Wow, what a difference a day, or for that matter, a few hours make! Yesterday, shortly after my post the stock market rallied and we lost about .75 basis points on the mortgage backed securities, and so far today another .31 basis points. This means that while we were looking at a 5% rate on a 30 year fixed rate loan yesterday, today that same loan will is at 5.5%. Those who locked in yesterday, good job!!
On another note, part of the new economic stimulus bill being worked on in Washington DC includes a temporary provision to allow the conforming loan amount to be lifted. The amount will vary based on the average home price in an area. Of course, California will see the largest increase. For those of you with loans above $417,000 and below $500,000, this could present a great opportunity to refinance, or purchase at a very attractive rate. As an example, a Jumbo 30 year fixed loan with one of my lenders comes in at 6.75% today. So, that could result in more then a 1% rate reduction. On a $450,000 loan, this is a monthly savings of around $300!!
Call me if you, your friends or clients have any questions.
Larry Morris is a Certified Mortgage Planning Specialist (CMPS) with Equipoint Financial Network in Newberg, Oregon. He specializes in helping clients maximize their equity position through proper debt structure and financing for Senior Citizens He is a Board Member of the Sherwood Chamber of Commerce. He can be reached at larry.morris@equipoint.com . His website is www.PDX-Mortgage.com .
This material is copy protected 2008 by Larry Morris, Mortgage News that Matters. All Rights Reserved His opinions do not necessarily represent the views of Equipoint Financial Network.
Larry Morris is a Certified Mortgage Planning Specialist with American Nationwide Mortgage Company in Newberg, Oregon. He specializes in USDA Guaranteed Rural Home Loans, FHA Purchase and Refinance, FHA 203k Rehab loans, Sect 184 Native American loans, Hobby Farm loans and conforming purchase and refinances in the states of Oregon and Washington.
He can be reached at 503-421-0096, or larry@PDX-Mortgage.com.
www.PDX-Mortgage.com
OR License ML-3259
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APR rates are subject to change based on lender's normal credit guidelines and market conditions.
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