Mortgage rates will finish the week a bit worse then yesterday as the bond market sells off this morning. Mortgage Backed Securities and Treasuries are negative this morning and the 10y yield is at it’s highest level since late December (2.76%). One thing that might be adding to the selling pressure is the fact that markets are closed on Monday so it’s a long three day weekend. Generally speaking mortgage lenders, and bond traders head into three day weekends a bit cautious. Yesterday there was some interesting movements in the bond market when a new story broke about a possible easing of the current tariffs against China. Bonds sold off and stocks rallied. An hour later the White House said it simply wasn’t true. It gave us a glimpse of what might happen should a deal be reached; the move up in yield will probably be significant if a deal is reached however it’s not clear if it would be a sustainable move.
Today we have Industrial Production, Consumer Sentiment and the 1yr and 5yr inflation outlook. Next week; the markets are closed on Monday (Martin Luther King Day), on Tuesday we have Existing Home Sales for December. On Wednesday we have the MBA Purchase Index, the MBA Refinance Index, Monthly Home Prices Index and the MBA 30 year mortgage rate index. There are no significant economic reports on Thursday and on Friday we have the Durable Goods report.
California Mortgage Rates (Conventional)
California FHA Mortgage Rates
Currently We Are Seeing:
30 year fixed mortgage rates below 4.25%, 20 year fixed mortgage rates below 4.125% and 15 year fixed rates below 3.625%. Please keep in mind that mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. Also things like obtaining cash out, lower credit scores, higher Loan-To-Value ratios, rental properties and the subordination of a second mortgage will cause in an increase in your mortgage rate. To get the most up-to-date quote specific to your loan scenario be sure to contact Loan Officer Kevin O’Connor at 1-800-550-5538 or you can submit a “Contact Us” request on the our website.
Mistakes People Make When Refinancing Their Home:
Previously on Koloans.com we discussed some of the mistakes homeowners make when they refinance their home. With more and more people choosing to do a refinance lately it seemed like a good idea to point out a few important items so our clients can avoid some of the basic pitfalls.
- Opening a credit card during the loan process.
- Getting a new car or other large purchase.
- Not providing the exact documentation requested
- Assuming your rate is locked
Once you start the loan process you do not want to get a new credit card nor make a large purchase (ie buy a new car). The reason is that the mortgage company will then have to factor in your new debt to the debt-to-income ratio for your new loan. You’ll then have to provide additional documentation showing the terms of the new loan. And for those that have a high-debt-to income ratio it might just put you over the top and underwriting will be forced to turn down the loan.
Always provide exactly what the Loan Officer is asking for when it comes to requested documentation. A good example is when the Loan Officer asks for a W2 form; do not send in your tax returns. The Loan Officer specifically needs the W2 since that was the form issued by the employer to you. If you need to send in proof of liquid asset reserves and the Loan Officer requests the most recent two months of complete bank statements don’t send in your two month transaction history, it won’t be accepted by underwriting. If you’re having an issue providing what the Loan Officer is asking for then have a discussion with him/her about what might be a suitable alternative.
The Rate Lock:
When you start a refinance application talk to your Loan Officer about their mortgage rate lock policy. Some mortgage companies lock your rate automatically, so let the client chose when the rate is locked and others lock only just before closing. It’s important you fully understand the lock policy of the company processing your loan application and when it’s locked make sure you receive a confirmation in writing.
JB Mortgage Capital, Inc.:
We offer industry low mortgage rates, personal one-on-one service and we have an A+ rating with the Better Business Bureau. We also have the top rating with the Business Consumers Alliance (AAA). We utilize the latest technology to ensure a fast closing and Loan Officer Kevin O’Connor has over 14 years of experience as a Loan Officer. You can contact him directly at 1-800-550-5538.