Current Mortgage Interest-Rate Environment

The Standard & Poor's 'downgrading' of US debt didn't have the 'sky is falling' impact that many feared.  In fact, just the opposite occurred with unprecedented buying of US Treasury Bonds occurring on the Monday following the S&P downgrade. 

That investment in US Treasuries had the net impact of lowing mortgage-interest rates down into the low 4's (today 4.125%) for a 30 year fixed-rate conventional mortgage (4% for FHA & VA loans). 

The Federal Reserve has announced its intention to continue to "keep rates low" at least into 2013, betting that the low cost of money from the government into the banking industry will spur the economy. 

Already having spent $2.325 Trillion on the purchase of US Treasuries, The Fed is now considering "Operation Twist" which would shift the Fed's portfolio to more long-term Treasury debt from shorter-term Treasury debt.  Expect more information from the Fed at its Governer's meeting on September 21 & 22. 

As always, I'm happy to speak with you personally on any questions or concerns you might have on the Mortgage-Lending environment.  Please feel free to call or email. 

Mortgage Environment: Rates Are Steady; Underwriting Remains Risk-Averse

For the past 30 days, rates on a 30 year fixed rate loan have been hovering between 4.75% and 5% with government rates (FHA/VA) approx 1/8 lower. 

So the rate environment remains favorable for the medium term.  Watch for the Federal Reserve to comment about raising the Fed Funds Rate, as many European Central Banks have recently done to manage inflationary pressures.

Underwriting remains risk-averse and conservative with lenders/investors adhering to tighter credit standards for credit score, Debt to Income ratios and sources of funds used in the transaction.

Through it all, mortgage financing is available and requires expert guidance to get a transaction to the table on-time and as-promised.

Call or email me for assistance with your financing needs. 

Larry Rufo
NMLS #141707
Licensed in PA and NJ
Mortgage Access Corp
610 322 8786 cell

FHA UPDATE: Higher Mortgage Insurance Premiums Effective April 18, 2011

The Department of Housing and Urban Development (HUD) has released mortgagee letter 2011-10 announcing an increase in the current Monthly MIP by 25 BPS for all FHA loans;  the Up Front MIP will not change from its current 100 BPS.

So on a 30 year FHA loan at 96.5% Loan to Value (max financing), the monthly MIP will increase from its current 90 BPS to 115 BPS  (As recently as April 2010, the monthly MIP was 55 BPS...so this represents an ongoing unfavorable movement in the monthly payment).

The change is effective with all FHA case numbers issued on or after April 18, 2011.

Please feel free to call or email with your questions or concerns.

Larry Rufo
610 322 8786
RufoHomeLoans.com

Let's Talk About Mortgage Financing

I'm a mortgage banker located in West Chester, PA (NMLS# 141707), licensed to do business in PA & NJ.  With over 15 years of serving repeat borrowers and referral sources, I bring a reputation for honesty, integrity and professionalism.  Please call me at 610 322 8786 (mobile) 24/7/365.  Or, check my website:  RufoHomeLoans.com   I look forward to serving your mortgage financing needs.