Attention all home buyers! Here’s a brief update on some changes in financing I heard about from Steve Tedrow of Windermere Mortgage:
Conforming Jumbo loan rate is now at 5.25% for a 5/1 ARM, only 1/8% higher than conventional, non-jumbo loan. Fixed jumbo rates are at 5.875%
Limited or no documentation loans are dead and gone.
Credit scores need to be above 700 for almost all of today’s loans.
Financing regs and requirements are changing from moment to moment, so check with a lender you trust for the very latest information.
Eastside Real Estate Buzz
I would bet the borrowers need credit scores of 720 or better (719 and below are penalized). Rates change quite a bit too…one lender I work with issued 5 rate sheets today and 5 yesterday.
Hi Rhonda,
I’m not surprised your lender issued so many rate sheets. Things are changing from moment to moment!
Debbie asked me to write a little bit on APR. Whenever interest rates are quotes, the APR should accompany the rate quote. The APR (annual percentage rate) is normally found on a Truth-in-Lending disclosure. This disclosure must be given to a loan applicant within 3 days of applying for a mortgage loan. The APR is always higher than the interest rate since it takes into account the interest rate you get plus any points, loan origination fee and certain other fees that you have to pay for in obtaining a mortgage loan. The purpose of the APR is to tell ou the “effective cost” of borrowing money.
Thanks, Steve for the information.