09/28/2010 - Best Mortgage Rates from Big & Reputable Lenders (30year @ 4.5%, 15year @ 4%, ARM's etc)

jamzfive said: Their fees are very dynamic, yes, but I've seen no particular bias for them to rise. They are simply extremely responsive to market conditions, which happen to have rates rising for the past 4 days or so. I locked at the end of March, at what turned out to be the most favorable time to lock for the 8 weeks following. But then rates *really* plummeted, which is when my coworkers finally pulled their triggers. For both of them, if they'd waited a couple more days to lock, they probably could have scored even better deals. Although it can be frustrating, I think it's important to realize that their rates & fees are a function of the lock policies - keeping pull-through high, and lock breaks to a minimum (at least, according to my naive understand of their business model). If they let customers lock before the appraisals came in, or before customers gave evidence of the income they claimed on their apps, there would be more fall-out, and their cost structure would change as a result. Regardless, all three of us here saw some flexibility in their policies: They let me lock the rate/fee I had requested that morning, even though fees had risen in the early afternoon. My co-worker who did the photocopying got his lock request honored the following day. My other co-worker negotiated himself a $500 reduction off the published fees. Only one of us had an issue with an appraisal (came in 6% lower than expected), and he was able to keep his pricing by reducing his requested loan amount to keep the LTV at 60% (he was doing a cash-out, so he had flexibility on the loan amount). All that being said, Yes, if you're in a situation with a lot of uncertainty, they might not work out as well for you as they did for us.

I applied last Thursday. Yet, we decided not to proceed with AmeriSave today. Their response to questions (through phone calls or emails) is just very slow. Our LTV is 60%.

MortgageManNJ said: I always found that UpFront Mortgage Lender Certification rather comical. One would think that a reputable firm would not opt to "buy in" to the Mortgage Professor's UFML program (just out of principal - because if they never change the rate / fees for the worse once client is locked), does that mean that they are more or less honorable / ethical / whatever than any of the UFML certified companies?? Who made him the Grand High Exalted Mystic Ruler of Mortgage Companies? Holy mackerel.....

Upfront Mortgage Lender Fee Structure

Basically, to be an Upfront Mortgage Lender (certfied by that individual), you need to be "certified" by him -- meaning, if I am a mortgage company I am going to pay some genius money to tell everyone I am telling the truth on my fees / costs etc.

Sheesh....!

MMNJ

jamzfive said:
Long story short, I couldn't convince my loan rep on my own that I shouldn't be left holding the bag for problems with their investor, since Amerisave lends their own money (not a broker), so my lock was with *them*, and they needed to stand behind their locks. Especially since they are an UpFront Mortgage Lender. So I sent an e-mail to the UpFront Mortgage Lender certifier telling them (well, telling him... it's just one guy who invented the certification) my situation, and he replied back to my mortgage rep and the Amerisave President saying that what they were doing wasn't cool. And magically, they relocked me at my original terms, using a different investor (and, I assume, eating the difference in cost themselves).
Q]
MMNJ, you're confusing UpFront Mortgage Brokers, which are members of UBMA, an organization now separate from Jack Guttentag (aka The Mortgage Professor) with UpFront Mortgage Lenders (UMLs), which are on a list that the Mortgage Professor maintains on his Web site. Amerisave is a UML. I'd say that (presumably) the Mortage Professor worked on jamzfive's behalf to make sure Amerisave lived up to its UML status. If you want to discuss the UMBA, that's another subject.

There are plenty of honest mortgage lenders who aren't listed on the Mortgage Professor's Website -- I'm sure you are one of them, but it's good to know that, due to Amerisave's UML status, jamzfive was able to get some assistance he might not have been able to obtain otherwise.

With all the great conversation and advice in this forum, I thought I would throw out my own personal situation for feedback.

I bought my first house in January of 2010 with an FHA loan from a local mortgage broker. Here were my terms: 30 yrs @ 5% borrowed $157,000 (purchase price was $159,900) and I'm paying roughly $70/mo in PMI. My mortgage broker called me yesterday and went through a few refinancing scenarios (one that even lowered my rate to 4.875% and he paid all closing costs with NO origination)! I know he makes money on the back end, but if that is one of the options, I don't know why I wouldn't refinance. Other options he gave me I paid closing costs (4.25% w/ .75 orig, 4.275% w/ 3/8 orig, or 4.5% no orig). I figured all would take about 48 months to break even. Thoughts?

