Dennis' Mortgage Blog

Important developments for mortgages and guidelines:

1)     Mortgage insurance companies pulling out of insuring loans greater than 90% LTV in California—FHA is best (in some cases only) low down option for buyers

2)     Fannie and Freddie change guidelines for qualifying buyers keeping existing residence and purchasing new primary residence—rent to off-set existing mortgage may not be used to qualify in some circumstances.  Call me to see if you or your clients are affected.  (for more info see my Mortgage Blog post earlier this week)

We continue to experience guideline and program changes—with Congress passing more legislation.  Please contact me to ensure you and/or your clients are properly qualified and educated before and during the home buying process.

With oil prices spiking today and spooking the markets we saw a dramatic turn in rates today from continuing a positive down trend to a mid-morning reversal.  Overall the impact has been greatest on Jumbo rates which are up for the week while other rates are down.  But the move today, and every day, in rates that was so sudden reinforces my philosophy of ensuring borrowers’ rates and terms are locked in as soon as possible in an escrow to remove the sudden shifts and jumps in the markets.

Looking ahead we have broken through some critical price points on mortgage backed securities that could continue a downward trend in rates, however the market is so skittish that we can easily reverse the trend on short or no notice.  LOCK!

NOTE PRICING BELOW IS BASED ON 20% DOWN FOR JUMBO LOANS AND 10% DOWN FOR CONFORMING, 3% FOR FHA, FULL DOC, AND FICOS OF 720 AND ABOVE (change from last Friday):

30 year conventional at 1 point 6.125%          ê 0.125%

30 year conforming-jumbo at 1 point 6.25%   ê 0.125%

30 year FHA at 1 point 6.25%                                     ê 0.125%

30 year jumbo at 1 point 7.875%                    é 0.125%

Please feel free to forward this email to your co-workers and clients--or send them to my Mortgage Blog where it is posted weekly.

Have a great weekend!

Have a great week,

Dennis

P.S. Happy Birthday JCS

Dennis C. Smith
Stratis Financial
Direct (562) 472-1118

Mobile (562) 243-6912

Fax (562) 684-4316
 

www.DennisCSmith.com : apply on-line, check rates, check loan status and much more