Mortgage Market & Rates

Columbus Mortgage Rates: 8-0….yawn!!!! Not today!!!

Friends:

The market was in our favor this morning due to Asian markets stumbling overnight but not enough to make our rates go down.

Fortune Magazine this morning is talking about the 4 new asset bubbles that are hovering. (The last was the housing market two years ago). They are now worried about gold, oil, stock market and the government bond market. The truly scary one to me that I have been predicting for over a year is the government bond market. If that bubble bursts, mortgage rates will increase dramatically bringing the housing market to a dramatic halt. Unfortunately, I was around in 1979, 80 and 81 when this exact same thing happened.

Thanks!!! Steve

MORTGAGE TIP OF THE DAY:
A customer always has the option of buying the rate down by buying points. The general rule of thumb is every .125% in rate equals a .50% in points. The pay back is usually about 60 months. If a customer doesn’t plan on moving or refinancing in that timeframe and if the customer has the money, it pays to buy the rate down.

THOUGHT OF THE DAY:
To bear failure with courage is the best proof of character that anyone can give.

TODAY’S FUN FACT:
There are only three words in the English language that begin with dw…..dwarf, dwell, dwindle.

Rates: Tuesday, 01-26-2010, 10:30am (England’s Boxing Day is 11 month’s away from today)

Loan Program Rate: APR*: Payment Estimates:
5/1 ARM** 4.250% (same) 4.421% $2,056.31 Interest and Principal
• Up to $1,000,000 purchase or refinance. Payment would adjust to $2,056.31 in 5 years (4.250% interest rate) if the rate were to adjust based on the current index rate
7/1 ARM** 4.500% (same) 3.875% $506.69 Interest and Principal
* Up to $417,000 purchase or rate and term refinance. Payment would adjust to $435.69 in 7 years (3.000% interest rate) if the rate were to adjust based on the current index rate.

30 Year Fixed 5.000% (same) 5.092% $536.82 Interest and Principal
• Purchase or rate and term refinance

30 Year Fixed 5.125% (same) 5.218% $544.49 Interest and Principal
• Cash out refinance***

15 Year Fixed 4.375% (same) 4.531% $758.62 Interest and Principal
• Purchase or rate and term refinance

15 Year Fixed 4.500% (same) 4.656% $764.99 Interest and Principal
• Cash out refinance***

Bond Money 5.000% (same) 5.636% $585.99 Int. & Princ. & Mtg Ins.
• First Time Homebuyer Bond Money + 1% origination fee

FHA Fixed 4.875% (same) 5.495% $584.30 Int. & Princ. & Mtg. Ins.
• Purchase or refinance

Jumbo Fixed 6.250% (same) 6.349% $2,6573.71 Interest and Principal
• 30 Year Purchase and Refinance over $417,000

LEGAL STUFF

• *APR – Annual Percentage Rate
• **ARM – Adjustable Rate Mortgage (rate may increase after consummation of the loan)
• ***Cash out refinance – Refinance means pulling out at least $2,000 or more or paying off a non-purchase second mortgage

All payments estimates above do not include amounts for property taxes and homeowner’s insurance premiums and your actual payment obligation will be greater.

Annual Percentage Rates and Payment Estimates quoted are based on a $100,000 loan amount except the 5/1 ARM, and Jumbo fixed loan amount is $418,000 and 20% down payment with the exception to the FHA and OHFA quotes which are based on a 3.5% down payment.

Qualifying Assumptions (unless otherwise noted): 45 day rate lock, $100K-$417K loan amount, credit scores 740+, Owner-occupied Purchase or rate/term refinance. Cash-out refinances (including paying off a non-purchase 2nd mortgage) could result in a slightly higher interest rate. The interest rate quoted are to serve as a guide only and may be different based on specific loan features. Please call for a specific quote.

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.

ON THIS DATE IN HISTORY:
On this date in 1784 Benjamin Franklin declared that he wanted the turkey, rather than the eagle, as the U.S. symbol.

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