Current Mortgage Rates: California Mortgage Rate Update
By: Mark Simons
March 12, 2010 (FreeRateUpdate.com) - Rates for our POV* came out today and stayed without any major Wholesale Lenders repricing. Conforming rates (up to $417K) are at 4.75% and Conforming Jumbos (up to $729,750) are holding at 4.875%. Super Jumbos (up to $2 million) are at 5.75% . Questions and comments are always welcome at lololoans@yahoo.com
My FICO score is WHAT????: Besides the Loan to Value ratio on the loan you are shopping, THE biggest qualifier is of course your Credit Score. The swing between 700 and 720 can mean thousands of dollars difference in interest paid over the life of the loan. It behooves all of us to keep a few simple things in mind. Do I WANT it or do I NEED it ? is of course question one when whipping out the old plastic… here is a good article from the Wall Street Journal for more tips.
What is the perfect loan? Any one my clients have of course! Ok, kidding aside there is of course no one flat answer to that one. If you are stretched or might be stretched an Interest Only is always a good bet. By paying the fully amortized payment each month, you can build equity AND you have the option of paying the Interest Only payment during a month or two when the old piggy bank is looking thin. “Empty Nester”? Kids gone (or will be shortly) and thinking of downsizing that big ol ramblin’ rancher for something smaller in the near future? A 5 year fixed is a great option as the rates are lower and you’ll be out of the loan before it switches to an ARM product. Looking to build that equity back up wiki wiki now that home values just might be leveling off? A 15 year fixed builds your equity twice as fast as a POV* 30yr fixed. There is also a 20yr version as well. Don’t forget, when looking around, ask questions!
*POV = Plain, old vanilla Loan product: 30yr fixed, fully amortized, minimum of 20% equity, Single Family Residence, Owner Occupied, Purchase or Rate and Term ReFi only, brownie points for good hygiene and seeing a Dentist twice a year.
For more info: Email me at lololoans@yahoo.com