The joys of Spring Break! I saved at least 10 minutes on my home commute this week! The impact of school vacation is just amazing. Summer here we come! Can't wait for that either!
This week I will talk in bullet points. I have some good 'news you can use', for several different topics:
Homepath Financing: Fannie Mae tags certain properties as 'eligible' for this program. It can ONLY be offered for those properties. There is no appraisal, no mortgage insurance, and you can put 3% down! (primary residence), and investors qualify too! The investors have to put 25% down, but they can have up to 10 properties financed! Yea!!!!! All properties are listed on MLS, but to do a more rapid search, you can visit http://www.homepath.com/ and do a search by zip code! I think there are 1,000 properties in Harris County alone! At Patriot Bank Mortgage, we can finance these properties in most cases (except when repairs included). Call us!
Condos - Attention to you listing agents! Did you know that your condo listing has to now be FHA approved to accept an FHA loan? We have to have the HOA submit documents to HUD in Denver, and the process takes 4-6 weeks currently. A marketing idea! You can approach a condo building, and have the HOA get the building approved, so that you get more listings! If your price range is $280,000 or below....you want to be sure FHA financing is available!
FHA- some lenders accepting 620 scores now. Recently the requirement went to 640, but we have some investors that will accept 620. There are a 'few' lenders out there advertising 580...but I don’t think many of those close. So beware.
FHA Mortgage Insurance Premiums will be going up again on April 18. Upfront premiums (affecting the loan amount) will stay the same. But the monthly will go up from its current .90% (of the loan amount) to 1.15% (if they put 5% down only 1.10%). On a $200,000 loan, that is an extra $41.66 a month. One more nail in the coffin for low income borrowers. They are the ones that can least afford upticks in the payment. But FHA has to pay for its losses in all the foreclosures somehow, right? Also, FHA/VA guidelines have recently become a bit more stringent on 2 year work history. Once again, be sure that your borrowers get pre approved early so we can anticipate any extra paperwork needed.
Jumbo Loans- We now have a 10/1 arm in the low 4's with no points! And also a 5/5 ARM (fixed for 5 years, then adjusts only ever 5 years (as opposed to 1 year). This could get some great rates for your borrowers. And ......qualify them for a lower house with the lower payment over a traditional 30 fixed! Call me if you have a scenario.
We love your referrals! So keep them coming. Have a great weekend!
RATES as of March 18, 2011 (DOWN FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets
Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.500% APR 4.107%
15 year ( fixed ) 4.750% APR 5.106%
15 year (fixed) 4.125% APR 4.551%
30 year ( fixed ) 5.375% APR 5.587%
30 year (fixed) 4.875% APR 5.126%
7/1 ARM 3.875% APR 3.640%
5/1 ARM 3.750% APR 3.631%
7/1 ARM 4.125% APR 3.868%
10/1 ARM 4.750% APR 4.308%
FHA/VA call for quote (max loan $270,000)
We do originate loans below $200,000. These amounts are chosen to show the most favorable rates. For other
Monday, March 21, 2011
Monday, March 7, 2011
March 7
As my Ipod is blaring to Dynamite by Taio Cruz (http://www.youtube.com/watch?v=VUjdiDeJ0xg ), I’m running my 4th mile in the neighborhood. I’m back in the game!!!!!!! Ten baby pounds lost so far, and 30 to go. My trainer at the gym has specific instructions to have no mercy. In fact we did stadium stairs last Tuesday. BRING IT ON!!!!!!!!!
Also back in the game is Houston,TX! As of late, each Monday, we have at least 1 client that lost a contract over the weekend because they did not (a) move fast enough or (b) were outbid. It’s becoming a normal thing again. For homes in top condition and priced right, they go fast (or if you are in Frostwood, like the one that had 13 offers a few weeks ago…..it was outdated from the original owner). Gone in a few days. A well respected mortgage newsletter we subscribe to had a headline this morning: ‘there are also many potential homebuyers who have been waiting on the sidelines to step in and purchase a home at still affordable rates and home prices. Waiting much longer could prove to be costly for those homebuyers, who will likely see both home prices and home loan rates move higher in the year ahead’.
