How low can we go? 30 yr fixed at 3.75% with no fees...

If the the 10yr-T drops to 1.9, and MBS prices improve, AND if investors believe rates will remain low for a considerable time, lenders may offer sub 3.5% jumbo financing. A great deal more than a low 10yr-T goes into creating a low mortgage rate. Let's hope the perfect storm comes in for all Q4 closings.

My .02c
 
With no Fed action, everything spasms - stocks down, bond prices up, etc. Do lenders always re-price for the better when this happens? Some do, other's wait to see what happens in the market long term. Remember, this rate drama puts everyone throughthe wringer again in about 90 days.  These are interesting times we're living in....

My .02c
 
The 10Y UST dropped nine bps, from 2.30 to 2.21 today after the Fed's announced holding pattern and extension of low rate guidance.
 
Soylent Green Is People said:
If the the 10yr-T drops to 1.9, and MBS prices improve, AND if investors believe rates will remain low for a considerable time, lenders may offer sub 3.5% jumbo financing. A great deal more than a low 10yr-T goes into creating a low mortgage rate. Let's hope the perfect storm comes in for all Q4 closings.

My .02c
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With today's terrible jobs report plus the downward revisions to past reports, we may be on our way to sub-3.5% jumbo rates. The 10Y UST is trading below 2%!
 
When you get price spikes for the better, you also get price retrenchments for the worse. This week will see "peaks and valleys" for MBS pricing due to market uncertainty. Since we're approaching the point in rates where it's not that profitable to structure mortgages beyond a 3.x 30 fixed, or 2.x ARM rate, the advice I'd give here is to lock where it makes sense.

We're not going to see 2.x Jumbo 30 Fixed rates, or 1.x ARM loans without extraordinary circumstances coming together. If that rate environment does ever come to pass, I'm sure there there will be many other things in the economy more important than how low home rates have gotten.

It's good now and time to commit IMHO.

My .02c
 
Perspective said:
I just floated-down to 3.5% paying an eighth (60-day lock on a 30Y fixed loan).  ;D
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Was this the original 1/8th for the long term lock or additional 1/8th? -- so 20% down -- 3.5%?
 
sky949 said:
Perspective said:
I just floated-down to 3.5% paying an eighth (60-day lock on a 30Y fixed loan).  ;D
Click to expand...

Was this the original 1/8th for the long term lock or additional 1/8th? -- so 20% down -- 3.5%?
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The original lock was 20% down 30Y fixed at 3.75% with 3/8ths fee at lock and a 1/4th credit at closing. We floated-down to 3.5% today and will now receive a 1/8th credit at closing rather than 1/4th.
 
Nicely done. Long term rate locks have their benefits in many cases. It's relatively cheap peace of mind insurance. I'd rather pay the fee for the lock, perhaps spending a little money that I didn't have to rather than looking back and constantly wondering why I didn't take risk of the table when I could have (assuming rates would have moved higher). 

My .02c
 
Perspective said:
sky949 said:
Perspective said:
I just floated-down to 3.5% paying an eighth (60-day lock on a 30Y fixed loan).  ;D
Click to expand...

Was this the original 1/8th for the long term lock or additional 1/8th? -- so 20% down -- 3.5%?
Click to expand...

The original lock was 20% down 30Y fixed at 3.75% with 3/8ths fee at lock and a 1/4th credit at closing. We floated-down to 3.5% today and will now receive a 1/8th credit at closing rather than 1/4th.
Click to expand...

Well played.
 
Homer_Simpson said:
USCTrojanCPA said:
The more important question is....where are 5/1 ARM rates?  2.375% at no cost?
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I'm waiting for this one too!!! the 5/1's are like 3% right now with fees right??
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No way, that's probably were a 10/1 ARM is at.  I think 5/1 ARM rates are around 2.50% @ zero cost.
 
ChasingRainbows said:
@ Perspective

Did you shop the rates with OnQ or other lenders before deciding on Wells? Thanks.
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I shopped rates and programs with a couple different creditors. I chose Wells 90+ days from COE due to the extended lock terms and fees. OnQ's extended lock terms/fees weren't attractive.

BBVA offered a nice 90% LTV option (30Y fixed) with just a quarter premium over par. e.g. If the rate available to you is 3.50% today, you could accept 3.75% and only have to put down 10%.

I don't know what OnQ would be able to offer me today. I also don't know if we'd locked with OnQ 90 days out, whether a float down option would be available today. One concern I have with OnQ, and all correspondent lenders, is that we wouldn't know who our servicer would be. Having dealt with terrible servicers in the last decade, this is important to me.
 
USCTrojanCPA said:
Homer_Simpson said:
USCTrojanCPA said:
The more important question is....where are 5/1 ARM rates?  2.375% at no cost?
Click to expand...

I'm waiting for this one too!!! the 5/1's are like 3% right now with fees right??
Click to expand...
No way, that's probably were a 10/1 ARM is at.  I think 5/1 ARM rates are around 2.50% @ zero cost.
Click to expand...

Wait what???????????? TTYL gotta call Alyson lol
 
Perspective said:
One concern I have with OnQ, and all correspondent lenders, is that we wouldn't know who are servicer would be. Having dealt with terrible servicers in the last decade, this is important to me.
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What kind of items did you have to deal with servicers?  I have always set up direct deposit and never checked anything after that.  Do they make errors?
 
Irvine Dream said:
Perspective said:
One concern I have with OnQ, and all correspondent lenders, is that we wouldn't know who are servicer would be. Having dealt with terrible servicers in the last decade, this is important to me.
Click to expand...
What kind of items did you have to deal with servicers?  I have always set up direct deposit and never checked anything after that.  Do they make errors?
Click to expand...

Right, unless you've run into some of the minor remote issues, it's not something you consider. I've had problems with additional payments not being credited correctly.

I also prefer the servicer also be the owner of the mortgage, as opposed to the loan being in a mortgage-backed security and serviced by an entity with no ownership interest.
 
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