April 6

Given my prior year track record, my mother started ‘coaching’ me about the importance of a child’s Easter basket (with grass), 7 days ago. It’s just never been on my radar ok? But now with 2 kids, I am under enormous pressure to keep this tradition going. Ok Mom, just know that I got the grass today (well my assistant did). The Easter Bunny is coming to see your babies. They will even get the chocolate bunny.

Just as important as the tradition and structure of a basic holiday basket, so is the importance of structure and repetition with our mortgage clients. This week, in fact, we updated our checklists so that once clients make application, they know EXACTLY what to expect. Another part of our structure is to update our borrowers and realtors under contract EVERY Tuesday. This lets everyone know we are on track, and alleviates anxiety for everyone! These are just a few of the many benefits of using the Hernandez Team!

In the markets……we are seeing unemployment numbers fall, and job growth slowly rise – which is great for the economy. It’s also positive for stocks (as investors have more confidence in company profits). On the other hand, this week there were recurring worries about Europe, as Spain’s debt auction was weak, meaning there is not much interest in financing their debt. There is worry they could be the next Greece. So the bottom line here is: VOLATILITY.

So why are rates not falling fast you ask? VOLATILITY. That word again! You see, Mortgage Backed Securities (MBS) are ‘similar’ to Treasuries, but really not exactly the same. They are both ‘fixed income’ assets, yes. But mortgage lenders are slow to give back gains in volatile environments because there is increased cost of doing business. One example is that they have to worry about borrowers leaving them for lower rates somewhere else. So many mortgage lenders are slow to drop, so they can retain some profits, on an already hedged pipeline. There is also fear to jump on lower rates too quickly, if there is a sharp rise again, they could lose as well. It’s a very fine art, let me tell you. The takeaway here though, is that there is a lot of volatility, and your borrowers should lock in once under contract. Floating to ‘wait’ for that perfect rate is probably not a smart move.

Have a glorious weekend!

RATES as of April 6, 2012 (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) 2.875% APR 3.189% 15 year ( fixed ) 3.625% APR 3.607%
15 year (fixed) 3.125% APR 3.343% 30 year ( fixed ) 4.375% APR 4.489%
30 year (fixed) 3.875% APR 4.000%
7/1 ARM 2.875% APR 3.694% 5/1 ARM 3.000% APR 3.302%
7/1 ARM 3.250% APR 3.384%
5/1 ARM 2.750% APR 3.228% 10/1 ARM 3.875% APR 3.765%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.125% APR 3.051%









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!