Rain City Guide

Friday’s Rates – The Lowest Rates I’ve Ever Posted

Rhonda Porter on 06 25, 2010

Financial Regulation passes the Senate in the wee hours of the evening last night yet Congress fails to extend the closing date for the Home Buyer’s Tax Credit.   Please give your escrow officers, mortgage underwriters and funders a break until they get through the cram down of purchases that are trying to close by the end of this month to qualify.   If you’re a buyer planning on closing by June 30, 2010, it’s very important that you respond quickly and be flexible with your signing times–GOOD LUCK!

Rates posted below are based on a rate lock commitment period with a closing date after July 16, 2010 and no later than August 2,  2010.   Lock commitment periods by July 16, 2010 or earlier may cost less and after August 2, 2010 may cost more by rate or fee.

Since we’re witnessing record low mortgage rates,  rates that are the lowest that I’ve posted at Rain City Guide will be bold.  

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 day closing with no prepayment penalties on any of the rates quoted below.

30 Year Fixed with 0.5 points 4.375% (APR* 4.524%).  0.500 in fee from last week’s post.   4.500% is priced w/0 points (APR 4.564%).

15 Year Fixed @ 1% Pt: 3.750% (APR 4.006%).   0.125 in rate.

10/1 ARM** 1 yr. LIBOR 5/2/5 CAPS and 2.25 margin w/1 Pt: 3.750% (APR 5.300%).   0.125 in rate.  Note:  if this rate was adjusting today, it would be based on margin plus 1 yr. LIBOR (currently 1.183):  2.25 + 1.183 = 3.433% rounded up to 3.500%.   The highest the rate could be at the first adjustment period in 10 years is 8.750% and the lowest is 2.25%.

7/1 ARM 1 yr. LIBOR 5/2/5 CAPS and 2.25 margin w/1 Pt: 3.375% (APR 5.727%).  0.125 in rate.  Note:  if this rate was adjusting today, it would be based on margin plus LIBOR: 2.25 + 1.183 = 3.433% rounded up to 3.500%.  The highest the rate could be at the first adjustment period in 7 years is 8.375% and the lowest is 2.25%.

5/1 ARM 1 yr. LIBOR 5/2/5 CAPS and 2.25 margin with 1 Point: 3.000% (APR 6.072%).  0.125 in rate.   Note:  if this rate was adjusting today, it would be based on margin plus LIBOR:  2.25 + 1.183 = 3.433% rounded up to 3.500%.  The highest the rate could be at the first adjustment period in 5 years is 8.000% and the lowest is 2.25%.

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 with 1 pt: 4.500% (APR 4.641%).  Same rate as quoted as week.

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: 5.250% (APR 5.385%).  Same.

7/1 ARM 1 yr. LIBOR 5/2/5 CAPS ~ 2.25 margin @ 1 Pt: 4.250% (APR 6.120%).   Same.  Note:  if this rate was adjusting today, it would be based on margin plus LIBOR:   2.25 + 1.183 = 3.433% rounded up to 3.500%.  The highest the rate could be at the first adjustment period in 7 years is 9.250% and the lowest is 2.25%.

5/1 ARM 1 yr. LIBOR 5/2/5 CAPS ~ 2.25 margin @ 1 Pt: 3.875% (APR 6.372%).  Same.  Note:  if this rate was adjusting today, it would be based on margin plus LIBOR:  2.25 + 1.183 = 3.433% rounded up to 3.500%.  The highest the rate could be at the first adjustment period in 5 years is 8.875% and the lowest is 2.25%.

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: 4.375% (APR 5.192%).  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 with 0.75 pts: 4.500% (APR 5.111).   improved 0.25% in fee

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 with 1 Pt: 4.500% (APR 4.775%).   0.125 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 June 25, 2010 at 10:30 a.m. and may change at any time.  Available programs and/or underwriting guidelines may change at anytime as well.   Mortgage rates continue to swing just as much as the stock market is.   Remember, as soon as I publish this post, rates may have changed–in this current climate we are averaging two rate sheets (rate changes) per day.   I’ve noticed that banks/lenders have less of a trigger finger with issuing rates.   To see what I’m quoting “live”, you can follow me on Twitter (you can “un-follow” anytime).

For purposes of this post: “1 point” is 1% of the loan amount and would be reflected on the Adjusted Origination Charges on Page 2 of the 2010 GFE. *APR = Annual Percentage Rate

**ARM = Adjustable Rate Mortgage. With adjustable rate mortgages, your rate may increase (or decrease) 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.