Author Archives: Evan Bedard

About Evan Bedard

Evan Bedard has worked with various law firms since 2007 as a top Countrywide Home Loan modification processor. Evan has been instrumental in helping the various law firms and homeowners saving countless homes! He is also a mortgage guide in the LoanSafe forum and is helping homeowners daily.

Jumbo Mortgage Rates Today – 3/28/2014

If you’re in the market looking to obtain a mortgage with a balance that exceeds $625,500, it’s likely your only option is a jumbo mortgage. With Jumbo loan rates currently in-line with most conforming loan programs, right now is the ideal time to lock in rates on a high-priced property. A Jumbo loans exceeds the conforming loan limit of Fannie Mae and Freddie Mac. The balance of jumbo loans will differ from location-to-location based on several market factors – however are usually greater than $417,000 or $625,500 in high-cost areas. Continue reading

Mortgage Rates Today 3/28/2014

Despite fixed mortgage rates edging up a bit from last week, mortgage rates remain very low from a historical standpoint and are a steal for creditworthy borrowers. However, prospective buyers get leery at the sight of rising rates and this seems to be applying additional pressure for those local markets that are already feeling an affordability pinch. Continue reading

Jumbo Mortgage Rates Today – 3/27/2014

Are you in the market looking to purchase a high-cost property? If so, this is an excellent time to secure a great deal on your purchase or lower your current interest rate through a refinance. Traditionally, jumbo mortgages – loans exceeding $417,000 or $625,500 in high-cost areas – come with higher interest rates and have more stringent requirements than a conforming loan sold on the secondary mortgage market. This has changed in the recent past as rates remain calm and are in-line or below the average rates offered for most conforming loan products. Continue reading

Mortgage Rates Today 3/27/2014

With mortgage rates gradually on the decline, it’s the perfect time to lock-in rates while you have the chance. If you’re shopping for a home or looking to refinance your mortgage, please don’t hesitate to contact us and we’ll strive to help you reach your goals. Remember that interest rates may vary from one institution to the next – please feel free to use our FREE mortgage calculators to help determine a comfortable mortgage payment for you. NOTE: We do not work directly with any of the mortgage servicers listed below.

The 5-year adjustable-rate mortgage (ARM) decreased at Wells Fargo under their home purchase program.

The 30-year fixed-rate mortgage (FRM) decreased at Chase under their refinance program.

Wells Fargo Home Purchase Rates

30-Year Fixed Rate 4.500%  — APR 4.586%
FHA 30-Year Fixed Rate 4.250%  — APR 5.837%
15-Year Fixed Rate 3.750%  — APR 3.898%
5-Year ARM Rate 3.250%  — APR 3.001%
FHA 5-Year ARM Rate 3.250%  — APR 3.968%

Wells Fargo Refinance Rates

30-Year Fixed Rate 4.750%   — APR 4.882%
FHA 30-Year Fixed Rate 4.375%   — APR 5.476%
15-Year Fixed Rate 3.875%  — APR 4.000%
5-Year ARM Rate 3.500%  — APR 3.207%
FHA 5-Year ARM Rate 3.500% — APR 3.569%

Chase Home Purchase Rates

30-Year Fixed Rate  4.375% — APR 4.471%
15-Year Fixed Rate  3.625% — APR 3.753%
7-Year ARM Rate 3.500%  — APR 3.255%
5-Year ARM Rate  3.250%  — APR 3.094%

Chase Refinance Rates

30-Year Fixed Rate 4.375% — APR 4.564%
15-Year Fixed Rate 3.500%  — APR 3.682%
7-Year ARM Rate 3.500%  — APR 3.255%
5-Year ARM Rate 3.250%  —  APR 3.084%

Bank of America Home Purchase Rates

30-Year Fixed Rate 4.375% — APR 4.492%
20-Year Fixed Rate 4.250%   — APR 4.362%
15-Year Fixed Rate 3.500% — APR 3.685%
5-Year ARM Rate 3.125%  — APR 2.958%
7-Year ARM Rate 3.375%  — APR 3.117%
10-Year ARM Rate 3.750%  — APR 3.468%

