LA MORTGAGE INC. a Rodeo Realty company
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 Fax: 818-986-1066
CONFORMING, JUMBO,BRIDGE AND REHAB LOANS
Conforming Limits: $100,000 to $417,000 March 23, 2009
Rates
5.0% 30-Year Fixed
HIGH CONFORMING
Conforming: $417,001-$729,500
Rate: 5.5% 30 Year Fixed
Rate
JUMBO LOANS
LOAN AMOUNTS $729,501-$5,000,000
5 Year Fixed 5.875 %
10 Year Fixed 6.5%
Interest only available
FHA LOANS LOAN AMOUNTS TO 96.5% LOAN TO VALUE30
30 Year Fixed $100,000-$ 417,000 5. %
$ 417,001 -729,500 5.5%
Rates are based on a 1- 1.5 point origination and are subject to change without notice and are for broker and realtor use only. Rates are constantly changing so call me for updates
There are a lot of changes taking place every day and clients have a lot of questions so please do not hesitate to have your clients call me.
Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.
Monday, March 23, 2009
Friday, March 20, 2009
News for March 20th 2009
Mortgage Rates and Warehouse Lending: The Shoe is Dropping
Posted By: Diana Olick
Topics:Barack Obama Timothy Geithner Interest Rates Housing Real Estate
Sectors:Financial Services Construction and Materials
Companies:Fannie Mae Freddie Mac
setDefault('cnbc_textbody');
As you might expect, the announcement that the Federal Reserve would buy $750 billiion more of Fannie and Freddie mortgage backed securities sent mortgage rates lower immediately.
Zillow Mortgage Marketplace reports that overnight rates fell well over a quarter percentage point. But there is a big barrier standing in the way of even bigger rate drops, and that is warehouse lending. Ok, what is that?
While you hear so much about the big banks like Bank of America and JP Morgan working to offer more loans, the fact is that 40 percent of the residential mortgage market is made up of non-depository lenders. These are mortgage lenders that aren't traditional banks. They tend to be more local, like First Savings of Virginia.
Anyway, these lenders rely on warehouse lending to get the cash they use to give you a loan. Warehouse lenders are large banks or commercial banks.
Here's the problem, explained by Glen Corso of the Warehouse Lending Project.
Over the past several years we've had a reduction of about 90% in the amount of warehouse credit that's available, so that reduction in warehouse credit is coming at the same time that there's a big surge in application volume, and these nondepository lenders are struggling to make the loans that people are seeking from them in order to refinance their mortgages.
Fed's Move: What It Means For Investors and Markets
Last week a big warehouse lender, PNC'S National City, said it would get out of the warehouse lending business, so did Guaranty Bank, the nation's third largest lender. Remember, these banks need the cash to make the loans before they ever sell them to Fannie and Freddie.
"Until you address this issue there's going to be a big gap between the Fed and driving rates down in the capital markets for mortgages and what the borrower on the street sees as the mortgage rate that comes to them," says Corso. It really flies in the face of everything the Obama administration is trying to to stabilize the housing market.
And just to put it in perspective, warehouse lenders make up 40 percent of the mortgage market, but they make up 55 percent of the FHA market, which is the only game in town for lower income borrowers with greater risk. FHA used to make up 3 percent of all loans, but now, with the death of the subprime lending industry, it makes up about 1/3 of all new loans.
If non-depository lenders can't make loans, then the rest of the industry has to eat up 40% more -- and given the surge in refi applications, thanks to the new low rates, they are struggling to handle it all. Plus, if the big banks get all the business, then what is their incentive to keep rates low? I posed that question to Barbara Desoer over at Bank of America Mortgage.
cnbc_quoteComponent_init_getData('fre,fnm,ba,jm','WSODQ_COMPONENT_ID0EDAAC15839623','WSODQ','false','ID0EDAAC15839623','off','false','multiQuote');
“The benefits of the government actions to date have led to this favorable rate environment, and consumers are benefiting from those actions ... we anticipate further rate improvements as we and other lenders are positioned to drive aggressive pricing strategies to gain share and generate profitable revenue growth.”
