Mortgage Market & Rates

Columbus Mortgage Rates: …Wow, what a week!

What an unbelievable week in the market. The entire Greece mess has turned into a fiasco. Greece has spent, spent, spent to the point they are way in over their heads and needs bailed out. That entire situation scares me to death. The good part is that it helps out the US mortgage market.

MORTGAGE TIP OF THE DAY:
Almost every transaction has a home inspection. Since no house is perfect, there is always an issue that needs to be resolved. 1 of 5 solutions will happen regarding that inspection:

1. The seller decides to fix the problem before closing and everyone is happy (more or less).
2. The seller will not fix the problem but the buyer decides they can live with them and bear the expense.
3. The buyer and seller admit to the problem and the seller decides to give funds to the buyer rather than fixing the problem. We CANNOT have a buyer credit. We need the seller to pay part of the buyers closing costs for that amount and we don’t want to know why.
4. The buyer and seller admit to the problem and they decide to lower the price of the house rather than fixing the problem, living with the problem or giving the buyer closing costs.
5. The last thing that could happen if the buyers and sellers can’t agree on inspection issues is the buyer walks and the deal dies.

THOUGHT OF THE DAY:
We win half the battle when we make up our minds to take the world as we find it, including the thorns.

TODAY’S FUN FACT:
Every day more money is printed for Monopoly than for the U.S. Treasury.

Rates: Friday, May 7, 2010, 12:00 Noon

Loan Program Rate: APR*: Payment Estimates:

30 Year Fixed 4.875% (same) 4.966% $529.21 Interest and Principal
• Purchase or rate and term refinance

30 Year Fixed 5.000% (same) 5.092% $536.82 Interest and Principal
• Cash out refinance***

15 Year Fixed 4.250% (-.125) 4.405% $752.28 Interest and Principal
• Purchase or rate and term refinance

15 Year Fixed 4.375% (-.125) 4.531% $758.62 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 4.750% (same) 5.363% $576.61 Int. & Princ. & Mtg. Ins.
• Purchase or refinance

Jumbo Fixed 6.250% (same) 6.349% $2,657.71 Interest and Principal
• 30 Year Purchase and Refinance over $417,000

3/1 ARM** 3.875% (same) 4.434% $470.24 Interest and Principal
• Up to $1,000,000 purchase or refinance. Payment would adjust to $503.75 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) 4.489% $491.94 Interest and Principal
• Up to $1,000,000 purchase or refinance. Payment would adjust to $504.74 in 5 years (4.250% 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 1915 the Lusitania went to the bottom of the ocean after being torpedoed by a German U-boat, hastening American involvement in World War 1.

YOU KNOW YOU’RE LIVING IN 2010 WHEN:…your reason for not staying in touch with friends and family is that they don’t have e-mail addresses.

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