Do you ever have moments where the world seems like its crashing in? Working mommy, loving wife, school board of directors, HOA treasurer, manager of 10, loan officer extraordinaire, counting 1500 calories a day, working out 5-6 times a week.....man it loads on! So I was having a pity party until......my bimonthly coaching call yesterday. Rick reminded me that when I am down, I need to look at my list of 200 things I am grateful for (like I had one....but that was homework). It’s true. I am so grateful for so many things, I just have to remind myself.
So why can't the government do that and have a balanced budget? For real estate, this would affect the closing of FHA and VA loans. Patriot Bank Mortgage has made a company decision to keep funding these loans. The only thing we still have to work out is not being able to receive IRS audited tax returns on all our clients (a mandate on loans from Fannie, Freddie and FHA). We will find a solution I am sure. But the bigger question is .....how can this really happen for an extended period of time? It can't. Something or someone will come in and save the day last minute, or at least soon after, to put all in its place. It’s the American way.
As for rates, the markets seemed flat this week after all the dust settled. Charlie Sheen is tweetering for cash, and the Middle East is still in turmoil.
Check out our Jumbo rates below! We have a 5/5 ARM (fixed for 5 years and then adjusts every 5 years) that only requires 25% down up to 4 million! Buyers can keep their cash in the market and put a minimum amount into the house at a rate below 4.0%! Now that is like free money.
Have a great weekend! Godspeed to my hubby Fernando who is competing in a triathlon in Galveston tomorrow!
RATES as of April 8, 2011 (UP 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 ) 4.875% APR 5.079%
15 year (fixed) 4.250% APR 4.476% 30 year ( fixed ) 5.750% APR 5.874%
30 year (fixed) 5.000% APR 5.134%
7/1 ARM 4.000% APR 3.606% 5/1 ARM 3.875% APR 3.598%
7/1 ARM 4.375% APR 3.909%
10/1 ARM 4.750% APR 4.221%
5/5 ARM 3.750% APR 4.079%
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!
If you know of someone who would appreciate my services, please contact
Monday, April 11, 2011
Tuesday, April 5, 2011
April 1, 2011 Do you know what QRM means?
Do you know what QRM means? Being in real estate, we all should. It’s a topic that has been blown over and swept under the carpet of late by legislators, kind of like the tax to a property seller that was whirled up in the Medicare bill last year (Medicare = residential home sales?) I just don't get that logic. That's why I will never be President of the United States, among other reasons. The Frank Dodd bill that has gotten so much attention has a provision that must be passed by SIX (6) different agencies of the federal government. It says that if a lender/bank (or whomever) makes a mortgage loan that is NOT a Qualified Residential Mortgage (QRM) they have to have 5% of the loan amount in reserves for possible default of that loan. So what is a QRM? That is the big question. Rumors have flown around that all jumbos will not meet the criteria. So 5% of those loans will have to be in reserve. That would greatly affect a market that is making a comeback. FHA loans do not count. So they are safe. What we need to be concerned about is that it has been proposed (this week) that a QRM be the following: 20% down (purchase), or 25% equity (refinance). Housing ratio does not exceed 28% (currently we are seeing as high as 42%), and that there are NO 60 day lates on any credit at all in the last 2 years. So this means, that if you are purchasing above the FHA loan limit of $271,000- then you have to put 20% down. That is what it means, plain and simple. Once defined over the next weeks, there will be a comment period until June. Be sure to visit your HAR /TAR /NAR website and comment on how this will affect an already hurt industry. We have already gotten conservative, is this really needed? I could go on for hours. But get involved. Google QRM and read up, and make sure you let your voice be heard in the comment period. We have to fight guys. No one listens to mortgage lenders anymore, so it may be up to the realtors. Have a great weekend, and go sell some houses- we can do 5% down as of right this minute on all conforming loan amounts. We can even do 10% down to $650,000 and 15% down to $850,000. And I even have 25% down to 4 million. That’s' right, it’s not a typo. If you have a super jumbo client right now, he can keep his money working in the market, and get 25% down for a 5/5 ARM rate with a 3 in it! Call me for details. RATES as of April 1, 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) 3.625% APR 3.939% 15 year ( fixed ) 4.750% APR 4.952% 15 year (fixed) 4.250% APR 4.472% 30 year ( fixed ) 5.50% APR 5.622% 30 year (fixed) 4.875% APR 5.005% 7/1 ARM 3.875% APR 3.548% 5/1 ARM 3.750% APR 3.392% 7/1 ARM 4.000% APR 3.596% 10/1 ARM 4.750% APR 4.225% 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! 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 Vice President/Mortgage Consultant Patriot Bank Mortgage Office: 713-337-8400 E-mail: jennifer@patriotbankusa.com Blog: www.loanwithjennifer.blogspot.com To opt out hit Reply and put Unsubscribe in the subject. 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.