Bank of America Refinance Rates

30-Year Fixed Rate  4.500%  — APR 4.686%
20-Year Fixed Rate 4.250%  — APR 4.488%
15-Year Fixed Rate 3.625% — APR 3.916%
5-Year ARM Rate 3.125%   — APR 3.058%
7-Year ARM Rate 3.375%   — APR 3.219%
10-Year ARM Rate 3.875%  — APR 3.605%

Citi Home Purchase Rates

30-Year Fixed Rate 4.375%  — APR 4.654%
20-Year Fixed Rate 4.125%  — APR 4.401%
15-Year Fixed Rate 3.500% — APR 3.749%
10-Year ARM Rate 4.000%  — APR 3.759%
7-Year ARM Rate 3.500% — APR 3.343%
5-Year ARM Rate 3.375%  — APR 3.188%

Citi Refinance Rates

30-Year Fixed Rate 4.500% — APR 4.705%
20-Year Fixed Rate 4.250%  — APR 4.513%
15-Year Fixed Rate 3.625% — APR 3.973%
10-Year ARM Rate 4.000% — APR 3.731%
7-Year ARM Rate 3.500%  — APR 3.321%
5-Year ARM Rate 3.375% — APR 3.168%

Places: Continental United States            Alaska, Hawaii, Guam

    Units     General         Higher Cost          General      Higher Cost
1            $417,000     $729,750                   $625,500     $938,250

3             $645,300     $1,129,250                $967,950     $1,451,925

2            $533,850     $934,200                    $800,775     $1,201,150

4            $801,950     $1,403,400                 $1,202,925     $1,804,375

The limit may be lower for a specific high-cost area; use the Loan Limit Look-Up Table above to see limits by location. These limits are the same as the 2010 high-cost area loan limits and apply to all Loans originated on or before September 30, 2011. Loans originated on or after October 1, 2011, will use the “permanent” high-cost area loan limits established by FHFA under a formula of 115% of the 2010 median home price, up to a maximum of $625,500 for a 1-unit property in the continental U.S.

Jumbo Mortgage Rates Today – 3/26/2014

With home prices making a strong comeback and conforming mortgage rates steadily on the rise, originators have been striving to keep jumbo mortgage rates (non-conforming) in-line with conforming rates – making high-priced homes a steal for creditworthy borrowers. Continue reading

Mortgage Rates Today 3/26/2014

Last week, rates were expected to surge after the Feds announced that they may increase the Federal Funds Rate sooner than originally expected, surprising many analysts who keep an eye on the FFR to determine mortgage rate trends. Over the next week, we believe rates may edge up slightly if economic data is stronger than expected. Continue reading

Jumbo Mortgage Rates Today – 3/25/2014

Jumbo mortgages in 2014 are a huge bargain for creditworthy borrowers as rates remain calm and did not surge along with most conforming loan programs. Many lenders are now offering jumbo loans with rates that are in-line or below the average rates offered for most conventional loan programs. Continue reading

Jumbo Mortgage Rates Today – 3/24/2014

It’s important for any prospective homebuyer to note that mortgage rates are subject to change without notice, this may occur several times in a single week or even throughout the day.  However,  jumbo mortgage rates tend to remain calm and are nearly a quarter of a percentage point lower than most conforming loan programs – a huge bargain for creditworthy borrowers as we progress into the new year. Continue reading

Mortgage Rates Today 3/24/2014

Today’s mortgage rates are nearly 1% higher than this time last year, however remain about 2% lower than the average fixed-rate loan offered over the last decade – making today’s rates a steal for prospective home buyers or borrowers seeking to refinance. Continue reading

Jumbo Mortgage Rates Today – 3/21/2014

Today’s home buyers are finding low mortgage rates and favorable home prices, despite a lack of inventory in many housing markets. Lenders are striving to ease qualifying factors and for luxury home buyers, 2014 has been a great year as rates dropped among virtually all jumbo products – especially among portfolio loan products available after a foreclosure or bankruptcy. Continue reading

