What’s up with mortgage rates? Jeff Lazerson of Mortgage Grader in Laguna Niguel gives us his take.
Rate news summary
From Freddie Mac’s weekly survey: The 30-year fixed rate averaged 4.02 percent, three basis points better than last week’s 4.05 percent. Thirty-year rates have held steady just above or below 4 percent for the past five weeks.The 15-year fixed averaged 3.27 percent, two basis points better than last week’s 3.29 percent.
The Mortgage Bankers Association reported a 4.1 percent decrease in loan application volume from the previous week.
Bottom line: Assuming a borrower gets the average 30-year fixed rate on a conforming $424,100 loan, last year’s rate of 3.58 percent and payment of $1,923 was $107 less than this week’s payment of $2,030.
What I see: Locally, well qualified borrowers can get the following fixed-rate mortgages at zero cost: A conventional 15-year at 3.25 percent, a Federal Housing Authority or Veterans Administration 15-year at 3.375 percent, a conventional 20-year at 3.75 percent, a conventional 30-year at 4.0 percent, an FHA or VA 30-year at 3.50 percent, a 15-year high-balance ($424,100 to $636,150) at 3.50 percent, a 30-year high-balance at 4.25 percent, an FHA or VA high-balance at 3.75 percent, and a jumbo 30-year (over $636,150) at 4.75 percent.
What I think: Something that gets very little attention is equity-rich homeowners who have fallen temporarily on hard times.
I’ve gotten five SOS calls in the last month from homeowners who have hundreds of thousands of dollars in untapped equity. That well-earned and nurtured equity can easily get them through the rough patch. It’s your home. It’s your equity for Pete’s sake!
But tapping into it has been difficult since Uncle Sam adopted his one-size fits all and we’ll protect you from the evil predatory lender empire mentality.
A series of so-called ability-to-repay rules imposed during and after the mortgage crisis banned any type of owner-occupied,…