Okay, fair enough. But the Mortgage Bankers Association sent me a letter that they sent to Treasury Secretary Geithner a few weeks back, asking for a short-term federal guarantee of warehouse lines that are collateralized by Fannie and Freddie and FHA. "This assistance is urgently needed to maintain the mortgage funding structure borrowers depend upon, especially borrowers who rely on independent, non-depository lenders."
I'm told a few lenders did get a meeting with Treasury senior staff as well as FHFA Director James Lockhart, but so far no movement. Oh, and Colonial BancGroup of Alabama, the nation's largest warehouse lender as of Dec. 31, 2008 requested funds from the TARP. Stay tuned.
Jeff Fink
LA Mortgage Inc.
15300 Ventura Bl. #101
Sherman Oaks,CA 91405
818-723 1638
Posted By: Diana Olick
Topics:Barack Obama Timothy Geithner Interest Rates Housing Real Estate
Sectors:Financial Services Construction and Materials
Companies:Fannie Mae Freddie Mac
setDefault('cnbc_textbody');
As you might expect, the announcement that the Federal Reserve would buy $750 billiion more of Fannie and Freddie mortgage backed securities sent mortgage rates lower immediately.
Zillow Mortgage Marketplace reports that overnight rates fell well over a quarter percentage point. But there is a big barrier standing in the way of even bigger rate drops, and that is warehouse lending. Ok, what is that?
While you hear so much about the big banks like Bank of America and JP Morgan working to offer more loans, the fact is that 40 percent of the residential mortgage market is made up of non-depository lenders. These are mortgage lenders that aren't traditional banks. They tend to be more local, like First Savings of Virginia.
Anyway, these lenders rely on warehouse lending to get the cash they use to give you a loan. Warehouse lenders are large banks or commercial banks.
Here's the problem, explained by Glen Corso of the Warehouse Lending Project.
Over the past several years we've had a reduction of about 90% in the amount of warehouse credit that's available, so that reduction in warehouse credit is coming at the same time that there's a big surge in application volume, and these nondepository lenders are struggling to make the loans that people are seeking from them in order to refinance their mortgages.
Fed's Move: What It Means For Investors and Markets
Last week a big warehouse lender, PNC'S National City, said it would get out of the warehouse lending business, so did Guaranty Bank, the nation's third largest lender. Remember, these banks need the cash to make the loans before they ever sell them to Fannie and Freddie.
"Until you address this issue there's going to be a big gap between the Fed and driving rates down in the capital markets for mortgages and what the borrower on the street sees as the mortgage rate that comes to them," says Corso. It really flies in the face of everything the Obama administration is trying to to stabilize the housing market.
And just to put it in perspective, warehouse lenders make up 40 percent of the mortgage market, but they make up 55 percent of the FHA market, which is the only game in town for lower income borrowers with greater risk. FHA used to make up 3 percent of all loans, but now, with the death of the subprime lending industry, it makes up about 1/3 of all new loans.
If non-depository lenders can't make loans, then the rest of the industry has to eat up 40% more -- and given the surge in refi applications, thanks to the new low rates, they are struggling to handle it all. Plus, if the big banks get all the business, then what is their incentive to keep rates low? I posed that question to Barbara Desoer over at Bank of America Mortgage.
cnbc_quoteComponent_init_getData('fre,fnm,ba,jm','WSODQ_COMPONENT_ID0EDAAC15839623','WSODQ','false','ID0EDAAC15839623','off','false','multiQuote');
“The benefits of the government actions to date have led to this favorable rate environment, and consumers are benefiting from those actions ... we anticipate further rate improvements as we and other lenders are positioned to drive aggressive pricing strategies to gain share and generate profitable revenue growth.”
