Mike’s Morning Mortgage Update

Mike and Amy- Amer Dream Connection9/19/19I hope everything is going well and I hope your year has been Incredibowl!  Oh did I spell that wrong or am I trying to get people to try Incredibowls near Whole Foods?

All joking aside, sales seem to be getting stronger this month and it looks like the 4th quarter will be strong.  Yesterday, the Federal Reserve cut SHORT TERM INTEREST RATES and that will basically help Home Equity Lines of Credit, Variable rate mortgages and Savings Accounts, so it doesn’t directly affect 30 year Mortgage rates.  Interest rates will continue to float up and down with the economy and if the Fed does come back and lower rates in December then maybe that will help a little.  Interest rates will float in this range  .250% higher or lower until we see something happen with China, other Countries, or the US Economy.  Inflation is still low and the President still wants interest rates to go lower and wanted deeper cuts to rates yesterday!

We still have a lot of 0 down loan programs.  Some have income restrictions and some don’t.  Most of these go up to about $502,000.00 on the purchase price and rates are still really good!  We need a credit score of 640 and we are doing a lot of these on Condos, and townhouses.  We just closed 3 loans this week with 95% Financing where the buyers are all now getting a second mortgage for the 5% down.  Purchase prices ranged from $585,000.00 – $750,000.00.  All of those buyers have a 740 + credit score.  All of them either got a gift for the down or wanted $$$ for home improvements.  This is a GREAT OPTION for clients that are just a tad short on funds to buy!  This 2nd can even go behind an FHA 1st Mortgage, but it makes more sense to do a conventional loan if they have the 5% down.

Interest rates are really whacky right now.  So I am just doing fixed rate mortgages today, but you can see that there are a couple of options:

  • 30-year fixed conventional 1st Mortgage with 25% down – 3.625% (3.691 APR). Loan amounts up to $484,350.00 = $2208.88 – .50 Points
  • 30-year fixed conventional 1st Mortgage with 25% down – 3.875% (3.903 APR). Loan amounts up to $484,350.00 = $2277.59 – 0 Points
  • 15-year fixed conventional 1st Mortgage with 25% – 3.375% (3.475 APR). Loan amounts up to $484,350.00 = $3432.88
  • 30-year fixed 1st Mortgage FHA loan 3.50% down – 3.375% (4.678 APR). Loan amounts up to $484,350.00 = $2178.77 + $349.08 PMI = $2527.85
  • 30-year fixed 1st Mortgage VA loan 0% – 3.375% (3.430 APR). Loan amounts up to $484,350.00 = $2141.29
  • 30 Year Fixed rate 1st Mortgage Jumbo Loan 25% down – 3.875% (3.971 APR).  loan amounts up to $3,000,000.00 =14,107.11  – 1 Point
  • 30 Year Fixed rate 1st Mortgage Jumbo Loan 25% down – 4.375% (4.399 APR).  loan amounts up to $3,000,000.00 =14,978.56 – 0 Points

Interest rates are subject to change without notice.  All of the above are based on a credit score above 740.

I will be all around all weekend and I will probably be in the office for a good portion of the afternoon on Saturday and a little on Sunday!  I would like calls or texts during the UCLA game on Saturday night as the Bruins will just aggravate me.  Really bad questions are welcome!  Even taunting from USC fans is acceptable!  My cell is 661-714-6258 and that is a great number to harass me all weekend with a text or call!  My office line is 661-260-2970 and that line does not accept text messages!  Although people do send messages there and they never get to me and then they get mad when I don’t respond!  I know, it’s a crazy world!  Have fun with your weekend and enjoy every moment.