Dennis' Mortgage Blog

April 24th, 2015 9:54 AM


Question of the week: What can we do to make it easier and faster for you to process our mortgage application?

 

Answer: Don’t staple items together and do not provide copies that are two sided.

 

A bit tongue in cheek on the answer, but those two items do slow down the process a bit.

 

Everyone needs the same basic items for a loan application, having copies (electronic or paper) of these items available when you begin the process will save considerable time in processing your loan and chasing items that we know are needed up front:

 

·        Driver’s licenses

·        2013 & 2014 W2s

·        2013 and 2014 federal income tax returns, all schedules. Note that if you use a tax preparer they can usually send us electronic copies directly with your consent

·        Most recent paystubs

·        **All pages of most recent two months statements all asset accounts, including primary checking/savings, investment and retirement accounts

·        Mortgage statement (if currently own)

·        Insurance statement showing premium and coverage if currently own, name and contact information of insurance agent if buying for first time

 

**We have discussed asset statements and deposits several times in the past and they continue to be a source of delay for those not providing all the documentation we request.  If you have any unusual deposits, i.e. deposits that are not part of your employment, be prepared to show the source of the deposit.  This is one of the primary hold ups to final loan approval: verifying funds and deposits.

 

Another hold up is adequate insurance coverage.  Single family dwellings must have replacement coverage of 84% of the replacement value of the property as stated on the appraisal or the full loan amount, which ever if less.  If you are refinancing be aware you may need to increase your current coverage to meet the requirements of the lender for adequate coverage.

 

Finally, the most important way you can improve the efficiency of the process is to ensure we have the best ways to contact you quickly if some additional information is needed from processing or underwriting.  Do you respond fastest to work phone? Mobile? Email? 

 

Preparation is always the primary factor in the success of any endeavor, the better prepared you are with your financial information for delivery to us the quicker your file can be processed, approved and funded.

 

Have a question? Ask me!  

 

Remember, with Dennis it’s not just a mortgage, it’s your complete financial picture.

 

Housing data dominated economic news this week, which isn’t saying much as there was scant news. Existing home sales rebounded strongly as the winter weather abated. Existing home sales surged 6.1% in March and the national median sales price jumped 5.1% and is up 7.8% year over year. The growth in sales is the highest in one month since December 2010 and the year over year price increase is the highest since February 2013. With higher prices more homes should come to market and possibly relieve some of the tightness in inventory. This news is supportive of higher interest rates.

 

New home sales data tempered enthusiasm over re-sale data. Surprising to the downside of expectations new homes sales fell 11.4% in March. With more new homes coming on the market and fewer moving off the market builders are seeing a larger inventory than they would like. This news is positive for lower rates.

 

Looking ahead two weeks when the April job report is released we can forecast a more favorable report for April than we have for March. This is based on unemployment claim filings for the month, which have been under 300,000 new claims each week for several weeks. The four week average of new claims has dropped 20,000 from last month. As this news portends a positive employment report for the month the news is supportive of higher rates.

 

Rates for Friday April 24, 2015: Mortgage Backed Securities (MBS) are trading mostly sideways for the past few weeks with a brief dip yesterday (higher rates). The net result is a slight increase in conforming rate from last Friday. We remain in a range that is around a two year low.

 

FIXED RATE MORTGAGES AT COST OF 1.25 POINTS

30 year conforming                                            3.5%               Up 0.068%

30 year high-balance conforming                        3.625%           Flat

30 year FHA                                                       3.25%             Flat**

30 year FHA high-balance                                  3.375%           Flat**

 

Please note that these are base rates and adjustments may be added for condominiums, refinances, credit scores, loan to value, no impound account and period rate is locked. Rates are based on 20% down (3.5% for FHA) with 740 FICO score for purchase mortgages. ***FHA rates have no points and credit towards closing costs

 

 

For those filing at or near the April 15th deadline and expecting a refund from the IRS or state you have to wait a bit longer this year than years past. The IRS is currently quoting approximately 21 days for electronic returns to be received, verified and refunds sent out for direct deposit. If you are expecting a refund from the State of California and filed electronically the estimate is ten days for you to receive your automatic deposit.

