January 26th, 2009 Categories: Mortgage Update
From our friend Rob Clark at Preferred Mortgage –
“Last week rates increased a bit to close the week at 5.125% with 0 points or 4.75% with 1 point for a 30 yr fixed conforming loan. FHA loans are moving rapidly in Northern Virginia and more than half of the new loans (we) have done this month have been FHA.
******Remember, the buyer does NOT have to be a first time buyer to use FHA and the maximum FHA loan for our marketplace is $625,500.
In other news the gap between conforming loans up to $417,000 and conforming plus+ loans between $417,000 and $635.500 has opened up a bit compared to activity in previous weeks. The current rate for a conforming plus+ loan is 5.25% with 1 point.”
”The other issue surrounding lending right now is turnaround times. Lenders are getting backlogged with refinancing and I have seen some taking as long as three weeks to complete underwriting. Agents, buyers and sellers alike should be careful with any rush closings. Be sure and discuss the time frames with the lender that your buyer is choosing.
We (Preferred Mortgage) have always and will continue to prioritize purchase transactions and can still close them very quickly but I am hearing that this is not the case with many other lenders.”
For more from Rob, click here.