ARMs and ING Direct

Asked by Robert Tomkinson, 94070 Mon Nov 2, 2009

I am looking for a 7/1 ARM. Most sites put a cap of $437k or so. But ING Direct seems to offer great rates and up to $500k. What am I missing, or is their offer really one of the best? Thanks, R

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6
Sean Ogilvie, , Chico, CA
Mon Nov 2, 2009
Rt,

Ing is not offering anything unique. What are you trying to accomplish with this loan? I am assuming this is a refinance? San Mateo County is considered by Fannie Mae to be a high cost area and therefore most lenders are offering loan amounts up to $729,750. Your rate and fees for your loan will be determined heavily by your loan to value, credit score and whether or not your transaction is considered cash-out. Be careful when looking at those online rate tables as many of them conveniently do not list all of the costs involved in your specific transaction. Good luck! - Sean
2 votes
Barbara Van…, , Folsom, CA
Mon Nov 2, 2009
Hi RT ~

ING does offer high balance conforming & Jumbo loans. Just for reference, in your zip code the Conforming loan limit is $417,000. The Conforming High Balance loan limit is $729,750. If you are shopping for a $500K loan it will be a Conforming High Balance loan you will find many more lender who will offer you a 30 year fixed and only need to put 20% down. ING is one of my lender and here's what today's wholesale rate sheet offers:

ING's wholesale rates for a 7/1 ARM as of today is 5.625% based on:
Purchase
Owner-occupied, SFR
70% LTV
660 min FICO
NO POINTS
60 day lock (thats how they quote)
Fully amoritized loan (interest only not available in California)

That pricing is OK but you can get much better pricing and not have to put 30% down. Depending on what your qualifying factors are, you can get a conforming high balance loan with 20% down and NO POINTS closer to 5.125% on a 30 year fixed. In this market, a lot a variables go into determining a rate you qualify for. Don't make the mistake of a bait and switch.

I just wrote an blog on shopping for rates that you will find at the link below.

You are welcome to contact me to learn more about how shop successfully.

To Your Success,

Barbara
1 vote
Kyle, , Scottsdale, AZ
Wed Nov 4, 2009
ING has some great programs but is not the best jumbo lender in CA right now, they are over saturated there and have significantly raised their rates and limited their programs specifically in CA this year.

On a 7/1 ARM for 500k we can offer you as low as 4.5% with 1 point origination. ING's rate would be over 5.5%...

This assumes at least 20% down or similar equity for a refinance, let us know the specifics and I can make sure it will work for you. Let me know if I can help,
0 votes
Steven Ornel…, Agent, Fremont, CA
Mon Nov 2, 2009
Hi Rt,

"I am looking for a 7/1 ARM. Most sites put a cap of $437k or so ."

ARM pricing for loans > $417K is pretty ugly right now, 30Y may be your best move. For that matter, apart from the 5/1 ARM, conforming ARM prices are ugly too.


"But ING Direct seems to offer great rates and up to $500k. What am I missing, or is their offer really one of the best?"

There are three primary conduits that you can use for your financing (retail, banker, broker), which are described here:
http://www.trulia.com/voices/Home_Buying/What_s_the_advantag…

In this crazy market, I would suggest a Mortgage Broker or Banker with multiple funding sources.


If you are the type of person who likes to be well-informed before making a financial decision you should enjoy reviewing the two following links as well:
http://docs.Steven-Anthony.com/SAR-HowMortgageRatesAreDeterm…
http://docs.Steven-Anthony.com/RateShopping-DoItRight.pdf

If you are going to be comparing the quotes of different lenders this should be done by asking for a Good Faith Estimate (GFE) from each lender, for the same product, on the same day, at the same time! As you will read, rates are based on the news of the world and can change very quickly.

Interested in "REO Shadow Inventory"? Check out my detailed blog post on the subject here:
"Coming to a neighborhood near you: REO Shadow Inventory"
http://www.trulia.com/blog/steve_ornellas_mba_re_mastersgri/…

Best, Steve
0 votes
Kenny Simpson, , California
Mon Nov 2, 2009
Hi RT,

I am a direct lender. There are many options for your scenario. Weather is it a fannie product or a portfolio product.

I am not sure if ING is the best way to go. Contact a mortgage professional to get help and accurate pricing.

Good Luck and hope to hear from you soon!
0 votes
Nicholas, , San Francisco, CA
Mon Nov 2, 2009
Hi RT, we (bank of america) offer up to 729,750 on 7/1 arms with loan to value of up to 75%.
0 votes
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