Author Topic: How low can we go? 30 yr fixed at 3.75% with no fees...  (Read 737720 times)

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Offline USCTrojanCPA

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #15 on: December 14, 2011, 04:56:15 PM »
I'm with PS... no home that I like at a price I want... but hey... you're supposed buy when rates are double digits right?
Yeah, don't hold your breathe for that.  Like I said....Japan 2.0   I can see the US 10-year bond get down to 1% to 1.50% in 2012.
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Offline qwerty

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #16 on: December 14, 2011, 05:08:47 PM »
I'm with PS... no home that I like at a price I want... but hey... you're supposed buy when rates are double digits right?
Yeah, don't hold your breathe for that.  Like I said....Japan 2.0   I can see the US 10-year bond get down to 1% to 1.50% in 2012.

i dont know if rates will go that low, but i dont see rates going up any time in the next 5 years. unfortunately i dont think i can hold out that long to buy a house.

Offline USCTrojanCPA

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #17 on: December 14, 2011, 05:27:49 PM »
I'm with PS... no home that I like at a price I want... but hey... you're supposed buy when rates are double digits right?
Yeah, don't hold your breathe for that.  Like I said....Japan 2.0   I can see the US 10-year bond get down to 1% to 1.50% in 2012.

i dont know if rates will go that low, but i dont see rates going up any time in the next 5 years. unfortunately i dont think i can hold out that long to buy a house.
All depends on what happens in Europe.  If Europe gets messy then we go below 1.50% for sure.  The US Dollar and US Bonds are where people go when they are scared and/or crap is hitting the fan.
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Offline rkp

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #18 on: December 14, 2011, 05:48:33 PM »
I got a buyer into contract on a Freddie Mac REO and negotiated a 3% credit for closing costs.  My buyer will use those points to buy down the rate to 3.50% (maybe as low as 3.25%) on a 30-year fixed conforming loan.

When did the 3% credit for closing come enter the negotiations?  Do you write that in the initial offer or ask for it after opening escrow?
 

Offline USCTrojanCPA

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #19 on: December 14, 2011, 05:55:04 PM »
I got a buyer into contract on a Freddie Mac REO and negotiated a 3% credit for closing costs.  My buyer will use those points to buy down the rate to 3.50% (maybe as low as 3.25%) on a 30-year fixed conforming loan.

When did the 3% credit for closing come enter the negotiations?  Do you write that in the initial offer or ask for it after opening escrow?
 
I wrote it into the original offer that I submitted to the REO bank (I always do that on REOs).  They only countered on price and closing date (most other REO banks countered the credit down between $0 and 1%).
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Offline rkp

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #20 on: December 14, 2011, 06:00:27 PM »
does it make sense to asking for 3% credit for cash offers?  seems silly right?

i am looking at a short sale with bank approved asking and its had a few offers that have fallen out of escrow.  hence bank only wants cash offer and not 1 cent below their ask (it is priced low already so makes sense).  being the frugal minded and always looking for more, i would like to make the cash offer but still get back some.   

Offline USCTrojanCPA

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #21 on: December 14, 2011, 06:10:18 PM »
does it make sense to asking for 3% credit for cash offers?  seems silly right?

i am looking at a short sale with bank approved asking and its had a few offers that have fallen out of escrow.  hence bank only wants cash offer and not 1 cent below their ask (it is priced low already so makes sense).  being the frugal minded and always looking for more, i would like to make the cash offer but still get back some.   
The 3% credit for closing costs is a use it or lose it thing so they will only credit you up to the closing costs.  For cash buyers, that'll be around .50% to .75% of the purchase price (depending upon property tax and HOA prorations).  Asking for a credit with short sales is completely different than asking for them on REOs.  My guess is that the short sale lender is looking at particular net sales proceed amount that they want so they may push back on your request even for a 1% credit for closing costs.  But hey, I would ask for it....if you don't ask then you'll never know.
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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #22 on: December 15, 2011, 12:25:49 AM »
I got a buyer into contract on a Freddie Mac REO and negotiated a 3% credit for closing costs.  My buyer will use those points to buy down the rate to 3.50% (maybe as low as 3.25%) on a 30-year fixed conforming loan.

When did the 3% credit for closing come enter the negotiations?  Do you write that in the initial offer or ask for it after opening escrow?
 

Previously (and likely again in the future) HomePath® properties for Fannie Mae were eligible for up to a 3.5% of the agreed purchase price with some eligibility requirements:
Eligibility
•Buyer incentive must be requested at the initial offer submission.
•Initial offer must be submitted on or after April 11, 2011 (the effective date of the incentive program).
•The property sale must close on or before June 30, 2011 . No exceptions will be made to this deadline.
•Owner occupants only. Buyers purchasing a HomePath property as their primary residence may receive up to 3.5% of the final sales price towards closing cost assistance (second homes and investment properties are excluded). Additionally, buyers must sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum (available on the HomePath Resources page on efanniemae.com).
•Retail and public entities are eligible for the incentive; however pool and auction sales are NOT eligible. In certain instances where the insurer will not permit it, the incentive will not be available.
•Fannie Mae reserves the right to remove any property from the promotion or end the promotion at any time. Any dispute over the payment of the incentive shall be resolved by Fannie Mae in its sole discretion.

