Dennis' Mortgage Blog

Did you know Reverse Mortgages can be used to purchase new homes for seniors?  Great way to downsize, put significant assets into liquid accounts and never have another mortgage payment!

IMPORANT “JUMBO-FHA” UPDATE:  We have no pricing available on this new financing vehicle from any of our wholesale sources.  My best estimate is that the rate will be about 0.5% in rate above rate listed below and on my chart.

Rates are updated to include Conforming-Jumbo and FHA as both have loan limits to $729,750 in most areas of California. **We do have pricing on the Conforming Jumbo as listed below

After falling precipitously early in the week the mortgage and bond markets rallied late yesterday and this morning on negative unemployment news.  The unemployment rate cracked up to 5.1% nationally in March, the highest in two years.  This portends lower rates in the near future and we are cautiously floating some clients today—cautious being a critical position.  Note I never float a client’s loan lock without their knowledge of the ramifications and their consent—no surprises.  Once I indicate a loan rate is locked it is locked for the rate, terms and period stated.

Next week some more economic numbers are available that could put further downward pressure on rates, as well we could see some major movement as most lenders tell us they will be able to provide pricing for the Jumbo-FHA loans.  I hope so as I have several clients waiting to take advantage of the new program!

Note of caution:  we have 1 source currently for 2nds on 80-10-10 financing, so most clients with less than 20% down are being priced using mortgage insurance. 

NOTE PRICING BELOW IS BASED ON 20% DOWN FOR JUMBO LOANS AND 10% DOWN FOR CONFORMING,  FULL DOC, AND FICOS OF 720 AND ABOVE:

30 year conventional at 1 point 5.5%  (down .125% from last Friday)

30 year conforming-jumbo at 1 point 6.25% (down)

30 year FHA at 1 point 5.5% (3 % down plus mortgage insurance premiums)

30 year jumbo at 1 point 7.37% (up .125% from last Friday)

We are seeing a fair amount of activity with new buyers looking to take advantage of the lower prices with still excellent rates.  Most o f the activity is occurring in the first-time buyer and conforming price ranges which will result in a continuing dip in median home sale prices.  The numbers to watch for market health and stability are the month to month number of transactions not necessarily median prices.

I appreciate your referrals and look forward to working with you this week!

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,

Dennis

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

Mobile (562) 243-6912

Fax (562) 684-4316