Top 5 Most Popular Loan Products

The Top Five Hottest Mortgage Products for Today's Consumer

Over the past year, as more and more people have sought to better leverage their loans to address their home investment strategy, the mortgage industry has seen a dramatic increase in the use of creative home mortgage loans.

The Top 5 Loan Products are:

1. 80/20 Loans - Actually two loans, 80/20 loans offer the consumer 100 percent financing, with the first loan comprising 80 percent of the homes purchase price and the second loan comprising the remaining 20 percent. This product allows the buyer to enter the home for virtually no money down. Many lenders have become more aggressive in their marketing of these programs, and they are easier to get into now more than ever. Credit requirements for 80/20 loans have lowered significantly over the past 6 to 12 months, with necessary FICO scores dropping close to 100 points.

2. Interest Only (I/O) Loans - With I/O loans, the buyer starts off with paying only the interest on their loan, paying none of the principal of the loan for a fixed time period, usually 10 years. The loan would then convert to a fully amortized loan. The draw of these programs is the potential for low monthly payments, allowing the buyer to buy more house for less money now, increasing the affordability factor. I/O loans are ideal for buyers interested in accruing home equity for investment purposes and its use has seen a sharp increase over the past 6 months.

3. Monthly ARMs - These Adjustable Rate Mortgages (ARMs) feature a short term fixed rate period of usually three or six months after which time the rate will adjust to the current rate at that time, continuing to do so after each period for the life of the loan. This type of loan is flexible in that it could be combined with other features such as an Interest Only option. Also, payments are adjustable - buyers can the minimum one-month and then a significant amount more the next month, enabling them to reduce the principal balance of the loan, much like a credit card. Due to today's low short-term rates, record-paced home value appreciation and a short-term focus among buyers, these loans have become increasingly popular.

4. Long-Term Locks - Today's low interest rates have prompted the popularity of long-term lock loans, which allow the buyer to lock in today's rates for up to 12 months. These loans are geared towards new build buyers who often sign a contact on their home 6 to 12 months in advance of the home's completion, thus assuring themselves of the current low interest rate.

5. Home Equity Line Of Credit (HELOC) - A home equity line of credit (HELOC) is a loan set up as line of credit for a maximum amount of money established when purchasing a home. Often times, this loan is taken out as a second or piggyback loan, where the primary loan is used for payment on the home. This loan provides instant equity allowing the homeowner greater flexibility.

For more information about these products, please contact Anthony Pipitone at 312-492-3239.

Mortgage Rates

Please contact Anthony Pipitone
for further information
p 312-492-3239
e-mail apipitone@rlca.com

Mortgage Rates for April 15th, 2004

Even lower than Guaranteed Rate! We'll beat anyone's rates, even the GUARANTEED ones!!!!

RLCA
The Right Loan, Always

Conventional

3/1 ARM Conventional
Rate Lock Term Rate APR
30-60 Day Lock 3.75% 3.89%

5/1 ARM Conventional
Rate Lock Term Rate APR
30-60 Day Lock 4.50% 4.64%

7/1 ARM Conventional
Rate Lock Term Rate APR
30-60 Day Lock 5.00% 5.15%

15 Year Fixed Conventional
Rate Lock Term Rate APR
30-60 Day Lock 5.25% 5.51%

30 Year Fixed Conventional
Rate Lock Term Rate APR
30-60 Day Lock 5.88% 6.03%

Jumbo

3/1 ARM Jumbo
Rate Lock Term Rate APR
30-60 Day Lock 4.25% 4.38%

5/1 ARM Jumbo
Rate Lock Term Rate APR
30-60 Day Lock 4.75% 4.88%

7/1 ARM Jumbo
Rate Lock Term Rate APR
30-60 Day Lock 5.50% 5.64%

15 Year Fixed Jumbo
Rate Lock Term Rate APR
30-60 Day Lock 5.38% 5.61%

30 Year Fixed Jumbo
Rate Lock Term Rate APR
30-60 Day Lock 6.00% 5.76%

FHA

15 Year Fixed FHA
Rate Lock Term Rate APR
30-60 Day Lock 5.25% 5.40%

30 Year Fixed FHA
Rate Lock Term Rate APR
30-60 Day Lock 6.00% 6.14%

-PMI is Private Mortgage Insurance and is usually required on loans with a down payment less than 20%
-You can avoid PMI with a first and a second mortgage.
-All rates are subject to market conditions and may change at any time without notice.
-Final approval subject to credit history, employment history, & Income.

