(FreeRateUpdate.com) – Rates for our lovable POV* Loan came out and 3 of my major Wholesale Lenders repriced for the better today. Which just reinforces the rest of this nugget o’ info. If you are shopping a loan JUMP on it now! Conforming Rates at 4.75% with JUMBO Conforming at 4.875%. True JUMBOS at 5.75%. As always jokes, recipes and oh yeah, loan scenarios are welcome at lololoans@yahoo.com
Ok so which way is UP?I figure pretty gush darn soon there Cowboys and Cowgirrrlz. Reason being is twofold: 1)Coming soon to a meltdown near you, YOUR U.S. Gov’t. will stop buying Mortgage Backed Securities. Apparently the Government is out of money….but I digress. This was all part of Economic Recovery Program number 38 and so far as been keeping interest rates low. If I had to hazard a guess, I would bet that a) this program will stop in the next couple of months as scheduled and b) will result in Sputnik type rate increases and …2) Sheriff! Sheriff!! Come quick! Fannie Mae is bleeeedin’ to death! The latest earnings statement (and I use the term loosely) shows Fannie Mae with a 2009 Q4 net loss of 16.3 BILLION**. And who, pray tell, is throwing the water wings keeping Fannie (and Freddie) afloat? Well it is you and I Mr. and Mrs. American Taxpayer. Lacking the Economics wizardry of Ben Stein, I cannot see how this could possibly go on at this rate. If Fannie Flops, then the ripple effect to the Loan Market will make a Tsunami look like an ice cube dropped in a glass.
SURE this is bleak. But better hearing it from me than in a dirty filthy back alley eh?
*POV = Plain, Old Vanilla Home Loan: Par pricing, 30yr fixed rate fully amortized, Single Family Home, 20% equity minimum, slightly lower rates and fees for our newest San Francisco Broadcasting Hall of Fame treasure Jon Miller!
** I can’t make this stuff up!
http://www.bloomberg.com/apps/news?pid=20601087&sid=alet_UTqF04M