Mortgage rates continue to have an uncanny low - most rates quoted are still in the 3.875% with 0 points for a Best Execution for a 417,000 or less mortgage.
The Fed sent Congress a little missive on how to fix the housing and mortgage market. Among the ideas is forming a national strategy to facilitate the conversion of foreclosed properties into rentals, allowing banks to rent their repossessed homes rather than forcing lenders to sell them, changing the compensation structure for mortgage servicers, companies that collect payments from borrowers and pursue foreclosures in the event of a default, creating a national on line registry of liens to track ownership interests, and altering existing Obama administration policies to allow for more refinancing and mortgage re- structuring. These are a few of the twelve ideas - although many of the Fed's proposals either have been considered by policy makers or are under consideration now, the report is the Fed's most comprehensive effort to date to identify the ailments plaguing the US property market and potential solutions for policy makers to consider.
Fannie and Freddie will increase their guarantee fee on all residential loans being pooled by 10 basis points on April's Fool's Day, but most believe that this increase should start to reflect on mortgage applications in February, if not sooner. Other increases might be needed over the next couple years, especially if g-fees are raised to match what a non-government institution would charge for the risk. Some estimates that I have seen on this are another 15-35 basis points over the next two years (on top of the 10bp increase effective 4/1). 10 basis point increase could easily cost borrowers 40 basis points, or roughly .125% in rate. And all to support a two month payroll tax waiver extension.
The market composite index - a measure of total mortgage loan application volume - was 39% higher in the last two weeks of 2011 than in the last two weeks of 2010, on a seasonally adjusted basis. The refinance share of mortgage activity for the week ending Dec. 30 increased to 81.9% of total applications, marking the highest refinance share in 2011.
30 year fixed - 3.850% + 0% cost points for rate
20 year fixed - 3.750% + 0 % points for rate
15 year fixed - 3.250% + 0% points for rate
10 year fixed - 2.875% + 0% points for rate
5/1 ARM - 2.375% +0 points for rate
7/1 ARM - 2.750 % + 0 points for rate
10/1 ARM 3.250% + 0 points for rate
FHA/VA
30 year fixed - 3.750% with +0 % points for rate
5/1 ARM - 2.750% with + 0 points for rate
7/1 ARM - 3.25 with + .625 % CREDIT point for rate
Jumbo - up to 2,000,000
30 year fixed - 4.625 % with 0 points for rate
15 year fixed - 4.125% with 0 points for rate
5/1 ARM - 3.375% - 0 points for rate
7/1 ARM - 3.750 % - 0 points for rate
10/1 ARM - 4.375% 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
on mortgages offering Free Unbiased
recommendations based on your needs.
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