Mortgage Market & Rates

Columbus Mortgage Market: :-(….ugh!!!

Folks,
Well, I don’t like writing these types of emails but it looks like the Federal Stimulus Package is about ready to be approved. Unfortunately, there isn’t much in there for housing. There had been speculation by the media on everything from guaranteed lower rates for folks in the 4’s to a tax credit up to $15,000 for all buyers of homes in 2009 to a “bad bank” where the government buys bad loans freeing up Freddie/Fannie money. All of those suggestions would be a huge boom to our industry and to the recession.

What turned out is a first time home buyer program giving the buyer an $8,000 tax credit when they file their 2009 taxes. The single buyer could make up to $75,000 a year and a couple could make up to $150,000. Nothing else seems to be there helping out our industry.

The only possible thing left is a portion of the huge bank bailout from last fall still hasn’t been used and what will happen with that money. Half of that was used to prop up the banks not really getting money back into the system. It is kind of a disappointing bill but then did you really expect Congress to give us a hand out?

It looks like letting “nature take its course” is the way out of this with rates drifting down as money moves from stocks to safe mortgage backed securities via the feds. No shot in the arm for us.

Today’s Rates: 5.125% 30 year fixed (up .125%)
4.750% 15 year fixed (same)
5.875% + 1% Origination fee, First Time Homebuyer Bond Money (same)
5.500% FHA (same)
5.500% (same)
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:
Taking control of first time homebuyers can be difficult. Part of the difficult problem is making them aware as to how the system works and all the deadlines that are out there. FHA and VA are especially bad with those programs being extremely popular because of their low cash required and them tolerating low credit scores. Lighting a fire under the first time buyer can be difficult.

Thought of the Day:
Heroism consists of hanging on one minute longer.

Today’s Fun Fact:
The twin popsicle was created during the Depression so that two children could share a single treat.

You know you’re from Columbus when… …you drive down 670 with your windows open to smell the fresh bread from the Wonder Bread Factory.

Legal Stuff
These rates are effective as of Fri., Feb. 13, 2009 at 11:30am. These rates can change without notice.
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Fixed Rates and 10/1, 7/1 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 5.204% $544.49 Interest and Principal
15 Year Fixed APR 4.885% $777.83 Interest and Principal
Bond Money APR 6.536% $640.71 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