I generally avoid writing about interest rates as they tend to be even more transitory than the constantly shifting lending guidelines we’re forced to deal with. Whereas investor guidelines may change on a weekly basis, mortgage interest rates can make dramatic shifts on any given day. My focus when building a file is therefore directed toward the more tangible elements that support a loan – qualifying income, credit scores, likely loan-to-value ratios, and matching the borrower to the best-suited lender. While there is no sure way to guess when and where the lowest rate will be found, especially with a purchase transaction’s compressed timeline, careful positioning of a loan package is the best way to insure a favorable outcome.
That said, sometimes mortgage rates take such remarkable turns (either upward or downward) that one must take stock. Over the past couple of weeks, we have seen the lowest rates in history and those in the process of refinancing or moving forward with purchases may find themselves in possession of the prize. Here are just a few examples of mortgage rates available at the time of this posting:
Based on 740 fico and 20% down payment, at no points:
-Up to $417,000: 30-Year Fixed at 4.375% (APR 4.407%). Payment = $2082
-Up to $729,750: 30-Year Fixed at 4.625% (APR 4.645%). Payment = $3752
Based on 760 fico and 20% down payment at one point cost:
-Up to $2,000,000: 5-year Fixed at 3.875% (APR 3.948%). Interest Only Payment = $6458
Today’s superb rates and products are not limited to the above-listed examples and even borrowers with lower down payment money or fico scores will find great financing options. But the rush is on and those who wish to benefit from low rates in a tough mortgage environment should come prepared. While a lucky few will always come out on top, it is those with their ducks in a row who have the greatest likelihood of doing well.
Nicholas Ballard is both a mortgage broker and banker specialized in the residential Marin market. For assistance, please call or e-mail:
Nicholas Ballard: 415-526-1941; firstname.lastname@example.org
Real Estate Financing
CA Dept. of Real Estate #01356374
California Mortgage Advisors, Inc.
CA Dept. of Real Estate #01170868
Redwood Highway, San Rafael 94903