30 Year Fixed Rate Loan at a Cost of One Point: 3.99%*
Rates got better yesterday again primarily in light of comments from the Fed’s Federal Open Market Committee. Even though economic reports showed a few signs of strength that normally send rates upward, the Fed comments about economic weakness and about the Fed’s willingness to buy more securities caused rates to fall in mid-day trading.
We have been having appraisal issues lately with some of our refi’s. This is partially because the market artificially inflated a bit right before the $8,000 tax credit expired in the Spring. While we can still use the comps that closed in June, many appraisers consider the April and May comps too old to use, and are therefore correlating to more recent comps that don’t often support the value we need to close loans.
Expect this issue to surface with purchases as well in coming months.
*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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