 

Just to make you feel a bit better, next Thursday is “Tax Freedom Day” for Californians. The folks at the Tax Foundation estimate that the average working Californian must work until April 30th to pay their state and federal taxes—but after that all the money you earn is yours!

 

Have a great week,

 

Dennis 



Posted in:General
Posted by Dennis C. Smith on April 24th, 2015 9:54 AMLeave a Comment

April 17th, 2015 3:26 PM

Question of the week: How long should I keep all the paperwork from my loan(s)?

 

Answer: A common question after going through tax preparations.  If, like many homeowners, you have had a few refinances over the past several years, perhaps bought a home, or sold one, how long do you need to retain all the closing paperwork, disclosures, etc. from your transactions?

 

The first part of any answer involving taxes and the Internal Revenue Service is, “Verify with your CPA or tax-preparer…”

 

The statute of limitations for the IRS auditing your taxes is three years (they may extend that period if they suspect fraud on your part in previous filings) and four years for the California State Franchise Tax Board to audit you on past filings.  So if you deducted any part of your loan transactions, either for purchase or refinance, you will want to retain those records showing the source of the deductions for at least four years.

 

If you did not claim any deductions from a refinance, which is most typical as most refinances are with no points, your decision to keep or shred your closed loan documents is up to you and what makes you feel comfortable.  I would advise however keeping copies of your Note for as long as you have your mortgage in place.  We have seen many examples of the past several years of contentious proceedings for defaults and foreclosures and if there is any dispute between you and your lender the Note will be the most important document for you to provide to an attorney. 

 

If you have a Home Equity Line of Credit you should retain all those documents until the credit line is closed regardless of whether you deducted any charges on your taxes or not.  The HELOC is like a credit card and has variable rate terms, as long as you have the line open you should retain the Note and other documents.

 

My advice is to keep all your loan documents from your closing in one place and retain those items until that loan is paid off.  I would not rely on being able to copies of your closing papers and note from your lender in the future as the servicing rights on your mortgage may be transferred in the future and make it more difficult to obtain those items should you need them in the future.

 

One final note, like all legal and financial documents if you are discarding documents that  have personal financial information do not throw them in the in the trash but shred the documents.  Every home should have a small shredder for disposing statements, documents and other items that have your personal information that could be used to establish a false identity or enable credit fraud.

 

 

Have a question? Ask me!  

 

Remember, with Dennis it’s not just a mortgage, it’s your complete financial picture.

 

As mentioned last week, this was a data heavy week with inflation numbers, retails sales, sentiment and production for March all being detailed with reports.  The overall result of the numbers is a look at an economy that didn’t really do anything in March, whether it did or not we will find out in a couple of weeks when the 1st Quarter GDP estimate is released.

 

Here is the data. Prices did not do much on the producer or consumer side, PPI rose 0.2% in March and is down 0.8% from last March and CPI rose a similar 0.2% for the month and is flat year over year. With gas and energy prices increasing in February and March both PPI and CPI should be rising faster but dropping food costs have neutralized the increases. This news is neutral to positive for mortgage rates as it shows a lack of inflation in the economy and gives the rate doves at the Fed strength in their argument to hold off on any rate increases.

 

Consumers are driving the economy, more so than usual. Retail sales rebounded in March, rising 0.9% though are down 0.8% from 2014 and consumer confidence remains strong. With more sales of consumer items and strong consumer confidence we should be seeing stronger pressure on prices to rise and decent economic growth. Unemployment claims continue their streak of being under 300,000 claims every week (294,000 for the prior week) indicating employers are holding onto employees. This data should lead to higher rates as consumers are 65-70% of economic activity.