Okay, fair enough. But the Mortgage Bankers Association sent me a letter that they sent to Treasury Secretary Geithner a few weeks back, asking for a short-term federal guarantee of warehouse lines that are collateralized by Fannie and Freddie and FHA. "This assistance is urgently needed to maintain the mortgage funding structure borrowers depend upon, especially borrowers who rely on independent, non-depository lenders."
I'm told a few lenders did get a meeting with Treasury senior staff as well as FHFA Director James Lockhart, but so far no movement. Oh, and Colonial BancGroup of Alabama, the nation's largest warehouse lender as of Dec. 31, 2008 requested funds from the TARP. Stay tuned.
Jeff Fink
LA Mortgage Inc.
15300 Ventura Bl. #101
Sherman Oaks,CA 91405
818-723 1638
Rates and info for March 20th 2009
LA MORTGAGE INC. a Rodeo Realty company
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 Fax: 818-986-1066
CONFORMING, JUMBO,BRIDGE AND REHAB LOANS
Conforming Limits: $100,000 to $417,000 March 19, 2009
Rates
4.75% 30-Year Fixed
4.375% with a cost of 1.5%
HIGH CONFORMING
Conforming: $417,001-$729,000
Rate: 5.375% 30 Year Fixed
Rate
JUMBO LOANS
LOAN AMOUNTS $727,001-$10,000,000
5 Year Fixed 5.875 %
10 Year Fixed 6.5%
Interest only available
FHA LOANS LOAN AMOUNTS TO 96.5% LOAN TO VALUE30
30 Year Fixed $100,000-$ 415,000 4.75. %
$ 415,001 -729,500 5.5%
Rates are based on a 1- 1.5 point origination and are subject to change without notice and are for broker and realtor use only. Rates are constantly changing so call me for updates
There are a lot of changes taking place every day and clients have a lot of questions so please do not hesitate to have your clients call me.
Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 Fax: 818-986-1066
CONFORMING, JUMBO,BRIDGE AND REHAB LOANS
Conforming Limits: $100,000 to $417,000 March 19, 2009
Rates
4.75% 30-Year Fixed
4.375% with a cost of 1.5%
HIGH CONFORMING
Conforming: $417,001-$729,000
Rate: 5.375% 30 Year Fixed
Rate
JUMBO LOANS
LOAN AMOUNTS $727,001-$10,000,000
5 Year Fixed 5.875 %
10 Year Fixed 6.5%
Interest only available
FHA LOANS LOAN AMOUNTS TO 96.5% LOAN TO VALUE30
30 Year Fixed $100,000-$ 415,000 4.75. %
$ 415,001 -729,500 5.5%
Rates are based on a 1- 1.5 point origination and are subject to change without notice and are for broker and realtor use only. Rates are constantly changing so call me for updates
There are a lot of changes taking place every day and clients have a lot of questions so please do not hesitate to have your clients call me.
Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.
Thursday, March 19, 2009
Low rates are they here to stay
Here's what you need to know about the Fed's surprise attack on the housing crisis.
And you thought 5 percent was a good rate? After already bringing mortgage rates down near 50-year lows, Fed Chief Ben Bernanke unleashed a surprise attack on the housing slump Wednesday by announcing aggressive steps that should make home loans even more attractive. Lower rates, of course, can help push timid buyers off the sidelines so they can mop up the excess inventory that's been driving down home prices. "This is a huge step forward," Ian Shepherdson of High Frequency Economics, wrote in a report shortly after the announcement.
Here's what you need to know about the development:
1. What is the Fed doing? With the federal funds target rate--which is the Fed's conventional monetary policy weapon--already down to as low as zero percent, Bernanke has been forced to get more creative in his efforts to resolve the economic mess. To that end, the Fed announced two key steps Wednesday that should drive mortgage rates lower.
