Our Rates

Loan Program	Max Loan Amount	Interest Rate	APR	Points	Strategy/Features
30 year fixed	$417,000	3.875%	3.913%	0 points	Safe, popular, lowest fixed rate payment, no interest rate risk.
20 year fixed	$417,000	3.750%	3.802%	0 points	Lower rate and forces you to pay off loan in 20 years.
15 year fixed	$417,000	3.125%	3.191%	0 points	Lower rate, save thousands in long run. Balance reduction strategy.
10/1 ARM	$417,000	Call	Call	Call
10/1 ARM IO	$417,000	Call	Call	Call
7/1 ARM	$417,000	3.250%	3.286%	0 points	Short term strategy. Lowest rate/payments.
7/1 ARM IO	$417,000	3.750%	3.788%	0 points	Interest Only payment.
5/1 ARM	$417,000	3.000%	3.036%	0 points	Short term strategy, lowest rate/payments.
5/1 ARM IO	$417,000	3.625%	3.662%	0 points	Interest Only payment.
"Agency Jumbo" 30 yr fixed	$625,500	4.125%	4.163%	0 points	Check County loan limits
"Agency Jumbo" 15 yr fixed	$625,500	3.875%	3.943%	0 point	Check County loan limits
FHA 30 yr fixed	$417,000	3.500%	3.578%	.50 points	Min 3.5% down. Mandatory MI. No interest rate risk.
FHA 15 yr fixed	$417,000	3.000%	3.193%	1 point	Low Payments. Min 3.5% down.
FHA 30 yr Jumbo	$625,500	3.750%	3.750%	0 points	Check County loan limits

Interest rates quoted are for Owner Occupied SFRs and assume 740 min FICO, impound account, 30 day rate lock, loan amount <= $417,000.  Maximum loan amounts are determined by county and are subject to change (see chart below). Loans require underwritten loan approval and pricing adjustments apply for other scenarios.  Rates subject to change.

 

Trends

Rates for conforming 30 year fixed rate mortgages are back to the lows we hit in November in 2010. The recent range for the conforming 30 year fixed rate loan with a 0 point cost is 3.999% (December 2011) to 4.250% (September 2011). Most experts believe that rates will remain in this range due to pressures  in the U.S. and global economies.

Here’s a look at the Freddie Mac Primary Mortgage Market Survey. Compare our rates to the National averages:

 

The chart below shows trends here in California. Compare this to our rate sheet above:

 

Should you pay points?

 

These days, most of our investors offer the best deal at a 0 point cost for a given rate. On a $400,000 loan amount for example, it’s typical that I see 4.75% available at a 1 point cost ($4,000 cost gets you $2,087/month payment) and 4.875% at a 0 point cost ($0 cost gets you $2,117/month payment). For a monthly payment that’s only $30 higher, it’s probably best to save the $4,000 and take the higher rate. This is not always the case though, and if bigger gaps are available, we’ll let you know about it. We always provide a comparative breakdown of rates and the associated costs to see what makes the most sense.

 

Agency (FNMA) High Balance Conforming Loan Limits

 

The conforming loan limit is $417,000.  The “Agency High Balance” loan limit is $625,500 (varies by County – see the chart below) and these loan programs offer relief to homeowners in more expensive housing markets.  Interest rates on these programs are incredible!  If your loan amount is less than $625,500 you will probably qualify for a great rate.

 

Non-Conforming “Jumbo” Loans

Call us for a breakdown of product availability.

Overall Market Conditions

Overall market conditions are challenging and problems remain with non-conforming loan qualification.  Good credit and high credit scores are more important than ever. Many loan products have disappeared and those that remain are harder to qualify for.  “Stated Income” and “Easy Doc” programs are gone.  Why? There are no investors buying risky mortgages. Fannie Mae and Freddie Mac buy the conventional mortgages and GNMA buys FHA loans.  They set the guidelines and they are very strict!

Click on the links below to get Historical Interest Rate Data:

30 year fixed rate mortgages since 1971
5 year adjustable rate mortgages (ARMs) since 2005