What We Are Hearing . . .

We are hearing from sources that the Obama Administration has gathered with industry experts and is considering options to help stabilize the housing market and stimulate the economy. The Administration appears to be realizing that major refinancing programs and other incentives are needed to keep homeowners who have either no or negative equity (underwater) in their homes. At this point, some of this information is purely speculative. Some of these proposals are interesting and could gain some traction if the economy continues to falter.

  • Have the entire monthly payment (including interest) credited towards reducing the principal balance. This is an incentive to keep the homeowners from walking away and also reducing the loan balances rapidly.  If adopted, this would likely only be a temporary measure.
  • Enhance the Home Affordability Refinance Program (HARP) by increasing LTV limits to 150% and thus allowing Fannie Mae and Freddie Mac to refinance more of their underwater borrowers.
  • Existing non-FHA “underwater” mortgage holders to refinance into FHA loans.
  • Value Gap refinancing: Refinance 100 percent of the current appraised value of the home. This would produce new fixed mortgages at a 100% loan to value ratio at today’s market interest rates. The difference between the appraised value and loan balance will covered by Fannie, Freddie, or FHA.
  • Have every underwater borrower refinance into a fixed rate at today’s market. This will require lender cooperation.

Interest Rates:
Mortgage rates are still at historic lows and seem to have Plateaued and application volume is falling due to concerns with the economy. If you are considering refinancing or purchasing a home, please call us for a quick, no obligation rate quote. Below are current rates. We also have Super Jumbo products (up to $2,000,000) priced in the mid 3% range! Call us for a quick quote.

Current Conforming RatesPrimary residences only (Pmyts based on a average loan amount of $250,000) for a historical perspective on rates please visit my blog

Loan Program Monthly Pmyt Rate APR Points
30YF $1221 4.125% 4.54% 0
20YF $1482 3.75% 3.87% 0
15YF $1787 3.50% 3.92% 0
5/1 ARM $1004 2.625% 3.12% 0
7/1 ARM $1054 3.00% 3.37% 0
FHA-30YF $1175 3.875% 3.98% 0
FHA-15YF $1787 3.50% 3.87% 0


Current High Balance Rates – (Pmyts based on a average loan amount of $550,000)

30YF $2705 4.25% 4.62% 0
15YF $3931 3.50% 3.87% 0
5/1 ARM $2318 2.875% 3.12% 0
7/1 ARM $2356 3.125% 3.37% 0
FHA-30YF $2625 4.00% 4.37% 0

We appreciate the opportunity to work with you on your next refinance or home purchase transaction. Please pass this along if you think we can help any of your close friends or family, we appreciate the support.

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