More from U.S. News & World Report » Find Your Best Place to Retire» America's Best Places to Retire» How To Plan for Your Financial Future
2. Fannie Mae and Freddie Mac assets: The Fed unveiled plans to buy up to an additional $750 billion of mortgage-backed securities backed by government-controlled entities such as Fannie Mae and Freddie Mac, on top of the $500 billion it already committed to purchasing. At the same time, the agency said it would as much as double--to up to $200 billion--its purchase of Fannie and Freddie debt. The moves will help to reduce Fannie and Freddie's financing costs, which should enable them to pass savings on to consumers in the form of lower interest rates. Today's announcement represents a significant expansion of the initial initiative announced last fall, which drove mortgage rates from 6.2 percent in mid-November to 5.2 percent in the week ending March 13, according to HSH.com.
3. Long term Treasury bonds: Meanwhile, the Fed said it would buy up to $300 billion in long-term Treasury bonds over the next six months. The announcement has already helped push yields on 10-year Treasury notes--which play a key role in mortgage rates--down sharply. This could also help lower mortgage rates.
4. How low will mortgage rates go? Nigel Gault, chief U.S. economist for IHS Global Insight, says 30-year fixed mortgage rates could drop to as low as 4.5 percent. But Keith Gumbinger of HSH.com, expects a more modest decline of between a quarter and a half of a percentage point from current levels. "I don't think we are going to have a plummet, but I do think it helps to support some downward pressure on rates," Gumbinger says.
5. So what does this mean for the housing market as a whole? Before today's developments, lower mortgage rates have benefited those looking to refinance more so than home buyers, said Guy Cecala, the publisher of Inside Mortgage Finance, in an interview that took place before the announcement. Cecala said that in the fourth quarter of 2008, 51 percent of mortgage originations were for loan refinancing, while 49 percent went toward home purchases. And although it hasn't closed yet, "there is no question [the refinancing share of mortgage originations] is going to be up near 60 percent for the first quarter," Cecala said.
Today's Fed move should further boost refinancing activity. "It's a huge positive for refinancing, because it means that everyone who hasn't done it is going to come in and do it," Gault says. But its impact on the housing market will be less profound, says Richard Moody of Mission Residential. It will help "very little," he says. That's because "the overriding factor [in the housing slump] is the labor market, and consumer confidence," he says. Even with lower mortgage rates, housing won't rebound without improvement on these fronts--and Moody doesn't expect that to occur anytime soon. "You can't make the argument that mortgage rates have been the impediment to home sales over the past several months," he says.
6. How can I qualify for these low rates? As banks jack up their lending standards in the face of higher delinquencies, not all borrowers will be able to get their hands on today's lowest cost of financing. To do so, most home buyers will need to have a FICO score of roughly 720 or higher, a down payment of at least 3.5 percent--although it could be significantly higher in certain markets--and documented income verification. To refinance, borrowers will need to meet similar credit score and income documentation requirements and have minimum of 10 percent equity in their homes, Moody says.
7. What does that mean for me? Should I refinance now or hold off for a better rate? With rates poised to drop to even more attractive levels, fixed rate borrowers that meet the credit requirements should certainly consider refinancing now. (Refinancing, however, only make sense for borrowers who can obtain a large enough break in their interest rate to compensate for the fees associated with the process.) But since rates are expected to remain attractive for some time, there's no pressure to refinance immediately. Still, Moody points out that with home prices on the decline, borrowers who wait too long to refinance could find that they no longer have enough equity in their home to qualify. So you may be better off getting the process started sooner rather than later.
Likewise, homeowners with adjustable rate loans--who have likely seen their interest rate fall recently--should not feel compelled to act this very second. "There is not a gun to your head," Gumbinger says. However, borrowers with these products should keep close tabs on the market and look for an opportunity--perhaps now, perhaps in the coming months--to get into a more conservative, fixed-rate mortgage while rates remain low. "Do yourself a favor and prevent future disaster," Gumbinger says.
