August 7, 2008
Friends,
Expect higher conforming (<417K) loan rates in October 2008, no matter what happens to mortgage bonds. Fannie Mae revised its' pricing AGAIN and the change affects EVERYONE no matter what the borrower's credit score or loan to value is. Lower credit scores/higher LTVs will continue to have higher rates with this new model. My mantra has always been "no surprises," so let your clients know I ask a lot of questions before offering any rates.
Tax change in the recent housing bill: The old 250k/500k capital gains exemption for a home lived in for 2 of the last 5 years will be a percentage ratio instead of a flat amount. If you have a client planning to sell an investment property encourage him/her to sell by December 31! Here is a Wall Street Journal article explaining it: http://online.wsj.com/article/SB121798585043615583.html?mod=residential_real_estate&rejpartner=mod=hpp_us_real_estate
Here's a sample of today's Primary Home Purchase money rates, up to 0+1, with escrows for a borrower with median credit of 720. These are subject to vary based on loan amount, occupancy, LTV, credit quality and other factors.
Conforming (using 250K as amt)
30 yr fixed 6.5%
15 yr fixed 5.875%
5/1 ARM, 30 yr am 5.625%
Jumbo (using 650K as amt)
30 yr fixed 8.00%
15 yr fixed 6.00%
5/1 ARM, 30yr am 5.625%
Super Jumbo (using 1M amt)
30 yr fixed 8.00%
15 yr fixed 6.00%
5/1 ARM, 30 yr am 5.625%
My last 3 loans were approved and to the attorney within 3 weeks of application.
For smooth closings call me at 704-307-9908
Compliments of Ashleigh Sumlin, Bradford Mortgage Co., Charlotte NC
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