 

But what about the other 30-35%? Industrial production dropped in March, down 0.6%, and it appears our manufacturing sectors are being propped up by those sectors catering on end user consumers. This mish-mash of economic data is problematic for strong economic growth, and should lead to lower rates.

 

Rates for Friday April 17, 2015: Rates soften a little bit from last Friday and it appears we will move sideways for a time. I am feeling that rates are near a bottom for this cycle as investors are loath to pay higher prices for bonds and mortgages (lower rates) knowing rates must go up at some point, while at the same time seeing evidence that rates need to remain low due to domestic and international economic activity. After peaking in early March rates have slipped slowly, how much more they can slip is the question.

 

FIXED RATE MORTGAGES AT COST OF 1.25 POINTS

30 year conforming                                            3.432%           Down 0.068%

30 year high-balance conforming                        3.625%           Flat

30 year FHA                                                       3.25%             Flat**

30 year FHA high-balance                                  3.375%           Flat**

 

Please note that these are base rates and adjustments may be added for condominiums, refinances, credit scores, loan to value, no impound account and period rate is locked. Rates are based on 20% down (3.5% for FHA) with 740 FICO score for purchase mortgages. ***FHA rates have no points and credit towards closing costs

 

 

It is that weekend when Long Beach is broadcast around the world showing off as the Toyota Grand Prix of Long Beach runs through the streets. In 1999 Leslie and I took a trip to Europe, one night in Amsterdam we got back to the hotel late and I flipped on the television and there was our Long Beach seen from a blimp camera shot with the Wyland muralled arean, boats in the marinas and crowds ringing the circuit—proud to call it home!

 

It looks to be another weekend that will increase future tourism with beautiful weather and sites from Long Beach being broadcast around the world.

 

Have a great week,

 

Dennis 



Posted in:General
Posted by Dennis C. Smith on April 17th, 2015 3:26 PMLeave a Comment

April 10th, 2015 1:14 PM


Question of the week:  If you run a credit report will it mess up my score?

 

Answer: The question of the week is one we are asked often and I have had it more frequently lately so I thought it would be appropriate to answer once again since it has been about a year that we have covered the topic in the Weekly Rate & Market Update.

 

The credit score question is one we hear from clients during conversations for preapproving and determining options for refinances. Because there is so much misinformation regarding credit scores some people are over cautious for any credit report being pulled. As a result they are resistant to our obtaining all the necessary information we need to provide accurate and complete information so they can begin shopping for a new home.

 

My standard response is that I don’t have to pull a credit report if they do not want me to but I cannot provide a pre-approval letter for their offer until I do, and any pre-qualification information I provide has a giant asterisk, *Depending on credit report.

 

This can often lead to, “well I just got a free credit report on line, can you use that?”

 

No.

 

When we pull a credit report it is through a company that is approved with Fannie Mae, Freddie Mac and HUD so the reports are accepted as accurate for showing the applicant’s credit history and outstanding obligations. The report we receive is a “tri-merge” report, meaning it combines reports from TransUnion, Equifax and Experian and provides the credit scores from all three bureaus.

 

When preapproving a loan, either for a purchase or refinance, we upload this credit report along with the other information from the credit report to the Automated Underwriting System (AUS) for either Fannie Mae (Desktop Underwriter) or Freddie Mac (Loan Prospector). The report that is part of our file is then read by the AUS and used for determining if the loan can be approved as long as all the evidence for income, assets and property match the information we uploaded.

 

Without having our credit report in our system to upload into the AUS for Fannie or Freddie a loan cannot be preapproved, therefore I need to pull my own credit report for your file.

 

Regarding the impact on your credit scores, our inquiry has zero to minimal impact depending on your history. The models used to determine credit scores have built in a tolerance for multiple inquiries for different lenders in the mortgage and auto loan industries. This is because it is not unusual for someone looking to buy a car or home to speak with more than one lender and each will want to obtain their own credit report. As a result if you have spoken to two other lenders within the past week or two and then call me and rightly decide you want me to work with you on our new mortgage application, when I pull my credit report your credit score should be the same as the score with the first lender you spoke with a week or so before.

