With the merger between Bank of America and Countrywide, rates on the Jumbo Fixed products have significantly increased. Rates have dropped to the high 6% range on a standard 30 year fixed jumbo with 25-35% down depending on loan amount. (not the new conforming agency jumbo). I know many people are looking into getting into 5/1 ARMS because of the rates. But they should really consider the 30 year... [more]
With the merger between Bank of America and Countrywide, rates on the Jumbo Fixed products have significantly increased. Rates have dropped to the high 6% range on a standard 30 year fixed jumbo with 25-35% down depending on loan amount. (not the new conforming agency jumbo). I know many people are looking into getting into 5/1 ARMS because of the rates. But they should really consider the 30 year fixed because it is much less risk. Given the increase in inflatonary pressures (look at the price of oil), the current deficit in the US, and the devaluation of the dollar due to the fed pumping money into the market, all indications seem to be pointing to long term rates increasing. If there are people buying at new construction buildings not closing for more than 90 days. Then it might be a good idea to do a long term lock and we offer a free float down option if rates drop. Sorry for the advertisement but I think this is something buyers in contract should be aware of if they arent already. sunny_hong@countrywide.com
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Response by jonnyws
over 17 years ago
Posts: 15
Member since: Jun 2008
Im confused. Did the 30 yr fixed jumbo rates increase or decrease?
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Response by shong
over 17 years ago
Posts: 616
Member since: Apr 2008
Well, for us it has decreased. Most of the other major banks are priced much higher.
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Response by tricks73
over 17 years ago
Posts: 27
Member since: Jun 2008
What length of long-term lock do BoA offer and what do they charge?
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Response by alpine292
over 17 years ago
Posts: 2771
Member since: Jun 2008
Get a loan from IndyMac Bank. This way you won't have to pay back the loan when they collapse!
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Response by alpine292
over 17 years ago
Posts: 2771
Member since: Jun 2008
Stay away from any type of adjustable rate mortgages! If rates go down in the future, you can always refinance.
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Response by shong
over 17 years ago
Posts: 616
Member since: Apr 2008
We can lock up to 2 years. The longer the lock the higher the fee. But I dont know anyone who needs a lock longer than 1 year usually. On a 12 month lock, it will cost 1.25 upfront and 1 returned at closing. Costing you .25 of loan amount. Remember there is a free float down option if rates drop you can exercise to float down to the lower rate 60 days within closing. 6 month locks are 1.25 upfront and 100% back at closing. So it really depends on the length. We have 4,6,9,12,14,18,24 months available. It protects you from any rate increases and you benefit if there are any rate decreases. This is the only program of its kind in the market as far as I know. Fixed rates are the way to go.
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Response by dtown
over 17 years ago
Posts: 9
Member since: Feb 2008
shong, what do your rates look like for a 7/1 year arm, I/O, for 1.5m with a 50% LTV, pristine credit?
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Response by shong
over 17 years ago
Posts: 616
Member since: Apr 2008
6.75% on 30 year fixed and 30 year fixed I/O at 50LTV. Our fixed jumbos are better than our ARMs.
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Im confused. Did the 30 yr fixed jumbo rates increase or decrease?
Well, for us it has decreased. Most of the other major banks are priced much higher.
What length of long-term lock do BoA offer and what do they charge?
Get a loan from IndyMac Bank. This way you won't have to pay back the loan when they collapse!
Stay away from any type of adjustable rate mortgages! If rates go down in the future, you can always refinance.
We can lock up to 2 years. The longer the lock the higher the fee. But I dont know anyone who needs a lock longer than 1 year usually. On a 12 month lock, it will cost 1.25 upfront and 1 returned at closing. Costing you .25 of loan amount. Remember there is a free float down option if rates drop you can exercise to float down to the lower rate 60 days within closing. 6 month locks are 1.25 upfront and 100% back at closing. So it really depends on the length. We have 4,6,9,12,14,18,24 months available. It protects you from any rate increases and you benefit if there are any rate decreases. This is the only program of its kind in the market as far as I know. Fixed rates are the way to go.
shong, what do your rates look like for a 7/1 year arm, I/O, for 1.5m with a 50% LTV, pristine credit?
6.75% on 30 year fixed and 30 year fixed I/O at 50LTV. Our fixed jumbos are better than our ARMs.