And you thought 5 percent was a good rate? After already bringing mortgage rates down near 50-year lows, Fed Chief Ben Bernanke unleashed a surprise attack on the housing slump Wednesday by announcing aggressive steps that should make home loans even more attractive. Lower rates, of course, can help push timid buyers off the sidelines so they can mop up the excess inventory that's been driving down home prices. "This is a huge step forward," Ian Shepherdson of High Frequency Economics, wrote in a report shortly after the announcement.
Here's what you need to know about the development:
1. What is the Fed doing? With the federal funds target rate--which is the Fed's conventional monetary policy weapon--already down to as low as zero percent, Bernanke has been forced to get more creative in his efforts to resolve the economic mess. To that end, the Fed announced two key steps Wednesday that should drive mortgage rates lower.
More from U.S. News & World Report » Find Your Best Place to Retire» America's Best Places to Retire» How To Plan for Your Financial Future
2. Fannie Mae and Freddie Mac assets: The Fed unveiled plans to buy up to an additional $750 billion of mortgage-backed securities backed by government-controlled entities such as Fannie Mae and Freddie Mac, on top of the $500 billion it already committed to purchasing. At the same time, the agency said it would as much as double--to up to $200 billion--its purchase of Fannie and Freddie debt. The moves will help to reduce Fannie and Freddie's financing costs, which should enable them to pass savings on to consumers in the form of lower interest rates. Today's announcement represents a significant expansion of the initial initiative announced last fall, which drove mortgage rates from 6.2 percent in mid-November to 5.2 percent in the week ending March 13, according to HSH.com.
3. Long term Treasury bonds: Meanwhile, the Fed said it would buy up to $300 billion in long-term Treasury bonds over the next six months. The announcement has already helped push yields on 10-year Treasury notes--which play a key role in mortgage rates--down sharply. This could also help lower mortgage rates.
4. How low will mortgage rates go? Nigel Gault, chief U.S. economist for IHS Global Insight, says 30-year fixed mortgage rates could drop to as low as 4.5 percent. But Keith Gumbinger of HSH.com, expects a more modest decline of between a quarter and a half of a percentage point from current levels. "I don't think we are going to have a plummet, but I do think it helps to support some downward pressure on rates," Gumbinger says.
5. So what does this mean for the housing market as a whole? Before today's developments, lower mortgage rates have benefited those looking to refinance more so than home buyers, said Guy Cecala, the publisher of Inside Mortgage Finance, in an interview that took place before the announcement. Cecala said that in the fourth quarter of 2008, 51 percent of mortgage originations were for loan refinancing, while 49 percent went toward home purchases. And although it hasn't closed yet, "there is no question [the refinancing share of mortgage originations] is going to be up near 60 percent for the first quarter," Cecala said.
Today's Fed move should further boost refinancing activity. "It's a huge positive for refinancing, because it means that everyone who hasn't done it is going to come in and do it," Gault says. But its impact on the housing market will be less profound, says Richard Moody of Mission Residential. It will help "very little," he says. That's because "the overriding factor [in the housing slump] is the labor market, and consumer confidence," he says. Even with lower mortgage rates, housing won't rebound without improvement on these fronts--and Moody doesn't expect that to occur anytime soon. "You can't make the argument that mortgage rates have been the impediment to home sales over the past several months," he says.
6. How can I qualify for these low rates? As banks jack up their lending standards in the face of higher delinquencies, not all borrowers will be able to get their hands on today's lowest cost of financing. To do so, most home buyers will need to have a FICO score of roughly 720 or higher, a down payment of at least 3.5 percent--although it could be significantly higher in certain markets--and documented income verification. To refinance, borrowers will need to meet similar credit score and income documentation requirements and have minimum of 10 percent equity in their homes, Moody says.