Mortgage Rates Today 3/21/2014

The average fixed-rate mortgage products lowered slightly after last week’s uptick, and continue to remain within range of average rates for the first three months of 2014. “Mortgage rates eased this week as housing starts [PDF] declined 0.2 percent in February to a seasonally adjusted annual rate of 907,000, below consensus forecast,” said Frank Nothaft, vice president and chief economist, Freddie Mac. Continue reading

Jumbo Mortgage Rates Today – 3/20/2014

To accommodate prospective homebuyers who are financially stable and have significant income and assets, a portfolio loan (i.e. a mortgage not sold on the secondary mortgage market) can be available immediately after a foreclosure, short sale or deed in lieu. This special program requires a large down payment and is available only for certain loan amounts. Continue reading

Including a home in BK and trying to apply for an FHA loan?

Here’s what I have seen many of the borrowers on the forum experience and I wanted to respond with what my underwriting department told me directly in regards to this. Many questions that borrowers have asked are: Continue reading

Market Movement in a Positive Direction for Loans! Time to LOCK!

The market is moving in our favor, if you haven’t looked at locking in an interest rate or have been on the fence about refinancing/purchasing a home. This might be the time to look into it as the predictions have been the opposite as what’s occurring today.

We are offering a Home Purchase Incentive until 3/21/2014 (hoping for an extension), on FHA Fixed Rate products as well as Conventional, for more info contact me. If you would like to know what you might be eligible for I would be happy to provide you a rate quote.

For refinances, sometimes it can be hard to understand if a refinance is worth it. What you have to determine is if your same payment on the new loan would pay off the loan in less of a term that’s currently remaining. There are costs in doing a refinance and you want to truly make sure it’s worth it.

 

This will help you understand what is going on in the market today:

 

For the past couple of months the 10yr has been stuck in a range between 2.60% and 2.80%. One week yields are down and the next they are up, and the cycle continues. Yields dropped this week on Thursday when Retail Sales came in strong and today they are relatively flat despite weak PPI and University of Michigan Confidence data (both counterintuitive). Clearly the market isn’t trading on weather or US economic data. Events overseas certainly have everyone’s attention. The market is subject to headline risk over the events in the Ukraine. If Russian troops cross the border, we could see 10yr yields drop to 2.50%. If they don’t cross the border, will yields move back up? Maybe but I think they will need to move away from the border to get yields up. Tensions are escalating and the threat of economic sanctions doesn’t exactly ease one’s mind about the world economy. Will the ball continue to bounce or will someone come along and kick it?

Today the 10yr sits at 2.65%, well below where many predicted rates would be when the year began. Refinance activity is certainly down over the past year with volume only 1/3 of what it was a year ago, according to the MBA. And despite what you hear or think, purchase volume is actually down from a year ago. In fact the combined purchase and refinance activity is at the lowest point in more than a decade (see graph below). Many predict the spring market will bring the purchases up but it’s certainly hard to say about refinances. Mortgage banking is a cyclical business and this past winter brought more than a polar vortex. I’d expect smaller players to now face those difficult decisions on whether or not they can afford to stay in the game.

On a more positive note, the non-agency market is continuing to expand. With the huge uncertainty of what will become of Fannie Mae and Freddie Mac, new capital is finding its way into the private market via correspondent/conduit operations. A lot of the talk about non-QM lending being the ‘next big thing’ is starting to materialize. The big question will be whether or not the price hit for non-QM will be accepted by borrowers. The non-agency space is as big as… well space. And by non-agency, I mean anything outside of what Fannie, Freddie or Ginnie will allow. On one end you can have a borrower who ‘short sold’ their property last year and on the other end is a cash rich billionaire who doesn’t get a paycheck. Both fit in the non-agency space. While many non-QM buyers are fashioning themselves as buying from the top down, based upon their pricing they are more likely to originate from the bottom up. Millionaires and billionaires don’t need to borrow money and likely won’t accept the rates that non-QM originators are offering. Lower credit buyers likely don’t have other alternatives. Guess who takes the non-QM loan. Non-QM might turn into Subprime 2.0.

