January 2nd, 2014
Good morning & Happy New Year!
Interest rate trends: Today – Slightly lower; 10 days – Flat; 25 days – Slightly higher
Interest rate recommendation: Cautious float
MBS’s are doing fairly well this morning due to a worsening stock market. MBS’s currently are at +16bps and technically sitting right on resistance level 1. No surprises in economic news this morning with all data in line with expectations. We will cautiously float while MBS’s are improving, but be ready to lock as sentiment can change quickly. 2014 brings in a new round of Mortgage regulations, as government agencies continue to tighten mortgage lending, making it harder to get a mortgage loan with the idea of correcting the mortgage industry. A universal debt-to-income ratio has been set at 43% to be considered a “Qualified Mortgage”. Fannie Mae has outlined the changes they will be/are making to FICO and LTV level adjustments. Those who are obtaining mortgages with loan-to-value ratios above 80%, those who are putting down less than 20% down payment or have less than 20% equity in their house, will have a higher interest rate by as much as .25% plus mortgage insurance. We are not aware of when these price level adjustments will take effect, but if you are in the process of getting a loan above 80% LTV, locking sooner than later is recommended.
Have a great day and happy New Year!
30 year fixed rate: 4.250% with 4.331% APR.
20 year fixed rate: 4.125% with 4.251% APR.
15 year fixed rate: 3.250% with 3.390% APR.
10 year fixed rate: 3.125% with 3.381% APR.
Use the link below to see all our posted interest rates:
Please visit http://www.galmc.com for further information and/or to apply.
We hope to earn your business.
Have a great day and thank you for choosing Great American Lending.
Dale Packer, MBA, NMLS#4493
Spencer Packer – Colorado & Utah, NMLS#363407
McKay Platt – NMLS#428479