Weekly mortgage rate update from Mickey

Mickey Carlton's latest update:

Mortgage interest rates had a rather turbulent few days but, in the end, are virtually unchanged from a week ago. Borrowers with good credit and verifiable financial data can expect to find thirty-year fixed rate mortgages (below $417,000) priced at 6.5% to 7.00%, with no discount points or origination fees. Individual pricing will be affected by loan purpose and loan amount. Jumbo mortgages (over $417,000) and reduced documentation mortgages continue to climb in price as a result of the liquidity crunch. Thirty-year fixed rate jumbos are now priced at 8.00% for borrowers who do not wish to pay points.

Concerned you won't get a mortgage?

I have been talking to friends, and many are concerned that they would not qualify for a loan, due to the recent news of mortgage companies closing. Yes, approximately 120 mortgage companies closed, but there are many other companies still providing loan money for qualified purchasers. They are also continuing to refinance current homeowners.

The type of loan that created this problem, as I discussed a while back, is the sub-prime loan. It may be harder to qualify for a loan today, but many of the sub-prime loans had a high interest ARM. Qualifying for a loan with difficult credit only resulted in greater cost, meaning that many homeowners got into a house, but can no longer afford the mortgage payment.

If you have good credit, money in the bank, and a desire to purchase a home, you are a good candidate to apply for a 30 year fixed mortgage with a good interest rate. Last week, the interest rate ranged from 6.625% to 7.125% without having to pay points. An individual borrower's rate will depend upon loan size and creditworthiness.

Unsure of your creditworthiness? Call me, and I will be glad to provide the name of some very reputable mortgage brokers and bankers.

Who do you trust for homebuying advice?

My friend Sara at the office shared the following today:

Los Angeles economist Gary Watts gave a talk to the Orange County California Realtors where the main message was - keep news about housing in perspective. The popular press has called an end to housing for some time, says Watts:

"The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs about $28,000." Business Week, 1969

"The median price of a home today is approaching $50,000 ... housing experts predict price rises in the future won't be that great." National Business, 1977

"The golden age of risk-free run-ups in home prices is gone." Money Magazine, 1985

"A home is where the bad investment is." San Francisco Examiner, 1996

Property is always a great long-term investment, and can benefit some in the short-term. Talk to a qualified Realtor to know what is going on in an area, and to learn what the media doesn't know yet.....

weekly interest rate comment from Mickey Carlton

The mortgage market is changing rapidly! In applying for a mortgage, your situation can change weekly. It is important to watch the numbers....Here is the weekly report from Mickey Carlton:

Mortgage interest rates have experienced an interesting few days. Conforming fixed rate loans (less than $417K) have declined about an eight since last week. These loans can be obtained for a range of 6.5% to 7% without discount points. The actual rate depends upon loan size and the creditworthiness of the borrower. Non-conforming rates that would include jumbos (over $417K) and niche products such as No Income Verification and Option Arms have skyrocketed in price. Fixed rate jumbos, for example, are now priced at least 1% higher than conforming fixed rate loans. One of my option arm programs increased 3.625 discount points in price last week. These increases are caused by the withdrawal of funding from increasingly nervous Wall Street investment bankers.

Interest rates for the week of July 30th from Mickey

Mickey Carlton, Mortgage broker, provided the following regarding interest rates this week:

"Mortgage rates improved somewhat with the sharp decline in stock prices during the latter part of last week. Those improvements were surrendered Monday and Tuesday with the gains in stocks. All eyes are currently directed toward the economy's prospects as reflected by stock prices. Currently, borrowers can secure thirty-year fixed rate mortgages with no discount points for a range of 6.625% to 7%, depending upon loan size and creditworthiness."