The Arizona Daily Star published a good article last week by Adrian Sainz about mortgage rates that you can access by clicking here:

Puzzled by mortgage rates? Here’s Q & A help

According to the May 7th Freddie Mac survey the national average for 30 year fixed rate conventional mortgages is 4.84% with .7% in points. Wow!! Great rates!! Why is my quote higher or lower? Well…rates are not one size fits all. They are tiered based on your loan-to-value ratio (LTV) and your credit score. If you are purchasing a home and have a 10% down payment and a 680 FICO score, your rate will be slightly higher than a buyer with a 25% down payment with a 740 score. If you are refinancing your home and your LTV is over 70% and your score is under 740, you will likely be quoted a higher rate or higher points.

Fannie Mae (FNMA) and Freddie Mac have changed the rate or point structure significantly in the past eighteen months for borrowers with lower credit scores and higher LTV ratios. At the same time, credit guidelines have also tightened. Another recent change in mortgage rates is points! In the past fifteen years, lenders paid premiums or rebates to the originator in lieu of the borrower paying points to get a mortgage with low rates and fees. This year, the rebates are smaller and lenders are charging borrowers points. Here in Tucson at Sunstreet Mortgage, LLC, we have not seen as many zero point refinances or no cost refinances of conventional loans. One reason for this dynamic is because borrowers were refinancing the loans frequently and the lenders were not getting their money’s worth for the larger rebates. One positive aspect of the current rate and fee environment is the costs seem to pay for themselves within three years in most cases due to the historically low rates we are currently experiencing.

I would be happy to personally answer any mortgage related questions and concerns that you may have. I can be reached by calling me — David Wolsky – at 520-977-3300. I offer conventional, FHA and VA mortgages. I have fifteen years of experience originating mortgages. In fact, rates were double in 1994 than the current rates.

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