Friday’s Rates

Rhonda Porter on 06 12, 2009

 Note:  I was contacted by DFI earlier this week regarding pricing my rates with “1 point”.   For clarification, unless otherwise noted, when I say the rate is priced with 1 point, I’m disclosing the 1 point (one percent of the loan amount) on line 801 since odds are, I am not brokering the mortgage.  (I work for a correspondent lender and I tend not to broker if possible.   Right now, I am brokering my first mortgage since August 2007).   In the rare event the loan is brokered, the 1 point would be reflected on line 808 of the Good Faith Estimate.   With my rate quotes below there are zero discount points (which would be shown on line 802).

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 740 or higher, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000 single family dwelling (non condo).  This scenario includes reserves (taxes & insurance) not being waived.   Rates quoted are priced based on a 30-40 day closing with no prepayment penalties on any of the rates quoted below.  

30 Year Fixed @ 1 Pt: 5.250% (APR 5.397%).    Same rate posted  last week (the rate has been higher over this week so this is actually an improved rate).  If there are no arrows indicated a change to rate, then the rate “happens” to be the same as what I posted here last week.  

15 Year Fixed @ 1 Pt: 4.750%  (APR 4.995%).   

7/1 ARM 5/2/5 CAPS w/1 Pt:  4.875% (APR 6.441%).  arrowdowngreen0.125% to rate.

5/1 ARM 5/2/5 CAPS with 1 Point:  4.250% (APR 6.530%) arrowdowngreen0.125% to rate. ~ Priced with 0 Points: 4.500% (APR 6.534)  arrowdowngreen0.25% to rate.

Conforming High Balance Rates. Pricing is based on the same criteria above except where the loan amount is $417,001 – $567,500for 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: 5.375% (APR 5.515%).

Jumbo/Non-Conforming.  Loan amounts up to 1 million for ARMs and 1.5 million for the 30 year fixed.  The quotes below are based on 740 or higher credit scores with 80% loan to value with a loan amount of $650,000.  30 day locks.

30 Year Fixed at 1 point: 6.125% (APR 6.268).

7/1 ARM @ 1 Pt:  6.125% (APR 7.055%). arrowupred arrowupred0.75% to rate.

5/1 ARM @ 1 Pt:  5.500% (APR 6.997%).  arrowupred0.25% 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: 5.500% (APR 6.343%).   arrowupred0.125% to rate.   

FHA-Jumbo/High Balance. Pricing based on loan amounts from $417,001 – $567,500 for King, Snohomish and Pierce Counties.

30 Year Fixed @ 1 Pt:  5.500% (APR 6.339%).  arrowupred0.125% to rate.   

FHA 203 (k) Rehab-Streamline.   Pricing criteria same as FHA above with loan amounts up to $417,000.

30 Year Fixed @ 1 Pt:  5.500% (APR 6.346%).  

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:  5.500% (APR 5.612%).  arrowupred0.125% to rate.  

USDA Rural Housing.   100% financing with income limits and properties must be located within a specific area (this program is generally available in rural towns with populations of 10,000 or less).   For eligibility, click here.

30 Year Fixed @ 1 Pt:  5.750% (APR 6.084%).   arrowupred0.25% to rate.  

Prime Rate (what HELOCs are based on):  3.25%

This is just a small sample available of rates and products.  This is not a guarantee nor is it a commitment of interest rate.    Rates are as of Friday, June 12, 2009 at 1:00 p.m. and may change at any time.  Available programs may change at anytime as well.    Check out RCG’s Mortgage Info page for live rate quotes via my Twitter feed.

About the Author: Rhonda Porter

Rhonda Porter began her mortgage career on April 1, 2000 at Mortgage Master Service Corporation #40445, 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 MLO-121324. 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. Her peers recognized her with the Washington Association of Mortgage Professionals Distinguished Service Award in 2009. Rhonda originates mortgages for homes located in Washington State. You can reach Rhonda at rhonda@mortgageporter.com or by calling (206) 718-9488. Check to see if your mortgage originator is licensed or just registered by visiting www.nmlsconsumeraccess.org. NOTE: Rhonda Porter and Mortgage Master Service Corporation are not affiliated with any real estate brokerages nor is she affilated with any advertisers or calculators displayed on this site.

3 Responses to “Friday’s Rates”

  1. Roger Ingalls
    June 12, 2009 at 2:09 pm

    Well, now we know for SURE DFI reads your posts! :)

    It’s too bad we could not come up a with a “re-deal” when it comes to lending terminology.

    In a business that requires precision, we have two distinctly different meaning for points.

    1. A fee that goes to the lender to specifically reduce the rate below the “par rate”, which dollar amount is always affected by the loan size;

    2. A fee that MAY go to the lender, to the broker, or to the loan originator, or some combaination thereof, that is a charge for services, which MAY be affected by the loan size, if expressed as a percentage.

    Really, they should be called by different names.

    Once we get that cleared up, we can work on what “escrow” means…

    Reply
    #340489
  2. Rhonda Porter
    June 12, 2009 at 2:29 pm

    I tend to disagree with how points should be disclosed. I wish borrowers would just look at total cost shown in section 800 with their rate when comparing lenders… and even then, to shop by rate/cost could wind up costing you. One LO could quote a nice low rate with higher costs (underwriting, etc).

    I recently closed a transaction for a neighbor who, after we were locked called to say, “how come my mom just got 0.125% lower from [BIG BANK]?” Well, it’s been 45-60 days and my neighbor just called to see if I could help her mom….the LO never locked in the loan. The bank is shrugging it off saying “well she’s new and she did attend all our courses…shucks we’re sorry”. They are in the process of hiring an attorney…should be interesting to see a LO/Bank charged for not honoring a rate lock. This is in Arizona…not Washington…but I did tell my neighbor how it was in the local papers (PI, I believe) that DFI says you’re safer working with a LO who is locally regulated by DFI vs one who is not.

    Anyhow… a bit of subject but I guess my point is, folks should not select a LO by rates alone (especially if they’re not locking at that moment)…

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    #340491
  3. Carlos T
    June 14, 2009 at 8:33 am

    I wonder what one considers fair compensation for a loan officer. I’m sure some may charge 4 points on every loan. That seems way to excessive. A small loan broker, I know, in California was extremely fair to all his customers, regardless of sophistication. He always priced the loan the same no matter what. He personally made 2 points total on each deal.

    What’s a fair percentage that the LO should earn?

    Reply
    #340554

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