Interest Rate Update from Shane Cook
Published November 10, 2007 by Shane CookFHA loans are in the spotlight this week. I mentioned earlier in the week that the FHA loan amount in Dare County has been increased to $327,750. This will help our clients that are interested in purchasing a primary residence, that have had credit issues in the past, or have marginal income and assets to qualify. FHA is a very effective mortgage program for 1st time homebuyers, and is by far the easiest program to qualify for in today’s mortgage environment. On a primary residence, FHA allows for a credit score down to 585 (680 is the American average), debt to income ratios of 55%, and 97% financing.
In addition to this increase, I am also pleased to announce that effective immediately First Horizon is offering the FHA Secure Refinance program. This program was designed by Congress, and is their response to help clients who have entered into default because of a higher rate brought about by an Adjustable Rate Mortgage. The rates on this program are 6.5% with a 1% origination fee or 6.75% with no points, and no origination fee today. To qualify for the FHA Secure Refinance Program the borrower must meet the following criteria:
• FHASecure is a temporary program to provide refinancing of non-FHA ARM loans that may have become delinquent following the ARM interest rate reset, and:
-For the last 6 months prior to the interest rate reset, borrower’s payment history reflects:
- 0×30 days late on mortgage payments, and;
- all other recurring obligations met FHA’s standard credit requirements.
If I can help anyone you know that might me in this situation, please don’t hesitate to give them my information. In other rate news, the adjustable rate mortgages (ARMS) dropped slightly this week, while fixed rate mortgages remained stable with the exception of the Jumbo 30 year fixed mortgage. The Jumbo 30 year fixed mortgage rose about .25% this week due to increased concerns of inflation, through higher oil prices. Have a great weekend, and call me anytime if I can help in any way. Always available 207-2665
Shane Cook
Senior Mortgage Specialist
800-256-7887/Cell 252-207-2665
“A pre-qualification you can trust”
Total Loan Denial Letters Issued After Pre-qualification YTD 2007: 0
All quotes listed below only require 10% down, and have no private mortgage insurance (PMI), for qualified borrowers. Quotes listed below are for 30 day locks. Add .125% of a percent for Interest Only.
Conforming: loan amount less than $417,000
Primary Residence and Second Homes
40 Year Fixed: 6.375% .5 origination
30 Year Fixed: 6.25% 0 origination fee
15 Year Fixed: 5.625% .875 origination fee
7 Year ARM: 5.5 % 1 origination fee
5 year ARM: 5.25% 1 origination fee
FHA 30 Year: 6.0% .375 origination
VA 30 Year: 6.25% 1 origination
Investment Property
30 Year Fixed: 6.25% 1 origination
5 Year ARM: 5.625% 1 origination
Jumbo Loans: Loan amounts greater than $417,000 to $1.5 Million
Primary Residence and Second Homes
30 Year Fixed: 6.875% 1 origination fee
15 Year Fixed: 6.25% 1 origination fee
10 Year Arm: 6.625% 1 origination fee
7 Year ARM: 6.375% 1 origination fee
5 Year ARM: 6.125% 1 origination fee
Please call for custom quotes on Jumbo Investment Property loans and on loan amounts greater than $1.5 million. These interest rates vary greatly depending on loan amount, down payment, credit score, etc.
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