Connecticut Mortgage Rates and Financing Update October 28, 2011

The market reaction to events in Europe over the past few days and the very poor  seven year bond sale on Thursday sent  Mortgage Rates higher this week.  Rarely do we get a Fed Rate Decisions and an Employment Situation Report in the same week, but both are next week. IF things move in the wrong direction, that could quickly move rates higher very fast.

The mortgage banking industry greeted President Obama's announcement of changes to the Home Affordable Refinance Program (HARP) with a diversity of opinions. Richard Rydstrom, chairman of the Los Angeles-based Coalition for Mortgage Industry Solutions, experienced a sense of deja vu in this week's news.

“Here we go again!" says Rydstrom.  "The original restructuring and HARP goals were 7 million to 9 million. As part of this plan, the Treasury Department announced a national modification program aimed at helping 3 million to 4 million at-risk homeowners - both those who are in default and those who are at imminent risk of default - by reducing monthly payments to sustainable levels. We will never reach those levels unless we actually relax the requirements to meet the new reality: many more people are either in default, underwater, suffering from lower FICO scores and have experienced lower incomes than originally estimated. The HARP-eligibility pie, in terms of the actual market consumer, has become smaller and smaller over the course of this recession."

"The program should base its criteria on verifiable 'ability to pay' rather than FICO scores, equity, or strict definitions of 'current,'" he adds. "Borrowers with a verified 'ability to pay' who are granted principal reduction/forgiveness with claw-backs and public/private insurance guarantees can satisfy risk- and loss-based standards."

Today's Mortgage Rates

30 year fixed - 3.99% + .250% cost points for rate
20 year fixed - 3.875% + .50% points for rate
15 year fixed - 3.375% + .50 points for rate
10 year fixed - 3.250%  .50% cost points for rate
5/1 ARM - 2.625% -0 points for rate
7/1 ARM - 2.875%  + 0 points for rate

FHA/VA
30 year fixed - 3.875% with .50% points for rate
5/1 ARM - 3.00 with 0 points for rate
7/1 ARM - 3.25 with 0 point for rate

Jumbo - over 635,000 to 2,000,000
30 year fixed - 4.875 % with 0 points  for rate
15 year fixed - 4.375% with +.50% points for rate
5/1 ARM - 3.50% - 0 points for rate
7/1 ARM - 3.875 % - 0 points for rate

10/1 ARM - 4.625% with 0 points for rate

Jennifer Buchanan,  Certified Mortgage Planning Specialist at MetLife Loans is a seasoned veteran of the Mortgage, Banking and Broker Industry and specializes in mortgage loans throughout Fairfield County, Connecticut.
   Her attention to detail is unsurpassed, and her understanding of the marketplace makes it easy to find the right loan to fit her clients specific needs .  Jennifer's local processing and closing team are also known for their exemplary service.
   Understanding that the vast majority of mortgage brokers never discuss the long or short term  financial needs or goals with their clients, she set herself apart from the rest by obtaining the coveted CMPS  designation. (Certified Mortgage Planning Specialist)
    She is a member of the National Association of Responsible Loan Officers, and her commitment to ethics, understanding of the marketplace, and business acumen have earned her the respect of her peers and clients alike.

Jennifer Buchanan
Metlife Loans
203-341-6949

Jennifer Buchanan- Your certified expert
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