I just learned about a new and exciting 4.75% Jumbo loan interest rate program today. Do you want a lower rate? Pay one point and the rate falls to 4.25%

I know a few people who are sitting on the fence, because of the Jumbo rates. Maybe it’s time to think about taking action!

With this great interest rate, you can start looking now for your Newport Beach dream home.

But before we get ahead of ourselves, let’s make sure you like the program.

Here are the details:

• $3,000,000 maximum loan amount
• Purchase money only at these rates however refinances are available
• 25% down payment required
• 680 minimum FICO score
• Full documentation required for qualifying
• 3 Year Fixed rate product
  • 4.75% at 0 points loan origination
  • 4.25% at 1 point loan origination
• 12 month prepayment penalty applies
• Interest only option available at .125% higher rate.

Don’t like paying points? With 35% down you can get the rate down to 4.50%  That’s not shabby!

These aggressive rates are difficult to find. First Capital Mortgage, considered a preferred customer, is being offered these rates by the lender.

For more information, you can contact Tim Sibley, First Capital Mortgage, directly by calling 949.718.1511 or by e-mail: tsibley at firstcapitalmtg dot com. Tim is our in-house “go to” guy when it comes to getting the best rates and service. He just can’t be beat!

For a quick look what is happening now in the Newport Beach real estate market, check out my charts for Market Trends. You can also sign up for automatic chart delivery.

What do you think is happening with the Jumbo market? Do you think this is the beginning of lower Jumbo rates…or is this just a momentary low, to be followed by higher rates?

Please make a comment.

Welcome to the Newport Beach Real Estate Weekend Mortgage Rates News Update.

My aim is to bring you the most current mortgage rates for your weekend house hunting and decision making.

One of the great things about being a Coldwell Banker real estate agent, is having working relationships with great companies and, of course, the people within them. In a time when it is difficult to obtain refinances and home loan mortgages, First Capital is getting deals done. Trusting mortgage brokers can be difficult, but, Tim is one you can trust. He is honest and hardworking.

Tim Sibley from First Capital Mortgage, in Newport Beach, is providing this information.  Give Tim a call for your mortgage needs.

I hope this information is useful. Have a great weekend!

What do you think about the current mortgage market? Do think rates will go up or down in the next ninety days?

Please comment. Start the conversation.

Welcome to the Newport Beach Real Estate Weekend Mortgage Rates News Update.

My aim is to bring you the most current mortgage rates for your weekend house hunting and decision making.

One of the great things about being a Coldwell Banker real estate agent, is having working relationships with great companies and, of course, the people within them. In a time when it is difficult to obtain mortgages, First Capital is getting deals done. Trusting mortgage brokers can be difficult, but, Tim is one you can trust. He is honest and hardworking.

Tim Sibley from First Capital Mortgage, in Newport Beach, is providing this information.  Give Tim a call for your mortgage needs.

I hope this information is useful. Have a great weekend!

What do you think about the current mortgage market? Do think rates will go up or down in the next ninety days?

Please comment. Start the conversation.

While many folks in the areas of Newport Beach Real Estate might not need assistance with their home mortgages, there will be some that will need help to keep their homes. If you do need help, the following information might be useful to you.

Signed into law in July, the Federal Housing Administration’s HOPE for Homeowners program began October 1. While it was debated for several months before being approved, it’s been a bit overshadowed by the $700 billion bailout bill. The program, which will offer 30-year fixed mortgages, will end on September 30, 2011. It’s expected that it will be a few weeks before consumers can take advantage of the program because banks just recently received the details. There is also some speculation on how many lenders will actually use of the program. To be eligible for the program, borrowers must meet the following qualifications as listed on the FHA website: Borrowers are encouraged to contact their lender to determine eligibility, but may be eligible if, among other factors:

• The home is their primary residence, and they have no ownership interest in any other residential property, such as second homes.
• Their existing mortgage was originated on or before January 1, 2008, and they have made at least six payments.
• They are not able to pay their existing mortgage without help.
• As of March 2008, their total monthly mortgage payments due were more than 31 percent of their gross monthly income.
• They certify they have not been convicted of fraud in the past 10 years, intentionally defaulted on debts, and did not knowingly or willingly provide material false information to obtain their existing mortgage(s).

