irvinehomeowner
Well-known member
Mety said:
On 20% down. TCT said they want to do 10% down.
How low can we go? 30 yr fixed at 3.75% with no fees...
- Thread starter ps99472
- Start date
On 20% down. TCT said they want to do 10% down.
Also regarding my above comment. After talking with our previous broker he recommended we not pay down the loan as to make that back we?d have to be in the house for over 8 years making payments once you calculate the interest we?d gain by just having the buy down money in a standard savings account.
So we?d actually be going with a zero cost 3.75% on an attached condo. Granted the next available unit we?re looking at is December so rates could change until then. To lock at 90 days would be about 2Ks cost he said as he?s worked with US Bank before.
We had assumed that the tax prepayment would not be included in the 10k closing cost, but they do include it so we would still be slightly over 10k closing cost without any buydown. So we wouldn?t be wasting any of the closing credit. That?s why we initially thought we?d have to buy down with the 10k credit they?re offering.
So we?d actually be going with a zero cost 3.75% on an attached condo. Granted the next available unit we?re looking at is December so rates could change until then. To lock at 90 days would be about 2Ks cost he said as he?s worked with US Bank before.
We had assumed that the tax prepayment would not be included in the 10k closing cost, but they do include it so we would still be slightly over 10k closing cost without any buydown. So we wouldn?t be wasting any of the closing credit. That?s why we initially thought we?d have to buy down with the 10k credit they?re offering.
sgip
Well-known member
The Fed cut rates that immediately impact business lending, but not home lending - generally speaking. Mortgage rates which have been treading water since Friday barely moved at all today. Prime Rates are going to be reduced which flow through to Home Equity Lines Of Credit and standard credit cards. Today's rate move was for all intents and purposes a non-event.
During these cycles you'll see a move by the Fed, bigley criticism about what did or did not occur, and drumbeats ad infinitum over the next 60 days for another move. Expect to see more visible changes in mortgage rates the latter part of August, a couple of weeks before the next Fed meeting on September 17th and 18th.
My .02c
SGIP
During these cycles you'll see a move by the Fed, bigley criticism about what did or did not occur, and drumbeats ad infinitum over the next 60 days for another move. Expect to see more visible changes in mortgage rates the latter part of August, a couple of weeks before the next Fed meeting on September 17th and 18th.
My .02c
SGIP
Hugo Township
Active member
I bet you are getting calls from potential clients looking to refi though!
sgip
Well-known member
12:00 Fed cut .25
12:00:30 Customer: "I heard the Fed cut. What's your deal now that the Fed moved rates lower?"
12:01.00 Me: "um... the same.... No change"
Pent up demand is there. Part of the issue is that many loans closed in the past few years when Conforming loans were capped at $417,000 but lots of buyers closed using bank portfolio loans instead. Example - Conforming $417k might have been at 4.25 and Bank Portfolio for $417,500k were closing at 3.75. Now that Conforming loans limits are at $483k, and since current Conforming rates.....blow.... there are plenty of fixed rate clients with sub $483k loans now waiting for FNMA/FHLMC rates to improve. Waiting... and waiting...Ever watch paint dry? Yeah, it's a lot like that.
My .02c
12:00:30 Customer: "I heard the Fed cut. What's your deal now that the Fed moved rates lower?"
12:01.00 Me: "um... the same.... No change"
Pent up demand is there. Part of the issue is that many loans closed in the past few years when Conforming loans were capped at $417,000 but lots of buyers closed using bank portfolio loans instead. Example - Conforming $417k might have been at 4.25 and Bank Portfolio for $417,500k were closing at 3.75. Now that Conforming loans limits are at $483k, and since current Conforming rates.....blow.... there are plenty of fixed rate clients with sub $483k loans now waiting for FNMA/FHLMC rates to improve. Waiting... and waiting...Ever watch paint dry? Yeah, it's a lot like that.
My .02c
potsticker
Active member
Any feedback on what bank is offering the best 30-yr fixed rate? This would be for principal residence, $800k loan amount, and greater than 25% down. I've heard 3.5% to 3.75% should be easy to get for well-qualified buyers...anyone get even better?
Hugo Township
Active member
Soylent Green Is People said:
So what you're saying is that I should call you immediately for a lower rate?
sgip
Well-known member
HMart. You crack me up! Call anytime. Can't promise anything....
A helpful article for anyone who has questions about The Fed and Mortgage rates:
http://www.mortgagenewsdaily.com/consumer_rates/917505.aspx
A helpful article for anyone who has questions about The Fed and Mortgage rates:
http://www.mortgagenewsdaily.com/consumer_rates/917505.aspx
woodburyowner
Well-known member
Interesting data point... 10 yr treasury is getting slammed today and there has been no change in mortgage rates from Friday and today on one of the lenders I monitor.
irvinehomeowner
Well-known member
Maybe I should time a refi before the next election.
Last election, rates jumped after and some said they would not come down again... maybe rates are.... seasonal.
Last election, rates jumped after and some said they would not come down again... maybe rates are.... seasonal.
sgip
Well-known member
The Fed can cut rates to zero, even theoretically below zero. Lenders cannot. They must be profitable and hedge against inflation. If cost of funds is zero, and inflation is 2%, the cost of servicing and originating would push fixed rates to 3.0%, but doubtful to see 3.0% at "no cost/no fee". ARM loans also won't see zero percent given that most Margin Floors are 2.25%. There are a few "zero margin" 1 month LIBOR loans, but to qualify for these loans require near god-like financial strength. Who wants a monthly ARM today anyhow? Could you sleep at night with one of those things? Not me.
One differential is the movement of funds. For the fortunate few among readers here, if a 3.x rate comes along, and you can move money to a bank for a rate discount, that action has the potential to reach 3 or even sub 3% on a 30 year fixed loan. If you don't have the cash to move, it's "no soup for you"! unfortunately until the market really falls over.
When I worked for a bank that used a wild west mode of transportation as their logo, they offered a 2% below Prime rate HELOC to their best clients. At the time however (2005-2006ish) pretty much anyone who could fog a mirror was a "best client".... but I digress. Some of these HELOC's saw a 1.5 rate during the 2008 financial crisis, a pretty great deal for the customer. Not so much for the Bank. Since that time, most super banks have (for now....) learned their lessons and put floor rates on their products.
Bottom line, sub 3.25% 30 year rates. sub 2.875 15 year loans and sub 2.5 fixed period ARM loans are a solid "buy of a lifetime". If you can get them with minimal or no cost, the time is now to get it done.
My .02c
SGIP
One differential is the movement of funds. For the fortunate few among readers here, if a 3.x rate comes along, and you can move money to a bank for a rate discount, that action has the potential to reach 3 or even sub 3% on a 30 year fixed loan. If you don't have the cash to move, it's "no soup for you"! unfortunately until the market really falls over.
When I worked for a bank that used a wild west mode of transportation as their logo, they offered a 2% below Prime rate HELOC to their best clients. At the time however (2005-2006ish) pretty much anyone who could fog a mirror was a "best client".... but I digress. Some of these HELOC's saw a 1.5 rate during the 2008 financial crisis, a pretty great deal for the customer. Not so much for the Bank. Since that time, most super banks have (for now....) learned their lessons and put floor rates on their products.
Bottom line, sub 3.25% 30 year rates. sub 2.875 15 year loans and sub 2.5 fixed period ARM loans are a solid "buy of a lifetime". If you can get them with minimal or no cost, the time is now to get it done.
My .02c
SGIP