Ask about our:
 No Income verification loans
 $0 Down Loans
 No Application fee
 Free Financial Health analysis
 Free pre-qualification letter

2350 E.Devon Ave. Suite 310 Des Plaines, IL 60018
ph. 847-768-2700 f. 847/795-9860

Equal Housing Lender. Illinois Residential Mortgage Licensee.

Mortgage Rates Increase

Mortgage Rates Leap to 3-Month High PR Newswire

April 08, 2004

NEW YORK, Apr 8, 2004 /PRNewswire-FirstCall via COMTEX/ -- Mortgage rates jumped sharply this week, reaching a three-month high. The average 30-year fixed rate mortgage increased from 5.6 percent to 5.8 percent, according to Bankrate.com's weekly national survey of large lenders. The mortgages in this week's survey had an average of 0.37 discount and origination points. Mortgage rates are now the highest since the week of Jan. 7, 2004.

The 15-year fixed rate mortgage popular for refinancing climbed by one- quarter percent, from 4.89 percent to 5.14 percent. The jumbo 30-year fixed rate mortgage surged 21 basis points to 6 percent and the one-year adjustable rate mortgage increased by a more modest 12 basis points to 3.66 percent. A basis point is one one-hundredth of one percentage point.

The catalyst for this week's move in mortgage rates was the release of the March employment report, showing nonfarm payrolls grew by an estimated 308,000 jobs. One month ago when a disappointing report for February was issued, the average 30-year fixed rate mortgage fell 20 basis points, from 5.64 percent to 5.44 percent. This month, mortgage rates responded in a similar fashion -- albeit in the opposite direction. The average mortgage rate climbed from 5.6 percent to 5.8 percent as bond investors unloaded long-term government bonds. Mortgage rates are closely related to yields on long-term government bonds.

Mortgage rates have increased notably in the past three weeks, and so too have monthly mortgage payments. With the average 30-year fixed rate mortgage now 5.8 percent, the monthly payment for a $165,000 30-year fixed rate mortgage is $968.14. Three weeks ago, when the average rate was 5.41 percent, the monthly payment on the same loan was $927.56. The $40.58 difference in monthly payments amounts to more than $14,600 over the loan term.

For additional information contact Anthony Pipitone at 312-492-3239.

Mortgage Interest Rates

Please contact Anthony Pipitone
for further information
p 312-492-3239
e-mail apipitone@rlca.com

Mortgage Rates for April 1st, 2004

RLCA
The Right Loan, Always

Conventional

3/1 ARM Conventional
Rate Lock Term Rate APR
30-60 Day Lock 3.63% 3.76%

5/1 ARM Conventional
Rate Lock Term Rate APR
30-60 Day Lock 4.13% 4.27%

7/1 ARM Conventional
Rate Lock Term Rate APR
30-60 Day Lock 4.50% 5.27%

15 Year Fixed Conventional
Rate Lock Term Rate APR
30-60 Day Lock 4.88% 5.13%

30 Year Fixed Conventional
Rate Lock Term Rate APR
30-60 Day Lock 5.50% 5.65%

Jumbo

3/1 ARM Jumbo
Rate Lock Term Rate APR
30-60 Day Lock 3.75% 3.87%

5/1 ARM Jumbo
Rate Lock Term Rate APR
30-60 Day Lock 4.25% 4.38%

7/1 ARM Jumbo
Rate Lock Term Rate APR
30-60 Day Lock 4.75% 4.88%

15 Year Fixed Jumbo
Rate Lock Term Rate APR
30-60 Day Lock 5.13% 5.36%

30 Year Fixed Jumbo
Rate Lock Term Rate APR
30-60 Day Lock 5.75% 5.76%

FHA

15 Year Fixed FHA
Rate Lock Term Rate APR
30-60 Day Lock 5.25% 5.40%

30 Year Fixed FHA
Rate Lock Term Rate APR
30-60 Day Lock 5.75% 5.89%

-PMI is Private Mortgage Insurance and is usually required on loans with a down payment less than 20%
-You can avoid PMI with a first and a second mortgage.
-All rates are subject to market conditions and may change at any time without notice.
-Final approval subject to credit history, employment history, & Income.

Ask about our:
 No Income verification loans
 $0 Down Loans
 No Application fee
 Free Financial Health analysis
 Free pre-qualification letter

2350 E.Devon Ave. Suite 310 Des Plaines, IL 60018
ph. 847-768-2725 f. 847/954-1219

Equal Housing Lender. Illinois Residential Mortgage Licensee.