Athen Apaquette

True or False: VA loans are difficult to do and they cost the seller money.

False! In many ways, VA loans are easier to do:
  • no proof of downpayment
  • higher debt ratios
  • conventional underwriting and appraisers who are easier to deal with than the AMC.

The seller DOES NOT pay anything for the buyer. 

And YES we still have interest only loans!

Economic news:

JOBS! JOBS! JOBS! The labor department announced that there were 192,000 jobs created in March.

Expectations were for 206,000; not nearly enough to be in a growth economy, and not enough to offset the loss of jobs or people exiting the job market.

That small difference lead to a rally in the bond market, meaning lower rates (bad news is good news), and rates dropped .125%.

The Fed also is having to tippy toe, cutting back the QE program means higher rates are in our near future. If rates go up, unemployment could get worse.

Bottom line is with choppy jobs and a weak economy, now is the time to lock in, not wait until rates go up.

Remember, rates can be locked in over the weekend!

Your Weekend Rate Sheet

4.4.14

**conforming means loans under $417,000. Conventional means Fannie Mae and Freddie Mac.

*** A no cost loan is where the bank credits you money to cover the third party costs such as title, escrow, notary, and recording fees.

If you have a client who is close to having an offer accepted and is nervous about rates, don’t worry because interest rates can be locked in over the weekend.

Remember we also have the float down: if rates improve more than .25% after lock-in the client gets the lower rate.

All rates are quoted at a 45 day lock in and assume a 720 credit score with 20% down except for FHA.

1 point is 1% of the loan.

Programs quoted as having 1 point also have the option of 0 points and the option of the 0 cost loan.

Jumbo loans are loans that have a loan amount of $625,501 and above on conventional programs.

Have a great weekend.

Cheers!