HOPE for Homeowners also includes the following provisions:

• The loan amount may not exceed a maximum of $550,440.
• The new mortgage will be no more than 90 percent of the new appraised value including any financed Upfront Mortgage Insurance Premium.
• The Upfront Mortgage Insurance Premium is 3 percent and the Annual Mortgage Insurance Premium is 1.5 percent.
• The holders of existing mortgage liens must waive all prepayment penalties and late payment fees.
• The existing first mortgage must accept the proceeds of the HOPE for Homeowners loan as full settlement of all outstanding indebtedness.
• Existing subordinate lenders must release their outstanding mortgage liens.
• Standard FHA policy regarding closing costs applies, and they may be:
o Financed into the new loan provided the value of the mortgage (including the Upfront Mortgage Insurance Premium) does not exceed 90 percent of the new appraised value of the home.
o Paid from the borrowers’ own assets.
o Paid by the servicing lender or third party (e.g., federal, state, or local program).
o Paid by the originating lender through premium pricing.
o The borrower must agree to share with FHA both the equity created at the beginning of this new mortgage and any future appreciation in the value of the home.
o The borrower cannot take out a second mortgage for the first five years of the loan, except under certain circumstances for emergency repairs.

For more information, you can go to http://www.hud.gov/hopeforhomeowners/ — the updated website for the HOPE for Homeowners program.

With some luck and, hopefully, some smart moves from the government, we will come out the other side of this crisis and once again, feel great about our investments in Newport Beach real estate.

Welcome to the Newport Beach Real Estate Weekend Mortgage Rates Update.

My aim is to bring you the most current mortgage rates for your weekend house hunting and decision making. 

Tim Sibley from First Capital Mortgage, in Newport Beach, is providing this information.  

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I hope this information is useful. Have a great weekend!

Welcome to the Weekend Mortgage Rates Update.

My aim is to bring you the most current mortgage rates for your weekend house hunting and decision making. Tim Sibley from First Capital Mortgage, in Newport Beach is providing this information. Take a look at these rate tables  and listen to Tim’s podcast.  

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I hope this information is helpful. Have a great weekend!

The Stimulus Plan – Conforming Loan Limits. This is a hot topic!

I want to try (emphasis on “try”) to tell you about this, but stay tuned, because all of this Conforming Rate information is confusing and changing daily.  As most of us know, The Economic Stimulus Plan has been signed by President Bush and is now law. Breathe a deep sigh of relief here! Well, all that glitters is not gold. After a discussion today, with our Mortgage Guru, Tim Sibley of First Capital Mortgage, I came away informed and slightly confused. Not Tim’s fault.  Tim shared the following memo with me. Of course, I am going to share the memo with you. Read it for yourself and see what is being given out to mortgage broker’s today. Everyone is learning about the new guidlelines.  The missive was sent to him by one of his lenders. Of course, Tim has some thoughts and observations on the whole thing. But wait, I’m getting ahead of myself. Let me give you some more of the facts.

The GSE’s (Government Sponsored Entities ~ Fannie Mae and Freddie Mac) and HUD (Department of Housing and Urban Development) now need to determine how they will implement these changes and communicate the product and process guidelines to mortgage investors and lenders.  While mortage companies are working diligently to release new products as soon as possible, most of them must wait for formal communication of the guidelines before finalizing the approach to the new legislation. The new conforming rate for Newport Beach real estate (probably most of Orange County) will be $729,750. I don’t know about you, but that seems like a strange number to settle on.

One of Tim’s observations – Some of the programs just don’t make sense. For example, one product, a 5-Year ARM, has interest rates into the 8% range. Whoa! That’s getting up there. I thought this program was supposed to save us money. There are better programs around without having to pay such a steep rate. The names of these programs are interesting; Conventional Conforming, Agency Jumbo, Conforming Jumbo and, old faithful, the Jumbo. Each will have it’s own interest rate structure. I would say this is where you really need an expert to guide you through all this muck. 