Monday, March 21, 2011
Friday, March 18
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
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 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!
Monday, February 14, 2011
Happy Valentines Day
Where is the love this Valentine's Day? Today Obama released his plan to 'phase out' Fannie Mae and Freddie Mac. Below I will summarize some points for you, but you can read the article here: http://money.cnn.com/2011/02/11/news/companies/fannie_mae_freddie_mac_white_house_proposal/index.htm
By 2018, Fannie and Freddie are planned to be essentially gone. It’s hard to imagine what 'private equity' they expect to handle the trillion dollar market. Not to say change is not necessary, but I hope the extra money they are looking for will enter into our market. Will it be the Chinese or the Saudi's that close the gap on our market? Is that what kind of 'private' equity they are talking about? Will America be America anymore? I heard a foreign buyer is looking at buying the NYSE...seriously?
Back to Fannie Mae, there are some sentences in the above article that caused me to pause. Phrases like: "recommends requiring Fannie Mae and Freddie Mac to price their loan guarantees to the same standards as private banks". So...does that mean to charge higher yields? Private bank portfolio loans usually come at a cost. Hmmmmm.... With regulatory changes coming this April 1, the cost of loans is set to increase anyway (this is my opinion) with the increased cost to lenders. It will pass off to the borrowers.
Other phrases bothered me like: "Increasing down payment requirements in order to shrink Fannie and Freddie's portfolio". In other words, to phase them as market players over the next (couple) of years. That will really help dig us out of the recession.
"Increase premiums on FHA loans by .25%". Fact: they already have done that this year! The cost to borrowers for these low income loans has already increased about $20/mo on a $100,000 loan. That is a lot of money for many people. How again will this help support homeownership and encourage families to buy a home? Increase the cost? Will it be affordable?
Lots of questions left unanswered this week, I know. Sorry! I am just going to keep plugging along, implementing and improving my systems to WOW our clients and referral partners, and close as many transactions as I can! Today. One thing is for sure, there will be a mortgage market, there has to be! For the lucky son of a gun that gets creative and provides this 'private equity' Obama is talking about...more power to him. I'll be ready.
Enjoy the beautiful weekend!
BHBK (Big Hug Big Kiss) this Valentine's Day.
Jennifer
RATES as of February 11, 2011 (UP 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*)
30 year (fixed) 5.125% APR 5.260%
30 year ( fixed ) 5.875% APR 5.997%
15 year (fixed) 4.375% APR 4.602%
15 year ( fixed ) 5.250% APR 5.425%
5/1 ARM 3.875% APR 3.625%
7/1 ARM 4.375% APR 3.935%
5/1 ARM 4.000% APR 3.654%
7/1 ARM 4.250% APR 3.857%
10/1 ARM 5.250% APR 4.652%
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!
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!
By 2018, Fannie and Freddie are planned to be essentially gone. It’s hard to imagine what 'private equity' they expect to handle the trillion dollar market. Not to say change is not necessary, but I hope the extra money they are looking for will enter into our market. Will it be the Chinese or the Saudi's that close the gap on our market? Is that what kind of 'private' equity they are talking about? Will America be America anymore? I heard a foreign buyer is looking at buying the NYSE...seriously?
Back to Fannie Mae, there are some sentences in the above article that caused me to pause. Phrases like: "recommends requiring Fannie Mae and Freddie Mac to price their loan guarantees to the same standards as private banks". So...does that mean to charge higher yields? Private bank portfolio loans usually come at a cost. Hmmmmm.... With regulatory changes coming this April 1, the cost of loans is set to increase anyway (this is my opinion) with the increased cost to lenders. It will pass off to the borrowers.
Other phrases bothered me like: "Increasing down payment requirements in order to shrink Fannie and Freddie's portfolio". In other words, to phase them as market players over the next (couple) of years. That will really help dig us out of the recession.
"Increase premiums on FHA loans by .25%". Fact: they already have done that this year! The cost to borrowers for these low income loans has already increased about $20/mo on a $100,000 loan. That is a lot of money for many people. How again will this help support homeownership and encourage families to buy a home? Increase the cost? Will it be affordable?
Lots of questions left unanswered this week, I know. Sorry! I am just going to keep plugging along, implementing and improving my systems to WOW our clients and referral partners, and close as many transactions as I can! Today. One thing is for sure, there will be a mortgage market, there has to be! For the lucky son of a gun that gets creative and provides this 'private equity' Obama is talking about...more power to him. I'll be ready.
