Mortgage Rates and PMI: North Carolina Mortgage Rates August 27, 2009

Mortgage and Lending with Fairway Independent Mortgage Corporation Nevin NMLS #69651
Why Pay Private Mortgage Insurance (PMI)?

Private Mortgage Insurance (PMI) is required by most lenders when a borrower puts less than 20% down on a purchase loan. Paid for by the borrower, PMI not only protects the lender from foreclosure, it also enables many buyers to qualify for loans and purchase real estate when they couldn't have otherwise. On January 1st, 2007, legislation went into effect making PMI tax deductible for new borrowers whose personal adjusted gross income is $100,000 or less. This has created additional opportunities for many buyers to finance a more expensive home or, in some cases, to obtain a lower monthly payment, while reducing annual income taxes.

In most cases PMI can be cancelled once the accumulated equity has reached 20% of the home's value, except with FHA loans which require a 22% equity position. Traditionally many buyers would opt for a second home loan known as a piggyback loan to avoid PMI. Factor in the new PMI tax benefit, and a borrower's monthly payment may actually be lower with PMI versus a piggyback loan scenario.

Choosing PMI is not a one-size-fits-all decision. It is my job to weigh my borrowers' long-term goals and to provide comprehensive solutions that clearly explain all of the pros and cons of each mortgage option available. It's a job I take very seriously.

Mortgage Interest Rates*

Rates as of Thursday, 27th August, 2009:

  Conforming                   Rate             APR     Payment per $1000

  Conforming APR Payment per
Jumbo APR Payment per
30-Yr. fixed 4.875% 5.020% $5.29                     Call 0.000% $0.00
15-Yr. fixed 4.375% 4.623% $7.59 for 0.000% $0.00
7-Yr. fixed ARM 4.25% 4.264% $4.92 jumbo 0.000% $0.00
5-Yr. fixed ARM 3.875% 4.264% $4.70 rates 0.000% $0.00
10 Yr. fixed ARM 4.75% 4.768% $5.22 % 0.000% $0.00
5-Yr. Interest Only 4.125% 4.390% $3.44 % 0.000% $0.00
*Rates are subject to change due to market fluctuations and borrower's eligibility.
Rates subject to change. Certain credit requirements and other conditions apply. This is not a guarantee to lend. Rates based on a 12 day lock period and a minimum loan amount of 185,000. Credit determination must be made prior to approving rate. Equal opportunity lender. FPF CA DRE Lic#00654852 Nevin's NC Lic#I139451 First Priority Financial NC Lic# B-146523-101



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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Leesa Finley 08/27/2009 11:53 AM
ActiveRain Community
North Carolina Wake County Cary
Blogging & SEO
Posts to Localism
mortgage rates north carolina

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Wanda Kubat-Nerdin - Wanda Can!
Prado Real Estate South - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Nevin, Good to see you! I have a question for you...If a lender tells me he/she can do a 5-day close, what would you say to that? Thanks!

Aug 27, 2009 04:01 AM #1
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Nevin - great info here. PMI is a huge cost issue for many and I suspect lots still aren;t aware of the tax deduction.

The rates are looking pretty favorable - any thoughts on the trends?

Lastly - it was really good to meet you F2F last weekend in Cardiff. Hope the rest of your trip went as planned.



Aug 27, 2009 04:49 AM #2
Craig Rutman
Helping people in transition - Cary, NC
Raleigh, Cary, Apex area Realtor

Well done my friend. As always, you're information is invaluable for your current and future clients!

Aug 27, 2009 05:12 AM #3
Nevin Williams
Fairway Independent Mortgage Corporation - Cary, NC
Senior Mortgage Advisor

Wanda - Great to be back!  Although I am already missing San Diego (shhhhh!)  With the new TIL laws a 5 day close is illegal.  According to the new compliance there must be a 7 day waiting period between the ...well, here you go: (straight from the lenders guidelines)

 There must be a seven (7) business-day waiting period between the date the initial TIL disclosure is provided to the consumer and the closing / signing date of the loan.  So I would say that lender either is not up to date with the new law or they need to lay off the bourbon for breakfast!

Jeff - Hey buddy!  I too had a great time meeting with you in person.  PMI is not always a bad thing!  The feds are poised to stop buying mortgage backed securities (MBS)-esentially, mortgages from Fannie, Freddie and Ginne Mae.  If there is no appetite for these types of investments then I think rates will soar.  However I think these are the most qualty MBS one could buy.  Look at how stringent the lending terms are.  If the rest of the workd agrees with me then rate might stay low or even drop.  It all depends on what investors who buy MBS think about the quality and feasibility of selling these to their investors.

Craig - thanks Craig!  I look forward to getting together next week and putting our ad campaign together.  The towns people of Cary deserve a good agent and mortgage broker!


Aug 27, 2009 07:35 AM #4
Leesa Finley
RED Properties - Wake Forest, NC
RED Properties - Raleigh NC Real Estate

Nevin - Dang, i was just happy for the update but was super impressed and happy to read the Q&A with you and Wanda!  Thanks so much - I love getting my info from you!

Aug 27, 2009 11:43 AM #5
Nevin Williams
Fairway Independent Mortgage Corporation - Cary, NC
Senior Mortgage Advisor

Leesa - Why thank you!  I appreciate the kind made my day  : )

Aug 27, 2009 01:13 PM #6
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