This entry was posted on Friday, September 14th, 2007 at 2:26 pm and is filed under Mortgage Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Sacramento Mortgage Rate Update: Rates Improve Slightly
The 30 year fixed rate mortgage eased off slightly this week to end week around 6.25% at .5 point.
The jumbo 30 year (over $417k) remains a full 1% to 1.5% higher, and the 3/1, 5/1, 7/1 and 10/1 ARMs offer little relief. In many cases the rates are actually higher than the comparable 30 year fixed.
Lenders continue to pull No Doc loans and higher LTV 2nd’s off the shelf. In a further indication of the trend, the State of Nevada has passed legislation requiring borrowers to document income. I saw this in an email yesterday from BofA wholesale who was immediately suspending low doc loans in that state.
If you’re buying a property in the jumbo loan range, consider structuring a 1st/2nd combo, keeping the 1st at the conforming loan amount of $417k and piggybacking a 2nd behind that. The blended rate and payment will generally be much more attractive, despite the higher rate on the 2nd. If you take a “heloc” (home equity line of credit) type 2nd, you may get an automatic refinance as the Fed brings down short term rates in response to a cooling economy.
Is your lender keeping you apprised of better ways to structure your or your client’s loans? Give me a call.