Over the past couple weeks since our last rate post mortgage rates hovered around a similar range as they were in through the past several months before the Coronavirus hit. However over the past week we've seen them improve and are again flirting with all time lows. However that is only for particular loan products and scenarios and not across the board and with some new elements.
As we have gone further into the impact of the coronavirus on the mortgage and lending industry the changes and effects continue to evolve and occur. One of the first impacts was the elimination of the majority of all Jumbo lending and non-conventional lending. Those products still exist but are few and far between and the lending sources offering them are no longer doing them at rates close to conventional loans.
Second mortgages and Home Equity Lines of Credit are being dropped by many banks and those that are still doing them are dropping the maximums they will lend towards the appraisal value of the property. Instead of a HELOC to 90%, which was widely available before, now they are rare to find.
Conventional loans have seen a big impact to the guidelines in terms of income and employment verification but the products remained the same up until this week. This week a large number of lenders either stopped doing cash out refinances altogether or they have instituted huge fees and price adjustments for them. We have a couple that have made any changes to them though we're not sure how long that will last as we navigate these unsteady waters. The good news is that for those people looking to buy a home or refinance the rate/terms of their current home there are some fantastic rates around to do so with.
For borrowers with good credit and 5-15% down payment/equity position we are seeing rates around 3-3.25% for 30 Year Fixed Conventional loans.
Those borrowers with excellent credit scores and or 20% equity or above should be able to get 3% or even 2.875% depending on how your loan and costs are structured.
High Balance Conventional ($510k-$740k) loans are a bit more of a challenge as many lenders won't offer good rates on these right now. However we have a couple which would allow a borrower with excellent credit to get a 30 Year Fixed around 3.25-3.5% depending on loan structure and costs.
If you are looking to purchase a home or considering refinancing there are great opportunities out there to take advantage of right now but you have to jump on them and be pro-active. That means having a loan file setup in at least one lenders system ready to be locked as soon as you are satisfied with the rates and costs. If you are curious about what might be available for your needs please reach out to us for input and an analysis if we can save you some money.