California Mortgage Rate Update and To Know is to $ave
By: Mark Simons
Jun. 24, 2010 (FreeRateUpdate.com) – California rates for our lovable POV* came out today and re-priced for the worse by most Wholesale Lenders. Conforming rates at 4.250%. High Balance Conforming Rates at 4.5%. Super Jumbos at 5.250%. As always, Sasquatch sightings and loan scenarios are welcome at lololoans@yahoo.com
Knowledge is Good: To use the motto of my dear old Alma Mater…and using it wisely can save you some bucks..even a LOT of bucks down the line. Get to know how Loans are priced. No, not the Interest Rate, but how the loan is priced. Most Loan Professionals start with an interest rate and it is at “Par” pricing. That means no cost for the rate, but no Lender rebate to the Broker either. In order for YOU Mr. and Mrs. Borrower, to get your zero pt. loan, the loan has to come with a rebate from the lender or the Mortgage Broker will not make any money. The RATE attached to that loan with the Lender rebate, will be higher than the loan with no Lender rebate. Hence the term “Buy the Rate Down” by paying a point or a portion of a point to the Mortgage Broker for the lower rate. Other factors will determine the pricing on that loan as well: Your Credit Score, and the type of property and Owner Occupied or not will result in a “hit” or cost to the loan. Anywhere from .125 of a point to .25 of a point. These are items you probably cannot control. However other “hits” to pricing (again in the .125 to .25pt range) are Loan to Value ratio, accepting or declining Lender supplied impound accounts for taxes and insurance and the length of the Rate Lock are usually items that you do have some control over…so think things out before committing to locking in a rate. You may be able to save yourself some serious money over the years!
All the News that pit to frint: Sorry! I am writing this blog while carrying out important hydration research for the historical society researching India Pale Ale. On Monday the 28th of June, HomeGain.com will release its National and Regional homeprice survey. With thousands of Realtor members all over the country, the input of national trends and local trends will be reflected as homeowners and Realtors opine on the state of the Administration and the results on home prices.
*POV = Plain, Old, Vanilla Home Loan: 30yr fixed, single family home, owner occupied, at least 20% equity, rate and term or purchase loans only, slightly higher fees and costs to DEAN WORMER grrrrrrrrrr!