Interest Rates Are Crazy Good Right Now!

If you have been subscribed to this newsletter
for a while, you know that I try to use it
keep you informed about the latest mortgage
trends, and educate you on the basics of the
mortgage business.

This edition, however, I am going to depart
from that pattern to let you know what is
going on with interest rates right now.

As you may recall, there are three categories
to conventional lending right now: conforming
loans, conforming-jumbo loans, and jumbo loans.

Conforming loans are those that conform to
Freddie Mac and Fannie Mae (FHLMC and FNMA)
standards and where the loan amount does not
exceed $417,000 on a single family home.

Conforming-jumbo loans are eligible for FNMA
and FHLMC to purchase, but the loans amounts
exceed $417,000. In San Diego County, the
conforming-jumbo loans will fit within $417,000
and $546,250. Other counties will have
different limits above the $417,000 amount to
a different maximum.

Jumbo loans, strictly defined, used to be those
loans above $417,000. But now that the conforming-
jumbo category exists, jumbo loans are those above
the conforming-jumbo limits based on the county
maximums. In San Diego, it would be loans above
$546,250.

The following loans were based on a loan request of
80% of value, a credit score for the borrower of
740 or higher, on an owner-occupied single-family
home purchase. If any parameters are different than
this, you may expect a different quote based on
risk-based pricing that I explained in my newsletter
dated December 17, 2008. If you would like to
review that material you can see it at
dougbrennecke.blogspot.com.

Conforming, 30-year fixed rate loan

4.625% Loan fee of 1 point. (1 point equals 1% of the
loan amount.)

Conforming, 15-year fixed rate loan

4.375% Loan fee of 1 point.


Conforming-jumbo, 30-year fixed rate loan

4.875% Loan fee of 1 point.

Conforming-jumbo, 15-year fixed rate loan

4.625% Loan fee of 1 point.


Jumbo loans have been more difficult to price
favorably in this market. There has been less
willingness for investors to purchase these
loans, and this lack of liquidity in the market
restricts the availability of these loans and
makes the pricing (rate and fee combination)
higher. These quotes go to $625,500.

Jumbo, 30-year fixed rate loan

7.375% Loan fee of 1 point.

Jumbo, 15-year fixed rate loan

7.375% Loan fee of 1 point.

Jumbo, 30-year loan term, 1st 10 years fixed

6.000% Loan fee of 1 point.

Jumbo, 30-year loan term, 1st 7 years fixed

5.750% Loan fee of 1 point.


Other programs are available, and the interest
rate and fee combinations can be modified to
obtain lower rates or lower fees.

Please contact me at 619-846-4322 to discuss your
particular situation. Rates can change at any
time, and right now they are as low as they have
been in about the last 40 years.

Make sure that you research what is possible for
you so you don't overlook a money-saving opportunity.