Hey, I wanted to share the impact of mortgage rates on payments and value of a house over the life of the loan and found a great video that does this succinctly.  We want to make sure our Ann Arbor Real Estate clients are fully informed and have access to tips when looking for a mortgage in Ann Arbor. See what you think and let me know.
Mortgage Interest Rate Impact Is Explained in Video

Check out how changes impact your payments in Ann Arbor Real Estate Experts’ Mortgage Calculator. We can connect you to reliable local lenders who want to commit to loan locally in Dexter, Chelsea, Saline and Ann Arbor. These are people with whom you can meet face to face. If there is a question, you can get a personal response.  These are people who give to the community.

Below is from Rhonda Porter, recipient of the Jim Fitgerald Award for Washington Association of Mortgage Professional’s: Don’t get me wrong…rates are still very low.  But today the rate you could have locked in yesterday with no points (origination or discount) will probably cost you 1% of your loan amount.  With the economy improving along with the stock market, watch this trend of rising mortgage rates continue.

Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). The conforming rate quote below is based on owner occupied with a mid-low credit score of 740 or higher, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000 single family dwelling (non condo). This scenario includes reserves (taxes & insurance) not being waived. Rates quoted are priced based on a 30-40 day closing with no prepayment penalties on any of the rates quoted below.

30 Year Fixed @ 1 Point: 4.750% (APR* 4.904%).   0.25% in rate from last weeks post.

15 Year Fixed @ 1 Pt: 4.25% (APR 4.511%). 0.125% in rate…

10/1 ARM** 5/2/5 CAPS w/1 Pt: 4.125% (APR 5.580%).  Same as quoted on last week’s post.

7/1 ARM 5/2/5 CAPS w/1 Pt:  3.875% (APR 5.959%).  0.25% in rate.

5/1 ARM 5/2/5 CAPS with 1 Point: 3.500% (APR 6.251%). 0.125% in rate.

Conforming High Balance Rates. Pricing is based on the same criteria above except where the loan amount is $417,001 – $567,500 for properties in King, Snohomish or Pierce Counties; specifically priced for a sales price of $625,000 and a $500,000 loan amount.

30 Year Fixed @ 1 Pt: 4.875% (APR 5.021%). 0.125% in rate.

Jumbo/Non-Conforming. Loan amounts up to 1 million for ARMs and 1.5 million for the 30 year fixed. The quotes below are based on 740 or higher credit scores with 80% loan to value with a loan amount of $700,000.

30 Year Fixed at 1 point: 6.125% (APR 6.276).  Same as the last rate quote.

7/1 ARM 5/2/5 CAPS @ 1 Pt: 5.250% (APR 6.609%). Same.

5/1 ARM 5/2/5 CAPS @ 1 Pt: 4.625% (APR 6.654%). Same.

FHA. Pricing based on credit score of 620 or better and loan amounts up to $417,000 for FHA in King, Snohomish and Pierce Counties.   The scenario below is based on a sales price of $400,000 with 3.5% down payment.

30 Year Fixed @ 1 Pt: 5.000% (APR 5.635%)  0.125% in rate.

FHA-Jumbo/High Balance. Pricing based on loan amounts from $417,001 – $567,500 for King, Snohomish and Pierce Counties with a 660 or higher mid-credit score.   This scenario is based on a sales price of $585,000 with 5% down payment.

30 Year Fixed @ 1 Pt: 5.000% (APR 5.631%). 0.125% in rate.

FHA 203 (k) Rehab-Streamline. Pricing criteria same as FHA above with loan amounts up to $417,000. This scenario is based on a $400,000 base loan amount with a 3.5% down payment.

30 Year Fixed @ 1 Pt: 5.250% (APR 5.999%). 0.125% in rate.

VA. Pricing based on credit scores of 620 or better based on loan amounts up to $417,000. VA loan amounts over $417,000 are also available.  Based on a sales price of $400,000 with 0 down payment.

30 Year Fixed @ 1 Pt: 5.000% (APR 5.285%). 0.125% in rate.

USDA Rural Housing. 100% financing with income limits and properties must be located within a specific area (this program is generally available in rural towns with populations of 10,000 or less). For eligibility, click here. 60 day lock is quoted as USDA is a longer transaction to close.   This scenario is based on $400,000 with 0 down payment.

30 Year Fixed @ 1 Pt: 5.000% (APR 5.312%). P&I $2,190.23.  Same.

Prime Rate (what HELOCs are based on): 3.25%

This is just a small sample available of rates and products. This is not a guarantee nor is it a commitment of interest rate. Rates are as of October 9, 2009 at 3:00 p.m. and may change at any time. Available programs may change at anytime as well. To see rates that I’m quoting “live” click here.

For purposes of this post: “1 point” is 1% of the loan amount and would be reflected in line 801 or 808 (depending on whether the loan is brokered or not). Unless the rate is bought down; there are zero discount points referenced which would be reflected on line 802 of the GFE/HUD-1 Settlement Statement. Zero points means no points are paid on lines 801, 802 or 808 (this applies to all rates quoted on this post).

*APR = Annual Percentage Rate

**ARM = Adjustable Rate Mortgage.   With adjustable rate mortgages, your rate may increase after the initial fixed period is over.

NOTE: Rhonda Porter and Mortgage Master Service Corporation are not affiliated with any real estate brokerages.

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