Mortgage rates are up about 0.125% from what I posted this morning and up a bit more than that compared to last Friday’s post as you’ll see by the red arrows. You’ll notice conventional rates increasing soon (next week) for condos and other types of transactions such as cash-out refinances, when Fannie and Freddie’s new hits are in effect. Some lenders are all ready factoring these adds. CONDO OWNERS/BUYERS: TODAY COULD BE YOUR LAST CHANCE TO AVOID THE 0.75% HIT TO FEE for LTV’s greater than 75% and amortization longer than 15 years. The 0.75% add to fee is nasty when you try to absorb it with rebate pricing–when the spread is still significant.
The bond market will be closed on Monday in honor of the Martin Luther King holiday.
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: 5.000% (APR 5.138%) 
0.25% to rate from last Friday’s rate post. Note: 30 Year Fixed @ 0 Pt: 5.625% (APR 5.678)
15 Year Fixed @ 1 Pt: 4.625% (APR 4.605%) 
0.25% to rate
Conforming 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: 5.500% (APR 5.637%) 0.325% 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: 5.375% (APR 6.050%). 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: 5.500% (APR 6.173%) 0.50% 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: 5.375% (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): 1.77125% per WSJ.
This is just a small sample available of rates and products. Rates are as of Friday, January 16, 2009 at 1:00 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 Rhonda Porter
Rhonda,
I know this changes, but based on the rate being 5.375 as stated in the post, what rate would it be with 1% origination and 1% buydown.
Also, the VA funding fee for a first time home buyer is just under 2.2%?
I am looking at the closing costs on a purchase of $375,000 being over $18,000, which seems astronomical to me. It’s showing 1 discount point and a rate of 5% and about $8,200 for the funding fee.
“CONDO OWNERS: TODAY COULD BE YOUR LAST CHANCE TO AVOID THE 0.75% HIT TO FEE for LTV’s greater than 75% and amortization longer than 15 years. The 0.75% add to fee is nasty when you try to absorb it with rebate pricing–when the spread is still significant.”
Rhonda, did you mean condo “buyers” locking in their rate? Does it apply to an FHA loan? Would it push the FHA rate on a condo purchase of $250,000 up to over 6%? Or is this conventional only?
Ardell, why don’t you email me the GFE to look at. You can see that the rate is up 0.375% over a week period (from last Friday)–so depending on when you obtained the estimate–they could almost be the same rate quote.
The funding fee is pretty significant for VA loans and depends on the type of Veteran (regular military, Reserves/National Guard, disabled), down payment, if they’ve used their benefit before.
Regular military, first time user with zero down has a funding fee of 2.15% which can be financed into the loan.
1 discount point (plus 1 origination) would bring the rate to around 5% for VA (apr 5.197) for a 30 day closing.
Ardell, with condos, this applies towards conventional financing (not FHA or VA) to buyers and those who are refinancing. YUCK!
ps: I just added “BUYERS” to clarify the post.
I emailed that, Rhonda. It’s new construction…not built yet, so I don’t know why there is a rate buydown. The lock won’t be any good by the time the house is built. As you know, I’m coming to this midstream. With new construction that will be completed in May or so…VA…there’s no way to know the rate now, is there?
is this just for King County condo buyers or is it farther afield?
Sarah, all condo’s utilizing Fannie/Freddie financing in the USA.
Ardell, that’s why GFE’s and shopping by rate are a losers game…unfortunately (re #6). Unless you’re locking a rate quote doesn’t matter as rates change constantly. I had 3 different rate sheets from most lenders today.
New construction always seems to go later than anticipated too.
It’s especially hard to price that rate without knowing if the lender was pricing it for a lock that long too–however, this should be explained to the borrower by the loan originator.
Aloha Rhonda,
Based on your recommendation, I just (this past Wednesday) applied for a purchase mortage from PenFed for our second home on Kauai. I spoke with a telephone rep a few times (mostly helpful), and applied on-line. Took less than an hour.
The particulars are: 5/5 ARM, with starting rate of 4.75% (90 day rate lock when you submit the application IF you already have a purchase agreement in place). No points and No fees, except title insurance (which is of course negotiable with the seller).
This may be normal for all lenders, but Penfed requires (and is paying for) two appraisals, since the loan amount is over $750K. You can borrow up to $2M on this 5/5 ARM, with (at least) 25% down. It adjusts every five years, but no more than 2% for each adjustment, so “worst case scenario
PatentGuy thanks for sharing. As you know I only lend in Washington State and I don’t have as competitve pricing for your loan amount (true jumbos) at this time…although I am starting to see rates come down a wee bit–it doesn’t compare to PenFed’s rate.
It’s not uncommon to have two appraisals for jumbos. (FHA now requires two appraisals for cash out refinances over 85% LTV).
And ALL lenders should give priority to purchases over refi’s, but….