The lenders are now requiring a 640 score for all FHA loans effective 11-9-10.  When is the tightening ever going to stop?  We wish we knew the answer to that but now is more imperitive than ever to deal with a trusted loan officer.  Call or email me with your scenario.  I have been doing this when times were easier on everyone and have also had the experience of dealing with the tightening of the lending environment.  Everything is a challenge these days so deal with someone willing to accept the challenge and help.

Jasonbialek@atlanticbay.com

For the past several years the standard jumbo rates (417K and up) in the greater Roanoke VA area has been very high in comparison to loans under the jumbo limit.  What I have seen for the past few years has been about 1.5%-2% higher than a standard rate, so if the rates are at 5% on most programs you would see a jumbo at 6.5%-7%.  Lately I have seen the rates stagnate between 5%-5.5% for most programs.  We are starting to see jumbo pricing improve i have seen the spread narrow to .5%-.75% higher than standard rate.  Last week I was able to price one out at 5.875% this is a great opportunity for those who are buying above the jumbo limit.  High end real esate is priced well below where it was and with very attractive rates with better jumbo pricing.

Interest Rates
When is the Best Time to Lock?

When it comes to mortgage loans and interest rates, it’s never a good idea to gamble. That’s why I typically advise my clients to lock in an interest rate at the earliest opportunity. This is just one step of the standardized system we have put in place to ensure the best possible loan experience for each borrower that we work with.

A mortgage loan cannot be closed without a locked-in rate, and there are three main elements to take into consideration:

• Interest Rate
• Points or fees
• Length of the lock

Locking in a rate does not obligate the borrower to commit to the loan until the loan is actually closed. The lock is merely a security measure designed to eliminate the risk of market volatility throughout the duration of the purchase or refinance transaction. Our standard procedure is to lock in a rate as quickly as possible. My team and I want our clients to know that while interest rates fluctuate daily, most lenders do not want to lose any business because of it. If a significant rally causes interest rates to drop 0.25% or more, we know that we can most likely renegotiate the rate.

By knowing our clients’ needs and working intimately with them to make the right decisions early on, my team and I are proud to say that we have helped them to achieve their home ownership dreams.

Please feel free to contact me by phone at 540.986.0270, ext. 325, or via email at jasonbialek@atlanticbay.com.

Sincerely,

Jason Bialek

Sr. Mortgage Banker