Tuesday, July 24, 2007

Home Loans: Rates Higher.. Banks Say No to Subprime


Interest rates remain on the high side for the second week in a row as bond rates jump around and Wall Street keeps a close eye on Bear Stearns and other hedge funds. As an added note most major banks are discontinuing the interest only subprime 2/28 loan that has caused a majority of problems for homeowners. Wells Fargo joined Countrywide and Washington Mutual in announcing they will no longer offer these loans to borrowers.
If you are considering buying a home or townhome in the South Bay/Beach Cities now is the time to contact a lender to find out where you stand with the changes in lending rules.

Conforming Loans: $417,000 or less
30 Year Fixed 6.375%
1.00 Points

15 Year Fixed
6.250%
1.00 Points

5/1 ARM
6.125%
1.00 Points

Jumbo Loans: Over $417,000


30 Year Fixed 6.625%
1.00 Points

10/1 Interest Only
6.500%
1.00 Points

5/1 Interest Only
6.125%
1.00 Points

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