 

Inquiries that will have a negative impact on your credit scores are for consumer, or revolving credit for credit cards and department store cards. If you have multiple inquiries from different credit card companies and/or department stores it appears you are seeking credit from anywhere. This type of behavior is seen as a negative and will impact your score.

 

When you call or come in to get prequalified or preapproved to purchase your new home or to refinance your existing mortgage be prepared to have me ask you for social security numbers and dates of birth, I will need a credit report and this is the information I will need.

 

Have a question? Ask me!  

 

Remember, with Dennis it’s not just a mortgage, it’s your complete financial picture.

 

Much ado about nothing was the title of a Shakespeare comedy and also descriptive of our mortgage markets this week. There was very little—almost no—economic data that typically impacts rates and yet we spent the week watching Mortgage Backed Security (MBS) prices drop (higher rates). The only news of note for the week was release of the Federal Reserve Open Market Committee minutes from March, and the minutes should have caused MBS prices move up (lower rates) if they moved at all. The minutes show a divide of the FOMC as to when to raise the Fed discount rate, signaling that the first move up may not come in June. The news was mortgage rate friendly but investors shrugged and continued to slowly sell off the market.

 

Next week is a big data week as we get PPI and CPI data reflecting inflation in March, housing starts and industrial production. A consistent direction in the data should move rates and depending on whether positive or negative rates will move either up or down.

 

Rates for Friday April 10, 2015: After peaking last Wednesday MBS prices have slipped down more than up but we barely retain last week’s rates. The cautious approach of locking in your rate when you can is advised with the potential volatility—unless you strongly suspect negative economic data next week.

 

FIXED RATE MORTGAGES AT COST OF 1.25 POINTS

30 year conforming                                            3.50%             Flat

30 year high-balance conforming                        3.625%           Flat

30 year FHA                                                       3.25%             Flat**

30 year FHA high-balance                                  3.375%           Flat**

 

Please note that these are base rates and adjustments may be added for condominiums, refinances, credit scores, loan to value, no impound account and period rate is locked. Rates are based on 20% down (3.5% for FHA) with 740 FICO score for purchase mortgages. ***FHA rates have no points and credit towards closing costs

 

 

Today concludes Spring Break for the kids, unless you count weekends, and starting Monday they hit the home stretch to summer with only a day off for Memorial Day. For some reason the remaining two months seem like the longest two months of the school year. I was telling one of the kids last night that the weather guy messed up as they had the hot pool/beach weather their last week of school before the break and we spent the week in cooler weather. Oh well at least they got in trips to the amusement parks and had plenty of down time to recharge!

 

Have a great week,

 

Dennis 



Posted in:General
Posted by Dennis C. Smith on April 10th, 2015 1:14 PMLeave a Comment

April 3rd, 2015 11:24 AM


Question of the week: We took out an equity line in 2006, our interest only phase ends next year what are our options?

 

Answer: A lot of homeowners took out Home Equity Lines of Credit (HELOC) in the early 2000’s for home remodels, purchasing other property, debt consolidation, tuition payments or other needs. The HELOCs of the period were extremely favorable to borrowers, most price at Prime plus a very small margin, say one-half percent (0.5%) or less and many had a negative margin—Prime minus one-half percent perhaps. With the Prime Rate sitting at 3.25% since December 2008, after having been at 7.25% the previous December, HELOC holders have been fairly immune to any rate risk. (Side note, this is the longest the Prime Rate has ever not changed, the prior longest period was a 16 month period from December 1951 to April 1953.)

 

But the static period has recently changed or is getting ready to change for millions of homeowners across the country, for two reasons.

 

First, at some point in the future your low interest rate is going to up. As has been a major part of the commentary in the Weekly Rate & Market Update, the only debate is not if the Federal Reserve will raise its discount rate but when. And while your rate is tied to the “Prime Rate,” banks set their Prime rate based on what they are able to pay when they borrow from the Fed. So if the Fed bumps its rate one-quarter of one percent (0.25%) then chances are very high the Prime rate will go from 3.25% to 3.5%.