Private banking institutions, wealth managers and others likely will always cater to the credit wealthy borrower with attractive rates so non-QM becomes more subprime like based upon its own pricing design. Why price like that? Banks or any depository institution for that matter typically doesn’t chase after high yield with high risk. They have regulators that are there to protect the depositors. Banks inherently look for ‘acceptable’ yield with ‘acceptable’ credit exposure. The liquidity offered by Fannie, Freddie and Ginnie securities also allow for rates to stay very low. Basically any borrower that is offered a loan through a normal bank or through agency securities will have a very low rate. Non-agency market participants are yield players. They want higher yields under the belief they can manage the risk appropriately (some can and some cannot). Those yields are very high, closer to 8-9%. Some are more realistic, offering rates in the 5’s. I’ll answer the ‘why so high?’ another day. But for now, if you are borrower who’s DTI is over 43% on a fixed qualifying rate of 4.5%, would you take a non-QM lenders rate of 5.5% which now pushes your DTI up to 50%? Or would you settle for a 7/1 or 10/1 ARM at 3.5%, dropping your DTI to 38%? As I see it now, some of non-QM will simply move into hybrid ARMs. There are other aspects of non-QM that this wouldn’t resolve but you get the point. Non-QM still has a way to go to define itself.

Fed rate decision next week, appropriately on the last day of Winter.

MBA Refinance and Purchase Indices
Market Update 3/14/2014 - A Bouncing Ball-market.jpg

Index Today Month Ago Year Ago
2yr Treas 0.35 0.31 0.26
10yr Treas 2.65 2.74 2.03
APOR 30yr* 4.42 4.34 3.70

*APOR is a one week lagging index

Economic Data Release Calendar:

Monday March 17th Empire Manufacturing and Industrial Production
Tuesday March 18th CPI and Housing Starts
Wednesday March 19th MBA Mortgage Applications and FOMC Rate Decision
Thursday March 20th Initial Jobless Claims, Philadelphia Fed, Existing Home Sales and Leading Index
Friday March 21st No Economic Data

Mortgage Rates Today 3/20/2014

Over the last two months, mortgage rates have continued to fluctuate, rising one day and then falling the next. Although rates were predicted to rise after remarks from Fed Chairwoman Yellen, interest rates for the popular 30-year fixed and 5/1 ARM remain near historical lows. Continue reading

Jumbo Mortgage Rates Today – 3/19/2014

If you’re considering a purchasing a property in a high-cost housing area (loan balance exceeding $417,000 or $625,500) and can manage larger monthly payments, you need to know what a jumbo mortgage (i.e. non-conforming loan) is and research current rates. A jumbo loan is simply a mortgage loan that exceeds the maximum “conforming” limits set forth by mortgage giants Fannie Mae and Freddie Mac. Continue reading

Mortgage Rates Today 3/19/2014

Mortgage rates continued to show mixed signs this morning, having gone both up and down among fixed and adjustable-rate programs. If you’re shopping for a home or looking to refinance your mortgage, please don’t hesitate to contact us and we’ll strive to help you reach your goals. Remember that interest rates may vary from one institution to the next – please feel free to use our FREE mortgage calculators to help determine a comfortable mortgage payment for you. NOTE: We do not work directly with any of the mortgage servicers listed below. Continue reading

Jumbo Mortgage Rates Today – 3/18/2014

It’s important for any prospective home buyer to note that mortgage rates are subject to change without notice, this may occur several times in a single week or even throughout the day.  However,  jumbo mortgage rates tend to remain calm and are nearly a quarter of a percentage point lower than most conforming loan programs – a huge bargain for creditworthy borrowers as we progress further into 2014. Continue reading

Mortgage Rates Today 3/18/2014

Mortgage rates rose modestly from last week’s averages, yet rates for the most popular mortgage products including the 30-year fixed and the 5-year adjustable remain near record lows. If you’re shopping for a home or looking to refinance your mortgage, please don’t hesitate to contact us and we’ll strive to help you reach your goals. Remember that interest rates may vary from one institution to the next – please feel free to use our FREE mortgage calculators to help determine a comfortable mortgage payment for you. NOTE: We do not work directly with any of the mortgage servicers listed below. Continue reading