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Shopping For a Mortgage? Ask…

You have many choices when applying for a home loan. Some lenders have begun advertising that they offer substantial credits to their customers — some in the $2,000 to $5,000 range. This is nothing new as we have been providing credits for closing costs since inception. To illustrate, we recently closed a customer’s $417,000, 30 year- fixed rate mortgage @ 4.25% and we credited the borrower over $8000 to offset his closing costs….essentially it was a zero cost loan. The borrower shopped at two competing banks before making his choice. They offered the same low 4.25% fixed rate, but no credits. This typically indicates that these lenders have higher overhead costs and origination fees that “swallow- up” any available credits.

The availability and size of the closing cost credit closed the deal for our client. The borrower added, “It really surprised me that one lender could offer such a “sweetener” while competitors apparently would not or could not.”. Besides lower overhead costs, we also have access to a myriad of products and pricing options compared to big banks, thereby offering lower fees and competitive rates.

What is a take away from all this? Most importantly, be aware that when you shop competing banks and mortgage lenders, don’t focus solely on the interest rate since different rates may include credits that can significantly impact your closing costs. We at Truending are committed to providing you with just such options so you will feel confident with your final decision. View our testimonials.

Interest Rates:
Employers in the U.S. added 204,000 workers last month, following a revised 163,000 gain in September. The data indicates a faster than estimated economic growth which increases the possibility the Federal Reserve will reduce its purchases of treasury bonds and mortgage securities later this year. The employment gain also resulted in a small uptick in mortgage rates.

Current Conforming Rates
(Pmyts based on a average loan amount of $250,000)
for a historical perspective on rates please visit my blog on our website
Loan Program Monthly Pmyt Rate APR Points
30YF $1229 4.25 4.375% 0
20YF $1514 4.0% 4.25% 0
10YF $2557 3.375% 3.625% 0
15YF $1756 3.25% 3.50% 0
5/1 ARM $1037 2.875% 3.125% 0
7/1 ARM $1070 3.125% 3.375% 0
FHA 30YF $1157 3.75% 3.875% 0
FHA 15YF $1756 3.25% 3.50% 0

 

Current High Balance Rates – Max Loan Amount $625,500
(Pmyts based on a avg loan amount of $550,000)
30YF $2746 4.375% 4.625% 0
15YF $3941 3.50% 3.75% 0
5/1 ARM $2393 3.25% 3.50% 0
7/1 ARM $2469 3.50% 3.75% 0
FHA 30YF $2586 3.875% 4.125% 0

Disclosure: These are our current conforming and High Balance rates based on primary residences only, your actual rate could be higher depending on several “Risk Factors” such as credit score, LTV, Cash-out, Investment prop, 2nd home, zero cost etc. Please call us for an accurate custom quote including jumbo loans up to $2 million and beyond.

 

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