 

The semi-good news in this pending increase in your interest rate is that the Fed seems to be pushing further and further out when it will begin to raise rates—and today’s news as reported below could delay any increases even further. The other semi-good news is that Fed Chair Janet Yellen has said that once the Fed starts its hikes they will proceed slowly, meaning they will not increase their rate 0.25% per month, or perhaps not even quarterly. Thus any rate hike should be sometime in the future and Prime should rise slowly over a prolonged period.

 

“Should” goes out the window however if inflation hits our economy hard and fast in the meantime.

 

The second issue that most HELOC holders have to contend with is the one raised in our question, the end of the interest only payment period on your HELOC.

 

Most HELOCs funded prior to the market melt downs in 2007-09 were 20 year loans with a 10 year interest only period. At the end of the 10 year period the loan becomes fully amortized, meaning no more interest only payments.

 

For example if at the start of your 10 year amortization period you owe $100,000 on your HELOC and the rate is still 3.25% then your minimum monthly payment will jump from $271 per month interest only payment to $977 per month to begin to pay down the principal.  If the rate has climbed to 4.00% then your payment on that 10 year amortization schedule increases to $1012 per month.

 

What are your options?

 

The primary factors for your options are your current debt to income ratio (DTI), the combined amount of your primary loan and your HELOC and the value of your home.

 

Assuming that your DTI is sufficient for new financing our concerns then become the total  of the loan amounts owed and your home’s value.

 

You have four options with your home equity line:

 

1)     If you have funds available in savings/investments you may wish to just pay off the remaining balance when the rate and payment become more than you are willing to pay.

2)     If you are able to you can make the fully amortized payments, and you are encouraged to pay down as much as you can while you can to leverage the current lower rate and thus reducing future mandatory payments with higher rates while being fully amortized.

3)     Refinance the HELOC, which will depend on the loan-to-value (LTV) limits of the lender—some lenders are being favorable to current HELOC customers looking to refinance, others are not giving any favorable treatment

4)     Refinance your current primary mortgage and your HELOC into one 30 (or 15) year fixed rate mortgage, thus locking in your rate at today’s low levels and your payment.

 

Options one through three are pretty self-explanatory with not a lot of moving parts, not so with option 4.

 

Fannie Mae and Freddie Mac consider paying of a HELOC as part of a new first mortgage transaction to be considered “cash-out.” Some lenders, including one or two we work with, do not consider the transaction to be “cash-out” if the equity line has not been used in the prior twelve months and we use their non-conventional, aka “Jumbo” product—more below.

 

Whether a refinance is considered cash-out or a rate and term refinance is a very big issue for several reasons, one is the total loan to value allowed for such a transaction (very important if the new loan exceeds $417,000) and second is pricing.

 

For conventional loans with a total balance of $417,000 or lower the maximum loan amount for a cash out transaction is 80%; so if your current primary mortgage and HELOC total $400,000 and that is our refinance amount then your home needs to appraise for $500,000.

 

If your refinance amount will be over $417,000 then the loan to value drops to 75% loan to value as the maximum for eligibility if we are using Fannie or Freddie financing. However, if your loan amount is over $417,000 and you have not accessed any funds from the HELOC in the past 12 months (will need statements to verify) then we can do a rate and term refinance to 80% loan to value. This is a big deal for many people who previously were shut out of refinancing their HELOCs into a new fixed rate loan without bringing cash to closing to pay down the loan amount to 75% or below.

 

One more point on this is the loan amounts exceed the Fannie/Freddie county limits for high balance ($625,500 for LA and Orange Counties) and can go as high as $1,000,000 if otherwise qualified.

 

Finally, if necessary FHA will finance cash out up to 85% loan to value. A bit unpalatable due to the higher mortgage insurance for FHA, however the option may be cheaper in the long run than climbing rates and payments on your HELOC.