Also, my house was a short-sale so I have some equity. I am certain it will appraise around 175k-180k. Another scenario I would like advice/opinions on is 90% loan with Line of Credit for the remaining balance. As I mentioned I am paying about $70/month for PMI. I want to explore ways to get rid of that. With an FHA loan I am required to pay that for a minimum of 5 years if I could refinance with a non-FHA I could avoid that monthly charge too.

Anything else I should consider (Amerisave, ING?, etc)? I thought Amerisave's closing costs seemed high (I paid about 2k to close with my lender last time). ING scares me a bit with the ARM and I'm not sure I would have 75% LTV although if someone convinced me that was the way to go, I do have enough savings to get to 75% LTV.

I appreciate any and all opinions and advice. As I mentioned I have learned a lot on this site and look forward to being a valuable resource for others in the future. Thanks in advance!

This is for Conventional Purchase and Refinances (No Cash Out) -- and is a general rule (some investors are little tightter on the FICO boxes but I have found that most operate within this box:

If LTV is 60 or less: 700
If LTV is 60.01-75: 720
If LTV is 75.01-80: 740

If LTV is 80.01-95 then it goes back down to 720 (presumable due to there being PMI so is less exposure for the lender).

For conventional cash out refinances, 700 is the magic number <60% LTV, then jumps to 720 up to 75% LTV (and an 80% cash out refi is more expensive even at a 740 FICO doe to the higher LTV)

FHA is a whole separate FICO mechanism (not as much of a hit on sub 700 FICOs.....

MMNJ

-gwu1986 said: MMNJ or any other knowledgeable person: Is the Fico cut off for best rates with most investors 740 or 760?

Here is my scenario, may be someone like MMNJ can point me to the right direction

I have bought a new construction home in Katy, TX in august 2008 for $243,000 by paying 25% down. In July 2009, I have refinanced with Penfed 20 years Home Equity loan for 4.99%.

Now my loan balance is $169,000 and the approximate home value is $270,000. When I talk to various lenders/brokers, they said, in Texas you cannot refinance from Home Equity to traditional mortgage. You can go from Home Equity to Home Equity loan. And also you can do this only once per year.

I have a broker ready to refinance my loan (with Home Equity loan again) for 4.375% for 15 years with NO closing costs. I am trying to find any better deal to refinance my Home Equity loan?

I have good income and stable job and my FICO score is 784 (as of 2 days ago).

Any info/references greatly appreciated

Thanks

MikesterRX7 said: Currently owe about $320K on a home, estimated value $455K or so. Fixed rate of 4.875% on a 30 year with probably 28 years left.

My broker is offering a 20 year at 4.375% and a 30 year at 4.5% with no closing costs.

Are these good rates at the moment for no closing costs refis? Thinking of going for the 20 year.

Sounds like a good deal to me. I got 20 years at 4.375% recently with closing cost. (Went from 5.25 on a 30 year with 25.5 years left).

The 20 years sounds like a good idea as well too. Is it truly a no cost refi? You don't pay ANYTHING?

MBS prices are up +6/32. A report that Fed demand for MBS may increase (see below) helped MBS markets. June Pending Home Sales fell 2.6% from May, above the consensus forecast for a decline of -5.0%, and the lowest level on record. Pending home sales were down 19% from one year ago. The end of the homebuyer tax credit hurt sales in May and June. June Factory Orders fell -1.2%. Oil prices rose above $82 per barrel to the highest level since May. The Dow is down 40 points. Tomorrow, ISM Services will be released at 10:00 et.

Due to defaults, refinancings, and maturities, some MBS "roll off" the Fed's portfolio over time. Estimates are that the Fed's portfolio will shrink by about $200 billion per year if the Fed takes no action. The Fed purchased MBS to stimulate the economy, and a reduction in its holdings would represent a minor amount of monetary tightening. Until recently, investors expected the Fed to let its portfolio shrink in this fashion. Today, though, a Wall Street Journal article suggested that Fed officials are considering whether to replace those securities to stimulate the economy. With the next Fed meeting scheduled for August 10, investors will be very alert for signs of change. According to a CNBC report today, Fed officials are unlikely to announce a major policy shift at the August 10 meeting. Instead, they are expected to wait and see how the economy performs.

MMNJ

Thank you, MMNJ.

MortgageManNJ said: This is for Conventional Purchase and Refinances (No Cash Out) -- and is a general rule (some investors are little tightter on the FICO boxes but I have found that most operate within this box:

If LTV is 60 or less: 700
If LTV is 60.01-75: 720
If LTV is 75.01-80: 740

If LTV is 80.01-95 then it goes back down to 720 (presumable due to there being PMI so is less exposure for the lender).

