Smart Mortgage Update

 

Interest rates jumped a bit this week as the stock market has rallied.  The industry standard for Jumbo loans these days has become a 25% down payment.  While Jumbo ARM’s still carry competitive rates, it is hard to find 30 Year Fixed Jumbo under 6%.  Jumbos also carry higher fico requirements (typically 720) and low debt to income ratios requirements (normally under 45%).  The reason for all of this is that Jumbo loans (loans above 417k in Maricopa & Yavapai) are not government backed and therefore banks are on the hook for 100% of the loan.  This means that in order to offer a Jumbo loan the lender will require that it is basically a perfect loan.

 

As of 10/16/2009 based on a 200k Primary Residence Purchase (or a no cash out refinance), 720+ Credit, Full Doc Income Verification, paying one “point.”  Please note, this information is intended for Real Estate Professionals.

 

80% 30 year Fixed = 5%

90% 30 Year Fixed = 5% (Requires PMI)

90% 15 Year Fixed = 4.375% (Requires PMI)

80% 15 Year Fixed = 4.375%

96.5% FHA 30 Year Fixed = 5% (Requires MI)

100% VA 30 Year Fixed = 5.25% (No PMI required)

100% USDA/Rural 30 Year Fixed = 5.5% (No PMI required)

90% 5 Yr ARM = 4% (Requires PMI)

80% 5 Yr ARM = 4%

75% 5 Yr ARM up to $900k = 4.55%

75% 30 Year Fixed up to $900k = 6.65%

Refinances up to 105% of appraised value are available

 

Take Care,

Jerome

 

 

PrazakSignature080709

 

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