Mortgage News

Wow, what can happen in a day, or few hours for that matter. Yesterday, shortly after my post the stock market rallied and we lost about .75 basis points on the mortgage backed securities, and so far today another .31 basispoints. This means that while we were looking at a 5% rate on a 30 year fixed rate loan yesterday, today that same loan will is at 5.5%. Those who locked in yesterday, good job!!

On another note, part of the new economic stimulus bill being worked on in Washington DC includes a temporary provision to allow the conforming loan amount to be lifted. The amount will vary based on the average home price in an area. Of course, California will see the largest increase. For those of you with loans above $417,000 and below $500,000, this could present a great opportunity to refinance, or purchase at a very attractive rate. As an example, a Jumbo 30 year fixed loan with one of my lenders comes in at 6.75% today. So, that could result in more then a 1% rate reduction. On a $450,000 loan, this is a monthly savings of around $300!!

Call if you, your friends or clients have any questions.