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March Madness Mortgage Rates

March 27, 2011 by · Leave a Comment 

It’s been two weeks since my last “scheduled” rate post so the arrows you see below are reflective of the change in interest rates since Monday, March 14.  Next Monday’s rate post should be interesting as it’s after April Fools.  Why does this matter?  Unless the pending lawsuits are successful in stalling the Fed’s rule on loan originator compensation, I will not be able to personally price rates…in fact, I won’t even be allowed to use any of my compensation to help pay for closing costs for my clients.  It’s another classic case of the government meddling too late in the mortgage biz (where were they DURING the subprime crisis?) and doing too much without having a CLUE of the consequences (think of the appraisal issues caused by HVCC and HUD’s confusing and too restrictive Good Faith Estimate).   Rant over…now it’s time for this week’s rates.

Here are some of what’s scheduled for release this week that may impact rates:

Monday, March 28:  Personal Consumption Expenditures and Core PCE and Pending Home Sales

Tuesday, March 29:  Consumer Confidence

Wednesday, March 30:  ADP National Employment Report

Thursday, March 31: Initial Jobless Claims and Chicago PMI

Friday, April 1: THE JOBS REPORT

Rates posted below are as of 12:00 p.m. on March 28, 2011 and may have changed the moment this post was published.  The mortgage rates posted are priced based on a purchase transaction closing after April 20, 2011 and by May 5, 2011.

Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). The conforming rate quote below is based on owner occupied with a mid-low credit score of 740 or higher, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000 single family dwelling (non condo). This scenario includes reserves (taxes & insurance) not being waived. Rates quoted are priced based on a 30-40 day closing with no prepayment penalties on any of the rates quoted below.

30 Year Fixed w/1 Pt: 4.750% (APR 4.906).  1% in FEE from last rate post two weeks ago or 0.125% in rate:  Priced w/0 pts: 4.875% (APR 4.939).

15 Year Fixed w/1 Pt: 4.000% (APR 4.333%).  0.25% in rate.

10/1 LIBOR ARM 5/2/5 CAPS and 2.25 margin w/1 Pt: 4.250% (APR 4.034%).  The highest the rate could be at the first period at 120 months is 9.240% and the lowest is 2.25%.  0.25% in rate.

7/1 LIBOR ARM 5/2/5 CAPS and 2.25 margin w/1 Pt: 3.625% (APR 3.574%).  The highest the rate could be at the first adjustment period in 84 months at 8.625% and the lowest is 2.25%.   0.25% in rate.

5/1 LIBOR ARM 5/2/5 CAPS and 2.25 margin with 1 Point: 3.250% (APR 3.396%). The highest the rate could be at the first adjustment period at 60 months is 8.250% and the lowest is 2.25%.   0.25% in rate.

Conforming High Balance Rates. Pricing is based on the same criteria above except where the loan amount is $417,001 – $567,500 for properties in King, Snohomish or Pierce Counties; specifically priced for a sales price of $625,000 and a $500,000 loan amount.   NOTE:  ARMs are available, please contact me for a quote if you are interested.

30 Year Fixed w/1 Pt: 4.875% (APR 5.024%).  0.5% in FEE

Jumbo/Non-Conforming. Loan amounts up to 1 million for ARMs and 1.5 million for the 30 year fixed. The quotes below are based on 740 or higher credit scores with 80% loan to value with a loan amount of $700,000.   NOTE: Certain factors may improve pricing for non-conforming loans (example, loan amounts of <=$650k or <=75% loan to value). 

30 Year Fixed with 1 point: 5.625% (APR 5.924).   0.125% in rate.

10/1 ARM 5/2/5 CAPS and 2.25 margin priced with 1 Pt: 5.125% (APR 4.581).  The highest the rate could be at the first adjustment period at 120 months is 10.125% and the lowest is 2.25%.   0.25% in rate.

7/1 ARM 5/2/5 CAPS and 2.25 margin priced with 1 Pt: 4.625% (APR 4.043%).  The highest the rate could be at the first adjustment period at 84 months is 9.625% and the lowest is 2.25%.   0.125% in rate.

5/1 ARM 5/2/5 CAPS and 2.25 margin priced with 1 Pt: 4.250% (APR 3.942%).  The highest the rate could be at the first adjustment period at 60 is 9.250% and the lowest is 2.25%.   0.25% in rate.

FHA. Pricing based on credit score of 660 or better and loan amounts up to $417,000 for FHA in King, Snohomish and Pierce Counties.  Scenario priced based on a $400,000 sales price with 3.5% down payment.  NOTE:  FHA 203k rehab loans are available too–contact me for your personal quote.

30 Year Fixed Priced W/0 pt: 4.750% (APR 5.486).    2% in FEE (approx) for the rate that was quoted 2 weeks ago.

5/1 ARM 1/1/5 CAPS priced w/1 Pt:  3.875% (APR 7.075).  The highest this rate could be at the first adjustment in 60 months is 4.875% and the lowest is 2.75%.  Worse case scenario, if the rate only increases, it would take 10 years for the rate to hit the “ceiling” of 8.875% due to the 1% annual cap.   0.125% in rate.

FHA-Jumbo/High Balance. Pricing based on loan amounts from $417,001 – $567,500 for King, Snohomish and Pierce Counties with a 660 or higher mid-credit score.   Scenario below priced on a $585,000 sales price with 5% down payment (3.5% minimum down payment is currently available).

30 Year Fixed Priced w/0 pt: 4.750% (APR 5.305%).    2% in FEE (approx).

VA. Pricing based on credit scores of 660 or better and based on loan amounts up to $417,000.  This scenario is based on a loan amount of $400,000.  NOTE:  The King, Pierce & Snohomish County VA loan limit for this area has been increased to $500,000.   Loan amounts above $500,000 are available (VA Jumbo) with a minimum down payment.  VA ARMs are available too.

30 Year Fixed w/0.5 pts: 4.75% (APR 4.985%)  0.5% in FEE (approx).

USDA loans are also available.  Contact me for more information.

12 Month LIBOR: 0.779

Mortgage interest rates on this post are quoted based on single family dwelling (non condo), includes reserves (taxes & insurance) not being waive and no prepayment penalties. 

This is just a sample available of rates and products. This is not a guarantee nor is it a commitment of interest rate.   Rates are as of March 28, 2011 at 9:00 a.m. and may change at any time. Available programs may change at anytime as well. 

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