For conventional cash out refinances, 700 is the magic number <60% LTV, then jumps to 720 up to 75% LTV (and an 80% cash out refi is more expensive even at a 740 FICO doe to the higher LTV)

FHA is a whole separate FICO mechanism (not as much of a hit on sub 700 FICOs.....

MMNJ

-gwu1986 said: MMNJ or any other knowledgeable person: Is the Fico cut off for best rates with most investors 740 or 760?

MortgageManNJ said: This is for Conventional Purchase and Refinances (No Cash Out) -- and is a general rule (some investors are little tightter on the FICO boxes but I have found that most operate within this box:

If LTV is 60 or less: 700
If LTV is 60.01-75: 720
If LTV is 75.01-80: 740

If LTV is 80.01-95 then it goes back down to 720 (presumable due to there being PMI so is less exposure for the lender).

For conventional cash out refinances, 700 is the magic number <60% LTV, then jumps to 720 up to 75% LTV (and an 80% cash out refi is more expensive even at a 740 FICO doe to the higher LTV)

FHA is a whole separate FICO mechanism (not as much of a hit on sub 700 FICOs.....

MMNJ

I'm not sure how frequent this is, but what happens when coborrowers do not fit into the same FICO box (say one borrower has FICO of 720 and the other FICO of 800)? Do the take the lowest FICO or maybe an average?

You take the middle score of each borrow's three scores and then use the lower of the two scores.

Has anyone refinanced from Bank of America to any of the fatwallet recommended companies? Can you comment on the ease of the transaction or anything I should beware of ahead of time?

One last thing. I ended up writing a "Refinance Guide" and emailing it out to my co-workers. (Dave...you'll be happy to know that I put you on the top list of referrals). It's by no means an extensive guide. I just talked about my experience with the whole process, what I learned from reading this thread (well 80% of it), online, etc.

If anyone is interested, just PM your email address and I'll email it to you.

Before this, I as a noob when it came to refinancing. Afterwards, I'm just a grade a little above a noob.

How long of income history do lenders usually need? I'm fresh out of college with a mortgage but I'm starting my new job on August 9th. I want to get the ball rolling now though since I'm paying at 7.25%.

in that case, you use the LOWER of the two borrowers (which would be 720) -- i do not know of anyone who "averages"

MMNJ Shandril said: MortgageManNJ said: This is for Conventional Purchase and Refinances (No Cash Out) -- and is a general rule (some investors are little tightter on the FICO boxes but I have found that most operate within this box:

If LTV is 60 or less: 700
If LTV is 60.01-75: 720
If LTV is 75.01-80: 740

If LTV is 80.01-95 then it goes back down to 720 (presumable due to there being PMI so is less exposure for the lender).

For conventional cash out refinances, 700 is the magic number <60% LTV, then jumps to 720 up to 75% LTV (and an 80% cash out refi is more expensive even at a 740 FICO doe to the higher LTV)

FHA is a whole separate FICO mechanism (not as much of a hit on sub 700 FICOs.....

MMNJ

I'm not sure how frequent this is, but what happens when coborrowers do not fit into the same FICO box (say one borrower has FICO of 720 and the other FICO of 800)? Do the take the lowest FICO or maybe an average?

AMCBL said: be prepared that if you have a tax bill coming due, or your insurance policy is renewing, w/in 30-60 days of closing, it'll likely be collected in full on your HUD unless you provide proof it's paid.

This applies even if you waive escrows, since the banks want to make sure your tax bills are paid up before your loan starts in order to avoid a possible tax lien, and they want to make sure the insurance policy doesn't lapse.

I've heard and seen this myself, so I know you're correct. But logically, I'm just not getting why this reasoning justifies the practice, if they are indeed waiving escrows. Because it's the same reasoning banks would prefer you to escrow in the first place. But I'm already paying the lender more in fees to avoid all that. What's so special about taxes due in 30-60 days that's not true of the taxes that are due in 75 days or 90 days or next year, or 5 years from now, that I can pay those myself, but not these?

