Author Topic: How low can we go? 30 yr fixed at 3.75% with no fees...  (Read 708185 times)

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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 #30 on: January 26, 2012, 10:44:45 AM »
The Agency Fee increase has been implemented by many lenders on longer term locked loans. Most 15 day closing rates aren't yet seeing the impact, but loans locked longer (45-60) have seen on average a .50 to as high as .875 increase in fee. That fee increase translates into .125 to .25 in rate. We are starting to see the Freddie Mac Weekly Survey of lender rates creep up a bit partly due to the market, but certainly due to the Guarantee Fee increases. That Weekly Survey will get slammed back down because of yesterdays FedSpeak about 2014 rates, but in the long run that blip down will be swallowed up by the higher fees lenders are passing along.

FHA insured mortgage rates aren't impacted, but FHA Monthly Mortgage Insurance is. Per HUD sometime in March the 30 year MMI plan should rise from 1.1 per month to 1.2 or more. It's the slow boil that cooks an unaware frog.
My .02c

SGIP

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Offline IndieDev

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #31 on: January 31, 2012, 10:19:27 AM »
Rates nudge even lower this week. Japan 2.0 it is.
"You are just a whining loser here hoping that Irvine house price can be 50% off so that you can afford a house here." - NonFCB
"690k... 20% down 4.25 int rate .36 dti and you need a salary of $ 90,500" - VillagePeople
"People are paying for something else, and labeling it "good schools". - PatStar

Offline USCTrojanCPA

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #32 on: January 31, 2012, 10:24:49 AM »
Rates nudge even lower this week. Japan 2.0 it is.
Yup, we are in a world of deleveraging for the near term so Japan 2.0 here we come.  I'll go out on a limb and say that the US 10-year bond yield will trade below 1.50% this year.
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Offline rimrattler6

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #33 on: February 01, 2012, 08:59:04 AM »
I'm in a battle with BofA to get 4.00%, 0 points, no fees and a 60 day lock on a jumbo conforming...wish me luck! *puts on headgear and grabs sword*

I fully believe that 3.75 or 3.875 is not unreasonable for a 30 day lock though.....

SGIP is the man and helping me out!!! Major props to him!

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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 #34 on: February 01, 2012, 09:13:37 AM »
I'm in a battle with BofA to get 4.00%, 0 points, no fees and a 60 day lock on a jumbo conforming...wish me luck! *puts on headgear and grabs sword*

I fully believe that 3.75 or 3.875 is not unreasonable for a 30 day lock though.....

SGIP is the man and helping me out!!! Major props to him!
Good luck with BofA...with my experience both their service and rates leave a lot to be desired.
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Offline IndieDev

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #35 on: February 01, 2012, 09:57:34 AM »
BofA is barely solvent. Their offered rates should be in the high 7s.
"You are just a whining loser here hoping that Irvine house price can be 50% off so that you can afford a house here." - NonFCB
"690k... 20% down 4.25 int rate .36 dti and you need a salary of $ 90,500" - VillagePeople
"People are paying for something else, and labeling it "good schools". - PatStar

Offline Liar Loan

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #36 on: February 01, 2012, 12:22:15 PM »
BofA is barely solvent. Their offered rates should be in the high 7s.

I'm guessing most of their loans get shipped out these days.  The .gov is the only entity willing to hold long term paper at 4%.  BofA is fighting over the scraps of razor thin origination fees just like every other lender is.  (No-cost loans have the fees built into the rate.)  BofA has economies of scale and doesn't need to spend much on marketing relative to their size which gives them an edge.  Continued government bailouts are contingent on extending credit to the American people, otherwise I wouldn't be surprised if they exited residential mortgage completely to focus on credit cards.  Lots of money to be made there.

Offline freedomcm

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #37 on: February 02, 2012, 10:15:06 AM »
3.50% with half a point!

At least on the interwebs.  Is it really possible to get that kind of rate today?


Offline USCTrojanCPA

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #38 on: February 02, 2012, 10:19:08 AM »
3.50% with half a point!

At least on the interwebs.  Is it really possible to get that kind of rate today?


Sure it is as long as your middle FICO is 740+ and you have a DTI below 40-45% and put 25% or more down and have documentable income for the past 2+ years.  These are getting to where it's almost free to borrow money (when you take into account inflation).
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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #39 on: February 02, 2012, 10:27:53 AM »
Big banks, no. Smaller mortgage bankers (like where I'm at now...) depends on circumstance, but difficult. Interweb lenders? Case by Case. AIM loan showed 1.5 points today. Amerisave showed .375. Both lenders had their own fees running about $1,200 (processing / appraisal, etc)  with title and escrow being charged based  on their preferred referral partners.

