Outer Banks Interest Rate Update 12-14-07 from Shane Cook
Published December 14, 2007 by Shane CookThe FED met this past Tuesday and lowered both the Federal Funds Rate and the Discount Rate. The predicted impact was that this lowering would lower conventional mortgage rates, and well it did, for 1 day. Then news on inflation and changes in policies in the way that the FED treats foreclosures has driven rates up slightly the rest of the week. The benchmark 30 year fixed rate today is 6% vs. 5.875% last week and 5.5% the week before. Inflation is the #1 enemy of low interest rates, and as long as that is in the headlines we will continue to see rates creep up.
# Consumer Prices in U.S. Increase More Than Estimated as Energy Costs Climb
U.S. Stocks Drop on Speculation Increase in Energy Costs Will Curb Growth
The good news today comes via a headline in the Washington Post:
FHA Loan Expansion Heading to a Vote
Washington Post (12/14/07) P. D1; Cho, David
Senate legislation to revamp the Federal Housing Administration mortgage program has finally moved out of committee and is expected to be passed in the next couple of days when it comes up for a full floor vote. The bill would reduce the required down payment on FHA-insured mortgages to 1.5 percent from 3 percent and open the program to pricier housing markets by letting the agency insure mortgages up to $417,000. With nontraditional mortgage originations on the decline, the FHA anticipates a surge in applications to 1.4 million this year from close to 680,000 in 2006. The bill, intended to provide borrowers with a less risky alternative to subprime loans, will qualify hundreds of thousands of minority and low-income borrowers for low-cost, low-down-payment loans backed by the U.S. government.
Have a great weekend and call me anytime 252-207-2665
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% .75 origination
30 Year Fixed: 6.0% .625 origination
30 Year Fixed: 6.25% 0 origination fee
15 Year Fixed: 5.625% 1 origination fee
7 Year ARM: 5.875 % 1 origination fee
5 year ARM: 5.625% .875 origination fee
FHA 30 Year: 6.0 1 origination
VA 30 Year: 6.125% 1 origination
Investment Property
30 Year Fixed: 6.125% 1 origination
5 Year ARM: 5.875% 1 origination
Jumbo Loans: Loan amounts greater than $417,000 to $1.5 Million
Primary Residence and Second Homes
30 Year Fixed: 7.125% 1 origination fee
15 Year Fixed: 6.5% 1 origination fee
10 Year Arm: 6.625% 1 origination fee
7 Year ARM: 6.75% 1 origination fee
5 Year ARM: 6.5% 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.
Shane Cook
Senior Mortgage Specialist
First Horizon Home Loans
(Office) 800-256-7887
(Cell) 252-207-2665
(Fax) 866-669-5871
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