Currently Freddy Mac is currently offering 3% to the buyers of its HomeSteps® properties, similarly.
Full disclosure: The agents are offered an additional $1000, as well.
No negotiating necessary.
http://www.homesteps.com/homebuyer/offers.html

DURATION OF OFFER: Offers received between November 15, 2011 and January 31, 2012 with escrow closed on or before March 15, 2012.

-IR2
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Offline USCTrojanCPA

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #23 on: December 15, 2011, 08:27:43 AM »
I got a buyer into contract on a Freddie Mac REO and negotiated a 3% credit for closing costs.  My buyer will use those points to buy down the rate to 3.50% (maybe as low as 3.25%) on a 30-year fixed conforming loan.

When did the 3% credit for closing come enter the negotiations?  Do you write that in the initial offer or ask for it after opening escrow?
 

Previously (and likely again in the future) HomePath® properties for Fannie Mae were eligible for up to a 3.5% of the agreed purchase price with some eligibility requirements:
Eligibility
•Buyer incentive must be requested at the initial offer submission.
•Initial offer must be submitted on or after April 11, 2011 (the effective date of the incentive program).
•The property sale must close on or before June 30, 2011 . No exceptions will be made to this deadline.
•Owner occupants only. Buyers purchasing a HomePath property as their primary residence may receive up to 3.5% of the final sales price towards closing cost assistance (second homes and investment properties are excluded). Additionally, buyers must sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum (available on the HomePath Resources page on efanniemae.com).
•Retail and public entities are eligible for the incentive; however pool and auction sales are NOT eligible. In certain instances where the insurer will not permit it, the incentive will not be available.
•Fannie Mae reserves the right to remove any property from the promotion or end the promotion at any time. Any dispute over the payment of the incentive shall be resolved by Fannie Mae in its sole discretion.

Currently Freddy Mac is currently offering 3% to the buyers of its HomeSteps® properties, similarly.
Full disclosure: The agents are offered an additional $1000, as well.
No negotiating necessary.
http://www.homesteps.com/homebuyer/offers.html

DURATION OF OFFER: Offers received between November 15, 2011 and January 31, 2012 with escrow closed on or before March 15, 2012.

-IR2
Yup, it is a Freddie Mac REO but I ask for 3% credit for REOs because it's a different beast.  If you read the fine print, that $1,000 bonus for agents is not available for sales in California. They also offer a 2-year HomeProtect home warranty for buyers.
« Last Edit: December 15, 2011, 08:32:14 AM by USCTrojanCPA »
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Offline Soylent Green Is People

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #24 on: December 15, 2011, 11:25:28 AM »
When you buy a HomePath REO property and get the closing cost credit, FNMA does not pay "Owners Title" or some of the other fees you'd normally see a seller pay with a traditional sale. Because of this the 3.x concession you might get nets out to 2.x as some of that concession is used to pay the owners costs. If you're buying a HomePath or Home Steps property and are being offered a sales concession, try and ensure that it's for buyer charges only, not traditionally seller paid fees as well.

My .02c
My .02c

SGIP

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Offline USCTrojanCPA

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #25 on: December 15, 2011, 02:26:16 PM »
When you buy a HomePath REO property and get the closing cost credit, FNMA does not pay "Owners Title" or some of the other fees you'd normally see a seller pay with a traditional sale. Because of this the 3.x concession you might get nets out to 2.x as some of that concession is used to pay the owners costs. If you're buying a HomePath or Home Steps property and are being offered a sales concession, try and ensure that it's for buyer charges only, not traditionally seller paid fees as well.

My .02c
Received and reviewed the contract addendum for my buyer, looks like as long as we go with the escrow company that the REO seller selects the REO seller will pay for the owner's title policy and their share of the escrow fees (similar to all other REO addendums that I've seen).  The REO seller even paid for the termite repairs.
« Last Edit: December 15, 2011, 02:32:40 PM by USCTrojanCPA »
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Offline USCTrojanCPA

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #26 on: January 25, 2012, 10:44:21 AM »
Looks like the Fed is on hold until at least late 2014.  10-year treasury bonds have responded by doing down 14bps.  I wouldn't be betting that rates are going up in the near term.
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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #27 on: January 25, 2012, 10:56:46 AM »
Japan 2.10

Features added

- More dividend and income strategies
- Less chance of inflating out of debt
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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #28 on: January 25, 2012, 11:51:40 AM »
That reduction in the 10 year (and corresponding dip in Mortgage Backed Securities) might be enough to cover the .50 to .875 increase in some lenders rates because of the Agency Guarantee Fees that are starting to fade into the market. Most FHA insured loans are now solidly below 3.75% but we might not see as great of a push down in rates for all of the Fannie/Freddie loan products out there.

Some companies are quoting 10-15 day rate locks (assuming you can close before all G-Fee increases). If you ask for 45 or 60 day locks you should see how high they've gone up in the past week.

My .02c
My .02c

SGIP

Offline freedomcm

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #29 on: January 25, 2012, 06:32:59 PM »
SGIP-

so the agency fee increase is going to affect the rates across the board?  not just FHA or less than 20% down, but the wide market?

TIA

 

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