How low can we go? 30 yr fixed at 3.75% with no fees...
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Cornflakes
Active member
yes2 said:
I recently closed jumbo refi with USbank at 2.875 7-year ARM. I know it is a bit high but my rate lock was when the rates were not rock bottom and I have some other conditions in the loan.
Cornflakes
Active member
Is there such a thing called 'Jumbo conforming'?
It is either a conforming or jumbo. Conforming could be different amount in different zip codes.
It is either a conforming or jumbo. Conforming could be different amount in different zip codes.
sgip
Well-known member
@Cornflakes.
The terms for loan types are often mixed and confusing. Here's a quick guide:
$1-$510,400 - "Standard Conforming". This is the national conforming loan limit for Agency (FNMA/FHLMC) loans.
$510,401 - varying amounts per county - up to $765,600 - High Cost Area Jumbo Conforming loans. (HCAJC). Local County Limits:
LA-OC-$765,600
VENTURA - $713,000
SAN DIEGO - $701,500
RIVERSIDE-SAN BERNARDINO - NA - $510,400 is max limit.
Limits are updated late November each year. Some lenders will fund at the new limits in December given that the first payment and the sale of the loan to the Agencies is in the next year.
Some Banks will fund "Portfolio Jumbo" loans within the HCAJC limit, starting at $510,401 all the way up to $5m or so. Other Banks only use their Portfolio Jumbo loans to fund at $765,601 and above.
Why are some lenders HCAJC loan pricing so out of whack with other lenders? Each lenders contract with the Agencies is different. Some contracts say you can fund 80% of your Agency saleable loans under $510,400 and 20% with HCAJC balances. Once that 20% is used up, pricing options narrow considerably through some lenders.
Hope this helps.
My .02c
The terms for loan types are often mixed and confusing. Here's a quick guide:
$1-$510,400 - "Standard Conforming". This is the national conforming loan limit for Agency (FNMA/FHLMC) loans.
$510,401 - varying amounts per county - up to $765,600 - High Cost Area Jumbo Conforming loans. (HCAJC). Local County Limits:
LA-OC-$765,600
VENTURA - $713,000
SAN DIEGO - $701,500
RIVERSIDE-SAN BERNARDINO - NA - $510,400 is max limit.
Limits are updated late November each year. Some lenders will fund at the new limits in December given that the first payment and the sale of the loan to the Agencies is in the next year.
Some Banks will fund "Portfolio Jumbo" loans within the HCAJC limit, starting at $510,401 all the way up to $5m or so. Other Banks only use their Portfolio Jumbo loans to fund at $765,601 and above.
Why are some lenders HCAJC loan pricing so out of whack with other lenders? Each lenders contract with the Agencies is different. Some contracts say you can fund 80% of your Agency saleable loans under $510,400 and 20% with HCAJC balances. Once that 20% is used up, pricing options narrow considerably through some lenders.
Hope this helps.
My .02c
Cornflakes
Active member
Thanks SGIP.
Like always, your $0.02 are worth gold...
Like always, your $0.02 are worth gold...
aquabliss said:
I think someone posted that Loan Store turned around and sold to Fannie/Freddie, then ended up somewhere else...I got notification from Owning via email/docs that it was sold and how to pay Loan Store via mail, but since it's not due until Oct 1st, I'm waiting for notification from Loan Store as well or if they sold it.
I am being informed by several lenders that the 0.5% refinance fee will go into effect on their price sheets next week. And all loans need to close/fund before November 1 to avoid this fee. I expect the rate to get worse next week as there will be a high volume of rate locks early in the week.
nosuchreality
Well-known member
So October refinances dry up and rates plummet?
sgip
Well-known member
I spoke "Lender A" who added the LLPA today to their conforming product lines. One broker resource - "Lender B" is holding out until November 1st (an outlier IMHO).
Lender B's loan rate for a unique refinance deal is 2.875% for a 1.125 point cost today.
Lender A who added the LLPA today to their rates and fees was at 2.875% for a 1.375 point cost.