As noted earlier, you've got to be extraordinarily clean (75% LTV, impounding, standard income) and must close in 30 days. That's a steal frankly. If you can lock and close it in that time line, great!

My .02c
My .02c

SGIP

Offline IndieDev

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #40 on: February 02, 2012, 10:28:34 AM »
These rates are the only reason rental parity even exist in certain OC cities. So if you have the down payment, even with the downward market pressure, buying now in certain areas actually can make sense. This hasn't been seen in a long time.
"You are just a whining loser here hoping that Irvine house price can be 50% off so that you can afford a house here." - NonFCB
"690k... 20% down 4.25 int rate .36 dti and you need a salary of $ 90,500" - VillagePeople
"People are paying for something else, and labeling it "good schools". - PatStar

Offline rkp

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #41 on: February 02, 2012, 10:58:28 AM »
These rates are the only reason rental parity even exist in certain OC cities. So if you have the down payment, even with the downward market pressure, buying now in certain areas actually can make sense. This hasn't been seen in a long time.

wow - didnt think i would read those kinds of words from you Indie.  what areas do you have in mind?

Offline USCTrojanCPA

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #42 on: February 02, 2012, 11:04:55 AM »
These rates are the only reason rental parity even exist in certain OC cities. So if you have the down payment, even with the downward market pressure, buying now in certain areas actually can make sense. This hasn't been seen in a long time.

wow - didnt think i would read those kinds of words from you Indie.  what areas do you have in mind?
Just to name a few....Yorba Linda, Anaheim Hills, Orange, Aliso Viejo, RSM are a few.  There are properties that trade below rental parity in those cities too.
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Offline IndieDev

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #43 on: February 02, 2012, 11:22:01 AM »
These rates are the only reason rental parity even exist in certain OC cities. So if you have the down payment, even with the downward market pressure, buying now in certain areas actually can make sense. This hasn't been seen in a long time.

wow - didnt think i would read those kinds of words from you Indie.  what areas do you have in mind?

Yeah I know I'm sort of seen as a perma bear on this forum, but that's simply not the case. If I was I would not have just closed on a home in CDM.

That being said, I'm not saying there are great deals out there right now, because with the exception of short sale fraud, or a unicorn, the deals out there aren't great. There are some homes on the market that are simply priced fair when you compare the alternative (renting). I'd say USCTrojan's list makes the cut, I'd also add north and south Laguna Niguel, non-coastal areas of Dana Point, Foothill Ranch, and even some parts of Irvine (older Irvine). Ladera Ranch is getting close, but when you figure in their tax rate, MR, and HOA, Ladera has another 5% to go before it starts looking better. Mission Viejo is still too bubbly for some reason when compared to rents but even in that city there are communities at rental parity.

Places not their yet, but could be there in the next 12-24 months, just off the top of my head: Columbus Grove, Tustin Fields, any of the Woodbury communities, Quail Hill, Northpark, Northwood, and Tustin Ranch. If you are planning to buy in those communities, I'd say a solid no for right now.

Still there are some pie-in-the-sky knife catchers that put their homes on the market and sit for 6 months because they still think it's 2007, just let those guys sit, their homes will be REO inventory in 2013-2014.

The market is becoming more friendly towards buyers. I wouldn't say we've turned the corner yet, because if not for these artificially low rates rental parity would not exist.

So if you're buying simply for a place to live and not trying to build a profit driven rental empire, now isn't a horrible time, it might not be the best time, but it's not going to destroy you financially as long as your are realistic about what you can afford, and have the down payment (and reserves).
"You are just a whining loser here hoping that Irvine house price can be 50% off so that you can afford a house here." - NonFCB
"690k... 20% down 4.25 int rate .36 dti and you need a salary of $ 90,500" - VillagePeople
"People are paying for something else, and labeling it "good schools". - PatStar

Offline IndieDev

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Re: How low can we go? 30 yr fixed at 3.75% with no fees...
« Reply #44 on: February 02, 2012, 11:43:42 AM »
Just to add, there are communities that won't hit rental parity no matter how long you wait, and weren't even at rental parity before the bubble: Balboa Island, Balboa Peninsula, CDM, Newport Coast, Laguna Beach, Monarch Beach(Dana Point). Obviously low inventory, and being beach communities are the real price props there. Not saying prices in those communities won't come down, because they will, but I don't see rental parity being part of the discussion there.
"You are just a whining loser here hoping that Irvine house price can be 50% off so that you can afford a house here." - NonFCB
"690k... 20% down 4.25 int rate .36 dti and you need a salary of $ 90,500" - VillagePeople
"People are paying for something else, and labeling it "good schools". - PatStar

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