Interest Rate Update 02/19/13

One morning this week on a morning jog, as I was crossing the light on Eldridge, I did my ‘stop, look, listen!’, and decided to enter the intersection with a ‘wait and see’ attitude. If cars started moving, I could run faster out of the way.  Not a smart plan. As I was in the middle of the road, the light DID turn green, and the middle lane to my right had me out of view, sped forward, and had to slam on the brakes as not to hit me. Wow. Talk about tense. I won’t be doing that ‘wait and see’ trick ever again.

Some lenders live by a ‘WAIT AND SEE’ strategy. Not the Hernandez Team! We are drill sergeants (I say that lovingly, but it’s true), on the front end of your client’s experience with us. You see, if we are going to give you a pre-approval letter, we will have checked out their paperwork thoroughly. Some clients complain and resist, and those are the ones that we all should worry about. So a good practice is to warn your clients,“ They will ask you for everything, be prepared”. So get them to us early! It usually takes 5-6 business hours from the 1^st phone call, email for items needed, return of requested information, , review of the documents, and lastly, the letter. WHEN AT ALL POSSIBLE, we want to see your clients in person to complete the pre-approval. We want them to look us in the eye, and know they can trust us. We believe that developing rapport is the surest way for a successful transaction.

In the Markets

Improving economic growth in the US was negative for mortgage rates this week. This was mostly offset by weakness in Europe and Japan, however. As a result, mortgage rates ended the week just a little higher.

The biggest US economic report released this week was Retail Sales, which accounts for roughly 70% of economic activity.   Investors are concerned that it may slow during the first quarter due to a number of factors, including this year's payroll tax increase and rising gas prices. Investors were pleased that the actual results showed that January Retail Sales posted a small increase from December. The full impact of the payroll tax increase may not be seen until February or March, though.

Enjoy the weekend!!!!!!!!!!

RATES as of February 15th, 2013 (No Change 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)         2.750%       APR 2.867 %	15 year ( fixed )         3.125%        APR  3.159%
15 year (fixed)         2.875%       APR 2.955%	30 year ( fixed )         4.125%        APR  4.144%
30 year (fixed)         3.325%       APR 3.671% 7/1 ARM                    2.750%       APR 5.333%	5/1 ARM                       2.500%        APR  5.610% 7/1 ARM                       2.875%        APR  5.422%
5/1 ARM                    2.625%       APR 5.753%	10/1 ARM                    3.250%        APR  5.767%
FHA/VA         call for quote (max loan $270,000)

January 30th, 2013

Well my baby, 7 year old Diego, just lost his 2nd tooth within a week. He got them all at once when he was 12 months, and now he will lose them all at once! What a thrill. He is just excited to be able to put a straw between his teeth in the gaping hole that is there.

Excitement too in the RATES arena:  Mortgage rates are ending the week a bit HIGHER due to an improving outlook for global economic growth caused investors to shift assets from bonds to stocks, reducing demand for long-term fixed-rate assets including mortgage-backed securities (MBS).

The global economic data released this week was encouraging. Important manufacturing reports in Europe and China exceeded expectations. In the US, Jobless Claims surprised investors for the second straight week. There is also a growing sense that the worst of the debt troubles for the European Union have passed. Stock markets around the world are hitting multi-year highs.

The Housing data released this week reflected solid year over year improvement. December Existing Home Sales were 13% higher than one year ago, to the highest level since 2007. Even though the total inventory of existing homes available for sale fell to the lowest level in years, the National Association of Realtors forecasts that Existing Home Sales will increase another 9% in 2013. December New Home Sales were nearly 20% higher than one year ago.

Next week will be packed with major economic news. The biggest story will be Wednesday's Fed meeting, as investors watch for hints about the duration of the Fed's bond-buying program. The biggest economic report next week will be the important Employment data on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Before the employment data, Durable Orders and Pending Home Sales will be released on Monday. Fourth quarter GDP will come out on Wednesday. Personal Income, Core PCE inflation, and Chicago PMI will be released on Thursday. ISM Manufacturing and Construction Spending are scheduled for Friday. In addition, there will be Treasury auctions on Monday, Tuesday, and Wednesday.

Enjoy the weekend!

