Rain City Guide

Friday’s Rates

Rhonda Porter on 02 5, 2010

Fellow Mortgage Blogger, Dan Green, does a great job on his recent interview about what to expect with mortgage rates in the near future.  I highly recommend you watch this five minute video.

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 @ 0.75% Points: 4.750% (APR* 4.884%).   An improvement of 0.25% in fee.   NOTE:  4.875% @ 0 pts (APR 4.994%)

15 Year Fixed @ 1% Pt: 4.125% (APR 4.388%).    An improvement of 0.5% in fee from last weeks post.

10/1 ARM** 5/2/5 CAPS w/1 Pt: 4.250% (APR 5.656%).  Same.   

7/1 ARM 5/2/5 CAPS w/1 Pt: 3.625% (APR 5.849%).   0.25% improvement in rate.

5/1 ARM 5/2/5 CAPS with 1 Point: 3.250% (APR 6.163%).  0.125% improvement in rate.

Conforming High Balance Rates. Pricing is based on the same conforming 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 @ 0.75 Pts: 4.875% (APR 5.002%).    An improvement of 0.25% in fee

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 5.924%).  Same as last week’s post.

7/1 ARM 5/2/5 CAPS @ 1 Pt: 4.875% (APR 6.425%). 0.125% improvement in rate.

5/1 ARM 5/2/5 CAPS @ 1 Pt: 4.500% (APR 6.605%).  0.125% improvement in rate.

FHA. Pricing based on credit score of 660 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.  (620-659 FHA loans are available “at this moment” with slightly higher pricing).

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% improvement in rate.

VA. Pricing based on credit scores of 660 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%). 0.125% improvement in 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. 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%).0.125% improvement in 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 February 5, 2010 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, 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. NOTE: Rhonda Porter and Mortgage Master Service Corporation are not affiliated with any real estate brokerages.