The economy is getting back in gear as well, as we saw with this morning’s Jobless Claims Report on target with expectations, and Wednesday we saw an improving payroll number reported by ADP (the payroll processing company). Also the unemployment rate has declined the last 3 months in a row. So great news for the economy! But I hate to report, that is bad for bonds. Remember: the worse the news, the better the rates! As the economy recovers, so does love for the stock market. Investors feel like taking risk, kind of like the new girlfriend syndrome! And they buy,buy, buy. They take the money from the bond market, which pushes yields up in hope to attract those investors back. Or at least you can think of it that way…its easier logic than the more complicated answer (so I won’t bore you).
Watch out in the coming week for turmoil abroad. Baghdad unrest, rising oil prices…this market is a real doozie. All I know is, Houston is getting back into its zone, and it’s once again a great time to be a homeowner!
Enjoy the weekend! A great time to check out the Azalea Trail! http://www.riveroaksgardenclub.org/AzaleaTrail.cfm
RATES as of March 4, 2011 (UNCHANGED FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets
Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.750% APR 4.072%
15 year ( fixed ) 4.250% APR 4.443%
15 year (fixed) 4.250% APR 4.476%
30 year ( fixed ) 5.750% APR 5.870%
30 year (fixed) 5.000% APR 5.134%
7/1 ARM 4.250% APR 3.732%
5/1 ARM 4.000% APR 3.644%
7/1 ARM 4.250% APR 3.848%
10/1 ARM 5.150% APR 4.468%
FHA/VA call for quote (max loan $270,000)
We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!
Also back in the game is Houston,TX! As of late, each Monday, we have at least 1 client that lost a contract over the weekend because they did not (a) move fast enough or (b) were outbid. It’s becoming a normal thing again. For homes in top condition and priced right, they go fast (or if you are in Frostwood, like the one that had 13 offers a few weeks ago…..it was outdated from the original owner). Gone in a few days. A well respected mortgage newsletter we subscribe to had a headline this morning: ‘there are also many potential homebuyers who have been waiting on the sidelines to step in and purchase a home at still affordable rates and home prices. Waiting much longer could prove to be costly for those homebuyers, who will likely see both home prices and home loan rates move higher in the year ahead’.
The economy is getting back in gear as well, as we saw with this morning’s Jobless Claims Report on target with expectations, and Wednesday we saw an improving payroll number reported by ADP (the payroll processing company). Also the unemployment rate has declined the last 3 months in a row. So great news for the economy! But I hate to report, that is bad for bonds. Remember: the worse the news, the better the rates! As the economy recovers, so does love for the stock market. Investors feel like taking risk, kind of like the new girlfriend syndrome! And they buy,buy, buy. They take the money from the bond market, which pushes yields up in hope to attract those investors back. Or at least you can think of it that way…its easier logic than the more complicated answer (so I won’t bore you).
Watch out in the coming week for turmoil abroad. Baghdad unrest, rising oil prices…this market is a real doozie. All I know is, Houston is getting back into its zone, and it’s once again a great time to be a homeowner!
Enjoy the weekend! A great time to check out the Azalea Trail! http://www.riveroaksgardenclub.org/AzaleaTrail.cfm
RATES as of March 4, 2011 (UNCHANGED FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets
Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.750% APR 4.072%
15 year ( fixed ) 4.250% APR 4.443%
15 year (fixed) 4.250% APR 4.476%
30 year ( fixed ) 5.750% APR 5.870%
30 year (fixed) 5.000% APR 5.134%
7/1 ARM 4.250% APR 3.732%
5/1 ARM 4.000% APR 3.644%
7/1 ARM 4.250% APR 3.848%
10/1 ARM 5.150% APR 4.468%
FHA/VA call for quote (max loan $270,000)
We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!
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