San Diego Mortgage Rates Report-- February 7, 2014

Mortgage rates have remained stable this week.  While the week started off well, with the mortgage bond market rising over 1%, those gains haven't passed through to the mortgage rate sheets.  Lenders were cautious about the bond market optimism and their cautious approach was warranted.  The mortgage bond market gave back all of its gains and rate sheets have remained stable all week.

You can follow the national average mortgage rates at Bankrate.com.  San Diego mortgage rates tend to be .125% LOWER than the national average.  Average rates as of February 6, 2014:

30 Year fixed conventional average=  4.26%
15 Year fixed conventional average=  3.31%
30 year fixed VA/FHA average=           3.86%
30 year fixed VA/FHA jumbo avg.=      4.11%
5/1 adjustable rate conv. average=      3.49%

We now offer an 80/10/10 mortgage.  This means that a home buyer can put 10% down, get an 80% forst mortgage (up to $545,000) and a second mortgage for the difference between the 80% first loan and the 10% down payment.  Home buyers like this because it allows them to get approved without having to pay mortgage insurance. 

Home buyers must have a minmum credit score of 720 and the debt-to-income ratio can not exceed 43%.  First mortgage limits are $545,000 and the second mortgage limits are $500,000.  This can be helpful for home buyers who had to rely on a jumbo mortgage because jumbo loans require at least 20% down payment.  Now, San Diego home buyers, looking in the $750,000 range, won't need $150,000 down payment for a loan.  Under the 80/10/10 program, they could put down $75,000, get a first mortgage for $545,000, and a second mortgage for $130,000.

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