News updates on average mortgage rates and lending news.  These posts are for homebuyers looking for information on current rates.  Homeowners can benefit by understanding how rates shape homebuyers decisions.

WHAT YOU NEED TO KNOW ABOUT UPCOMING CHANGES TO FHA LOANS

As you may know, unless Congress extends the expiration deadline, Federal Housing Administration (FHA) loan limits set in 2008 will drop significantly beginning October 1. Congress raised the loan limit amount in response to the housing crisis to help spur the homebuying market. FHA loans offer borrowers very competitive rates and terms, and they only require a 3.5% down payment. Allowable debt ratios are higher than the typical debt-ratio limits imposed for conventional loans, and there are no income limit qualifications, so more people can qualify for them.

If the loan limit drops on October 1, many California homebuyers will face higher down payments, higher mortgage rates and…

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Approximately:

 

30 Year fixed Purchase Loans

4.125 % (APR 4.128%) Conforming: (loan amounts under $417,000) $242.32 per $50K (Calculate at $50,000 increments to figure P&I pymts)

4.5% (APR 4.51%)Jumbo (loan amounts up to $546,250)

4.625% (APR 4.72%) JUMBO, AND… 5/1 is only 3.375% (APR 3.38) & 7/1 3.625% (3.69 APR) at 2,000,000

 

FHA/VA

4.125% (APR 4.127%)

 

15 Year fixed

3.125% Conforming (APR 3.171%) $348.30 per $50K

 

NON-OWNER OCCUPIED

1 Unit 4.75% (APR 4.79%)

3-4 Unit 5.0% (APR 5.11%)

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Average 30 year fixed mortgage rates have fallen to historic lows; 4.41%.  Many Lund Team clients have reported securing fixed rate loans even lower lower (4.1%-4.25%) depending on their individual situation. 

There is much discussion about the future of low mortggae rates.  Many economists argue that we should expect an extended period of low mortgage rates as the economy contracts during a recession.  

Our local mortgage contacts report heavy volumn in #'s of property refinances. 

The 15-year fixed-rate rose 5 basis points to 3.63 percent. The average rate for 30-year jumbo mortgages, or generally for those of more than $417,000, was 4.94 percent, up 5 basis points from last week.

The 5/1 ARM fell 3 basis points to 3.12 percent. With a…

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We were recently informed from one of our lending partners that there is a new government program that can provide up to a 3% grant that can be used for downpayment and/or closing costs.  The grant does not have to be repaid!

The Grant made possible through the Program can be used towards the homebuyer’s down payment and/or closing costs on a 30-year fixed-rate fully amortized FHA, VA or USDA Mortgage Loan.

The Program is available for purchases of both new and existing homes and is NOT limited to first-time homebuyers.

If you have questions, The Lund Team is here to help! 

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Special Fannie Mae HomePath Buyer Incentive Offer

There's great news from Fannie Mae: Buyers may be eligible to receive up to 3.5% in closing cost assistance through October 31, 2011 as part of the HomePath buyer incentive.

To be eligible for this incentive, the following qualifications must be met:

  1. Buyers and/or selling agents must request the incentive upon submission of the initial offer in order to be eligible.
  2. The initial offer must be submitted on or after June 14, 2011 and close by October 31, 2011. If an initial offer was made prior to the effective date, the offer is not eligible for the incentive.
  3. The sale must close on or before October 31, 2011. No exceptions will be made to this deadline.
  4. Only buyers purchasing a HomePath…

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Loan Balance Update:

As a reminder to our buyers and sellers, the higher conforming loan balance amounts are set to shift down from $697,500 in San Diego to a possible $550,000.  The amounts are not set yet by the Federal Housing Administration.  The governmental stimulus package is set to expire in September, and without intervention from Congress, lenders will start putting deadlines on applications taken with these high loan amounts. Several lenders have already set a July 15th deadline on new applications for high balance loans to ensure closing by the deadline.


Barring government policy change, those wanting to borrow over the new government limit will have to pay a higher rate on the remaining balance. This is due to the increased risk…

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There is still in its infancy, but having government support would most likely support an era of low mortgage rates.  See and read below:

Bill proposes merger of Fannie and Freddie


Rep. Gary G. Miller (CA-42) and Rep. Carolyn McCarthy (NY-04) are expected to introduce a bill tomorrow to merge Fannie Mae and Freddie Mac, and restructure the company into a government-held corporation.

The legislation will propose that the merged company purchase mortgages and sell them to investors as securities that are government-backed. The new company wouldn't operate for profit-making purposes and wouldn't have shareholders.

Under the proposal, a five-member board would govern the corporation, and it would be regulated by the Federal Housing Finance…

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I was talking to friend today and he was not sure if now was the time to buy.  He was certain prices were going to fall.  Now he may be correct, but we wanted to see if his waiting would really save him money. 

We did a hypothetical exercise; we compared 2 scenarios.

  ·         1st - Buying today at today’s current market price and interest rate

·           2nd - a future date where the speculative market prices had dipped an additional 10% and the interest rates had moved back up to the 6% range. 

Guess what we found out?  In this example his waiting would have cost him! I included the numbers below.                                    

1st  Purchase Price $540,000.00                           2nd Purchase Price $600,000.00    

Down…

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Just got this from our BofA lender...

BofA is buying the market on non conforming/jumbos...great news for us as we gear up for the reduction of high balance conforming loan limits in a few months.
 
30 Year fixed Purchase Loans 
Approximately:
4.5% Conforming: (loan amounts under $417,000) $253.34 per $50K (Calculate at $50,000 increments to figure P&I pymts on 30yr.)
4.625% High Balance Conforming (loan amounts between $417,000 and $697,500)  $257.07 per $50K
4.875% Jumbo (loan amounts over $697,500)  $264.60 per $50K
 
 
4.5% FHA/VA $253.34 per $50K
 
15 Year fixed
3.75% Conforming $363.61.98 per $50K
3.875% High Balance Conforming $366.72 per $50K
 
NON-OWNER OCCUPIED
1 Unit   4.625%
3-4 Unit 4.75%
Condo 5.0%

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Here is a quick update for Home Buyer's in today's real estate market:

*  FHA/VA loan rates are at 4.675% / 4.875%.  This is down from 5% (ish) only a few months prior.

Loan Limit Update!

High Balance Conforming (loan amounts between $417,000 and $697,500) 

"High Balance Confirming" product changes on the horizon... The temporary high balance loan limits are set to expire on September 30, 2011.  All indications are that Congress will not extend the temporary higher loan limits, but rather allow legislation to expire which will revert loan limits to the lower permanent high balance levels.

The total impact to product channels is not yet known as the Government segments have not announced what reductions they will implement.  If they expire, the…

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