Interest Rates Inch Up while Credit Eases

As of May 8, 2015, mortgage applications for the week declined 3.5% from the prior week, based on research from a survey by the Mortgage Bankers Association.

The refinance portion of mortgage transaction also declined to 51% of all applications, which is down from 52% the prior week. This is the lowest percentage dating back to May 2014.

However, interest rates for 30-year, fixed-rate jumbo mortgages increased to 3.99% from 3.91%. The numbers are interesting considering that credit easing has occurred over the last 12 months. There are much more portfolio products on the market but it has been controlled by a lack of inventory and borrower creditworthiness.

With flexible income documentation loans and non-QM products. and even the rate "stated income" loan by a specific few, activity in the mortgage market has not spiraled out of control and some would have expected. Usually with a slight rate increase borrowers would submit their application in hopes of rates falling and then strategically locking in the lower rate.

New Jumbo Products Helping Borrowers

Just hitting the market are 5% down jumbo loans up to $625,000 and a 15% down to $2.5 million for people with credit scores over 760.  Ths means you can get into a home costing $2,900,000 with only $450,000 of your money versus the normal $600-$750k (20-25% down). These are amazing financing opportunities for those who the funds and credit scores to back it up.

Homebuyers and homeowners have little excuse if they ave money each month on a refinance or for those looking to get a loan to purchase their dream home utilizing decade low rates.  Rates are not going to go much lower form they are according to industry experts.

$2.5 million dollar home in Calabasas

Lenders have become more aggressive on jumbo loans due to the lower default rate by borrowers.  These loan products are sorely needed as many self-employed jumbo prospects aren't buying due to the absence of a no income verification (NIV) product. Although, there are bank statement loans and 1 year tax returns to help many people, some borrowers require a true NIV  product where no income is disclosed or available using their signature on a 4506-T form.

The bank statement product has gained inpopularity as borrowers simply provide the most recent 12 months and add up the income to justify a monthly income amount. Keep checking back or visit iJumboLoan.com for up to date information on programs.