 

Do you have a Home Equity Line of Credit and are concerned about what the future may hold? Call me to discuss your options and strategies.

 

 

 

 

Have a question? Ask me!  

 

Remember, with Dennis it’s not just a mortgage, it’s your complete financial picture.

 

Some critical date this week that impacts interest rates. First, personal income and outlays for February were released and while personal income climbed a good amount, up 0.4% for the month and 4.5% year over year, personal spending barely rose, up 0.1% from January and up 3.3% for the year. So while the average American is earning more s/he is not spending the higher earnings. This bodes well for national savings but our economy is driven by consumer spending and parsimonious consumers impede economic growth. The news is neutral for rates due to the good news not so good news in the report.

 

Unemployment claims dropped considerably last week, down 20,000 to 268,000 filings, the second lowest week since April 2000. This number reflects employers hanging on to employees, which is the required step before hiring new employees. The news is positive for economic growth and therefore negative for rates.

 

Kaboom! That was the sound of the consensus getting blown up this morning when the Labor Department announced jobs data for March. The consensus from analysts was that 247,000 non-farm jobs would be added to the economy in March, instead there were only 126,000 additional jobs and the report revised the total hiring for January and February down by 69,000 jobs. This is extremely negative news, especially considering 175,000 new jobs are needed each month just to keep up with new entrants to the labor markets. Needless to say the news was very mortgage rate friendly.

 

Rates for Friday April 3, 2015: The week started pretty decently for rates and then yesterday, Thursday, Mortgage Backed Securities (MBS) dropped on the unemployment filings data. A rebound today with the bad jobs report should have put rates below Wednesday’s close but so far the transfer from market to rate sheet has been slow. The expectation is that Monday may see MBS open with a “gap up” and lower rates—but expectations are not always met, for evidence see today’s employment data. The result of the week is rates are back to their recent lows from six weeks ago.

 

FIXED RATE MORTGAGES AT COST OF 1.25 POINTS

30 year conforming                                            3.50%             Down 0.125%

30 year high-balance conforming                        3.652%           Down 0.125%

30 year FHA                                                       3.25%             Flat**

30 year FHA high-balance                                  3.375%           Flat**

 

Please note that these are base rates and adjustments may be added for condominiums, refinances, credit scores, loan to value, no impound account and period rate is locked. Rates are based on 20% down (3.5% for FHA) with 740 FICO score for purchase mortgages. ***FHA rates have no points and credit towards closing costs

 

 

It is Good Friday, especially good for our kids and others in the Long Beach Unified School District who start Spring Break today. I hope everyone has a very Happy Easter and you are able to find all your eggs!

 

Have a great week,

 

Dennis 



Posted in:General
Posted by Dennis C. Smith on April 3rd, 2015 11:24 AMLeave a Comment

March 27th, 2015 12:49 PM


Question of the week: I am not on the mortgage to my home, does this mean I lose the mortgage interest deduction?

 

Answer: Disclosure, I am not a Certified Public Account, please consult with your tax advisor before claiming or not claiming any deductions for real estate or other items.

 

That said…regarding claiming deductions for interest and property taxes paid, whoever pays them may claim the deductions, if eligible, on their tax returns as long as they can show proof of making the payments. Even if your name is not on the IRS Form 1098 showing mortgage interest paid.

 

If you move into your parents’ home and make the payments on the mortgage they had in place. At the end of the year they are issued a Form 1098 showing $15,500 paid in interest—but they never paid any of it you did. Get a copy of the IRS 1098 to keep for your records, create a payment record showing the payments on the mortgage came from your bank account (preferably copies of canceled checks or bank statements showing payments to the lender) and claim the full deduction on your tax returns. If you pay the property taxes the same process would apply.

 

This scenario also applies if you have a vacation home in the mountains or desert you co-own with siblings or own some income property with a partner(s),  where one party may be on the loan but everyone chips in to make the payments. Keep good records of your contributions to the property and towards the mortgage and taxes so you can properly claim any eligible deductions.