I'm not sure I'm being clear, so here's a hypothetical conversation between a lender and a borrower:

Borrower:  I see that my monthly payments include an amount for insurance and taxes.
           Why am I paying those to you when they're only due once a year?
Lender:    Well, if you fail to pay your taxes, the gov't can enter a lien against your
           property which would be senior to ours, and we don't like that.  So we would
           really like to make sure your taxes are paid on time.
Borrower:  Well, I don't like you holding my money for me.  I'm responsible.  Can you waive
           that requirement?
Lender:    Sure!  It will increase your fees, but if you pay the extra amount at closing,
           you can pay your own taxes.
Borrower:  Hot dog!  Let's do it.

... at closing ...

Borrower:  I see that my HUD-1 includes an amount for insurance and taxes.  Why am I
           paying those to you when they're not due for two months, and I've agreed to pay
           in order to waive escrows?
Lender:    Well, if you fail to pay your taxes, the gov't can enter a lien against your
           property which would be senior to ours, and we don't like that.  So we would
           really like to make sure your taxes are paid on time.
Borrower:  ???deja vu???

Can anyone shed some additional light on the lenders' reasoning, or laws that apply?

jb

MortgageManNJ said: MBS prices are down -4/32 , below 9:45 et pricing of -1/32, and at the low for the day. The ISM Services index rose to 54.3, above the consensus forecast of 53.0. The Treasury will auction $74 billion in 3-yr, 10-yr, and 30-yr securities next week. The Dow is up 40 points. Tomorrow, Jobless Claims will be released at 8:30 et

MMNJ

Thanks for all the udpates MMNJ! MBS prices down=lower interest rates right?

One question I've always wondered is ... when bonds prices rise, due to a bear market, then generally the interest rates will fall right? If that's true, any logic to that? If that's incorrect, can you shed some light in how the market, bonds prices, and interest rates are intertwined? TIA!

jamzfive said: AMCBL said: be prepared that if you have a tax bill coming due, or your insurance policy is renewing, w/in 30-60 days of closing, it'll likely be collected in full on your HUD unless you provide proof it's paid.

This applies even if you waive escrows, since the banks want to make sure your tax bills are paid up before your loan starts in order to avoid a possible tax lien, and they want to make sure the insurance policy doesn't lapse.

I've heard and seen this myself, so I know you're correct. But logically, I'm just not getting why this reasoning justifies the practice, if they are indeed waiving escrows. Because it's the same reasoning banks would prefer you to escrow in the first place. But I'm already paying the lender more in fees to avoid all that. What's so special about taxes due in 30-60 days that's not true of the taxes that are due in 75 days or 90 days or next year, or 5 years from now, that I can pay those myself, but not these?

I'm not sure I'm being clear, so here's a hypothetical conversation between a lender and a borrower:

 

Can anyone shed some additional light on the lenders' reasoning, or laws that apply?

jb

Taxes with due dates more than 60 days from closing would not be senior to the loan origination/start date.

I'm not a lawyer, or a lender/servicer, but I think the logic comes from eliminating any risk of the tax lien that might arise between settlement and the start of formal repayment of the loan. If you closed this past monday, your loan funds Friday, and you begin payment on 10/1/10. Your loan would be transfered from the origination end of Bank A to the servicing end of Bank A sometime in the meantime, and your payments would begin in Oct. If you don't renew your insurance that's renewing on 9/1, and there's a total loss of the home due to fire, or say you don't pay your tax bill due 8/31, it gets into a grey area. By requiring these items be renewed, they remove that immediate risk. Going forward, you're ultimately expected or required to maintain insurance coverage on the home, and keep current on tax bills. So after this period of transition ends, the liability is more on you if you don't do so, but there's still risk to the bank too if they call you on the loan and you default or go BK. For this reason, the banks give either lower rates or lower costs for escrowed loans. if they are escrowing, they can ensure the payment/renewal even if the escrow account is short on funds.

Sorry if this is mostly a speculative reasoning, but it's been my understanding from discussions with our banks of the rationale, and i figured it'd be better than just saying "because they can". It's all about elminitating risk as much as possible, within reason. It's easier to argue seniority, i'd think, on an unpaid tax bill due between closing and repayment start date. If the loan is in repayment, and the tax bills 3 months later goes unpaid, then it's a little different.

> I deleted some of the hypothetical convo just to save space.

I had essentially the same experience. Super fast closing, pretty good communication once we got it going, willingness to answer questions quickly. It did cost more than I was expecting, and I am not sure that I got the "lowest" rate possible, however I guess that was worth it to go with a "known" quantity that I didn't feel like I had to watch carefully. I haven't gotten our escrow or any overage checks back but I think at the end of the day it will cost about $3800-3900 (between out of pocket closing and costs rolled into the new loan) to refinance the loan. Hopefully that will end up saving quite a lot of interest over the life of the loan though.

willdawg said: JWangSDC2 said: Has anyone refinanced from Bank of America to any of the fatwallet recommended companies? Can you comment on the ease of the transaction or anything I should beware of ahead of time?

