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RISMEDIA, Dec. 7, 2007-The Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey for the week ending November 30, 2007. The Market Composite Index, a measure of mortgage loan application volume, was 791.8, an increase of 22.5% on a seasonally adjusted basis from 646.3 one week earlier. On an unadjusted basis, the Index increased 51.5% compared with the previous week-which was a shortened week due to the Thanksgiving holiday-and was up 24.2% compared with the same week one year earlier. The changes calculated above are based on revised numbers for the previous reporting period.

The Refinance Index increased 31.9% to 2761.3 from 2093.0 the previous week and the seasonally adjusted Purchase Index increased 15.2% to 464.3 from 403.2 one week earlier. On an unadjusted basis, the Purchase Index increased 37.3% to 373.5 from 272.1 the previous week. The seasonally adjusted Conventional Index increased 21.9% to 1138.4 from 933.5 the previous week, and the seasonally adjusted Government Index increased 27.8% to 214.0 from 167.4 the previous week. The changes calculated above are based on revised numbers for the previous reporting period.

Due to an error by one of the larger reporting companies for the Thanksgiving-shortened week ending November 23, the indices reported in the November 28, 2007 press release have been revised. The seasonally adjusted market composite index for that week was 646.3 rather than the 652.5 originally reported. The refinance index was 2093.0 rather than the 1862.9 originally reported and the seasonally adjusted purchase index was 403.2 rather than the 450.1 originally reported.

The four week moving average for the seasonally adjusted Market Index is up 4.5% to 706.8 from 676.5. The four week moving average is up 3.1% to 431.0 from 418.2 for the Purchase Index, while this average is up 6.7% to 2342.5 from 2196.2 for the Refinance Index.

The refinance share of mortgage activity increased to 56.0% of total applications from 51.4% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 11.6 from 14.6% of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.82% from 6.09%, with points unchanged at 1.07 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.38% from 5.69%, with points decreasing to 1.12 from 1.13 (including the origination fee) for 80% LTV loans.

The average contract interest rate for one-year ARMs increased to 6.28% from 6.24%, with points increasing to 0.99 from 0.96 (including the origination fee) for 80% LTV loans.

This survey covers approximately 50% of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.

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For more information, visit www.mortgagebankers.org.

The 3-2-1 buydown is a great way to help your real estate clients into a mortgage with reduced payments for 3 years. This is a great feature to an already great My Community Mortgage program. The My Community program allows for 100% loan to value with reduced Mortgage Insurance, lower credit scores and 6% seller contributions. 9% contributions are allowed at loan to values at or under 95% AND the buyer qualifies at 1% above the bought down rate instead of the initial note rate above 95%. I love this program and you will too. I will try and briefly explain the way this 3-2-1 and 2-1 buydown works.

The seller will need to be willing to contribute 3-5 points to buy the interest rate down. The buyer can pay but I am seeing more and more sellers willing to offer this. The total amount needed in contributions is calculated by taking the rate before buying it down and using that monthly payment as a starting point. subtract the interest rate reduction of 3 points and get a payment calculated off of this rate. Multiply it by 12 and you have your first year costs. Do the same for the second year and the third year. The total difference is what would be needed in contributions.

For argument sake, let's say the interest rate on a 30 year fixed rate mortgage is 7.00%. Using a $200,000 loan amount, your pre buy down payment would be $1330.60. The first year would be based off of an interest rate of 4%. The payment on the 4% rate is 954.83. The difference from the 7% rate is $375.77 a month. Take this number and multiply by 12 and you come up with $$4509.24. For the second year, you do the same. Second year rate would be 5.00% with a payment of $1073.64 and a difference from the 7% rate of $256.96. Times by 12 and your second year costs are $3083.52. Third year is 6.00% and a payment of $1199.10 and a cost of $1199.10. Take these 3 numbers and add them up for the total buydown cost of this program. For this scenario, the lender would collect $8791 for the buydown cost.

On a $200,000 home purchase with a 3-2-1 buydown will cost 4.5% in seller contributions. This program allows 6% seller contributions. If the seller contributed the full 6%, there would be over $3000 to use towards the buyers other closing costs and could get them into the home of thier dreams with no money down and 3 years of lower payments.

**NOTE** A 2-1 buydown is also available and will cost a little less. If you have a seller unwilling to contribute the full amount needed for the 3-2-1 buydown, a 2-1 buydown may be more obtainable. Calculations are figured the same way.

Please feel free to send us your executed purchase contracts to see what this can do for your current clients.

Apply online 24/7 with fast response times. We will explain this to your clients in more detail. You will see how much your clients love this program.

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