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General => Real Estate => General Real Estate and Mortgage Talk => Topic started by: WTTCHMN on May 25, 2018, 11:11:32 AM

Title: 30-year fixed mortgage rate reaches highest sustained increase in 40 years
Post by: WTTCHMN on May 25, 2018, 11:11:32 AM
30-year fixed mortgage rate reaches highest sustained increase in 40 years

https://www.ocregister.com/2018/05/25/30-year-fixed-mortgage-rate-highest-sustained-increase-in-the-past-40-years/
Title: Re: 30-year fixed mortgage rate reaches highest sustained increase in 40 years
Post by: USCTrojanCPA on May 25, 2018, 02:12:02 PM
As quickly as we went over 3% on the 10-year bond, we are back under at 2.93% today.
Title: Re: 30-year fixed mortgage rate reaches highest sustained increase in 40 years
Post by: Soylent Green Is People on May 25, 2018, 02:19:59 PM

Interesting number for me is the LIBOR index. A 2013 vintage 5/1 ARM loan that has a 2.25 margin if adjusting to market today will enjoy a fully indexed rate of 4.950. YOWZA!

My .02c
 
Title: Re: 30-year fixed mortgage rate reaches highest sustained increase in 40 years
Post by: qwerty on May 25, 2018, 04:31:49 PM

Interesting number for me is the LIBOR index. A 2013 vintage 5/1 ARM loan that has a 2.25 margin if adjusting to market today will enjoy a fully indexed rate of 4.950. YOWZA!

My .02c
 

Don’t forget about the 2% cap. Mine would cap at 4.75%
Title: Re: 30-year fixed mortgage rate reaches highest sustained increase in 40 years
Post by: Soylent Green Is People on May 25, 2018, 06:21:19 PM
In some cases, this is true.

Most ARM's are 5/2/5 - 5% max 1st adjustment, 2% thereafter, 5% lifetime cap from start rate. Some were 5% lifetime cap from 1st adjustment!

If the ARM you have is a 2/2/5, then it's 2% 1st adjustment cap, 2% thereafter, 5% cap from start rate, or 5% from 1st adjustment.

I'm still a big believer in ARM loans. They make sense for many people, but not everyone. Just laying out the possible adjustment in 2018-2019 for some ARMS might be to the upper 4's to low 5's.

My .02c
Title: Re: 30-year fixed mortgage rate reaches highest sustained increase in 40 years
Post by: USCTrojanCPA on May 25, 2018, 10:41:04 PM
Glad that my mid-2% 7-year ARM doesn't reset until 2023 so between then and now I'm sure we'll have some kind of recession where rates will dip again which will allow me to refi back into another 7-year or 10-year ARM.
Title: Re: 30-year fixed mortgage rate reaches highest sustained increase in 40 years
Post by: paperboyNC on May 26, 2018, 12:05:11 PM
I bought in 2012 with a 7yr ARM at around 3%. Refined recently into another 7yr ARM around 2.5%.

As Us Trojan says, if I stay in my home, I'll refi during the next rate dip.
Title: Re: 30-year fixed mortgage rate reaches highest sustained increase in 40 years
Post by: the.irvine on June 25, 2018, 08:29:16 AM
Will current trade wars will have any impact on interest rates? It appears that 10YD is down due to similar concerns.
Title: Re: 30-year fixed mortgage rate reaches highest sustained increase in 40 years
Post by: paperboyNC on June 25, 2018, 10:56:52 AM
https://www.cnbc.com/2018/06/25/morgan-stanley-says-rates-are-done-going-higher.html?__source=yahoo%7Cfinance%7Cheadline%7Cstory%7C&par=yahoo&yptr=yahoo
Title: Re: 30-year fixed mortgage rate reaches highest sustained increase in 40 years
Post by: Lallo on August 13, 2018, 11:33:54 PM
Are ARM loans still worth considering since rates are up?  Do they make sense if someone plans to stay in their next home for the forceable future (5-10 years).  My credit union lists their 7/1ARM at 3.875.
Title: Re: 30-year fixed mortgage rate reaches highest sustained increase in 40 years
Post by: USCTrojanCPA on August 14, 2018, 01:06:56 AM
Are ARM loans still worth considering since rates are up?  Do they make sense if someone plans to stay in their next home for the forceable future (5-10 years).  My credit union lists their 7/1ARM at 3.875.

