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Super Jumbo Loans and Mortgage Rates

brian_alg — Wed, 08 Apr 2009 01:25:41 +0000

We have been getting significant traffic on our website and inbound calls about rates and jumbo/super-jumbo loans. As of today, there is no strong 30-year fixed pricing for jumbo and super jumbo loans. While you can find rates in the low to mid 6’s, you cannot expect to see the historic rates we are seeing on the conforming loans available for these large jumbo and super jumbo products.

The best option for financing a property over 417k and less than 1.2 million is with an ARM. Rates range from 4.75 to 6.5%, depending on the length of the ARM. A sweet spot in the low 5’s exists for well-qualified borrowers on jumbo loans. I don’t expect this to change in the near future. If you have a jumbo loan and are only slightly over the 417k limit, it is definitely worth your paying it down to under the cut-off so that you can take advantage of once in a lifetime pricing on conventional loans.

An example from today’s callers:

765 middle credit score, 2 million dollar purchase price with a 1.2 million dollar down payment. This is only a 40% LTV. The rate available at wholesale to this customer was a 5.20% on an ARM. Interest-only is available on these jumbo loans!

Investor Loan Rates

brian_alg — Tue, 07 Apr 2009 03:57:55 +0000

To answer one of our more popular questions…..”What type of investor loan rates can I get? ”
Assumptions:

720+ credit score

75% LTV

Purchase or Rate and Term Refinance

Loan Amounts between $150,000 and $417,000

Your wholesale rate for today with 1 origination point: 5.25%

Rates tick up to 4.75%

brian_alg — Mon, 06 Apr 2009 15:37:57 +0000

While still extremely low, the wholesale 30-year base rate edged up to 4.75% today. We expect it to continually fluctuate between 4.5 and 4.875% each week.

Rates tick up slightly….

brian_alg — Fri, 03 Apr 2009 01:06:32 +0000

Still at unbelievable levels, rates bumped up to 4.625% for the wholesale cost today. Don’t miss your chance!!!

Mortgage Rate Shopping

brian_alg — Wed, 01 Apr 2009 23:33:18 +0000

While there is a lot of publicity about the current historic mortgage rates, it is not as easy to shop for the best product as comparing rates. The Georgia and Florida loan markets are commonly quoted with 1 origination point. This is not always the case, but it is customary for the majority of mortgage companies to charge this fee.

The origination point is a commission to the mortgage company, and is negotiable. If you are being offered the absolute wholesale price that the mortgage company is able to get the money for, then a 1% fee is fair. What you need to keep in mind is that many companies commonly mark up the rate and are being paid by the underlying investor and from you — in essence double-dipping at your expense! Beyond origination fees, be sure to look at the total cost of the fees included in the “800″ section of your GFE. This is typically where most of the junk fees and other items are added.

In the current economy, you should be targeting a total compensation to your mortgage company of 1% – whether in the form of an origination point or in the form of accepting a slightly higher rate, which allows the mortgage company to be paid by their investor.

An important takeaway – Do not mortgage shop by asking only about rates.

Atlanta Mortgage Rates today – 3/30/2009

brian_alg — Tue, 31 Mar 2009 06:01:09 +0000

The 30-year fixed rate today was again at 4.625%. This assumes you are a well qualified borrower – credit score of 720+ and a LTV (loan-to-value) of 80% or less.