For those that have been wondering what has been happening with interest rates, well they have done it again. Mortgage rates started going under the 6% mark for a Conforming 30 year fixed loan. How far will they go? I suspect they will touch 5.5% for a 30 year fixed within a couple of days and shoot back up after the markets re-open on Monday, December 1. This drop in rates are for programs with no points. If a borrower wants to pay points, such as 1 or 2 points (1 point equals 1 percent of the loan amount) the rate would be down as far as 5.250%. These types of rates have not been seen in several months. All loans are Full Documentation type of loans. For FHA loans, the rate is about 1/8th higher.
If you are interested in obtaining a loan with these kind of rates, scores required would be over 620 and LTV’s (Loan to Values) would need to be under 80%. Now, that would mean that there would be some adjustment to the rate with levels like this. To not have any adjustment to the rates as stated, one would need to have a FICO score of 740 or higher. Details can be provided after a full credit and income analysis, which will be required.
HUD is changing regulations and they send out memo’s to the financial institutions. They then make those changes and set cut off dates for the loan programs. I will do my best to inform everyone of cut off dates and closures of loan programs.
Patrick Villalobos is a licensed Illinois Mortgage Planner with Integra Financial Group in Chicago. Patrick has been in the mortgage profession for 12 years and brings a passion for what he does. Patrick Villalobos is licensed in Illinois and also licensed for Life and Accident and Health Insurance. This combination gives Patrick an advantage to teach and offer more products and services to protect homeowners in this market. Patrick will be providing frequent mortgage market updates in the future of ilFLS.com