How low can we go? 30 yr fixed at 3.75% with no fees...
- Thread starter ps99472
- Start date
sgip
Well-known member
Web ads for every company show the most vanilla of loan terms so as to include as many potential customers as possible. Key is to view these as indicator numbers, not deliverable in your specific situation.
Call a Wells/Chase/Citi/BofA/etc company with a 4.125% rate advertised and by the time the interview is over, the rate will be somewhere closer to 4.00 or 4.25 because of FICO's, property types, occupancy, length of lock, impounds, county property is in, ..... and ... and....
My .02c
Call a Wells/Chase/Citi/BofA/etc company with a 4.125% rate advertised and by the time the interview is over, the rate will be somewhere closer to 4.00 or 4.25 because of FICO's, property types, occupancy, length of lock, impounds, county property is in, ..... and ... and....
My .02c
usctrojancpa
Well-known member
Rates are creeping towards 4% on the 30-year fixed, 3.25% on the 7-year ARM, and 3.50% on the 10-year ARM. Looks like we might be heading back towards the 3s on the 30-year fixed rate, especially if we get any China tariff or Gov't shutdown heartburn.
sgip
Well-known member
So yeah... with the Fed announcing a bond buy spree, it's ramping up to a refinance season for homeowners.
Some caveats this go round:
1) Tax laws have changed significantly. Before chasing the lowest possible rate, take a good hard look at what the impact might be to your tax position. Might not be any impact, but better to find out first than to be surprised later.
2) 30 day refinances might be difficult to close as volume spikes. Set your expectations accordingly.
3) Some lenders providing very low rates are going to require your 2018 1040's. Be ready with a 2018 Profit and Loss plus Balance Sheet, and a 2019 YTD Profit and Loss, plus Balance sheet if you are self employed and have extended your 1040's to October.
4) Also, when shopping, don't use Experian Vantage Score data (CreditKarma, etc) because the CK 800 score using the Vantage system is likely going to end up being a Lender mortgage credit score of 740, causing much confusion over your rates and costs. Get a real credit report run first, then shop if needed after that.
5) Resist the temptation to time the rate market. No one knows where rates will be in 3 months, 3 weeks, or 3 hours from now. If the deal fits, take it and don't look back. Remember, this potential rate improvement environment can be a spike, not a trend.
Source article:
http://www.mortgagenewsdaily.com/mortgage_rates/blog/905137.aspx
Some caveats this go round:
1) Tax laws have changed significantly. Before chasing the lowest possible rate, take a good hard look at what the impact might be to your tax position. Might not be any impact, but better to find out first than to be surprised later.
2) 30 day refinances might be difficult to close as volume spikes. Set your expectations accordingly.
3) Some lenders providing very low rates are going to require your 2018 1040's. Be ready with a 2018 Profit and Loss plus Balance Sheet, and a 2019 YTD Profit and Loss, plus Balance sheet if you are self employed and have extended your 1040's to October.
4) Also, when shopping, don't use Experian Vantage Score data (CreditKarma, etc) because the CK 800 score using the Vantage system is likely going to end up being a Lender mortgage credit score of 740, causing much confusion over your rates and costs. Get a real credit report run first, then shop if needed after that.
5) Resist the temptation to time the rate market. No one knows where rates will be in 3 months, 3 weeks, or 3 hours from now. If the deal fits, take it and don't look back. Remember, this potential rate improvement environment can be a spike, not a trend.
Source article:
http://www.mortgagenewsdaily.com/mortgage_rates/blog/905137.aspx
Wells fargo advertising 3.75% jumbo rates today. Just yesterday it was 3.875, last week it was 4.0 and two weeks ago 4.25%. Literally 0.5% drop in the past few weeks. Housing has become 6% more affordable with these rate changes in the past 2 weeks. If this doesnt boost sales, then housing is in real trouble.
meccos12 said:
Yes - this is my point in the other housing thread . Either we are headed into a recession and time to de-risk everything in your life or housing is bottoming out here. Otherwise there is a logical inconsistency. I am not talking about the higher end which is more affected by SALT deduction caps.
usctrojancpa
Well-known member
fortune11 said:
If we are going into a recession then rates are going lower and the Fed will be forced to cut rates. I remember telling my clients late last year that well see rates in the 3%s before we see anything over 5%.
irvinehomeowner
Well-known member
bones said:
Someone said refinancing isn?t easy.
irvinebullhousing
Well-known member
Can you share the ?big bank?? What conditions must you possess to get the 2.65, relationships. Big total assets 500k combine accounts?
These rate are super low.
These rate are super low.
sgip
Well-known member
It's possible to push a rate way, way down, with each method listed below, in order of importance:
FICO - Lenders work in 20 point ranges. If your score is 761, a rate might be 3.250. With a 781 FICO, the rate might be 3.125 and with an 801 score the rate might start at 3.00. For discussion purposes, let's use the middle FICO of 781 and a 3.125 rate.
