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From another one of our strategic partners...
Rob Kanyur
Senior Loan Consultant
Optimum Financial - Scottsdale, AZ
Phone: 602-361-1587
Fax: 480-718-7853
rob@optimumfinancial.net
www.RobKanyurCanDoMortgages.com
May 10, 2008
With the economic news mostly stable and price pressure fresh in everyone's mind, there's little reason to expect any sort of strong downturn for mortgage rates anytime soon. In fact, some slight upward pressure is in place at the moment, and a slew of new data is out next week covering Retail Sales, inflation, Industrial Production and Housing. If we're approaching some form of economic stability (or even slowing in the rate of decline) as we started the second quarter of 2008, we should see it reflected here. If it does indicate that, the overall FRMI should nudge a couple basis points higher. See current rates at bottom of this email…
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Fannie Mae Changes Policy and Pricing on "Conforming" Jumbos
Fannie Mae announced a series of new initiatives called "Keys to Recovery" in its first quarter 2008 report this week. The new effort is geared toward providing liquidity, stability, and affordability to the housing and mortgage markets for the long term, keeping struggling borrowers in their homes, assisting prospective home buyers with home purchases, and stabilizing communities affected by the mortgage market downturn. According to the report, the initiatives include:
1) A new refinancing option for up-to-date but "underwater" borrowers with loans owned by Fannie Mae that will allow for refinancing up to 120 percent of a property's current value;
2) A renewal and expansion of the company's partnership with the state Housing Finance Agencies to provide $10 billion in financing for qualified, first-time home buyers;
3) In partnership with Self-Help Credit Union, a new initiative that allows families in hard-hit communities to reside in foreclosed properties on a rent-to-own basis, and
4) New jumbo-conforming loans will be priced flat to conforming for portfolio asset acquisition through the end of the year.
This last initiative could mean great news for those of you in high-cost regions as defined by HUD.
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Mortgage Interest Rates* |
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Rates as of 05/09/2008:
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Conforming |
APR |
Payment per
$1,000 |
Jumbo |
APR |
Payment per
$1,000 |
|
30-Year Fixed |
5.875% |
5.944% |
$5.92 |
7.875% |
7.979% |
$7.25 |
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30-Year Fixed I/O |
6.375% |
6.446% |
$5.31 |
n/a% |
0.000% |
$0.00 |
|
15-Year Fixed |
5.500% |
5.615% |
$8.17 |
7.125% |
7.286% |
$9.06 |
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5-Yr. ARM, I/O |
5.500% |
5.568% |
$4.58 |
5.875% |
5.967% |
$4.90 |
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7-Yr. ARM, I/O |
5.625% |
5.693% |
$4.69 |
6.125% |
6.219% |
$5.10 |
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PRIME |
5.250% |
5.317% |
$4.38 |
5.250% |
5.339% |
$4.38 |
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3-Year ARM |
5.250% |
5.317% |
$5.52 |
n/a% |
0.000% |
$0.00 |
|
5-Year ARM |
5.500% |
5.568% |
$5.68 |
5.625% |
5.716% |
$5.76 |
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COSI Option ARM |
2.750% |
7.808% |
$4.08 |
2.750% |
7.827% |
$4.08 |
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*Rates are subject to change due to market fluctuations and borrower's eligibility. |
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Rates based on market conditions & guidelines.Quote based on 720+credit score,$400K+ loan amount, purchase,primary residence,accurate income/asset/employment,required down payment & no origination fee. Prepay penalty may apply. *Info deemed reliable but not guaranteed. Recipient to verify all info. MB0903237 |
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