The following is a memo from one of Tim’s lenders…it does make for interesting reading. The status is changing daily. Enjoy…

For Conventional Conforming Business

Here’s what we can tell you thus far for Conventional Conforming loans… again nothing is final until Fannie Mae/Freddie Mac and HUD make their formal announcements.

Fannie Mae and Freddie Mac need to consider many factors as they determine how to implement the new products. Once they have, they will send a formal announcement with the details.  The general target for release by the GSE’s is the beginning of April.  Because it is a temporary measure, this will not be as quick and easy as past increases to the maximum loan limits that were tied to home price appreciation.

Below are some high level details that Fannie and/or Freddie have provided to date:

• The new legislation sets maximum loan amounts based on calculations tied to the HUD Median House Price amounts:
  • The maximum loan limit will be increased to 125% of the HUD Median House Price based on Metropolitan Statistical Area (MSA) up to 175% of the current conforming limit, never to exceed $729,750 for a single-family property
  • The new loan limits will not be uniform across the country
  • HUD is required to publish revised median house prices to implement the legislation within the next 30 days
• Product parameters will be more restrictive than conforming products:
  • Full Documentation and Full Appraisals will be required
  • 660 minimum credit score
  • 90% LTV maximum for primary residence purchases and rate/term refi’s (lower LTV limits for investment properties,  second homes, and cashout refi’s)
  • 0×30 on all mortgage debt in past 12 months
  • 12 months minimum seasoning for cashout refinances since prior refinance
  • Full project review required on condos
  • The declining markets policy will be in effect (5% reduction of maximum LTV / CLTV for properties located within a declining market)
  • Product types will likely be limited to 5-yr ARMs (P&I and IO), 15- and 30-yr fixed P&I products
  • Full documentation means that variances such as VIP will not be eligible for loans within this product
• There will be special Pricing and Delivery requirements
  • Pricing will not be the same as current conforming product (we expect pricing to be somewhere between current jumbo and conforming pricing)
  • Because of the special requirements, PHH will release new products to identify these separately

Please note: the abovementioned product parameters are based on preliminary guidance only and are subject to change by Fannie Mae and/or Freddie Mac.

For FHA Business

We have not received any information as to whether or not HUD will impose any additional LTV, credit, or documentation requirements beyond standard guidelines for FHA products. As we become aware of these details, we will let you know.

Regarding HUD Sales Price Limits, the following describes how HUD derives their limits and how this new Law impacts these calculations.

For most areas, FHA limits are set at 95% of the median home price for the area.  However, there are Floor and Ceiling limits that are applied to low and high cost areas.

• Floor: The 1-unit “Floor” will now be $271,050 (currently $200,160)
  • The “Floor” is derived from calculating 65% of the conforming limit for 1-unit properties (previously calculated using 48%)
  • The “Floor” is used for areas in which 95% of the median home price is less than $271,050
• Ceiling: The 1-unit “Ceiling” will now be $729,750 (currently $200,160)
  • The “Ceiling” is derived from calculating 175% of the conforming limit for 1-unit properties (previously calculated using 87%)
  • The “Ceiling” is used for areas in which 95% of the median home price exceeds $729,750

As is the case for GSE eligible loans, exact limits per MSA cannot be determined until HUD releases the latest Median Sales Prices per MSA and confirms each MSA’s maximum loan limit.

As we find out more, we will send you updates…

In the interim, if any Real Estate Offices or Clients ask, you can let them know that we have been working on this for some time now, and we will react quickly once the GSE’s and HUD make their formal announcements.

~End of Memo~

You can see from the above memo, even the lenders have not figured out all of this stuff. 

Beyond the new Conforming Loan Limits, I know, from talking with Tim, loans are being made. There are great rates and programs available. I would suggest and strongly advise, in these uncertain financial times, seek out a true mortgage professional, like Tim Sibley, to assist you with obtaining a mortgage. Give Tim a call at: 949.718.1511. It will be a smart move and probably will save you a lot of money.