7. What does that mean for me? Should I refinance now or hold off for a better rate? With rates poised to drop to even more attractive levels, fixed rate borrowers that meet the credit requirements should certainly consider refinancing now. (Refinancing, however, only make sense for borrowers who can obtain a large enough break in their interest rate to compensate for the fees associated with the process.) But since rates are expected to remain attractive for some time, there's no pressure to refinance immediately. Still, Moody points out that with home prices on the decline, borrowers who wait too long to refinance could find that they no longer have enough equity in their home to qualify. So you may be better off getting the process started sooner rather than later.
Likewise, homeowners with adjustable rate loans--who have likely seen their interest rate fall recently--should not feel compelled to act this very second. "There is not a gun to your head," Gumbinger says. However, borrowers with these products should keep close tabs on the market and look for an opportunity--perhaps now, perhaps in the coming months--to get into a more conservative, fixed-rate mortgage while rates remain low. "Do yourself a favor and prevent future disaster," Gumbinger says.
Rates and news for March 19th 2009
LA MORTGAGE INC. a Rodeo Realty company
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 Fax: 818-986-1066
CONFORMING, JUMBO,BRIDGE AND REHAB LOANS
Conforming Limits: $100,000 to $417,000 March 19, 2009
Rates
4.75% 30-Year Fixed
4.375% with a cost of 1.5%
HIGH CONFORMING
Conforming: $417,001-$727,000
Rate: 5.375% 30 Year Fixed
Rate
JUMBO LOANS
LOAN AMOUNTS $727,001-$10,000,000
5 Year Fixed 5.875 %
10 Year Fixed 6.5%
Interest only available
FHA LOANS LOAN AMOUNTS TO 96.5% LOAN TO VALUE30
30 Year Fixed $100,000-$ 415,000 4.75. %
$ 415,001 -729,500 5.5%
Rates are based on a 1- 1.5 point origination and are subject to change without notice and are for broker and realtor use only. Rates are constantly changing so call me for updates
There are a lot of changes taking place every day and clients have a lot of questions so please do not hesitate to have your clients call me.
Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 Fax: 818-986-1066
CONFORMING, JUMBO,BRIDGE AND REHAB LOANS
Conforming Limits: $100,000 to $417,000 March 19, 2009
Rates
4.75% 30-Year Fixed
4.375% with a cost of 1.5%
HIGH CONFORMING
Conforming: $417,001-$727,000
Rate: 5.375% 30 Year Fixed
Rate
JUMBO LOANS
LOAN AMOUNTS $727,001-$10,000,000
5 Year Fixed 5.875 %
10 Year Fixed 6.5%
Interest only available
FHA LOANS LOAN AMOUNTS TO 96.5% LOAN TO VALUE30
30 Year Fixed $100,000-$ 415,000 4.75. %
$ 415,001 -729,500 5.5%
Rates are based on a 1- 1.5 point origination and are subject to change without notice and are for broker and realtor use only. Rates are constantly changing so call me for updates
There are a lot of changes taking place every day and clients have a lot of questions so please do not hesitate to have your clients call me.
Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.
Wednesday, March 18, 2009
RATES & INFO FOR MARCH 18th 2009
LA MORTGAGE INC. a Rodeo Realty company
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 Fax: 818-986-1066
CONFORMING, JUMBO,BRIDGE AND REHAB LOANS
Conforming Limits: $100,000 to $417,000 March 18, 2009
Rates
5.0% 30-Year Fixed
4.375% 30 Year Fixed “2.75% cost”
HIGH CONFORMING
Conforming: $417,001-$729,500
Rate: 5.5% 30 Year Fixed
Rate
JUMBO LOANS
LOAN AMOUNTS $729,501-$10,000,000
5 Year Fixed 5.875 %
10 Year Fixed 6.5%
Interest only available
FHA LOANS LOAN AMOUNTS TO 96.5% LOAN TO VALUE30
30 Year Fixed $100,000-$ 417,000 5.0 %
$ 417,001 -729,500 5.5%
Rates are based on a 1- 1.5 point origination and are subject to change without notice and are for broker and realtor use only. Rates are constantly changing so call me for updates
There are a lot of changes taking place every day and clients have a lot of questions so please do not hesitate to have your clients call me.
Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 Fax: 818-986-1066
CONFORMING, JUMBO,BRIDGE AND REHAB LOANS
Conforming Limits: $100,000 to $417,000 March 18, 2009
Rates
5.0% 30-Year Fixed
4.375% 30 Year Fixed “2.75% cost”
HIGH CONFORMING
Conforming: $417,001-$729,500
Rate: 5.5% 30 Year Fixed
Rate
JUMBO LOANS
LOAN AMOUNTS $729,501-$10,000,000
5 Year Fixed 5.875 %
10 Year Fixed 6.5%
Interest only available
FHA LOANS LOAN AMOUNTS TO 96.5% LOAN TO VALUE30
30 Year Fixed $100,000-$ 417,000 5.0 %
$ 417,001 -729,500 5.5%
Rates are based on a 1- 1.5 point origination and are subject to change without notice and are for broker and realtor use only. Rates are constantly changing so call me for updates
There are a lot of changes taking place every day and clients have a lot of questions so please do not hesitate to have your clients call me.
Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.
Wednesday, March 11, 2009
News for March 11th 2009
Mortgage Market Minute: MBS have opened slightly stronger with the FNMA 4.5% flat at 100.66, the 5.0% up +.06 to 102.00 and the 5.5% up +.09 to 102.72. Treasuries have sunk on strong supply, with the 10-year down -2/32 to 97-24/32, with the yield at 3.01%, up +0.01%. We saw some asset reallocation yesterday with stocks setting a record gain, the best day of the year, and that may continue today as the market for equities continues to post gains this morning. Yesterday’s record-setting auction of $34B in 3-year notes saw healthy demand, according to the Treasury Department. Today we get a $18B auction of 10-year notes, and Thursday we’ll see a sale of $11B in 30-year notes. Bondholders may also be responding to the Bernanke's remarks that he is more concerned about inflation than deflation, despite fears from economists about deflation driven by poor global demand and massive job losses. Perhaps that has something to do with the government’s plans to issue $4T in new debt over the next two years to pay for stimulus and bailout packages. Weekly mortgage apps increase, rates down nearly 20bps.Weekly mortgage applications rose by +11.3% in the week ending March 6, compared to the previous week’s -12.6% decline, according to the Mortgage Bankers' Association (MBA) today. The fixed-rate mortgages applications rose by +11.3%, after a decline of -12.9% in the previous week. ARM applications increased by +14.4% compared to an increase of +2.7% in the prior week. The average loan size was $220,400, compared to previous week's $222,500. The average interest rate on a 30-year fixed fell from 5.14% to 4.96%.Stocks jump on welcome profit news from Citi.Pacific Investment Management Co. (Pimco) which runs the world’s biggest bond fund, warned that inflation will take the stage in the near future. Pimco joined investors Warren Buffett and Marc Faber in its recent comments on the topic, which is a warning bell for Treasury investors. Pimco said that the government’s spending efforts will increase costs for goods and services as soon as 2010, Pimco said in a report today on its Web site. Delays in commodity production will force prices higher in the next phase of economic activity, as global growth begins to resume. Pimco is among a growing list of investors who are warning that programs to counter the U.S. slump will increase consumer prices as the economy starts to revive. Investor Jim Rogers, author of the books “Hot Commodities” and “Adventure Capitalist,” said this week U.S. policies will hurt conventional Treasuries, those that don’t offer inflation protection. Mortgage-backed securities prices tend to follow those of Treasuries, and mortgage rates move inversely with MBS prices. On today’s date: March 11…1918: Save the Redwoods League founded1974: Mount Etna in Sicily erupted1982: Menachem Begin and Anwar Sadat sign peace treaty in Washington D.C.1997: Ashes of Star Trek creator, Gene Roddenberry are launched into space1997: Beatle McCartney knighted Sir Paul by Queen
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