Well, the State of Oregon did not wait long to put their new "no notification policy" to work. The rates were increased March 3rd, and March 7th they were raised again without the usual e-mail going out to lenders participating in this program. The RateAdvantage program is now at 5.625%, and the CashAdvantage program is at 6.125%. These interest rates are only about 1/2% better than the 30 year market rates I am quoting for conforming loans, which are the closest equivalent program to Oregon Bond. Not quite the 3/4% to 1% savings the State is to target, based on my calculations.

With this pricing structure, based on where the conforming loans are priced today, I will unlikely be recommending the RateAdvantage program to qualifying first time home buyers looking for affordable housing. For borrowers needing down payment assistance, the CashAdvantageprogram is still a great tool, though, which we will continue to layer with other acceptable down payment assistance programs such as the City of Medford's Down Payment Assistance Loan.

See you at the Closing Table!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com