Enjoy the beautiful weekend!
BHBK (Big Hug Big Kiss) this Valentine's Day.
Jennifer
RATES as of February 11, 2011 (UP 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*)
30 year (fixed) 5.125% APR 5.260%
30 year ( fixed ) 5.875% APR 5.997%
15 year (fixed) 4.375% APR 4.602%
15 year ( fixed ) 5.250% APR 5.425%
5/1 ARM 3.875% APR 3.625%
7/1 ARM 4.375% APR 3.935%
5/1 ARM 4.000% APR 3.654%
7/1 ARM 4.250% APR 3.857%
10/1 ARM 5.250% APR 4.652%
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!
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!
Friday, February 11, 2011
Belated IRU
This weeks’ note will be quick! My new assistant (5 year old Diego came with mommy to work today) and he just informed me that it’s time to go home…….
Rates are up for 3 days in a row! Why? Instability in Europe, most specifically there are fears of inflation as food and energy prices are increasing. The ECB yesterday said they are not going to rise the interest rates, but the markets aren’t going for it, as inflation seems to already be on the rise. So bond markets reacted.
On our home turf, there were mixed signals today, which isn’t good market news either. Only 36,000 jobs were created in January, while 148,000 were expected. Normally that would lower rates, but with news of increased hourly wages (up .4%) and unemployment claims down, it signaled to the markets that we are slowly but surely recovering.
Don’t let your buyers and sellers be discouraged by short term spikes in rates! We are still at historically low levels of interest rates. And, we live in one of the most prosperous cities in the country.
Have a safe and warm weekend, and remember, we can still close loans in 3 weeks or less!
RATES as of February 4, 2011 (UP .25% 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*)
30 year (fixed) 5.125% APR 5.258% 30 year ( fixed ) 5.875% APR 5.997%
15 year (fixed) 4.250% APR 4.476% 15 year ( fixed ) 5.125% APR 5.326%
5/1 ARM 3.625% APR 3.535%
7/1 ARM 4.000% APR 3.751% 5/1 ARM 3.625% APR 3.520%
7/1 ARM 4.000% APR 3.737%
10/1 ARM 5.250% APR 4.552%
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!
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
Vice President/Mortgage Consultant
Patriot Bank Mortgage
Rates are up for 3 days in a row! Why? Instability in Europe, most specifically there are fears of inflation as food and energy prices are increasing. The ECB yesterday said they are not going to rise the interest rates, but the markets aren’t going for it, as inflation seems to already be on the rise. So bond markets reacted.
On our home turf, there were mixed signals today, which isn’t good market news either. Only 36,000 jobs were created in January, while 148,000 were expected. Normally that would lower rates, but with news of increased hourly wages (up .4%) and unemployment claims down, it signaled to the markets that we are slowly but surely recovering.
Don’t let your buyers and sellers be discouraged by short term spikes in rates! We are still at historically low levels of interest rates. And, we live in one of the most prosperous cities in the country.
Have a safe and warm weekend, and remember, we can still close loans in 3 weeks or less!
RATES as of February 4, 2011 (UP .25% 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*)
30 year (fixed) 5.125% APR 5.258% 30 year ( fixed ) 5.875% APR 5.997%
15 year (fixed) 4.250% APR 4.476% 15 year ( fixed ) 5.125% APR 5.326%
5/1 ARM 3.625% APR 3.535%
7/1 ARM 4.000% APR 3.751% 5/1 ARM 3.625% APR 3.520%
7/1 ARM 4.000% APR 3.737%
10/1 ARM 5.250% APR 4.552%
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!
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
Vice President/Mortgage Consultant
Patriot Bank Mortgage
Tuesday, February 1, 2011
The Bottom Line
Just when I was taking a breath, and thought things were maintaining some 'normalcy'.........Fannie Mae and Freddie Mac made changes as of January 10 to their risk based pricing models. What does risk based pricing mean? That for certain loan levels (based mainly on credit score and loan to value) there is a risk factor involved. Well, they just went up. ALOT. Why the change? Well, to make up for losses on the loans they made that they should not have, of course.
Here is a summary of some changes (keep in mind these 'hits' can come in the form of % to the rate, or upfront fee). These are 'examples' only.
25% is the new 20%. If you have an 800 credit score, and put 20% down. HIT. Equivalent to about .125% in rate, or $625 on a $250K loan. Investors do not consider 20% down the 'best' anymore, is my takeaway.
