MORTGAGE UPDATE

Published On: July 21, 2009

 

Across the board, rates have ticked upward. 5.25% is the rate for the 30 Year fixed. Discounts are not as bad as last week, but still hefty. A discount of 2.125 gets a 4.75% rate for the 30 Year term. 10 year money stands at 4.25%, a discount is available but not worth the money at these levels. The 15 Year term stands at 4.625%.
 
Rates are still very strong Today, however, an increase in rates can sometimes derail a deal on the edge. So pay close attention to the Debt-to Income ratio if the rate happens to go up.
 
short term money has moved upward as well, with the 3/1 ARM standing at 4.125%, a comfortable discount of .75 gets a 3.75% rate. the 7/1 Term is at 4.5%, with the 10/1 term at 4.75%.
 
If rising 30 year fixed  rates become an issue for your deal, switch the customer to an ARM for the lower rate, just to get them in the house. With no pre-payment penalty you can convert to a longer fixed term later, if need be.
 
The 5/1 Interest Only ARM has ticked upward to 4.25%.
 
Remember, all the ARM's are a fixed period, which means the rate will not change for the ARM length. After that, there will be CAPS or adjustments to the rate set by the investor. These are NOT the subprime ARM's of the past.
 
FICO/LTV restrictions remain tight.
 
 
JUMBO
 
The portfolio ARM's have remained steady. The only fixed term worth mentioning is the 30 Year fixed.
 
5/1 portfolio ARM @4.5%
7/1 portfolio ARM @5%
 
30 year fixed @7.75% with a discount of 1
 
 
FHA/VA
 
No change to the government for Today.
 
30 year fixed @5.25%,a discount of .75 will yield a 5% rate. The 15 year term comes in at 4.625 with a discount of 1.25 for a rate of 4.25%. The 5/1 and 7/1 Treasury ARM's remain very competitive with the conventional at 4.25% and 4.75% respectively.
 
Remember the 8k tax credit for first time home buyers.
 
Lots of mixed news out there. Listen to it all, remember only the good parts.