When is it good to quote a Rate? Without fail, "What is today's rate?" is the first thing we are asked on a daily basis. Naturally mortgage professionals don't want to disappoint folks, so rates are usually the last thing we can offer. Your interest rate really depends on what you want to accomplish, how quickly, for how long and so many other factors not the least of which include some complicated price adjustments for risk factors.
OK...We Do Have Some Amazing Pre-Christmas Mortgage Rates! Below is a loan comparison for 5.0% Purchase and 5.25% Refinance Rates, Based on classic 680 FICO, Full Documentation, 80% Loan to Value. Not everyone will qualify for these terms of course. Jumbos, cash out, low down payments, impaired credit or unusual properties and life's other little challenges add pricing hits.
For the lucky square pegs, read on:
$320,000 Refinance loan at 5.25%*
=Monthly Principal and Interest Payment: $1,767.05 *APR: 5.45%
$400,000 Purchase (20% down) = $320,000 loan at 5.0%**
= Monthly Principal and Interest Payment: $1,717.83 **APR: 5.205
(reflects insurance+tax/ impounds of approximately $200 per month and closing costs).
After January 1, we anticipate that our new Fannie/Freddie guidelines and rates will be geared toward 1st time buyers and distressed borrowers. It's anybody's guess what trends will be expressed after Obama's Inauguration. Usually rates go up with a frenzy of enthusiasm during such sea changes...we shall see. Meanwhile, if you want a low low rate now is really really the time to lock your terms. Most lenders will allow you to lock for 30 days at no charge and up to 90 days for a price. Might be worth getting out your crystal ball!
susan templeton 360.220.2997
www.loannetter.com
washington branch license 510-MB024707-50145, and 510-MB-24450, lo license 510-LO-31434
* and ** both reflect 30 year fixed conventional loans
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