The added fee is .50, but in this case Lender A's pricing adjusted less than a full 1/2 percent compared to another company with "no LLPA". Why is this the case? Lender A's base fees and profit margins are lower than Lender B's, softening the impact of the LLPA add.
The fee is coming, but the impact might not be as significant as originally thought.
My .02c
Lender B's loan rate for a unique refinance deal is 2.875% for a 1.125 point cost today.
Lender A who added the LLPA today to their rates and fees was at 2.875% for a 1.375 point cost.
The added fee is .50, but in this case Lender A's pricing adjusted less than a full 1/2 percent compared to another company with "no LLPA". Why is this the case? Lender A's base fees and profit margins are lower than Lender B's, softening the impact of the LLPA add.
The fee is coming, but the impact might not be as significant as originally thought.
My .02c
id_rather_be_racing
New member
Wanted to provide a quick datapoint for a refi w/ LenderFi via backdoor application from the bogleheads refi megathread (Hi Chikid24! see you posting there all the time)
LTV~64% high conforming 30-year fixed @2.625% (from 3.5%). Applied 8/7, locked rate 8/13, signed closing docs w/ notary on 9/4, and loan funded today 9/11. Just over a month to close, even with a title report delay.
LenderFi was pretty good, but note that they don't provide frequent updates, so you'll have to email 'em to get a response. However, when you DO email them, I get a response in less than 24 hours, which I found very impressive even with the hurricane of apps they received which caused them to shutdown their main page in the first place.
I applied to owning and loancabin as well, but owning required lower LTVs to qualify for the advertised rate (at the time was 2.625% for high conforming) and loancabin was not competitive whatsoever.
LTV~64% high conforming 30-year fixed @2.625% (from 3.5%). Applied 8/7, locked rate 8/13, signed closing docs w/ notary on 9/4, and loan funded today 9/11. Just over a month to close, even with a title report delay.
LenderFi was pretty good, but note that they don't provide frequent updates, so you'll have to email 'em to get a response. However, when you DO email them, I get a response in less than 24 hours, which I found very impressive even with the hurricane of apps they received which caused them to shutdown their main page in the first place.
I applied to owning and loancabin as well, but owning required lower LTVs to qualify for the advertised rate (at the time was 2.625% for high conforming) and loancabin was not competitive whatsoever.
irvinebullhousing
Well-known member
aquabliss said:
Does it matter who own the loans? As long as you pay it every month and bob or sue is the owner of the koan who care? You still live in.
aquabliss
Well-known member
Compressed-Village said:
No doesn?t matter I just want the dust to settle. My first payment is due on 10/1, so I get a letter from owning saying that I should pay The Loan Store by 10/1. Then less than a week later I get a letter from the The Loan Store saying I should not pay them anything after 9/30, further payments should go to PHH. I guess that means I should never pay The Loan Store anything since my first payment isn?t due until 10/1?
Haven?t received anything from PHH yet. Guess I?ll wait to hear from them next week via snail mail before doing anything.
Cornflakes
Active member
Owner does not matter. Servicer do to an extent. Some servicers have terrible systems and processes. If and when you need customer service from them, it may leave you with certain kind of memorable experience.
Few months ago, I placed two requests on the same day to close out escrow impounds and issue me a refund to two different servicers. Mr. Cooper was one time deal, one phone call and I had the check in my mailbox within two weeks. Another servicer made me jump through few hoops, several phone calls, and 3 months later they finally got around it.
I had one servicer in past, their system sucked so bad that I could not schedule a payment to a future date. I have to log in to their site the day I want to make the payment. It is a huge inconvenience for me in my busy life. (no, I do not use bank's bill pay).
Few months ago, I placed two requests on the same day to close out escrow impounds and issue me a refund to two different servicers. Mr. Cooper was one time deal, one phone call and I had the check in my mailbox within two weeks. Another servicer made me jump through few hoops, several phone calls, and 3 months later they finally got around it.
I had one servicer in past, their system sucked so bad that I could not schedule a payment to a future date. I have to log in to their site the day I want to make the payment. It is a huge inconvenience for me in my busy life. (no, I do not use bank's bill pay).
scubasteve
Active member
aquabliss said:
Still waiting for mine. Do they give an option to pay online?