Don’t Let the Banks Fool You & Your Interest Rate Sheet for 1.10.14

mortgage interest rate sheet for 1.10.1

I hope you’ve had a terrific week and that you’re ready to sell, sell, sell this weekend!

Just a reminder that rates can be locked in over the weekend.

 If you have any questions or comments, please contact me at or call 310-218-6855.

Myth Buster of the week:

You need 30% down to buy 3-4 units. FALSE!

This is not the case with FHA where, if you live in the property, you can put 3.5% down. Also if you want a conventional loan, you can put 20% down. If you don’t live in the units, you can put 25% down.

The moral of the story is don’t be fooled by banks who put EXTRA restrictions on loan programs. For example at Wells Fargo you must qualify without the credit for the rents you will be receiving. At Kinetca you can only do a 15-year fixed on an investment property.

We know the rules for all the banks, making us your best 1 stop shopping and lender-lingo interpreter.

Economic news

Bad news was good news. On higher jobless claims today the interest rates on the 30-year fixed came down .25%. A great relief for a few days of sideways movement.

Next week should be quiet until the end of the month (28th and 29th) when the Fed will meet again and announce their next step in quantitative easing and their read of the economy.

VA Announcement

VA Announced the loan limits for high cost areas, which CA is one of them. However, each county has a different limit.  To see the complete list visit:

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

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.