Current Rates & Tips
HARP 2 program is now available. This program allows homeowners who don't have equity in their homes to refinance onto excellent terms. Call for details, the program is very flexible and should help many homeowners lower their mortgage rate and payment.
Below are current rates for "standard" programs. HARP 2 rates are only slightly higher than these.
For 5/24/2012 rates on loans with NO POINTS are the following (see below for additional details):
Conforming 30 year fixed: 3.75% (3.79% APR)
Conforming 20 year fixed: 3.625% (3.68% APR)
Conforming 15 year fixed: 3% (3.07% APR)
Conforming 10 year fixed: 2.875% (2.98% APR)
Conforming 5/1 ARM: 2.625% (2.625% APR)
"Jumbo Conforming" 30 year fixed: 3.875% (3.91% APR)
"Jumbo Conforming" 15 year fixed: 3.25% (3.31% APR)
"Jumbo Conforming" 5/1 ARM: 2.75% (2.75% APR)
FHA 30 year fixed: 3.75% (3.75% APR)
Jumbo 5/1 ARM: 3.5% (3.5% APR)
Jumbo 30 year fixed: 4.75% (4.78% APR)
NO COST loans are available by raising the rate, usually by only .125% above the posted rates. This can make tremendous sense, call to discuss.
Lower rates than what are posted are available by paying points, however, its always important to crunch the numbers to determine the breakeven point. The rates posted above are for "best case scenario" pricing and are based on a relatively low loan-to-value, high FICO score, no cash out, single family residence as property type, primary residence, etc. These days, MANY factors play into loan pricing and there are "pricing dings" for situations such as condo as property type, lower FICO scores, cash out, rental property, etc. It is VERY IMPORTANT that you discuss your particular situation in detail with us (or anyone else you "shop" with) before we can give you an exact price.
Interest only loans carry about a .25% rate increase over the rates posted above.
VERY IMPORTANT: Most consumers do not understand how mortgage rates are set. Mortgage rates follow the yield on the 10 year Treasury Bond. They do NOT follow the "Federal Funds Rate" which is the short term rate the Fed adjusts. We field literally dozens of calls every time the Fed cuts short term rates from clients wanting to see what the impact has been to mortgage rates. Often times, people are disappointed to hear that the Fed rate cut doesn't mean mortgage rates have dropped as well. Here's what we suggest. Go to www.cnnfn.com and look at the yield on the 10 year Treasury Bond (its on the "ticker line" along with the current values for the Dow, S&P 500, and NASDAQ). The higher the yield on the bond, the higher mortgage rates will be and vice versa. So, use that general correlation when trying to understand where mortgage rates are headed. Please do call or email us anytime.
Mark can be reached at (858) 518-1728 or Mark@OceanMortgage.net.
Lance can be reached at (858) 705-2698 or LNowak@OceanMortgage.net