American Pacific Mortgage

American Pacific Mortgage

Thursday, September 16, 2010

Rate Snapshot--Edging Up

Rates are edging up the last week. It hasn't been dramatic, so not time to panic yet...if you haven't taken advantage. Here goes:

Up to $417,000

Ranging from 3.125% for 5/1 ARM to 4.25% 30 year fixed

$418,000 to $729,000

Ranging from 3.375% for 5/1 ARM to 4.5% for 30 yr fixed

True Jumbo loans (over $729,000)

Ranging from 4% for 5/1 ARM to 5.375% for 30 yr fixed

All rates quoted assume a one point origination fee plus closing costs, and are dependent on FICO scores, loan-to-value, loan amount, property type, and occupancy.

I am going to be out of the office next week on a cruise down the coast to Mexico with my mother. We are celebrating her 85th birthday! If you want to take advantage of these rates before my departure, please contact me prior to Saturday evening the 18th as I will leave Sunday the 19th.

Viva la Mexico Y mi Mama!

Friday, September 3, 2010

End of the Heat Wave for Rates -- and Summer Too!

We are still seeing rates in the low 3’s to low 4’s depending on program, loan term, FICO score, etc.

Last week delivered extreme volatility in the fixed income markets. Translation: interest rates have been up and down. By Friday, we'd seen prices drop and rates had eroded as of the week's end.

Mortgage loan rates traditionally move in tandem with the pricing of Mortgage Backed Securities. Friday’s better than expected job and unemployment news sparked improvement in the stock market and pushed rates up a bit as a result.

Although the long term view is that rates will hold fairly steady at lows through year-end, the short term outlook is for increased volatility. Remember, any “good” economic news will cause funds to flow into the stock market and out of bonds, causing rates to rise.

Catching the wave and timing your rate lock will be more important in the next few months. I don't recommend waiting any longer to start a refi process, if you are still considering it.

Underwriting guidelines continue to contract. Some of the latest news is that we are required to pull a 2nd credit report at funding…and there had better not be any new inquiries on that report, or evidence must be provided that no new debt has been established. This is just another move to prevent loan fraud. It can slow down or prevent closing altogether.

Another new twist is any deposit to checking or savings accounts over $500 must be documented, unless it is an auto-deposit from employer. Also, we need all income and asset documentation to be dated within 30 days of closing, e.g. paystubs, bank statements, etc.

I like to joke that the loan process is now similar to giving birth. Possibly even more painful!