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

NEW -> Contingent Buyer Assistance Program
bones said:
USCTrojanCPA said:
hello said:
Perspective said:
USCTrojanCPA said:
ps9 said:
5/1 arm jumbo, 60LTV, 2.625% with credit to close, check zillow
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Because I transferred over $250k+ of new money to BofA/Merrill Lynch, I got a 1/8% rate reduction on my 7/1 ARM rate.  So my rate is now 2.625% with .33pts credit.  Could have gotten a 1/4% rate reduction if I would have transferred over $600k+ but alas I have a bad car vice.  :'(
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$250K+ invested through BoA is gonna cost you more than you'll be saving by lowering your mortgage rate an eighth. These big banks are the absolute worst. I have a new mortgage with Wells, and they tried to get me to do this. I met with a Wells banker and went over some of the options, all expensive.

I'm a "broad-based index equity fund" kind of guy. I like expense ratios around ten bps. These big banks' funds are insanely more expensive.
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you dont need to invest this money.
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Yup, I'm not gonna have some joe blow invest my money and charge me money for it.  I opened a personal trading account with Merrill and will continue trading myself. 
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How long do you have to keep the "relationship" money there?
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Gotta read the fine print but worst case it's only 90 days.  The $250k+ has to be ABOVE & BEYOND what funds I'm using for the downpayment (aka that money has to remain there after I close on the home). 
 
Irvine Dream said:
USCTrojanCPA said:
ps9 said:
5/1 arm jumbo, 60LTV, 2.625% with credit to close, check zillow
Click to expand...
Because I transferred over $250k+ of new money to BofA/Merrill Lynch, I got a 1/8% rate reduction on my 7/1 ARM rate.  So my rate is now 2.625% with .33pts credit.  Could have gotten a 1/4% rate reduction if I would have transferred over $600k+ but alas I have a bad car vice.  :'(
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Will the 0.33 pts credit cover the closing cost?  So essentially a no-cost rate for 2.625%, awesome. And you still were able to provide the down payment and transfer over $250K new money?  Vow, Can I work for/with you?  I will switch careers.  please....
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No, the .33pts credit will translate to about $3k in credit towards closing costs so I'll have another $5k-$6k additional closing costs to cover on my own.  Yeah, the $250k+ is in addition to my downpayment funds.  If my real estate business continues to grow, I may need an assistant.  :D
 
Wells wanted the money in actively managed Wells funds with insane expense ratios. I didn't even bother ask how long it would need to be locked-up. There was no need to ask nor listen to anything further at that point.
 
Hire me!

I find moving the money to be a pain so I never do it either. Not worth it for the 1-2 year loan term that I'm usually in.
 
USCTrojanCPA said:
If my real estate business continues to grow, I may need an assistant.  :D
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OK, signed up for a real estate course, yup  seriously!!!.  I can help you part time on weekends or weekday nights  once I pass the exam >:D
 
bones said:
Hire me!

I find moving the money to be a pain so I never do it either. Not worth it for the 1-2 year loan term that I'm usually in.
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Ok, can you help me get more business?  ;) 

Moving the money was easy, just send a wire....easy peasy. 
 
hello said:
USCTrojanCPA said:
Homer_Simpson said:
did an old person die in the one by the golf course?? my colleague lives next door  :o
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Which one, the single story with the golf course view or the 2 story home in escrow now?
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There are two other single story homes that are exact same models as USC's coming out.  One with golf course view, other just around the corner.  Both had people die in the house ironically...
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Yeah at MUCH higher prices....$1.3m and $1.35m.  I'm not a big fan of paying for other people's upgrades, much rather buy a blank slate and upgrade it from scratch to my liking.  :D
 
BTW - The funds do not have to sit at the Bank for any length of time, however there are incentives if the funds are resting in place for 90 days. YMMV. Another benefit is that you can for the most part move "like for like": Have X for expense ratios and can demonstrate? See if we can match.

Sure, the Bank would love to see a deeper financial relationship develop. If it doesn't after x time, no harm, no foul. If it does, all the better.

My .02c

Soylent Green Is People.
 
More bad news from overseas. Markets falling. 10y T under 1.50 (Monday AM, 6/27). Mortgage News Daily shows MBS's rallying.  I call my lender and..... rates have gone up??? Some reasons for it:

1) Pricing can get artificially worse because of volume. Many lenders have limited staff and with 1,000 new deals an hour, that fire hose flow of business has to be turned down a bit. The best way to control this is flat pricing.

2) Pricing is actually worse because of accelerated prepayments. Example: In February, Lender A offers a 3.5% rate with a 2.0 rebate to cover closing costs. The deal closes in May with a June 1st payment. By June 27th, Lender A gets a payoff demand because Lender B is offering 3.375% with a 2.0 point rebate to cover closing costs. Whoever invested in Lender A's loan expected at least 12 months of payments to make the deal a rational one. Now that the loan is worthless, why should investors sink money into vintage MBS's? When investors worry about prepayment, lenders tend to be restrictive on aggressively pricing.

Long term, where are rates going? If I knew, I'd be writing this from the Bellagio. The general trend is lower. The specific mortgage rate trend? It should follow, but not immediately. Just as savers don't see much sense in buying 5 year CD's at a 1.0% return, Banks don't see any rush to offer sub 3.0% 30 year fixed rates (yet... IMHO).

My .02c

SGIP

 
Stuff like this makes me wonder if we will ever see rates near the 7s (or even the 5s) ever again.

Too much uncertainty.

But, there are still those people who keep saying to buy now or be rated out forever.
 
irvinehomeowner said:
Stuff like this makes me wonder if we will ever see rates near the 7s (or even the 5s) ever again.

Too much uncertainty.

But, there are still those people who keep saying to buy now or be rated out forever.
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Just like I told Panda, I don't see rates going into the 5s for a long, long time.
 
USCTrojanCPA said:
irvinehomeowner said:
Stuff like this makes me wonder if we will ever see rates near the 7s (or even the 5s) ever again.

Too much uncertainty.

But, there are still those people who keep saying to buy now or be rated out forever.
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Just like I told Panda, I don't see rates going into the 5s for a long, long time.
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I don't see it either.  We might see 5s in the distant future but I don't think I'll ever see a rate over 7 in my lifetime again. 
 
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