’s new hits to fee may take place starting next Monday with some lenders. Condo’s will be hit especially hard @ 0.75% to fee for any LTV greater than 75% with amortization longer than 15 years. I have an example of how much this will cost condo owners here.
Looks like Chase is pulling out of wholesale lending with mortgage brokers and is just lending w/correspondent’s (thanks to Chik’s twitter post).
I’m glad I work for a correspondent–but these times are pretty scary. It is like playing “break the ice” and as a mortgage originator, you must be able to hop quickly to something more stable.
Just had a lender announce they’re implementing the new LLPA (hits to rate) fees as of this Friday. Many others are following on Monday! Condos and cash-out refi’s are impacted the most.