What’s up with mortgage rates? Jeff Lazerson of Mortgage Grader in Laguna Niguel gives us his take.
Rate news summary
From Freddie Mac’s weekly survey: The 30-year fixed rate improved, averaging 3.90 percent, three basis points better than last week’s 3.93 percent. The 15-year fixed was unchanged at 3.18 percent.
The Mortgage Bankers Association reported a 3 percent increase in loan application volume from the previous week.
Bottom line: Assuming a borrower gets the average 30-year fixed rate on a conforming $424,100 loan, last year’s rate of 3.45 percent and payment of $1,893 was $107 less than this week’s payment of $2,000.
What I see: Locally, well qualified borrowers can get the following fixed-rate mortgages at one point cost: A 15-year at 2.75 percent, a 30-year at 3.50 percent, a 15-year agency high-balance ($424,100 to $636,150) at 3.0 percent, a 30-year agency high-balance at 3.75 percent, a 15-year jumbo (over $636,150) at 3.5 percent and a 30-year jumbo at 3.75 percent.
What I think: My head is spinning! I have so much home financing news that you can use from this week’s summer CAMP (California Association of Mortgage Professionals) convention on Coronado Island.
First and foremost, owner-occupied stated-income loans for purchases, refinances and cash-out refinances are back!
If you can cough up a one bank statement, you have been self-employed for at least two years, have at least a 700 middle credit score, no icky credit events, a 30 percent down payment or remaining equity of 35 percent for refi’s, borrowing anywhere from $250,000 to $3 million on a single unit, owner-occupied property, and you are willing to attest and declare your income, you might be good to go.
No first-time buyers and there are a few other guidelines.
No Social Security number? Forget about it. Go get yourself an ITIN (individual taxpayer identification number) from the IRS and put 30 percent down to get a loan for up to $2 million. No FICO scores needed.
ITINS are for people who have tax filing or income reporting obligations under U.S. law but are not eligible for a Social Security number.
Do you want to unlock some home equity to start a business, pay off your hard money second lien or any second for that matter but are having a tough time qualifying? Not to worry.
One investor will provide you a second lien with absolutely no payments for up to 30 years, so long as the combined first and second loans equal 75 percent or less of the property’s…