RATES as of January 25^th, 2013 (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)         2.625%       APR 2.668%	15 year ( fixed )         3.250%        APR  3.284%
15 year (fixed)         2.750%       APR 2.830%	30 year ( fixed )         4.000%        APR  4.019%
30 year (fixed)         3.500%       APR 3.545% 7/1 ARM                     2.750%       APR 5.333%	5/1 ARM                      2.375%        APR  5.494% 7/1 ARM                      2.750%        APR  5.122%
5/1 ARM                     2.625%       APR 5.753%	10/1 ARM                   3.375%        APR  5.696%
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 & Team

Kenny, Heath, Sandra, Norma, Jason, Stella, Nancy and Jimmy

Patriot Bank Mortgage

NMLS# 514497

Office:          713-337-8400

E-mail:   jennifer@patriotbankusa.com

Website: www.applywithpatriot.com   

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So a few days after a 2 week vacation I went to my nutritionist. On the scale only 1 lb up! That’s not so bad, considering the cruise ship had chocolate sushi and self serve chocolate yogurt cones! It must have been the exercise I did sprinting after a toddler the whole time. But then…..the nutritionist pulled out those clipper things! Oh how I hate this part…….and my actual body fat percent went up 3%, that’s like 4.5 lbs. The scale sure is deceiving.


Talking about deceiving, how about those preapproval letters? In a succinct paragraph, we are supposed to make a seller feel comfortable that this loan will fly? I am confident that the letters I release are, but I’m not the only lender in town. What do other people do? I was recently having breakfast with 2 of my top referring realtors, and BOTH had transactions that were denied the day before closing because of last minute issues. It can happen, but it should be rare if the lender had only asked the right questions and been more thorough on the front end (in these cases). So their worry is ‘How do we protect ourselves and our buyers/ sellers from this happening?’


So now I have a confession to make. I have been sitting on a checklist for some time. It’s not that I did not want to release it, I just lost focus. So here it is, better late than never. Its long…beware. But these are questions that you or an assistant can ask in 10 minutes time. If you get resistance from a lender, then you know how the rest of the transaction is going to be. You can alert your seller early, or as the buyer agent, be sure they get to a lender that has no problem answering these questions. Their earnest money is at risk! The kudos for this list should not go to me, but one of your fellow realtors, Betty Bezemer. She is a top notch professional, and she put the sweat and tears into this list, and I just tweaked and rearranged it. Deleted some things that lenders really cannot answer.


So here is a sample SCRIPT of how you could initiate this phone call (or have the script for an assistant to do it). You will get some lenders not wanting to answer some questions. Some of the questions are really specific. But they can be answered. Believe me, I scrubbed this list thoroughly. A lender who is on top of it, has nothing to hide, and would be happy to brag that fact to you!


Hello, this is ________ with xyz real estate, I am the listing agent for 123 Home St. You are doing the loan for the Smith’s, is that correct? I would like to follow up on the pre approval letter that you provided, and several questions regarding your company’s process, and the timeline for this loan, do you have 5 minutes we can spend? Thank you. ….Then start right with number one! Take notes!


My hope is that you implement this list TODAY, and that the integrity of the way lenders approach the transaction becomes more solid and predictable. And last but not least, your transactions do NOT fall through the cracks.


Enjoy the weekend!




  RATES as of July 27, 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)


10 year (fixed) 2.750% APR 3.064% 
15 year (fixed) 2.750% APR 2.965%
30 year (fixed) 3.375% APR 3.496%
5/1 ARM 2.375% APR 3.104%
7/1 ARM 2.500% APR 3.058%


FHA/VA Call for quote (max loan $270,000)




Jumbo ($417,001- $1,000,000*)


15 year ( fixed ) 3.375% APR 3.569%
30 year ( fixed ) 3.875% APR 3.986%
5/1 ARM 2.750% APR 3.220%
7/1 ARM 3.000% APR 3.272% 
10/1 ARM 3.250% APR 3.380%


  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!

I hope everyone is doing well. I am enjoying this extra time with my family in Alaska. I have one more vacation week left and I am savoring every minute of it. My team is here for you! New clients should call Diana, 713.337.8409. She takes basic information, and gets that to Kenny, who can pre-qualify on the spot. Then for a pre-approval, we will bring them in the office with paperwork, and they can leave with a letter! Have a wonderful weekend! RATES as of July 20, 2012 (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) 2.750% APR 3.064% 15 year ( fixed ) 3.375% APR 3.569% 15 year (fixed) 2.750% APR 2.965% 30 year ( fixed ) 3.875% APR 3.986% 30 year (fixed) 3.375% APR 3.496% 7/1 ARM 2.500% APR 3.058% 5/1 ARM 2.750% APR 3.223% 7/1 ARM 3.000% APR 3.275% 5/1 ARM 2.350% APR 3.106% 10/1 ARM 3.250% APR 3.382% FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.000% APR 2.843% 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, Diana, and Jason Patriot Bank Mortgage NMLS# 514497 Office: 713-337-8400 E-mail: jennifer@patriotbankusa.com Website: www.applywithpatriot.com