I just refinanced from a BOA mortgage with MMNJ (aka Dave) as of this past Monday. Funds have not been disbursed yet since we have to wait for the 3 day rescission period, so if you want to hit me up with a PM in a week or so and ask if there are any hiccups, feel free. I don't believe there will be.

The one thing though is if you have automatic payments setup, I would cancel them as soon as you know your closing date (or at least the general day of the closing).

I've been meaning to write a review. I suppose now is a good time. Overall, it was a pretty easy process which I was hoping for. I worked with Dave (of course) and Jeff. Both were good on email which is how we mostly communicated though I could have easily called them by phone as well too (there wasn't much of need).

Here’s the timeline of my refinance (from the time I submitted my app to the time I signed documents):

July 12th – Submitted my application and required docs
July 19th- Appraisal of the house
July 21st – Completed file went to underwriting
July 28 – File cleared and approved, closing date scheduled
August 2nd – Signed closing documents

Before this whole process, I had never done a refinance so I was a bit nervous. There are certainly some things I would probably done differently, but for my first go at it, I was happy to have worked with Dave (and Jeff). The only disappointing part is that the settlement cost was a lot higher than I was expecting. This was because my home insurance was due Sept. 1st and my real estate taxes were due Oct. 1, so it's wasn't the case that Dave was lining his pocket. We did talk some about how the closing cost might be different depending on when we closed and such, but I wish we had gone into greater detail about it so I didn't have the sticker shock when I got the HUD-1. In some sense, I am happy it turned out this way because I have a better understanding of how all of this works.

Also, I would have had the same issue if I went with the other lender that I was talking to and in fairness, Dave saved me from potentially being swindled because that lender said that there would be a 1/4 point or rate increase if I needed to do a HARP loan (which I did need to do after we got the appraisal). He said I needed to "buy" into the program. Dave said..."not in his world".

All in all, I definitely recommend going with Dave and his crew.

superspieso said: superspieso said: Shandril said: superspieso said: Bottom line is everybody who has refi'd from floating into fixed has been overpaying by at least 2%, run those numbers and see how much managing your risk is costing you.

15-yr fixed loans can be had at around 4%. Lowest 5/1 ARMs I've seen were around 3.375% APY (5/5 or 7/1 were even higher). So please share where you've seen any of them at below 2% APY. I'm sure I wouldn't be the only one interested. Sure there is a premium for going with fixed rate mortgage but it's far less than 2%. More like 0.5-0.75% currently.

Obviously comparing 15yr fixed to a 5/1 (which is a 30yr product) is not condusive to figuring out a basis. However if you were to finance through a 3M libor floater (2.75% coupon) versus a 30yr fixed (4.75%), the spread would be 2%. There are other libor floaters which can index on 1M libor and that would make the spread more than 2% (maybe even 2.5%?). Keep in mind that I am using standard margin rates (225) and there are products out there with tighter margins, (I understand it to be borrower specific) but that is a question for the mortgage man which gives you MBS quotes.... Either way your overpaying big time, not just a few hundred bucks a month either...

Speaking of Libor, across the maturity spectrum the rate fell another basis point. In case your wondering, since peaking in May, Libor has been retreating about .75% per day (circa 1 bps), this absolutely tells us (opinion) we are about to retest 2009 lows. In FW Lingo, refing now is NOT advisable. This will be my last post and wish you all the best.

As mentioned a few weeks back Libor has continued to decrese up to 2% a day. We just broke and bounced off 1% on 12months maturity, to us traders this is a signal that we are going to revisit the lows placed in 2009. For the FW crowd this means locking your mortgage rate now is NOT advisable and you are overpaying. The market is sensing another round of quantitiave easing, that if it were to happen, 30yr Fixed could easily print with a 2% handle. Current CMT and Libor floaters are about to break 2%. This is just a word of advice to FW as a gesture of goodwill from an industry insider.