LTV - Most of the best price products seen on line have a 75% Loan To Value or lower starting point. That 781 FICO, at 80% Loan To Value might rise to a 3.250 rate. At 70% the rate might drop back to 3.125. At 60%, perhaps the rate drops to 2.875.
Relationship. Got cash or securities to move? Big Banks's like the sound of that! Some scale their rate benefits at $100k, but the majority of banks will move the needle at $250k, $500k, $750k, and $1m.
If the starting rate at 781 FICO, and at 60% LTV is 2.875, and you move $750k to a bank, now you might see 2.50 or better. These funds aren't held hostage. It's possible to deposit, close, and move back, but that's kind of a hassle. The bank holding the funds might have incentives to keep the funds with them so consider leaving them for a bit if the benefit makes sense.
Relationship. Wait... didn't you just say this? Yes, but now I'm using it in a different context. Large companies with payroll services managed through some banks may have additional discounts offered to their employees for purchase or refinance loans. Not every company has a relationship based discount option, but it's a good idea to ask. If you're with a brand name silicon valley company, it's highly likely a discount exists.
Loan Size. Some borrowers took out $460,000 loans last year and enjoyed "Jumbo Pricing". The Conforming Loan Limit was approximately $450k so Big Bank's allow these loans to fund using portfolio pricing. Today, with the Standard Conforming Loan limit reaching $484k now, a $460k refinance must go Standard Conforming and the rates are not as sexy as those bank numbers. A good loan officer can work around some of these issues with you.
Occupancy. Owner occupied - best terms. Second Home - still pretty good. Investment.... ouch. If you've got a national average 30 year fixed rate of 3.99% (Freddie Mac) it's a pretty good bet you can improve on that average as noted above. When it comes to investment properties, add .75 or more to that average rate, even more with an ARM refinance product. Lenders aren't that enthusiastic about taking on rental property refinances so be ready for some pretty eye opening numbers when you call in.
Hope this helps. Questions? Ask away.
My .02c
SGIP
FICO - Lenders work in 20 point ranges. If your score is 761, a rate might be 3.250. With a 781 FICO, the rate might be 3.125 and with an 801 score the rate might start at 3.00. For discussion purposes, let's use the middle FICO of 781 and a 3.125 rate.
LTV - Most of the best price products seen on line have a 75% Loan To Value or lower starting point. That 781 FICO, at 80% Loan To Value might rise to a 3.250 rate. At 70% the rate might drop back to 3.125. At 60%, perhaps the rate drops to 2.875.
Relationship. Got cash or securities to move? Big Banks's like the sound of that! Some scale their rate benefits at $100k, but the majority of banks will move the needle at $250k, $500k, $750k, and $1m.
If the starting rate at 781 FICO, and at 60% LTV is 2.875, and you move $750k to a bank, now you might see 2.50 or better. These funds aren't held hostage. It's possible to deposit, close, and move back, but that's kind of a hassle. The bank holding the funds might have incentives to keep the funds with them so consider leaving them for a bit if the benefit makes sense.
Relationship. Wait... didn't you just say this? Yes, but now I'm using it in a different context. Large companies with payroll services managed through some banks may have additional discounts offered to their employees for purchase or refinance loans. Not every company has a relationship based discount option, but it's a good idea to ask. If you're with a brand name silicon valley company, it's highly likely a discount exists.
Loan Size. Some borrowers took out $460,000 loans last year and enjoyed "Jumbo Pricing". The Conforming Loan Limit was approximately $450k so Big Bank's allow these loans to fund using portfolio pricing. Today, with the Standard Conforming Loan limit reaching $484k now, a $460k refinance must go Standard Conforming and the rates are not as sexy as those bank numbers. A good loan officer can work around some of these issues with you.
Occupancy. Owner occupied - best terms. Second Home - still pretty good. Investment.... ouch. If you've got a national average 30 year fixed rate of 3.99% (Freddie Mac) it's a pretty good bet you can improve on that average as noted above. When it comes to investment properties, add .75 or more to that average rate, even more with an ARM refinance product. Lenders aren't that enthusiastic about taking on rental property refinances so be ready for some pretty eye opening numbers when you call in.
Hope this helps. Questions? Ask away.
My .02c
SGIP
irvinebullhousing
Well-known member
Thanks SGIP. Those are informative break down.
As for other posted remarkable rates without fully disclose lender name, I wonder what is the real purpose?
I know SGIP is working a national brand. And is highly reputable.
As for other posted remarkable rates without fully disclose lender name, I wonder what is the real purpose?
I know SGIP is working a national brand. And is highly reputable.
