Nov
13
What A Week For The Banks!
Written by: barb and filed Under Blog, Buyers, Mortgage Update, Real Estate |
Are the turbulent storms of last week over yet? Wall Street took a 552 point fall for the Dow while Citigroup, Wachovia and GM took big hits in the financial sector. What’s next? Big Ben told congress that he expects the U.S. economy to slow “noticeably” and still feels there are strong possibilities of inflation.
However….the facts so far support some control: Q3 productivity rose 4.9% and unit labor costs dropped 0.2%, so inflation stays under control. In addition, Initial Jobless Claims came in at 317,000, way below expectations and the lowest reading in a month.
Here are some fun little facts I found:
1. OIL AND MILK - If the price of a gallon of milk is $3.89, then a barrel of milk would cost $163.38 (note that 1 barrel equals 42 gallons). The price of a barrel of oil closed last week at $96.32 (source: BTN Research).
2. WE’RE # 1 (AGAIN) - The 3 most competitive economies in the world according to a Switzerland-based think tank are 1) the USA , 2) Switzerland and 3) Denmark The US has been top-ranked for the last 3 years (source: World Economic Forum, Financial Times).
3. I’M A LITTLE SHORT THIS MONTH - 1 out of every 29 mortgages in the USA was delinquent with their required monthly payment at the end of the 3rd quarter 2007. At the end of calendar year 2005, the ratio was 1 out of every 48. (Source: Equifax, Wall Street Journal).
4. BIG BUCKS FOR THE FIFTH GRADER - The average cost for 1-year of college education at an in-state public college is $13,589 for the 2007-08 school-year (cost includes tuition, fees, room and board). The total 1-year cost has increased +6.5% per year over the last 30 years. If that same annual rate of inflation continues into the future, then a 5th grader today will ultimately pay $100,000 for his/her 4-years of public college education during the years 2015-19 (source: College Board).
Current Rates
30 Year Fixed: 6% (APR 6.125%) - Unchanged
30 Year Fixed with 10 Year Interest Only: 6.25% (APR 6.365%) - Lower
40 Year Fixed: 6.250% (APR 6.358%) - Lower
5/1 ARM (2/2/6 caps): 5.625% (APR 6.434%) - Higher
5/1 ARM 10 Year Interest Only Payments: 5.625% (APR 6.834%) – Unchanged
FHA/VA 30 Year Fixed: 6.375% (APR 6.813) - Unchanged
JUMBO (Non-Conforming) Rates
30 Year Fixed: 6.750% (APR 6.881%) - Higher
30 Year Fixed with 10 Year Interest Only Payments: 6.875% (APR 6.995%) – Higher
5/1 ARM: 6.250% (APR 6.914%) - Unchanged
5/1 ARM Interest Only: 6.250% (APR 6.680) - Lower
Conforming loan limits are currently up to $417,000 and Jumbo loan limits are $417,001-$650,000. Quotes above are based on 30 day pricing with a 1% loan fee and a credit score of 680 or better. Quotes are also based on full loan documentation files and a minimum of 5% down. If you are planning on putting less than 20% down you will need Private Mortgage Insurance or a second mortgage to cover the difference.
The programs above are only a sample of what is available. Rates were published Monday, November 12, 2007 @ 10am and are subject to change.
For further information on any of these programs or additional programs, please feel free to email me or give me a call on my direct line (425 820-0601) or my mobile.
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