Aaron Jernigan makes top mortgage originators list

He said that the low interest rates helped him attain that volume, partly through homeowners refinancing their existing homes.

“People buying investment properties and second homes has also helped, as well,” he said.

He added that as of press time May 11, the interest rate for a 30-year, fixed-rate mortgage with no points was 5.625 percent. “A lot of people are starting to do adjustable rate mortgages as fixed rates move up,” Jernigan said.

According to the Mortgage Bankers Association’s Single Family Mortgage Activity Survey, released May 4, ARMs and interest-only products accounted for 63 percent of mortgage originations reported in the second half of 2004.

The survey included more than 90 companies, including the top 12 loan originators and 25 of the top 30 loan originators. “Consumers shift to ARMs when long-term rates rise and when the spread between long- and short-term rates widens,” said Doug Duncan, MBA chief economist, in a news release. “This happens at the end of every refinance boom, so it’s not a surprise that ARM share has risen over the last year.”

With ARMs, Jernigan added, “You may have a fixed rate for five years, and then it adjusts after that. That rate is at 4.875 (percent), so people can get pretty substantial savings for five years.”

Jernigan said that as interest rates climb – which economists have predicted will continue – he will work to capture and retain a large portion of the home-purchasing market share available.

“Relocations, people coming into our area, new home buyers, and then people building. We’ve got a great construction market going on right now, and we feel that we’re going to continue to gain market share in the purchase arena,” he said.