740 is the new 720. If you have below a 740 score, there are some significant hits to the price, depending on the down payment. For example:
20% down, score 700-719 is approximately .50% rate hit, or $2500 fee upfront
Add an 80/10 (total 90) - add another .25% in rate (that would be on top of the already increased fee for a score <720)
10% down (one 90% loan), score below 680- a 1.0% hit to the rate, or a fee of $6,875 upfront.
Should I continue? The matrix is quite extensive.
The BOTTOM LINE is that your buyers and sellers need to be sure and get preapproved BEFORE they start shopping for homes. I have seen clients with 20 years of pristine credit, and a recent collection to Time Warner of $30 they disputed for a late fee , drops the score 100 points. Really. No joke. Also, we see 'errors' all the time. On the most qualified of borrowers.
Everyone's credit is suceptible to mistakes. Everyone's. The most VALID website to pull credit for borrowers is www.myfico.com. The score given here most resembles mortgage credit scores. We have seen Equifax, Experian and Trans Union vary more than 50 points in some cases. The scores they are 'selling' is not the same as a mortgage credit score. They are selling a generic product. A money maker. Please encourage your buyers to discuss this with a mortgage professional.
As always, we are here to assist you with your clients mortgage needs! Just give anyone on my team a call (Kenny, Brianna, Nancy or myself). We are here to serve you and ensure an ontime and accurate closing. Also, did I tell you we can still close in 21 days or less on a conforming or FHA transaction?
Enjoy the weekend!
Jennifer Hernandez
RATES as of January 28, 2011 (FLAT 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*)
30 year (fixed) 4.875% APR 5.008%
30 year ( fixed ) 5.625% APR 5.746%
15 year (fixed) 4.250% APR 4.476%
15 year ( fixed ) 5.000% APR 5.201%
5/1 ARM 3.500% APR 3.300%
7/1 ARM 3.875% APR 3.532%
5/1 ARM 4.000% APR 3.643%
7/1 ARM 4.250% APR 3.848%
10/1 ARM 5.250% APR 4.552%
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!
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
Vice President/Mortgage Consultant
Patriot Bank Mortgage
Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com
Here is a summary of some changes (keep in mind these 'hits' can come in the form of % to the rate, or upfront fee). These are 'examples' only.
25% is the new 20%. If you have an 800 credit score, and put 20% down. HIT. Equivalent to about .125% in rate, or $625 on a $250K loan. Investors do not consider 20% down the 'best' anymore, is my takeaway.
740 is the new 720. If you have below a 740 score, there are some significant hits to the price, depending on the down payment. For example:
20% down, score 700-719 is approximately .50% rate hit, or $2500 fee upfront
Add an 80/10 (total 90) - add another .25% in rate (that would be on top of the already increased fee for a score <720)
10% down (one 90% loan), score below 680- a 1.0% hit to the rate, or a fee of $6,875 upfront.
Should I continue? The matrix is quite extensive.
The BOTTOM LINE is that your buyers and sellers need to be sure and get preapproved BEFORE they start shopping for homes. I have seen clients with 20 years of pristine credit, and a recent collection to Time Warner of $30 they disputed for a late fee , drops the score 100 points. Really. No joke. Also, we see 'errors' all the time. On the most qualified of borrowers.
Everyone's credit is suceptible to mistakes. Everyone's. The most VALID website to pull credit for borrowers is www.myfico.com. The score given here most resembles mortgage credit scores. We have seen Equifax, Experian and Trans Union vary more than 50 points in some cases. The scores they are 'selling' is not the same as a mortgage credit score. They are selling a generic product. A money maker. Please encourage your buyers to discuss this with a mortgage professional.
As always, we are here to assist you with your clients mortgage needs! Just give anyone on my team a call (Kenny, Brianna, Nancy or myself). We are here to serve you and ensure an ontime and accurate closing. Also, did I tell you we can still close in 21 days or less on a conforming or FHA transaction?
Enjoy the weekend!
Jennifer Hernandez
RATES as of January 28, 2011 (FLAT 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*)
30 year (fixed) 4.875% APR 5.008%
30 year ( fixed ) 5.625% APR 5.746%
15 year (fixed) 4.250% APR 4.476%
15 year ( fixed ) 5.000% APR 5.201%
5/1 ARM 3.500% APR 3.300%
7/1 ARM 3.875% APR 3.532%
5/1 ARM 4.000% APR 3.643%
7/1 ARM 4.250% APR 3.848%
10/1 ARM 5.250% APR 4.552%
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!
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
Vice President/Mortgage Consultant
Patriot Bank Mortgage
Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com
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