Mortgage Market & Rates

Columbus Mortgage Market: :-(…ugh!!!

Folks,
I just wasn’t having a clue as to why interest rates were moving the direction they have been for 3 or 4 days. None of the markets indicated this up tick should happen. I called my former business partner, Steve Knight (aka Alan Greenspan Jr.) to ask his opinion. He felt the system is overloaded with lock-ins right now causing an over demand on the supply. He feels this will resolve itself soon. He feels the Fed’s will be targeting 4.50% to 4.75% for the bottom 30 year fixed rate.

Another theory out there is that the mortgage markets could take a bump up during the inauguration period. I can’t quite understand how that would make investors invest or not.

How about that for a good answer?

Today’s Rates: 5.250% 30 year fixed (up .125%)

5.125% 15 year fixed (up .250%)

7.000% + 1% Origination fee, First Time Homebuyer Bond Money (same)

5.500% FHA (up .500%)

5.500% VA (up .500%)

7.500% Jumbo 30 year fixed (same)

30 days, escrow, $110K thru $417K loan amount, owner occupied, 740+ credit score (FHA, VA and Bond Money totally different parameters), 0% points, 0% origination fee.

We CANNOT lock in an interest rate on a loan with a voicemail or email. The customer MUST talk to the loan officer over the phone or in person before it can be confirmed. The market changes too frequently. We recommend calling during business hours to make sure we have all the markets open and available.

Mortgage Tip of the Day:
When applying for a mortgage loan or locking in an interest rate, we ask the customer to pay an application fee of $300.00. It really isn’t a fee to apply, we are asking the customer to pay for the appraisal upfront. The appraiser gets paid whether the deals goes through or not. We are just covering ourselves incase things start to go bad for any reason. We credit that application fee back at closing to the customer. If the appraisal is never done for any reason, we give the application fee back to the customer. We are not allowed to make a profit on the appraisal end of the deal.

Thought of the Day:
We have but one life – whether we spend it laughing or weeping.

Today’s Fun Fact:
In colonial Boston, schoolteachers earned about 7 cents a day.

You know you’re from Columbus when… …you know that Wyandotte Lake is not really a body of water and Mad River Mountain is not really a mountain.

Legal Stuff
These rates are effective as of Tues., Jan. 20, 2009 at 11:30am. These rates can change without notice.
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Fixed Rates and 10/1 ARM rates @80% LTV, $100,000 loan amount

Bond Money Rates @ 97% LTV, $100,000 loan amount

FHA Rates @ 96.5% LTV, $100,000 loan amount

VA Rates @ 100% LTV, $100,000 loan amount

Jumbo Rates @ 80% LTV, $418,000 loan amount

30 Year Fixed APR 5.330% $552.20 Interest and Principal

15 Year Fixed APR 5.261% $797.32 Interest and Principal

Bond Money APR 7.694% $714.47 Interest, Principal, and Mortgage insurance

FHA APR 6.437% $623.56 Interest, Principal, Mortgage insurance

VA APR 5.802% $581.42 Interest and Principal

Jumbo 30 Year APR 7.591% $2,921.82 Interest and Principal

Thanks for reading!!!!

Stephen Wagner
Mortgage Lender since 1974
The Arlington Bank
4621 Reed Road
Columbus, OH 43220
Office: 614-486-9104
Cell: 614-271-0888
Fax: 614-486-4078