Thursday, January 27, 2011
Rent Vs Buy?
According to recent data, it makes more sense to buy than rent in 72% of Major US Cities. Here is a great website that breaks down this info in a useful infographic: http://trulia.movity.com/rentvsbuy/
Friday, January 14, 2011
Weekend Market Update 01/14
Here is some market info that you could share with your potential buyers going into the weekend. I am going to try to do this every week, either by print or a video blog of some sort, but am still trying to work out some ideas. Let me know what you think and if there is any info you would like me to add to the below.
Current Rates:
Based on a $300,000 SFR purchase with 20% down ($240K loan amount), 740+ credit scores and fully documentable income and assets, and charging 0 points, rates going into this weekend are as follows:
30 yr fixed: 4.75% (APR of 4.816)
15 yr fixed: 4.25% (APR of 4.364)
5/1 ARM: 3.75% (APR of 3.322)
Market Summary
The bond Market is closed on Monday due to Martin Luther King Day, and in prepping to head into a 3 day weekend it looks like the market got absolutely HAMMERED this afternoon. For the week, we lost 12 bps, meaning a rate that cost 1 point on Monday would cost 1.12 points on Friday.
The advisors are recommending we take a “locked” stance with all our borrowers, so if you have some clients in negotiations hopefully the sellers can pull it together quickly and we can get them locked in on Tuesday.
Products Available!
On Monday I brought up our Jumbo products with only 10% down, and today I wanted to start a series about our low down payment options for First Time Homebuyers.
The most common product we have been using of late for those with a minimal downpayment is the plain old FHA 30 yr fixed. Here are some important bullet points to keep in mind if you have a client that is thinking about FHA:
- Required down payment is 3.5% of the sales price, which can be gifted from a family member
- Seller can pay up to 6% towards closing costs (HUD announced last year they wanted to drop it to 3%, but haven’t moved on that yet)
- Minimum Credit score for most cases is 640. Some lenders will go lower than that with a possible increased down payment / rate and much longer turn time
- Mortgage Express has its own FHA underwriter in-house that can answer any questions you might have!
As always, I am available all weekend so please feel free to call me with any questions!
Current Rates:
Based on a $300,000 SFR purchase with 20% down ($240K loan amount), 740+ credit scores and fully documentable income and assets, and charging 0 points, rates going into this weekend are as follows:
30 yr fixed: 4.75% (APR of 4.816)
15 yr fixed: 4.25% (APR of 4.364)
5/1 ARM: 3.75% (APR of 3.322)
Market Summary
The bond Market is closed on Monday due to Martin Luther King Day, and in prepping to head into a 3 day weekend it looks like the market got absolutely HAMMERED this afternoon. For the week, we lost 12 bps, meaning a rate that cost 1 point on Monday would cost 1.12 points on Friday.
The advisors are recommending we take a “locked” stance with all our borrowers, so if you have some clients in negotiations hopefully the sellers can pull it together quickly and we can get them locked in on Tuesday.
Products Available!
On Monday I brought up our Jumbo products with only 10% down, and today I wanted to start a series about our low down payment options for First Time Homebuyers.
The most common product we have been using of late for those with a minimal downpayment is the plain old FHA 30 yr fixed. Here are some important bullet points to keep in mind if you have a client that is thinking about FHA:
- Required down payment is 3.5% of the sales price, which can be gifted from a family member
- Seller can pay up to 6% towards closing costs (HUD announced last year they wanted to drop it to 3%, but haven’t moved on that yet)
- Minimum Credit score for most cases is 640. Some lenders will go lower than that with a possible increased down payment / rate and much longer turn time
- Mortgage Express has its own FHA underwriter in-house that can answer any questions you might have!
As always, I am available all weekend so please feel free to call me with any questions!
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