Mortgage Market & Rates

Columbus Mortgage Market: 8-(…Well that didn’t last long!!!!

Friends:

The market is not in our favor this morning with a small increase in rates.

Thanks!!! Steve

MORTGAGE TIP OF THE DAY:
The question keeps coming up as to whether a condo complex is conforming to Fannie and Freddie’s Guidelines or not. I’ll go over the next few emails those rules.
1. Has the complex been turned over to the owners association yet? If it has not, it is definitely NOT conforming
2. Are all the common areas complete on the complex? If they are not, it is NOT conforming. All common areas need to be complete.
3. Does the association have one entity who owns more than 10% of the units including the developer? If the answer is yes, the complex is non-conforming.
4. If all the above situations have been met, are there more than 49% renters in the complex? If the answer is yes, the complex is non-conforming. 50% or more renters in a complex make it not eligible.
5. Does the condo complex have more than 20% of its square footage in commercial space? If it does, it is NOT conforming. Two examples I can think of are Yukon Condos and The Battleship Building downtown.
6. Are more than 15% of the unit owners 30 days behind in their condo fees or more? If they are, it is NOT conforming.

THOUGHT OF THE DAY:“There is no shortage of lawyers in Washington D.C. In fact, there may be more lawyers than people.” Sandra Day O’Connor.

TODAY’S FUN FACT:
Which past president once played fourteen games as a minor league outfielder in Junction City, Kansas under an assumed name and piqued the interest of several major league scouts? Dwight D. Eisenhower

Rates: Wednesday April 14, 2010, 10:45am

Loan Program Rate: APR*: Payment Estimates:

30 Year Fixed 5.125% (+125) 5.218% $544.49 Interest and Principal
• Purchase or rate and term refinance

30 Year Fixed 5.250% (+.125) 5.343% $552.20 Interest and Principal
• Cash out refinance***

15 Year Fixed 4.500% (+.125) 4.656% $764.99 Interest and Principal
• Purchase or rate and term refinance

15 Year Fixed 4.625% (+.125) 4.782% $771.4 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 5.000% (+.125) 5.625% $592.05 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

3/1 ARM** 3.875% (same) 4.423% $470.24 Interest and Principal
• Up to $1,000,000 purchase or refinance. Payment would adjust to $496.95 in 3 years (4.375% interest rate) if the rate were to adjust based on the current index rate
5/1 ARM** 4.250% (same) 4.410% $491.94 Interest and Principal
• Up to $1,000,000 purchase or refinance. Payment would adjust to $491.94 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 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

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 rates 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 1865 President Abraham Lincoln was shot by John Wilkes Booth at Ford’s Theatre.

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