Dennis' Mortgage Blog

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

The economic data and chatter continues to fall into either “recessionary” or “inflationary” categories leading to a very mixed market.  This week the minutes from the recent Fed meeting were released and they show dissension in the ranks—two of the Federal Reserve Governors were outspoken against any rate cuts and warn the rate cuts that have already happened are feeding inflation.  I agree on to the inflation part…

My perspective is the majority of the Fed realizes we are in for inflation down the road, however the immediate need to keep the markets afloat and investment banks open—I agree with this approach as well.

Keep very open communications on all transactions.  Make sure programs and qualifying loan numbers are still valid when writing offers.   Call me to ensure both!

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%   (flat)

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

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

30 year jumbo at 1 point 7.25% (down .125% from last Friday)

This past week has seen an increase in buyers sniffing around in the jumbo marketplace—at least more so than in recent weeks.  This is good news for the traditional home buying season that is getting ready to start!

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
 

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