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Fannie Mae Commitment Rates


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#1 U.F.O.

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Posted 19 December 2008 - 08:04 PM

For two days I've seen endless back and forth here about where, exactly, are mortgage rates. It's been "I was quoted this" and "my guy said that" ad nauseum. Fannie Mae posts their "Required Net Yields" daily at their website. The 60 day column is the one most used by mortgage bankers, as when things get busy it usually takes that long to get a loan from rate lock to closing. These posted yields are the minimum FNMA will accept to buy a prime quality 30 yr whole loan on FNMA docs at the cash window. Not all mortgage bankers securitize their own production. Many simply sell the loans, after the closing, directly to the agency. What does this mean to you, the borrower? Mortgage bankers are like used car dealers in one respect (no offense IYB), they try to work for as much as the market will bear. If the 60 day posted rate for a 30yr loan is 04.46861, as it was today, the mortgage banker (originator) has to write the loan at least .35 higher than this rate to cover the FNMA guarantee fee and leave room for a servicing spread. .50 above this 60 day posted rate is equally common. Whether or not you get charged a 1 point (or whatever) origination fee can depend on a lot of things, sometimes nothing more than how competitive the banker feels they need to be. How can this information benefit you, the borrower? I've had friends print this page the morning they were going to shop rates for a rate lock, take it to their local bank and slap it on the loan officer's desk, pretty much dictating a competitive quote instead of a well padded curveball. Information is power.

U.F.O.

http://www.efanniema...ives/cur30.html
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#2 dasein

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Posted 19 December 2008 - 09:57 PM

another real deal view of mortgage rates from Marty Chenard, who sounds like he is wondering when they will get out the guillotines.

http://www.stocktimi...age_Jacking.htm
best,
klh

#3 Iblayz

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Posted 19 December 2008 - 10:20 PM

In the "knowledge is power" category.....that one ranks right up at the top. Thanks. I won't have to search for it later......cause it's on my hard drive.

#4 mike123

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Posted 19 December 2008 - 11:17 PM

another real deal view of mortgage rates from Marty Chenard, who sounds like he is wondering when they will get out the guillotines.

http://www.stocktimi...age_Jacking.htm


Banks are jacking mortgage rates. But not by that much. You have to remember that FNM MBS spread has widened considerablly in the last year.
Another thing is bank margin should not be based on percent. It is based on absolute terms like 1% interest rate.

I just got a Home equity line from Third federal bank for 2.24%.

#5 OEXCHAOS

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Posted 22 December 2008 - 09:39 AM

That's our bank, too. TFSL is probably a buy in here. Mark

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