Financing is a critical part of every transaction.  We always recommend that you obtain financing prior to starting your home search.  This is important for several reasons:

1.  It allows you to start your search knowing what price range will suit you best.
2.  You can make a better decision about which property to purchase because you already
     have information on what your approximate payments will be.
3.  Your offer will be stronger when  you submit it with a letter of pre-approval.

We can help you purchase any of the homes that are available on the market today - no matter which company has them listed.  This includes New construction, Re-sales, HUD homes, Bank owned properties, Foreclosures, Pre-foreclosures, and Short Sales.

However, some homes may not qualify for certain types of financing.  By getting pre-approved you will know what type of financing works best for you and you can save time and energy by focusing on searching only for those types of properties that fit your specific mortgage criteria.

Would you like to know what type of loan you are qualified for?

If so, please use the simple form below.  A loan officer will be in touch with you for a no cost, no obligation consultation with you to assist you in determining the best type of financing to meet your purchasing goals. 

Economic/Mortgage Interest Rate Update

February 21, 2010

Last week saw fixed mortgage interest rates increase for the 2nd week in a row......is it a trend or an aberration? That is anybody's guess but there seems to be a growing consensus among economists and veteran market watchers that interest rates are likely to continue on a slow upward trend as the economic recovery tries to gain footing. The 30 yr fixed conventional conforming rate now stands at 5.00% ( APR 5.12% ) which is an increase of 1/8th% over the previous Friday. The increase came in part on the strong performance by the Dow, strong mfg data, and a jump in an important inflation measurement ( the PPI ). In addition, the Fed raised the discount rate .25% during the week to .75%. The discount rate is the charge by the Fed to member banks for loans as compared to the Fed Funds rate ( much more publicized and the bank to bank overnight lending rate ) which remained unchanged at a floating range of 0% to .25%.

As for the Dow Jones Industrial Index, it posted its second weekly gain to finish up 303 points for the week at a level of 10,402. The increase can be attributed in part to stronger manufacturing indicators announced for the month ( see below ).

HIGHLIGHTS FROM THE PAST WEEK:

1.) MANUFACTURING: Both the NY State Empire index and the Philadelphia Fed index showed strong gains for the month; the Empire index has now been positive every month since last summer

2.) INFLATION: the Producer Price index ( PPI ) took a surprising 1.4% jump for January when an increase of just .8% had been expected; on the other hand, the Consumer Price index ( CPI ) was more in line with expectations as it increased .2% for the month vs expectations of a .3% increase; over the past 12 months the CPI has registered a very tame 2.7% increase

3.) LEADING ECONOMIC INDICATORS: the January index was up .3% and represented the 10th consecutive monthly gain; however, it was off from the recent previous monthly gains of 1% or more for both Nov and Dec

4.) HOUSING CONSTRUCTION: Housing Starts for Jan were up slightly from Dec to an annualized level of 591,000....a monthly increase of 34,000

5.) EMPLOYMENT: Weekly Initial Jobless Claims surprised as they were expected to decline; instead, they rose by 31,000 to a level of 473,000 from previous week

NEXT WEEK: The coming week will be loaded with economic indicator announcements along with several speaking engagements by board members of the Fed. Headlining the economic indicators will be: 2 consumer confidence gauges, the Chicago PMI, Durable Goods Orders, new and existing home sales, and a revised 4th qtr GDP figure.

Mortgage Interest Rates*
Rates as of February 21, 2010:
 
                                            Term    Conforming      APR            Payment/$1,000   Jumbo           APR     Payment/ $1,000
30 Yr Fixed Conventional   360   5.005 %   5.12 %      $5.37       5.875%   6.01%     $5.92
15 Yr Fixed Conventional   180   4.25 %     4.29%       $7.52       6.25 %    5.84%     $8.24
30 Yr Fixed FHA               360   4.875 %   5.53%       $5.29       N/A         N/A        $0.00
Jumbo 5/1 ARM                 360   N/A         N/A           $0.00      4.75%      3.82%    $5.22
High Balance Conforming    360   5.125%   5.25%        $5.44      N/A         N/A        $0.00


*Rates are subject to change due to market fluctuations and borrower's eligibility.
The Conforming rates are for a $250K purchase money loan, 80% LTV, and 25 day lock. The Jumbo rates and High Balance Conforming rates are for a $500K purchase money loan, 80% LTV, and 25 day lock. And each loan type assumes owner-occupancy, escrow for tax/insurance, and a mid credit score of >=740. The FHA rate is based on a $250K purchase money loan ( subject to FHA county limits ranging from $271K to $625.5K ) and is for a 96.50% LTV, 25 day lock and mid credit score of >=740.                                               

Courtesy of:

Michael W. Gleason
Senior Mortgage Banker
Pinnacle Mortgage Group, Inc.
Phone: (877)716-9006 883
Fax: (720)975-1172
mgleason@pinnacle-mortgage.com
www.pinnacle-mortgage.com/mikegleason