Friday, October 17, 2011

Each week I like to provide thought provoking questions, or relate the mortgage business to real life analogies. This week is the thought provoking question, having NOTHING to do with real estate: What will happen to all of our worlds water and air supply as the radiation fall out from the Japan nuclear plant collapse floats around the globe for hundreds of years? One of my clients is a scientist, and he said those particles, some of them, can last up to 1,000 years. Water is used for everything! Even buying organic…they need water to irrigate crops. And the problem seems to be worse than the governments of the world are leading on. I guess I'll think twice before visiting a sushi restaurant.

Interest Rates:
Volatile, volatile and more volatile. Catch them while you can. We are definitely not advising clients to float loan locks. We secure the rate immediately to protect them from rapid increases (that happen without notice!)

Appraisals:
Have you noticed the new 'language' in appraisals? They have now been reworked, so the format includes 'codes' (example: A1-6, or C1-5) for quality, materials used, location, just to name a few. They are not meant for a borrower, nor any person for that matter (except Fannie Mae's computer) to read. The codes are designed to have consistent variables when selling loans to Fannie later on. So don't be alarmed when you need a legend and a bucket of patience to read through one. This started October 1.

Underwriting Guidelines:
No major changes of late. Some of the PMI companies are allowing lower credit scores on loans. Down to 620 for a 5% down loan in some cases. This is encouraging for borrowers that don’t qualify for FHA.

There are some down payment alternatives <20% for Jumbo loans (over $417,000). Have your clients call us to find out more, or if they are eligible for the alternative options.

Enjoy this beautiful weekend!


RATES as of October 21, 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) 3.250% APR 3.593% 15 year ( fixed ) 4.125% APR 4.336%
15 year (fixed) 3.375% APR 3.612% 30 year ( fixed ) 4.625% APR 4.748%
30 year (fixed) 4.125% APR 4.262%
7/1 ARM 3.250% APR 3.278% 5/1 ARM 3.125% APR 3.429%
7/1 ARM 3.500% APR 3.572%
10/1 ARM 4.125% APR 3.880%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.375% APR 3.300%


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!


If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez & Team
Kenny, Brianna, Jason
Patriot Bank Mortgage

Office: 713-337-8401
E-mail: jhernandez@patriotbankusa.com
Website: www.applywithpatriot.com

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Information provided in this e-mail is intended as a tool for Real Estate Agents to be informed of the approximate rates available for home mortgages. It is intended for their sole use and purpose only and is not for distribution to the general public. Depending on the borrower's actual circumstances, such as credit, debt ratios, etc., rates may vary. Special niche products may also be available.