Rain City Guide

Friday’s Rates: Welcome Back Jumbo!

Rhonda Porter on 11 13, 2009

Jumbo’s loans are beginning to make a welcomed reappearance in the mortgage arena.   “Jumbos” are non-conforming mortgages and for King, Snohomish and Pierce Counties that means mortgages with a loan amount of $567,501 and higher for single family dwellings.   

Although the jumbo rate below shows a half point improvement–it’s not due to change in pricing in the markets, it’s because of a lender coming back to the non-conforming market.  Bottom line, it’s a relief for those who have higher priced homes to sell and large mortgages to refinance.   Competition is GOOD for mortgage rates (this is an example of why you really don’t want only a few banks to select your mortgage from and you NEED mortgage brokers and correspondent lenders).

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 Point: 4.625% (APR* 4.777%).    0.125% in rate as quoted on last Friday’s rate post.

15 Year Fixed @ 1 Pt: 4.125% (APR 4.384%).    0.125% in rate

10/1 ARM** 5/2/5 CAPS w/1 Pt: 4.000% (APR 5.504%).    0.125% in rate

7/1 ARM 5/2/5 CAPS w/1 Pt:  3.750% (APR 5.899%).   Same.

5/1 ARM 5/2/5 CAPS with 1 Point: 3.375% (APR 6.205%).   Same.

Conforming High Balance 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 $625,000 and a $500,000 loan amount.  

30 Year Fixed @ 1 Pt: 4.750% (APR 4.894%).     0.125% in rate

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 $700,000.

30 Year Fixed at 1 point: 5.625% (APR 5.768%).   0.500% in rate

7/1 ARM 5/2/5 CAPS @ 1 Pt: 5.000% (APR 6.483%).  0.250% in rate

5/1 ARM 5/2/5 CAPS @ 1 Pt: 4.625% (APR 6.654%).  Same.

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.   The scenario below is based on a sales price of $400,000 with 3.5% down payment.

30 Year Fixed @ 1 Pt: 4.875% (APR 5.515%).  Same.

FHA-Jumbo/High Balance. Pricing based on loan amounts from $417,001 – $567,500 for King, Snohomish and Pierce Counties with a 660 or higher mid-credit score.   This scenario is based on a sales price of $585,000 with 5% down payment.

30 Year Fixed @ 1 Pt: 4.875% (APR 5.461%).    0.125% in rate

FHA 203(k) Streamline:   NOTE:  FHA 203k’s are taking the lender forever to disburse funds after closing with the lender we work with.  This product is not for the faint of heart.    Please call for a rate quote.

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.  Based on a sales price of $400,000 with 0 down payment.

30 Year Fixed @ 1 Pt: 4.875% (APR 5.185%).   Same.

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.   60 day lock is quoted as USDA is a longer transaction to close.   This scenario is based on $400,000 with 0 down payment.

30 Year Fixed @ 1 Pt: 5.000% (APR 5.312%).  Same.

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 November 13, 2009 at 10:00 a.m. and may change at any time. Available programs may change at anytime as well. To see rates that I’m quoting “live” click here.

For purposes of this post: “1 point” is 1% of the loan amount and would be reflected in line 801 or 808 (depending on whether the loan is brokered or not). Unless the rate is bought down; there are zero discount points referenced which would be reflected on line 802 of the GFE/HUD-1 Settlement Statement. Zero points means no points are paid on lines 801, 802 or 808 (this applies to all rates quoted on this post).

*APR = Annual Percentage Rate

**ARM = Adjustable Rate Mortgage.   With adjustable rate mortgages, your rate may increase after the initial fixed period is over.

NOTE: Rhonda Porter and Mortgage Master Service Corporation are not affiliated with any real estate brokerages.

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 is a Licensed Loan Originator 510-LO-32047 (MLO-121324). Rhonda is also the Chairperson for the Social Media Committee for WAMP (Washington Association of Mortgage Professionals). 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. 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.