30 Year Fixed Rate Loan at a Cost of One Point: 3.99%*
Rates are about the same. Economic Growth estimates were revised downward, and the economy remains generally dismal. This, of course, keeps rates low and us busy.
Banks, Brokers, Investors, and Mortgage Banks are all extremely busy right now b/c of the low rates, but unfortunately we are not busy just “closing loans”. Compliance Issues are causing huge bottlenecks throughout the system, so not nearly as many loans are closing as policy makers hoped. The hope is that low rates will stimulate the economy with both more purchases and refi’s, putting more cash into the economy.
Fear of fines, audits and “loan-buybacks” is making all of us overly careful. Our point is once again that even the most “Vanilla” of loans can now be difficult, and all loans can be delayed for seemingly the most ridiculous reasons. Sorry to beat this dead horse so often, but it is just something that all borrowers need to keep in mind.
Met Life has conforming 5/1 ARMs at 3.0% at a cost of One Point*. We typically encourage 30 year loans when rates are this low, but for buyers with definite short-term time-frames, we like to point out how extremely low ARM rates are right now.
*The above rate quote has the following assumptions: $400,000 Loan Amount; 20% down payment; credit score above 740; property is SFR; borrower has sufficient income to qualify; APR is approximately 0.20% higher than quoted rate for a $400,000 loan. Estimated closing costs affecting the APR include $4,595 for Origination and Processing Fees, $850 for other Lender Fees; $1,400 for Escrow Fees, and $1,000 for Prepaid Interest.
Call Jay Voorhees or Heejin Kim at (925) 855-4491
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