Dennis' Mortgage Blog

Note that as early as next week Fannie and Freddie may start having further tiered pricing for FICO scores raising the “entry” level with no hits to pricing starting as high as 740 middle score.  Stay tuned!

Speaking of Fannie Mae, we were very proud at Stratis Financial this week to have been contacted by Fannie Mae to have a one-on-one meeting with one of Fannie’s senior data analysts who was meeting with just a few brokers in the entire Southern California region.  We were selected because of our long history of using the Fannie Mae Desktop Underwriter software program, our excellent funding record on approved loans and our almost non-existent default record on Fannie Mae mortgages.  The purpose of the discussion was what tools Fannie Mae can make available to brokers such as Stratis Financial to assist us with our clients.  It was a very productive meeting and we are thrilled to be such a positive blip on Fannie Mae’s radar screen. 

Bonds got hammered hard on Monday and into Tuesday as the Russian invasion and occupation of Georgia scared the markets and raised concern about oil and gas supplies in Europe.  Russia is the number two nation in oil exports and far and away the number one nation in natural gas exports—supplying almost all of Western Europe.  With inflation figures out that showed higher prices, mostly centered on oil and gas prices, the markets sold bonds rapidly.  Later in the week things calmed down and we have seen a slight improvement that last few days.  But as always volatility remains the key word for mortgage rates, bonds and stock markets.   

Looking ahead I see no reason to move off my position of having clients lock in their rates and terms through the end of escrow as soon as possible to protect from upside volatility.

***ALERT*** NO CHANGE FROM LAST WEEK: Jumbo 30 year fixed rate pricing is not available; the most reasonable quote we have currently from our lenders is 8.5% at cost of 3.5 points.  5/1 and 7/1 ARM pricing is available on loans over $719,000---call for quotes.

NOTE PRICING BELOW IS BASED ON 20% DOWN FOR JUMBO LOANS AND 10% DOWN FOR CONFORMING, 3% FOR FHA, FULL DOC, AND FICOS OF 740 AND ABOVE (change from last Friday):

30 year conventional at 1 point 6.375%            é  0.125%

30 year conforming-jumbo at 1 point 6.5%       é  0.125%

30 year FHA at 1 point 6.25%                                    ó  FLAT

30 year jumbo at         NO PRICE CALL FOR INFORMATION              

Let me know how my 20+ years of experience can be of assistance to you, your family, friends or co-workers.  It is a great time to buy a new home!

Have a great weekend!

Dennis