Monday, June 24, 2013

Tips on rate changes


Several people asked for a narrative of what I mentioned today at the meeting as it relates to rates movements in the last 30 days (+/-).  Here are some examples from locked loans on 5/23/13:

 

$625,500 purchase loan on a sales price of $850,000 (73.5% LTV):  30 year fixed rate loan was locked at 3.875% with no points and a payment of $2,941.  The rate today would be about 5.125% and the payment would be $3,406.

 

$900,000 purchase loan on a sales price of $1,200,000 (75% LTV):  30 year fixed rate loan was locked at 4.0% with no points and payment of $4,297.   The rate today would be about 5.125% and the payment would be $4,900.

 

$1,000,000 purchase loan on a sales price of $1,400,000 (71.4% LTV):  10/1 ARM was locked with a rate of 3.50% with no points and a payment of $4,491.  Today’s rate would be 4.125% with a payment of $4,846 per month (this rate was actually increased since our meeting at noon today).

 

These rates are for illustrative purposes only and are meant to give you an idea about how much rates have moved in the past month.  In the big picture, rates are still very good.  Each scenario is different and the above scenarios are not meant to imply that the “best (or worst) rate” was obtained in any situation. 

 

This information is for the use of real estate professionals only and should not be shared in its current form with consumers, since none of the necessary disclosures are attached or included.   

 

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