Altos Chart 78701
February 12th, 2010
Median Price for Single Family Properties in AUSTIN, TX 78701
February 12th, 2010
Current Jumbo Mortgage Rates and Guidelines
January 31st, 2010Current Mortgage Rates and what you need as far as credit scores and down payment to get these.
(Keep in mind rates move daily and this is a snapshot of rates) Ok so Jumbo Mortgages as you know if you have one or are shopping for you know or will know the differnce between rates and guidelines.
Lets look at ARMS, which are becoming more popular for Jumbo purchases. One bank in particular we are able to broker out to has the best rates in the nation. Down payments for this program are higher but the rate is worth it if you have the down payment. Condos have lower 5% lower LTV and new construction has a 15% lower LTV.
Credit Scores of 680 are needed for the programs listed below. These rates are good for purchases only. Refinances are not allowed in Texas.
LTV Requirements are:
75% LTV up to 850K
70% LTV up to 1.5M
65% LTV up to 2M
55% LTV up to 2.5M
50% LTV up to 3.0M
Rates for a 5/1 ARM are 4.25%
Rates for a 7/1 ARM are 4.625%
There are several other banks who have good pricing but not this good. Below is lender who has a program for 10 and 15% down purchases. This program is amazing because there is no mortgage insurance. Credit scores can go as low as 680 but these rates are based on a credit of 720+ . Rates for the 30 year fixed program here are not great, but only a few banks in the country have a 10% or 15% down payment program with no MI.
90% LTV up to 500K
Rates for a 5 year ARM are 5.6%
Rates for a 7 year ARM are 6.3%
Rates for a 30 year Fixed are 7.35%
85% LTV up to 800K
Rates for a 5 year ARM are 5.4%
Rates for a 7 year ARM are 6.2%
rates for a 30 year Fixed are 7.15%
Moving on to 80% LTV and 75% LTV for ARMS and Fixed purchases and refinances. This pricing comes from Envoy Bank and is sold directly to Chase. Chase happens to have amazing pricing for 80% LTV and 75% LTV rate/term refinances and purchases. A credit score of 720 is needed for these mortgages. 1-4 unit properties are allowed
80% LTV up to 1M
75% LTV up to 1.5M
70% LTV up to 2M
Rates for a 5 year ARM are 5.0%
Rates for a 7 year ARM are 5.25%
Rates for a 30 year Fixed are 5.75%
As always if you have any questions, please feel free to call, email, or send a smoke signal.
Jumbo Mortgage Thoughts 11/4/09
November 4th, 2009As in any business certain companies i.e. banks cater to certain products. In this case only a handful of banks who lend in Texas offer what I consider great jumbo mortgage products. Right now loan to value and of course high credit scores are everything. The best products right now for purchases are with 25% to 30% down for non interest only products. I am currently working on a purchase for a couple in Dallas where the sales price is 2M, the bank requires them for a 5/1 interest only product to make a 35% down payment and their rate is 4.25%. If they chose a non interest only product they would have made a 30% down payment. In my opinion this is a hell of deal. This is without any points on the front. Of course ARMS are lower than 30 year fixed, but on a 30 year fixed with 30% down you are looking at 5.75% under the same scenario. Of course these are the optimal pricing situations in our current environment. That being said there are banks who offer a 15% down payment without mortgage insurance with competitive rates. The key to working with a great loan officer is shopping around. Your goal as a consumer should be to locate an unselfish lender i.e. me, who works for a reputable company with relationships with the top mortgage lenders. We make money one of two ways on the front, what you see on the GFE and HUD and on the bank, what the actual banks pays us in yield spread premium. This means if I charged the client 4.375% instead of 4.25% I would have made an additional .5 point on the back. They received a GFE with no points, no broker fee/application fee and a rate of 4.25% on a 1.3M interest only 5 year jumbo ARM. If I were to charge a rate of 4.125% I would have made absolutely 0 on the back. Obviously this is not an option if your not making anything on the front. The next rate of 4.25% paid .5% in this case $6500. This is a win, win situation the clients gets the best possible deal while I make a pretty good commission.
Current Challenges of Super Jumbo Mortgages
December 14th, 2008Super Jumbo Residential Loans are increasingly more difficult to find on Wholesale marketplace for Mortgage Brokers.
By now it would be virtually impossible for anyone to not have heard about the “Sub-prime Meltdown”, “Mortgage Crisis”, “Credit Crunch” or the “Liquidity Crunch”. The current situation has been well publicized, and we have all heard the stories of the individuals who have lost their homes, or are struggling to keep them. These are usually the unfortunate ones that had credit, income documentation, or down payment issues, and ended up in adjustable loans.
The part of the story we don’t hear about very often, is the effect it’s had on the more affluent homeowners. High Net Worth individuals are also finding themselves having trouble obtaining new loans, whether it’s to refinance out of an adjustable mortgage, or to purchase a home. When the rate adjusts on a multi-million dollar loan, monthly payments can increase thousands of dollars. With the slowdown of the residential market, a quick sale for a good price is usually not an option. Additionally, a good number of these borrowers are self employed entrepreneurs who, very likely, are seeing a decrease in their income due to the overall slowing of the economy.
