VIP Mortgage Market Update
It's been roughly 2 months since the Fed announced that they would scale back Mortgage Backed Security (MBS) purchases later this year and then try to end their MBS purchases in 2014. That announcement caused interest rates to quickly rise by more than 1%. For now, rates have seemingly stabilized in the mid 4's on a 30 Year Fixed (although rates obviously vary based on loan program, fico, etc.). The next big question is "what will happen next with rates?" No one has that magical crystal ball but most experts agree that the lowest rates are likely behind us. It seems that the only way that rates would drop back to their previous lows is if the Fed decides to reverse their plans and continue purchasing $85 Billion per month in MBS for longer into the future. On the flip side, many experts think that we will see another bump upward in rates once the Fed scales back on their MBS purchases later this year and then likely another bump upward once they end their MBS purchases in 2014. All of that being said, the Fed's plans are always subject to change based on economic conditions so any prediction for the future is just based on the information available today.
Interest Rates as of 8/1/2013
Rates based on a 200k Primary Residence Purchase (unless description below says differently), 740+ Credit, assuming 0% loan origination fee and 0% in buydown "points" (you can also choose to pay "points" and get a lower interest rate). Please note, this information is intended for Real Estate Professionals.
96.5% FHA 30 Year Fixed = 4.25% (Requires MI)
80% 30 Year Fixed = 4.625%
95% 30 Year Fixed = 4.625% (Requires PMI)
97% 30 Year Fixed = 4.875% (Requires PMI)
80% 15 Year Fixed = 3.75%
90% 2nd/Vacation Hm 30 Yr = 4.625% (Requires PMI)
80% Investment Property 30 Yr Fixed = 5.375%
75% Investment Property 30 Yr Fixed = 5.125%
100% USDA/Rural 30 Yr Fixed = 4.75% (No PMI required)
100% VA 30 Year Fixed = 4.375% (No PMI required)
80% 5 Yr Jumbo ARM = 3.0%
80% 30 Yr Fixed Jumbo = 4.75%
Conventional and FHA Refi's are also available for underwater homeowners
Courtesy of:
Russel Gundlach
Loan Officer
V.I.P. Mortgage, Inc
3131 E Camelback Rd; Ste 224
Phoenix, AZ 85016
Phone: 480-580-9073 | Fax: 602-288-7726 | russelg@vipmtginc.com
