With all the news stories, newspaper headlines and radio talk programs these last couple of weeks, it sure leaves homebuyers nervous and unsure of what to expect when they apply for a home loan. What has happened is mostly with the mortgage brokers and A- credit borrowers.

Yes you can still get a home loan, yes a zero down home loan, yes a interest only home loan. No you can not if your credit score or assets are low. You need to have higher quality credit scores and proof of the ability to make the payments should something happen to your or a spouses job. The Banks are still here doing business as usual with their customers and members of the community. Mortgage brokers can find no one to help fund their loans. A Bank will be your best bet on getting pre-approved for a home loan. Mortgage money is still under 7%, a good benchmark for a fair loan rate. Someone seeking a jumbo mortgage with a jumbo salary will also be fine, it is only the people whos incomes who were not proportional to the size of the mortgage that they were seeking who are out of the market right now.

Good afternoon. The rates for Friday May 25th, based on Purchase with at least 5% down and a conforming loan amount of $417,000.00 or less.

30 Year fixed     6.125   1.5 points

15 Year Fixed     5.875   1.5 points

3/1 ARM            5.500   1.5 points

5/1 ARM            5.875   1.5 points

I will be gone next week. Off to the Grand Canyon! Enjoy the long weekend…..

Good morning to you all. I have some rate updates for you. Still no big changes, rates continue to remain low and extremely stable.

 40 year fixed    6.125    1.750 points  APR  6.411

30 year fixed    6.00%   1.5 points APR  6.233

5/1 Arm           5.6250%  1.5 points APR  6.349

Zero down 30 year fixed    6.250% 1.25 points APR  6.572

These rates are all based on a purchase. Let me know if you have any questions, have a great week. Sidney

Hello to all out there! Not to many changes in rates at all. The market has been holding pretty steady. When you compare rates to one year ago the average 30 year fixed rate was 6.5% today 6.125%. So that means you should go out and buy a house! When I say holding pretty steady I mean in the last month and a half there really has been no change at all in the fixed rate market.

Curious rate shoppers ask me about the 40 year fixed, one would think the savings per month would be big, not really though.

40 year fixed 6.125% with 1.5 points

30 year fixed 6.00% with 1.25 points

15 year fixed 5.625 with 1.375 points

To compare the payments between a 40 and 30 year using a loan amount of $200,000.00 the savings on a 40 year fixed is $16.10 on your monthly payment. Not a big savings as you can see. I would recommend a 30 year fixed, you will see your principal balance decrease faster that way. If you have any questions or comments please let me know.

Happy Friday to you all! Sidney

Happy Friday to all! Hopefully a nice sunny weekend at that, wouldn’t that be nice? Well…. this week the rates came up a bit, still great rates though, a customer this week told me he remembered when his home loan was at 17%! The “industry’ in general has had some hard times, recent headlines showing sub-prime losses and many lenders going out of business. The lenders going out of business have been primarily mortgage brokers, these brokers have relied heavily on A- borrowers, when the industry tightens up those loans the the A- minus borrowers go away, therefore no business for the brokers. In my opinion a Bank or Credit Union is the best place to borrow money from. The have a good solid foundation to keep going on. Enough gloom though here are the rates!

30 year fixed 5.875% 1.25pts 6.096% APR or 6.375% 0 pts  6.387% APR

5/1 ARM    5.750% 1.125pts 6.256% APR

30 year fixed jumbo (over $417,000) 6.125% 1.125pts 6.440% APR

APR

Annual Percentage Rate, is the cost of the loan in percentage terms taking into account the various loan charges of which interest is only one such charge. Other charges that are used in the calculation of the APR are Private mortage insurance (if applicable) and prepaid finance charges ( loan discount, origination fee, prepaid interest and other credit costs). The APR is calculated by spreading these charges over thelife of the loan which results in a rate generally higher than the interest rate shown on your mortgage note. if interest was the only finance charge then the APR and interest rate woudl be the same.

Mortage rates for Friday March 22

Today’s post comes from a week of very little change, rates remain low. I have not included much information on the adjustable mortgages this week. With the recent downfall of sub prime loans I think lenders are becoming more cautious. An adjustable is pricing just about the same as your trusty 30 year fixed. Rates are based on conforming convention single family loan amounts of up to $417,000.00, with a 30 day lock period. Remember to shop your rates at the same time of the day as rates change constantly and ask your lenders for a good faith estimate to give you an idea of the fee’s a lender will be charging to obtain your loan.

30 year fixed  5.875% 1.125pts 6.071% APR   or   6.25% 0 pts 6.367 APR

15 year fixed  5.625% 1.25pts   5.954% APR  

3/1 US Treasury ARM  5.50% 1.0pt

30 year fixed Jumbo (over $417,000)   6.0% 1.25pts  6.357% APR

FHA and V/A 30 year fixed  6.00%  .25pt  6.127%APR

I am pleased to offer first time home buyers Washington State Housing Loans as well. The current rates are:

30 year fixed  5.25% 2pts, 5.5% 1pt or 5.75% 0pts. 

For more details on any loan program. Please contact me at 360 650-5365 or email at sstonecypher@peoplesbank-wa.com