May 25, 2012

A new client just came in with her little 2 month old Yorkshire puppy! He was black, and cuddly and adorable! Oh gosh, I may have to get one of those for my little boys…. Rates have remained in ‘check’ with slow global economic growth (including China and Brazil) as well as the continuing troubles in Europe, especially Greece. This helps reduce inflationary pressures, which further increases the demand for ‘safe’ assets (mortgage long term bonds), and helps rates stay low. Please have a safe and relaxing Memorial Day weekend! RATES as of May 25, 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) 2.750% APR 3.064% 15 year ( fixed ) 3.500% APR 3.695% 15 year (fixed) 3.000% APR 3.217% 30 year ( fixed ) 4.250% APR 4.363% 30 year (fixed) 3.750% APR 3.874% 7/1 ARM 2.875% APR 3.233% 5/1 ARM 2.875% APR 3.270% 7/1 ARM 3.125% APR 3.335% 5/1 ARM 2.750% APR 3.239% 10/1 ARM 3.500% APR 3.538% FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.000% APR 2.843% 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, Diana, Jason, and Jose Patriot Bank Mortgage NMLS# 514497 Office: 713-337-8400 E-mail: jennifer@patriotbankusa.com Website: www.applywithpatriot.com

May 11, 2012

This week’s blog is short! Rates are great….we are quoting 30 Fixed Jumbo’s in the low 4’s! Who would have ever thought? This is THE TIME for your buyers to purchase a home. Thanks for your business, and we love being your lender of choice! If you have not referred us yet, WE WANT TO BE YOUR LENDER! Here is what you can expect from my team: • Closings in 30 days or less (40 days for Jumbo) • Weekly status updates (every Tuesday) until closing • HUD for review a minimum of 24 hours before closing • FAST fundings ! Our average funding time is 20 minutes once all parties have signed. Enjoy the weekend! RATES as of May 11, 2012 (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) 2.750% APR 3.064% 15 year ( fixed ) 3.500% APR 3.695% 15 year (fixed) 3.000% APR 3.217% 30 year ( fixed ) 4.250% APR 4.363% 30 year (fixed) 3.750% APR 3.874% 7/1 ARM 2.875% APR 3.225% 5/1 ARM 2.75% APR 3.213% 7/1 ARM 3.000% APR 3.269% 5/1 ARM 2.750% APR 3.230% 10/1 ARM 3.500% APR 3.532% FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.000% APR 2.925% 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!

April 20, 2012

Many of you have asked me how my son’s Fundraiser Gala went (that I was the Chair of), we raised NET $65,000! We made history for the little school of 170 students. I like breaking records! We are breaking records with our realtor referrals as well! Since the beginning of the year, our leads are up 50%, so that means the prospective buyers are OUT THERE! To help handle all our client calls, we added a new team member last week: Diana Smith! She takes the initial information from borrowers, and schedules an appointment with me so we can do the pre -approval on the spot! Our clients leave the office with a letter in hand! In the markets, the S&P ended higher at the close today, with positive corporate earnings in the news. There are rumors of rates increasing by the end of the summer, due to 3rd Quarter Quantitative Easing http://en.wikipedia.org/wiki/Quantitative_easing . For the time being, we are enjoying these rates! Appraisers, underwriters, and lenders in general are all pushing the limit on capacity. We are at 30 days closing (we were at 21), but trying furiously every day to get that down. We are still well below our industry average. Let us help you! Enjoy the weekend, rain and all. It’s a good time to clean out closets maybe? Or just enjoy the kiddos, doing nothing. RATES as of April 20, 2012 (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) 3.000% APR 3.315% 15 year ( fixed ) 3.625% APR 3.821% 15 year (fixed) 3.125% APR 3.343% 30 year ( fixed ) 4.250% APR 4.363% 30 year (fixed) 3.875% APR 4.000% 7/1 ARM 2.875% APR 3.222% 5/1 ARM 2.875% APR 3.257% 7/1 ARM 3.125% APR 3.325% 5/1 ARM 2.625% APR 3.183% 10/1 ARM 3.625% APR 3.608% 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! Jennifer Hernandez & Team Kenny, Brianna, Diana, Jason, and Jose Patriot Bank Mortgage NMLS# 514497 Office: 713-337-8400 E-mail: jennifer@patriotbankusa.com Website: www.applywithpatriot.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.