FNMA Morgy Bonds – New Highs

Who said this party is over?

At a 104.24 yield, the banker lock trading desks are going to begin getting squeezed over to the 3.0 coupon soon. It is already yielding 102.06 as I type…

When that happens, we’ll be in arm’s reach of 30 FRMs in the high 2%s, in serio.

Meanwhile… today’s lockables* for comparison purposes;

(*Notwithstanding ‘hits’ for credit scores, amount, LTV, occupancy, prop type, etc.)

FHA:

30 FRM @3.25% paying 1.152 rebate

5 yr ARM @2.25% paying 0.008 rebate (call it “par”)

Conforming:

40 FRM @4.0% paying 1.136 rebate

30 FRM @3.375% paying 0.012 rebate (call it “par”)

5 yr ARM (Fully Am’d, & I/O) @2.5% paying 0.186 rebate (call it “par”)

HARP2 (Obama Refi) to 125% of value

30 FRM @3.75 paying 0.76 rebate

15 FRM @3.0 paying 1.651 rebate

HARP2 (Obama Refi) to 175% of value

30 FRM @3.75 paying 0.053 rebate

DISCLOSURE/DISCLAIMER:  ALL PRICING ABOVE IS ACTUAL WHOLESALE INTEREST RATE ONLY.
ANNUALIZED PERCENTAGE RATE (APR) MUST BE CALCULATED ON A SPECIFIC LOAN SCENARIO.
APR WILL INCLUDE THE VARIOUS CLOSING COSTS, WHICH ARE UNRELATED AND NON-VARYING TO THE ABOVE INTEREST MARKET PRICES.

Luck to all!

David Donhoff, Advisor

Leverage Planners

(425) 223-4520 desk

(425) 652-1001 cell