A few of my clients got 3.50-3.75% 7/1 ARM rate loans, check with BofA and US Bank.  On average most people sell their homes within 5-7 years so a 7/1 ARM loan makes a lot of sense.  Plus, you can always refi an ARM loan without a prepayment penalty and next time we have a recession rates will be lower (probably back into the 2s for an ARM loan) so I say go for it.
Title: Re: 30-year fixed mortgage rate reaches highest sustained increase in 40 years
Post by: USCTrojanCPA on August 14, 2018, 01:08:04 AM
https://www.cnbc.com/2018/06/25/morgan-stanley-says-rates-are-done-going-higher.html?__source=yahoo%7Cfinance%7Cheadline%7Cstory%7C&par=yahoo&yptr=yahoo

And now we are back down to about 4.25% with the heartburn with the Turkish currency...where's the 5%+ rate?  I think we'll bounce around between 3.75% to 4.75% for a while.
Title: Re: 30-year fixed mortgage rate reaches highest sustained increase in 40 years
Post by: fortune11 on August 14, 2018, 04:59:26 AM
https://www.cnbc.com/2018/06/25/morgan-stanley-says-rates-are-done-going-higher.html?__source=yahoo%7Cfinance%7Cheadline%7Cstory%7C&par=yahoo&yptr=yahoo

And now we are back down to about 4.25% with the heartburn with the Turkish currency...where's the 5%+ rate?  I think we'll bounce around between 3.75% to 4.75% for a while.


Exactly , and this is what I have been saying here for months — don’t let the hoopla of “rising rates “ deter you from buying a house if that’s what keeping you back .

Sidebar  — The fear  of high inflation along with the fetish like fascination for gold and precious metals is very specific to boomer demographic and both ideas will eventually fade away .
Title: Re: 30-year fixed mortgage rate reaches highest sustained increase in 40 years
Post by: Lallo on August 14, 2018, 08:18:56 AM
I just checked BofA’s website and they list both the 30 yr fixed and the 7/1 ARM at the same rate (4.375). Something’s obviously wrong.
Title: Re: 30-year fixed mortgage rate reaches highest sustained increase in 40 years
Post by: USCTrojanCPA on August 14, 2018, 10:23:04 AM
I just checked BofA’s website and they list both the 30 yr fixed and the 7/1 ARM at the same rate (4.375). Something’s obviously wrong.

Talk to SGIP, don't trust a website for rates.
Title: Re: 30-year fixed mortgage rate reaches highest sustained increase in 40 years
Post by: marmott on August 14, 2018, 10:49:41 AM
We just locked a 7/1 with US Bank at 3.625% no points.

Thanks USC for the referral!
Title: Re: 30-year fixed mortgage rate reaches highest sustained increase in 40 years
Post by: Soylent Green Is People on August 14, 2018, 11:11:23 AM
All website rates are based on very generic terms. Exact quotes require a vast amount of disclosures to be provided and there just isn't the customer service staff to accomplish this. Discounts for banking relationships are not taken into account on website quotes. Other factors that can impact loan terms such as rate lock timing. Note as well that some list FICO score ranges at "760 and above" when pricing loan terms, when a 780 or an 801 score could mean a rate betterment of up to .25%, or .50 in fee.

The key to rate comparison is getting a Closing Cost / Price Estimate in writing from 2-3 lenders on the same day using the same verified FICO score. What is a verified FICO score? It's the score that at least one mortgage provider has obtained after running your credit report, not a Discover Card provided score, not a CreditKarma score. Why get it in writing, rather than an E-mail? I've seen plenty of e-mails saying a low rate on an mortgage will be given then "but I can't put it in a Price Estimate because of this or that reason....". As well, there are lots of low rates and high origination fees from supposed "zero point" lenders.

Closing cost / price estimates / and Loan Estimates take 90% of the tomfoolery out of the process. Get whatever is being promised in writing with the lenders letterhead. If you can't... ask yourself "why not?".

Here's a link to an article on FICO scoring that helps clarify things:

https://www.investopedia.com/articles/personal-finance/103015/are-credit-karma-scores-real-and-accurate.asp (https://www.investopedia.com/articles/personal-finance/103015/are-credit-karma-scores-real-and-accurate.asp)

Yes, it talks about CreditKarma, but all banks and credit card companies use the same data service.

My .02c
Title: Re: 30-year fixed mortgage rate reaches highest sustained increase in 40 years
Post by: Cares on August 28, 2018, 01:43:05 PM
As a frame of reference I locked a 4.75% on a 30 year fixed on an investment home (higher rate than primary) back in mid-July. No points, no fees, no appraisal cost, etc. Negotiated with the builder's lender to take the credit and fully cover all fees and buy down my rate to match an external lender.
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