Mortgage Rate update for Northern California
By: Mark Simons
Rates came out today and stayed steady with none of my major Wholesale Lenders repricing today one way or the other. Rates for our ever-lovin’ POV* Conforming Rate is 4.75% and Jumbo Conforming at 5.0% SUPER Jumbos up to $2 million at 5.875%. As always questions or scenarios can be sent to me at lololoans@yahoo.com
You, Mr. and Mrs. Savvy Borrower, have duly noted that rates have been holding steady for awhile now. Well remember, the rate is not the ONLY thing one has to consider when Mortgage Musing. Costs, fees and down payments are a big factor.
Which brings me to the FHA Loan. This is a very handy loan product for less-than-wunnnerful, wunnerful Credit OR less than 20% equity. That of course is a major consideration here in the Bay Area and Northern Kahhhhleeefornia. As it stands right now you are IN THERE for a little as 3.5% equity. The drawbacks of course are threefold: a) slightly higher rates (usually tracking .125 or .25 behind standard POV*) b) monthly Mortgage Insurance premium payments (remember, financing any home loan OVER 80% loan to value requires Mortgage Insurance) and c) the UP FRONT Mortgage Insurance Premium. Here is where it starts to get sticky. As of now, for the Bay Area for example, the up front HUD Mortgage Premium is 1.75% of the loan amount. This can be rolled into your loan amount without affecting LTV, but can still amount to thousands of dollars quite easily. Now HUD is going to up the up so to speak to 2.25% which in Mortgage Land is a big ol’ hunkin’ jump. The FHA Loan program is a very good program allowing both home buyers and home owners to secure a decent loan with low equity. So it would behoooooooooove you to explore this option now because it will get more expensive. CLICK HERE TO READ THE HUD ANNOUNCEMENT.
SO…good news on the horizon? With the Fed saying warm and fuzzy and the Treasury chief in place for a second term maybe the RatesGods will at least hold steady for awhile.
For more info email me at lololoans@yahoo.com
*POV = Plain, Old, Vanilla Home Mortgage Loan: 30yr fixed, Single Family Residence, Owner Occupied, at least 20% equity …slightly lower rates and costs if you graduated from Traffic School.