Rain City Guide

Mortgage Rate Update

Rhonda Porter on 11 20, 2009

Underwriting guidelines continue to get tougher.  This week FHA tightened her belts on streamline refinances and over the weekend of December 12, 2009,  Fannie Mae’s DU 8.0 will be implemented.   DU 8.0 will require:

• minimum credit score of 620 for Fannie Mae, FHA, USDA and VA loans. (except for DU Refi Plus)
• maximum debt to income ratios of 45% (some wiggle room for strong borrowers)

Next Friday, I will not be posting rates since our office will be closed November 26 and 27 for the Thanksgiving holiday.   King County will be close on Wednesday, November 25, 2009 (furlough) and reopen for business on Monday, November 30, 2009–so recorded real estate transactions will be taking a few days off as well.    Snohomish County will be closing early on Wednesday and reopen for business on Monday.  I will be posting rates Monday, November 30 at Mortgage Porter and on Friday, December 4, 2009 back here at Rain City Guide.

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: 4.500% (APR* 4.651%).    0.125% in rate as quoted on last Friday’s rate post.

15 Year Fixed @ 1 Pt: 4.125% (APR 4.384%).   Same rate as posted last Friday.

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

7/1 ARM 5/2/5 CAPS w/1 Pt:  3.625% (APR 5.899%).   Same.

5/1 ARM 5/2/5 CAPS with 1 Point: 3.250% (APR 6.159%).   0.125 in rate.

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%).    Same.

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%).   Same.

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

5/1 ARM 5/2/5 CAPS @ 1 Pt: 4.500% (APR 6.605%).   0.125% in 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.   The scenario below is based on a sales price of $400,000 with 3.5% down payment.

30 Year Fixed @ 1 Pt: 4.750% (APR 5.382%).   0.125% in rate.

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%).   Same.

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: 4.750% (APR 5.030%).   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 20, 2009 at 8:00 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 #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.