Interest Rate Update as of March 2, 2007
March 5th, 2007 . by Mike Kelly
Big changes this week! Many lenders that previously offered 100% financing with Option ARMS have either eliminated the product or increased credit score and documentation requirements. The market for higher risk secondary financing is shrinking, meaning the buyers for these loans are going away, and so the lenders have had to change their policies. Freddie Mac also announced changes in their sub-prime loans and the need to tighten requirements.
Conforming fully amortized interest only
30 year fixed 6.125% 6.375%
3/1 ARM 6.0% 6.25%
5/1 ARM 6.125% 6.25%
7/1 ARM 6.125% 6.375%
10/1 ARM 6.125% 6.5%
fully amortized interest only
JUMBO – up to $650,000; add .25 point for loans up to $1mil
30 year fixed 6.375% 6.5%
3/1 ARM 6.25% 6.375%
5/1 ARM 6.25% 6.375%
7/1 ARM 6.5% 6.625%
10/1 ARM 6.625% 6.75%
100% financing 1st 2nd
6.5% (30 year fixed) 10.375% (HELOC)
(Based on conforming limits for the 1st – up to 80% LTV; up to 100% CLTV for 2nd
Blend 100% 7. 875% (NO Mortgage Insurance)
30 year fixed 660-679 FICO score – better FICO, better Rate
(Interest only and Adjustable rates available)
Here’s the fine print:
Conforming limit is $417,000.00. Rates assume impound account set up and except for 100% financing, assumes loan to value (LTV) no more than 80%. Funds to be used for purchase. Cash out refinances may incur higher rates. Rats quoted with a 30 day lock. Subject to qualifying borrowers and properties. Rates quoted for fully documented loans. Rates are as of 3/2/07 and are subject to change. Rates are quoted WITHOUT points. Borrowers may buy down the rate. Each application is evaluated on an individual basis. There may be better suited programs for borrowers the may offer better rates/terms as well as options for non-qualifying borrowers.
Alicia Hodenfield
Investors Trust Mortgage
(707) 284-2718 direct line
www.aliciahodenfield.com