 

As long as the total amount of interest paid that is claimed does not exceed the amount listed on Form 1098 anyone who has made payment can claim the deduction—just be prepared to show proof of your making the payments should the IRS contact you for verification; i.e. an audit.

 

Again, check with your tax preparer before making any deduction claims and make sure you have the evidence to support your claims.

 

If you have any questions please do not hesitate to contact me.

 

 

Have a question? Ask me!  

 

Remember, with Dennis it’s not just a mortgage, it’s your complete financial picture.

 

Plenty of economic data to chew on this week. Early in the week the National Association of Realtors released existing home sales for the month of February which showed a 1.2% increase from January, good news though marginally good as January and February sales were the two weakest months since last April. Year over year sales were up 4.7% and the national median home price of $202,600 was 7.5% higher than February 2014. Overall the news is neutral to slightly negative for lower rates.

 

Inflation numbers for February were a bit like the weather—chilly. With increases in energy prices in the month the Consumer Price Index managed a 0.2% increase for the month after dropping 0.7% in January. Year over year CPI is down 0.1%, which means on a $1000 bundle of goods and services purchased last February you should have paid $1 less this February for the same items. This is positive for lower rates as it shows a sluggish economy and pushes out possible increases in rates from the Federal Reserve who has a target range of inflation where they would like the economy to operate in the 1.7% - 2.0% range for inflation; obviously our economy is well below that range.

 

Jobs are a major part of economic health and jobs in the manufacturing sectors are considered to be a bellwether for economic health and growth. This week data on durable goods orders, which gauge manufacturing activity, showed a 1.4% decline in February after increasing 2% in January. Year over year durable goods orders are only 0.6% ahead of last February. This data is positive for lower rates as it shows a slow manufacturing sectors, which would result in lack of overtime, soft wages and hiring.

 

Our final data for the week is the final revision to Fourth Quarter Gross Domestic Product for 2014. The final number was an unrevised 2.2% growth in the quarter, indicating soft growth. This is positive for lower rates as it also lends support to those who feel Fed needs to wait longer to raise interest rates.

 

Rates for Friday March 27, 2015: With the economic data, armed conflict increasing in the MidEast and corporate profits showing declines there is no reason for rates to increase. But, you knew it was coming, after Mortgage Backed Securities reached a peak on  Tuesday (lower rates) the sold off strongly on Wednesday and Thursday (higher rates) on concerns about oil supplies, profit taking and jumping off the sinking ride down. We have seen a rally today as it appears more fundamentalist views are prevailing and looking at an economy and markets that support lower rates for a prolonged period of time. Net result of the movement is we lost what little we gained last week.

 

FIXED RATE MORTGAGES AT COST OF 1.25 POINTS

30 year conforming                                            3.625%           Up 0.006%

30 year high-balance conforming                        3.75%             Up 0.097%

30 year FHA                                                       3.25%             Flat**

30 year FHA high-balance                                  3.375%           Flat**

 

Please note that these are base rates and adjustments may be added for condominiums, refinances, credit scores, loan to value, no impound account and period rate is locked. Rates are based on 20% down (3.5% for FHA) with 740 FICO score for purchase mortgages. ***FHA rates have no points and credit towards closing costs

 

 

Between the sneezes and the watery eyes it is very apparent that Spring has sprung in our neighborhood with the beautiful flowers in bloom. While the temperature is telling us it may be September, the calendar says Spring and our plants are doing what they do best—making our lives just a bit prettier.

 

I am hopeful you have time between checking your basketball brackets, prepping for your meeting with your tax preparer and getting ready for the kids’ spring break to slow down and enjoy your surroundings—flora, fauna and persona.

 

Have a great week,

 

Dennis 



Posted in:General
Posted by Dennis C. Smith on March 27th, 2015 12:49 PMLeave a Comment

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