WEEKLY RATE – FED RATE HIKE LIKELY COMING IN DECEMBER
I hope everyone is having a fantastic week!!
In this weekly rate we discuss current interest rate news and an important change to the Arizona Down Payment Assistance Program. Starting off with interest rates.
WEEKLY RATE
Interest rates improved slightly in the last week of November 2017.
Rate pricing improved about 10 bps in costs at each rate with the Mortgage Backed Security (MBS) market finishing the week up + 9 bps.
For well qualified customers, they can obtain a 30 year fixed rate at 3.99% with .75 points (4.15% APR), and a 4.25% with 0 points (4.29% APR).
Rate volatility will likely increase to close out 2017.
On December 12th and 13th, the Federal Open Market Committee (FOMC) is meeting and will likely raise the Federal Funds rate. Congress will be working to get through an updated tax plan which will affect the markets.
News about holiday shopping and employment will also play a key role in interest rate pricing.
If you are still thinking about refinancing, if you start now you can still miss December and January’s mortgage payment.
Below are today’s interest rates. Have a great week!!
MORTGAGE QUOTE / APPLY FOR A MORTGAGE:
For a no obligation mortgage quote, please answer questions at bottom of email or go to:
WWW.FREEMORTGAGEQUOTE.NET
To apply for a refinance or home purchase loan, please call me or go to:
http://reggiegreenhomeloans.com/apply-now/full-application-reggie-green/
MAJOR CHASE TO ARIZONA DOWN PAYMENT ASSISTANCE PROGRAM – HOME PLUS AND HOME IN 5
Effective, January 2, 2018 on all new HOME Plus reservations the assistance provided will be in the form of a three-year, no interest, no payment, deferred soft second mortgage, forgiven monthly at a rate of 1/36 over the term of the lien.
Currently, clients are utilizing down payment assistance programs to help get into their homes with little to no money down.
Down Payment Assistance program utilize higher rates than a traditional mortgage to help offset the grant money being paid. Many lenders are soliciting these borrowers right after closing to lower their rate.
This is a smart tactic, but it makes the program unsustainable as the higher rate is helping pay for the grant.
If they are immediately being paid off, the program is losing money.
Effective on all new Home Plus reservations after January 2nd – the grant will be a silent 2nd completely forgivable after 3 years.
This will create a combined loan to value likely over 100%, preventing lenders from coming in to immediately refinance the down payment assistance loans.
HOW CAN YOU USE THIS TO YOUR ADVANTAGE:
Once the silent 2nd goes into effect, it will be difficult for borrowers using down payment assistance to refinance shortly after closing.
But, they can still utilize the grant if they act fast and get under contract in December.
Once the silent 2nd goes into effect, borrowers will likely have to remain in a higher down payment assistance rate for a lot longer because of the higher combined loan to value and rate pricing is worse when you have 2 loans.
They will also have less equity if they sell within 3 years.
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TEAM GREEN
Team Green is a top 1% originating mortgage team in the country. Everyone on our team has over 13 years of mortgage lending experience.
My team treats every transaction as an audition to earn your business for the rest of your life.
Have an amazing week and we’re always available if you need help with a new home loan purchase or refinance.
TEAM GREEN LINE: 480-704-4890
TEAMGREEN@FAIRWAYMC.COM
Reggie Green, Team Green, and Fairway Independent Mortgage in Scottsdale, Arizona, McCormick Ranch, Fairway Independent Mortgage McCormick Ranch is dedicated to providing all the best mortgage products and customer service to assist you in your home purchase or refinance in Arizona, California, Colorado, Washington, Georgia, Michigan and Virginia. Below are the products and Mortgage Rate Sheets we offer for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, HARP 2.0 mortgages, HARP 3.0 mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Fannie Mae Home Path Mortgage, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline refinance mortgages, Conforming mortgages, Conventional Mortgages, 100% Financing Mortgage, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages, No appraisal refinance, 0 point mortgages, 0 closing cost mortgages, paying a point mortgages, Refinance mortgages, purchase mortgages, and Jumbo Mortgages. Fairway Independent Mortgage Corporation, Fairway Independent Mortgage McCormick Ranch, Team Green. Reggie Green. FairwayAZ, Fairway McCormick Ranch, Fairway Mortgage. November 27th 2017 30 year fixed rates, November 28th 2017 30 year fixed rates, November 29th 2017 30 year fixed rates, November 30th 2017 30 year fixed rates, December 1st 2017 30 year fixed rates, December 2nd 2017 30 year fixed rates, December 3rd 2017 30 year fixed rates, December 4th 2017 30 year fixed rates.
WEEKLY RATE – FED RATE HIKE LIKELY COMING IN DECEMBER
