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

ps99472

New member
Just got an email from my provident broker today for 30 yr at 3.75% with no fees..  conforming jumbo at 3.875% no fees.. wish I have a house to buy...
 

Liar Loan

Well-known member
ps99472 said:
Just got an email from my provident broker today for 30 yr at 3.75% with no fees..  conforming jumbo at 3.875% no fees.. wish I have a house to buy...

How many points?
 

sgip

Well-known member
Provident shows at 3.75% for a $417,000 1st and a $625,000 value Single Family Home a 3.75% loan rate with .50 rebate points ($2,085). Their fees are $1,099 for an Administration Fee, Appraisal - assume $350, and all third party fees charged - likely around $1,400. Adding up those costs there are some fees that the rebate won't cover. If you have a Condo, sub 740 FICO, don't want to impound, or other particulars that Provident (and all other lenders also must take into account)  the rates and rebates shown will be different.

Provident locks the rate only after your loan is submitted to their AUS system and an "Approval" is granted:

https://www.provident.com/Origination/Information/RatesAndPricing/RateLockNotes.aspx

If your loan flips from an Approve to an un-Approved loan the rate lock could be voided. That is really a pretty rare occurance, but keep it in mind. Sometimes your loan is the exception that proves the rule.

Rates are absolutely low, but not going to go much lower. We've had some continuing bad news from Europe plus a series of very good Treasury debt auctions that has for the moment forced rates to where they are at this moment. It's a fleeting opportunity, just as it was in September of this year. A week after hitting the mid 3% range low, some lenders were priced over 4.0% due to news that wasn't mortgage rate friendly.

My .02c
 

usctrojancpa

Well-known member
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. 
 

rkp

New member
is 3.75 the absolute lowest for 30 year fixed no points loan or is it possible to go lower?
 

usctrojancpa

Well-known member
rkp said:
is 3.75 the absolute lowest for 30 year fixed no points loan or is it possible to go lower?
I think it's either at an all-time low or very close to it.  Can rates go lower?  Sure why.  People were asking the same thing when rates touched 4% and I also said they could go lower.
 

usctrojancpa

Well-known member
irvinehomeowner said:
Isn't there a limit to how low it can go due to carrying costs? I remember SGIP threw out some numbers regarding that.
I think mortgages in Japan can be had in the 2s so that means there's still some more room to move down.
 

usctrojancpa

Well-known member
homer_simpson said:
3.5% with no closing costs???  :-\  Man!!!
Yup, that's what my buyer is looking at.....maybe even a 3.375% rate depending on the cost.  If you (or your realtor) ask, sometimes you do receive.  ;)
 

usctrojancpa

Well-known member
irvinehomeowner said:
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.
 

qwerty

Well-known member
USCTrojanCPA said:
irvinehomeowner said:
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.
 

usctrojancpa

Well-known member
qwerty said:
USCTrojanCPA said:
irvinehomeowner said:
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.
 

rkp

New member
USCTrojanCPA said:
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?
 

usctrojancpa

Well-known member
rkp said:
USCTrojanCPA said:
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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