Obviously, everyday people aren’t going to feel too sorry for the business owner stuck with a big adjustable loan on their mansion. Nevertheless, when they find themselves in a bind that their local bank is no longer willing to help them out with, they may turn to a Mortgage Broker. Long gone are the days of easy loans of this magnitude, especially in the Wholesale marketplace. Super Jumbo Mortgages were some of the first types of loans to have guidelines tightened, with many lenders cutting them out entirely. Placing these loans can be an extremely frustrating experience for the Broker since your dealing with solid client, who might not get the mortgage they deserve because of the current lending environment.
Jumbo Mortgage Rate and LTV Update
November 22nd, 2008In this post I will outline the best jumbo mortgage programs for specific loan amounts and loan to values. Assume a credit score of at least 700 is needed for all transactions. We will look at 10%, 15% and 20% down options. There are thousands of scenarios but this will give you a good guideline of the best programs out there. Keep in mind rates change daily and this is snapshot in time. There are interest only options as well as adding a prepayment penalty for a lower rate. I do not recommend adding a prepayment penalty, your rate will only be 1/8th lower. The benefit versus the potential cost just is not there for me. This is a cross sample of programs from 3 different banks.
The first Bank we will look at requires a at least a 20% down payment and has excellent rates on 3, 5, 7 year ARMS.
If your loan amount is between 417K and 999,999 these are the current ARM rates with 20% Down.
3/1 ARM 6.125% 5/1 ARM 6.25% 7/1 ARM 6.375%
If your loan amount is 1 Million to 1,499,999, these are the current ARM rates with 30% Down
3/1 ARM 6.375% 5/1 ARM 6.5% 7/1 ARM 6.625%
If your loan amount is 1.5 Million to 2 Million these are the current ARM rates with 40% Down
3/1 ARM 6.125% 5/1 ARM 6.375% 7/1 ARM 6.625%
The second bank has the best program bar none if your situation falls within the parameters. This bank requires at least a 15% down payment and the loan amount must be from 417K to 900K. There is no mortgage insurance on these mortgages and no hits to the rate for a cashout. They will finance from a score as low as 650, but we will use 720 as our score for the pricing below. For loan amounts between 750K and 900K add .3 to the rate.
For loan amounts between 417K and 750K these are the current ARM rates with 15% down
3/1 ARM 5.75% 5/1 ARM 6.1% 7/1 ARM 6.35%
For loan amounts between 417K and 750K these are the current ARM rates with 30% down
3/1 ARM 5.05% 5/1 ARM 5.45% 7/1 ARM 5.95% 10/1 ARM 6.65%
15 year 6.45% 20 Year 6.45% 30 Year 6.7%
The 3rd bank we will look at has great pricing on jumbo mortgages with 10% down. A credit score of 700 is needed and the loan amount can go up to 1 Million. These mortgages do have mortgage insurance, but you will not find a better rate with only 10% down on a jumbo mortgage.
3/1 ARM 5.375% 5/1 ARM 5.875%
If you have any pricing or qualification questions, give Josh Kohl a call at 512 342 1069.
1.1 Million Dollar Jumbo Refinance
November 17th, 2008The borrower is leaning towards a 3/1 ARM at a rate of 6.75% which will save him over $1700 month.
Jumbo Mortgage Refinance 1.1 Million
November 3rd, 2008Jumbo mortgages especially over 1 million continue to see the Loan to Value reduced. Not too long ago LTV’s for these super jumbo loans were anywhere from 80% to 85% now almost every bank out there has a 75% or less LTV. I work with two wholesale jumbo mortgage lenders who will go up to 80%. The first has one lien at 80% and the second lender has 75% first with an outside second. The deal I am currently working on is refinance. The client is on 8.5% first lien of 888K and a 12.5% second lien of 200K. I will be able to put the client on 1 lien of 1.1 million at 7.875%. This refinance will save the client almost 1K per month and give him a two month break in payments. Keep in mind for such a transaction credit scores have to be over 700 and 6 months worth of PITI reserves has to be documented. No matter what your mortgage is, a thousand dollars a month is a thousand dollars a month.
Josh K.
Jumbo Loans Austin
October 24th, 2008Jumbo Mortgage Purchase example of what kind of rate a client is looking at this week. The sales price is 725K and the client wishes to make a 10% down payment. His credit scores are great over 740 and he wants to get an adjustable 5 year ARM. The current rate is 6.0%. This rate is almost comparable to that of conventional mortgage. Many banks don’t even offer such a program and most mortgage brokers run from them. This is from a direct, fast and secure wholesale mortgage lender who offers lower interest rates and closing costs than a retail bank. This mortgage does however come with mortgage insurance, but the alternate is making an additional of $36,250 for a mortgage at 85% LTV without mortgage insurance. With today’s environment as it as, keeping your assets close is becoming more common.
30 Year Fixed Jumbo Mortgage Purchase
October 20th, 200830 Year fixed jumbo mortgages continue to have no appetite of purchase on the secondary market. If banks still are able to accommodate such a jumbo loan, their pricing normally starts in the 8’s with at least 1 discount point used to get to this rate. I work with one bank which offers rates in the 7’s if the jumbo mortgage meets the following conditions. The mortgage must be less than 850K and the down payment must be at least 15%. If you desire to stay in your home longer than 7 years this would be the very best option for you. There are still a hand full of banks which have great jumbo programs on 3,5 and 7 year adjustable mortgages. If you are looking for stability in mortgage the fixed 30 year mortgage is the best.
Josh Kohl