Lastly, do not follow MBS prices to understand your bottom line, it does not matter much for you mortgage consumers. MBS prices are not always an indication of what it means to the consumer. Instead follow Libor, perhaps mortgage man NJ can post Libor spreads rather than MBS prices which are inconsequential unless your investing in MBS rather than taking out a loan (mortgage). I will post again when I think it will be time to lock in your mortgage but in my opinion it will not be for sometime. If you do not want me to post again with my prognostication please knock my post down to red and I will take that as indiction that I am a persona non grata. Good luck FWers.

Thanks for you insights - they are interesting to be sure.

My take from the non industry insider perspective is that whenever given the chance, I will choose to lower my rate with a no cost refinance. It is certainly possible that even by doing so I am losing the chance to lock in the best possible rate (by paying closing costs and possibly points too), if rates have truly bottomed. Unfortunately, I have no crystal ball, and while I agree that I suspect rates have not bottomed, I am unwilling to make a very large bet on that suspicion.

My first rule: if the rate is good, and one that you could see yourself holding for the length of the term without any complaints, especially if it costs nothing out of pocket (except your time which is = money), then take it.

The enemy of good is perfect.

If rates drop further and I can take advantage of them I will. If not, I'll be happy with what I have taken advantage of thus far.

Look you are entitled to post whatever you want, but wtf are you talking about? Are you really a professional?

3M LIBOR today is 0.450%. A 3M LIBOR floater at a 2.75% coupon has a 230bp spread over the reference rate. The spread is over 5x the reference rate.

On the other hand, a 30yr fixed rate mortgage today is at 4.375% is referenced to the 10yr treasury bond which yields 2.9% today or a spread of 148bp over the reference rate.

Why would I borrow at the floater at a 230bp spread when I can borrow at the 30yr frm at a 148bp spread?

If I really wanted the floater (which I don't) I would buy the 30yr frm and sell the 3M-10YR IR swap. Buying this overpriced floater is the last thing I would do.

And no one knows which way interest rates are headed. If you did, you wouldn't be a trader, you'd be a billionaire with little interest in posting on FW. While you're performing goodwill gestures, please tell us how being an industry insider makes you clairvoyant on the direction of interest rates.

superspieso said: superspieso said: Shandril said: superspieso said: Bottom line is everybody who has refi'd from floating into fixed has been overpaying by at least 2%, run those numbers and see how much managing your risk is costing you.

15-yr fixed loans can be had at around 4%. Lowest 5/1 ARMs I've seen were around 3.375% APY (5/5 or 7/1 were even higher). So please share where you've seen any of them at below 2% APY. I'm sure I wouldn't be the only one interested. Sure there is a premium for going with fixed rate mortgage but it's far less than 2%. More like 0.5-0.75% currently.

Obviously comparing 15yr fixed to a 5/1 (which is a 30yr product) is not condusive to figuring out a basis. However if you were to finance through a 3M libor floater (2.75% coupon) versus a 30yr fixed (4.75%), the spread would be 2%. There are other libor floaters which can index on 1M libor and that would make the spread more than 2% (maybe even 2.5%?). Keep in mind that I am using standard margin rates (225) and there are products out there with tighter margins, (I understand it to be borrower specific) but that is a question for the mortgage man which gives you MBS quotes.... Either way your overpaying big time, not just a few hundred bucks a month either...

Speaking of Libor, across the maturity spectrum the rate fell another basis point. In case your wondering, since peaking in May, Libor has been retreating about .75% per day (circa 1 bps), this absolutely tells us (opinion) we are about to retest 2009 lows. In FW Lingo, refing now is NOT advisable. This will be my last post and wish you all the best.

As mentioned a few weeks back Libor has continued to decrese up to 2% a day. We just broke and bounced off 1% on 12months maturity, to us traders this is a signal that we are going to revisit the lows placed in 2009. For the FW crowd this means locking your mortgage rate now is NOT advisable and you are overpaying. The market is sensing another round of quantitiave easing, that if it were to happen, 30yr Fixed could easily print with a 2% handle. Current CMT and Libor floaters are about to break 2%. This is just a word of advice to FW as a gesture of goodwill from an industry insider.

Lastly, do not follow MBS prices to understand your bottom line, it does not matter much for you mortgage consumers. MBS prices are not always an indication of what it means to the consumer. Instead follow Libor, perhaps mortgage man NJ can post Libor spreads rather than MBS prices which are inconsequential unless your investing in MBS rather than taking out a loan (mortgage). I will post again when I think it will be time to lock in your mortgage but in my opinion it will not be for sometime. If you do not want me to post again with my prognostication please knock my post down to red and I will take that as indiction that I am a persona non grata. Good luck FWers.