What's going into escrow - Irvine and maybe some Tustin too

[quote author="ipoplaya" date=1213235996]Please note that there appears to have been very little downward movement in prices, at least in my search spec, since March...</blockquote>


Give the WTF prices time and pressure and even POS homes can become diamonds ;-)
 
[quote author="Masterofdamoney" date=1213218030][quote author="lendingmaestro" date=1213185583]he's talking about the price for the outstanding GNMA, FNMA and FHLMC bonds. The market for these bonds (as well as treasuries) have gotten spanked since last Friday. When bond prices fall, yields rise. When bond yields rise all structured investment vehicles will need to pay higher rates. Higher rates are ultimatelypassed on to the borrower.



If I've learned one thing from this thread it is this: There are still idiots buying homes in Irvine. They either don't speak vely goord Engrish, don't read IHB, or both. The misinformed are paying a terrible price.</blockquote>


Correct.



Curious to see what today's pricing will look like. I will throw it up when it arrives this morning.



Right now the 5.5% FNMA bond is up this morning by +59bps. Considering the massive pounding it took the last couple days, that's no surprise.



Realistically, best case scenario (850 fico, 20% DTI, 50% LTV situation, NON jumbo) you are looking at mid 6% range right now on 30 year conventional. That's without the bank/broker making any money. Start lowering that fico, raising that ltv, dti, etc... and it gets more ugly.</blockquote>


The relatively cheap mtgcapital.com now has 30-year conforming at 6.25% with no points. Has moved up quite a bit of late.
 
[quote author="ipoplaya" date=1213249309][quote author="Masterofdamoney" date=1213218030][quote author="lendingmaestro" date=1213185583]he's talking about the price for the outstanding GNMA, FNMA and FHLMC bonds. The market for these bonds (as well as treasuries) have gotten spanked since last Friday. When bond prices fall, yields rise. When bond yields rise all structured investment vehicles will need to pay higher rates. Higher rates are ultimatelypassed on to the borrower.



If I've learned one thing from this thread it is this: There are still idiots buying homes in Irvine. They either don't speak vely goord Engrish, don't read IHB, or both. The misinformed are paying a terrible price.</blockquote>


Correct.



Curious to see what today's pricing will look like. I will throw it up when it arrives this morning.



Right now the 5.5% FNMA bond is up this morning by +59bps. Considering the massive pounding it took the last couple days, that's no surprise.



Realistically, best case scenario (850 fico, 20% DTI, 50% LTV situation, NON jumbo) you are looking at mid 6% range right now on 30 year conventional. That's without the bank/broker making any money. Start lowering that fico, raising that ltv, dti, etc... and it gets more ugly.</blockquote>


The relatively cheap mtgcapital.com now has 30-year conforming at 6.25% with no points. Has moved up quite a bit of late.</blockquote>


Try to get that from them and close on it. I double-triple dare you. :)



Unfortunately, I have to deal with this stuff on a daily basis. I know what can be sold to FNMA and for how much on the secondary market.



And then the bank, banks account executive, broker, loan officer, processor, underwriter, notary, appraiser, title rep, title company, escrow officer, escrow company, etc. all need to get paid. Oh, and keep the lights on at all these places, too. :)
 
[quote author="Masterofdamoney" date=1213257924]Try to get that from them and close on it. I double-triple dare you. :)



Unfortunately, I have to deal with this stuff on a daily basis. I know what can be sold to FNMA and for how much on the secondary market.



And then the bank, banks account executive, broker, loan officer, processor, underwriter, notary, appraiser, title rep, title company, escrow officer, escrow company, etc. all need to get paid. Oh, and keep the lights on at all these places, too. :)</blockquote>


I have used MTG previously and have never had an issue getting a posted rate rocked up unless the market was moving hard during the day with multiple rate adjustments. There posted rates are with a $900 lender fee.



Maybe all of sudden they have changed operating modes and are advertising unattainable teaser rates, but I'm sure they haven't done that over the past few years...
 
yup, I just checked on bankrate.com for conforming, 20%, 30yr and get in the low 6% range with no points/small fee



from multiple lenders.



that's only up ~30bps in 3 months, if i remember correctly.
 
I just checked a local wholesale lender, 6.5% would be a normal deal, and 6.375% would be a friends and family deal for. If mtg capital can do 6.25%, which they have been in the same ballpark as the lender I just looked at, then that is a good deal. It could be a wholesale lender out there who wants to beat everyone on the market and hope that the volume can make up for the difference in pricing. Or, they are hoping they won't qualify for that product and flip them to another more profitable product.



Come on MODM, you know the game, you know there is always a wholesale lender out there who wants to use FNMA 30 year as a loss leader for ulterior reasons. Remember good ole Greenpoint, they used kill it towards quarter end on 30yr FNMA fixed rates. Volume bonuses FTW!
 
[quote author="graphrix" date=1213282843]I just checked a local wholesale lender, 6.5% would be a normal deal, and 6.375% would be a friends and family deal for. If mtg capital can do 6.25%, which they have been in the same ballpark as the lender I just looked at, then that is a good deal. It could be a wholesale lender out there who wants to beat everyone on the market and hope that the volume can make up for the difference in pricing. Or, they are hoping they won't qualify for that product and flip them to another more profitable product.



Come on MODM, you know the game, you know there is always a wholesale lender out there who wants to use FNMA 30 year as a loss leader for ulterior reasons. Remember good ole Greenpoint, they used kill it towards quarter end on 30yr FNMA fixed rates. Volume bonuses FTW!</blockquote>


Back in the day, they used to do it. We have a new name for those banks now: bankrupt.



:) :) :)



FYI FNMA bonds are falling apart again this morning.... lowest point they've been in over a year.... ick.
 
[quote author="ipoplaya" date=1213235996]Two closes yesterday, one a nice early 2004 rollback in West Irvine. Someone got themselves a lovely home on top of the Jamboree racetrack!



<a href="http://www.ipoplaya.com/iposhiller.pdf">Updated IPO-Shiller</a>



Please note that there appears to have been very little downward movement in prices, at least in my search spec, since March...</blockquote>




All is almost right with the world again, 41 New Dawn fell out.

I agree with you Ipop.

Look at the close on Zielian Ct., $242K above list.

Unbelievable!
 
[quote author="Masterofdamoney" date=1213313328][quote author="graphrix" date=1213282843]I just checked a local wholesale lender, 6.5% would be a normal deal, and 6.375% would be a friends and family deal for. If mtg capital can do 6.25%, which they have been in the same ballpark as the lender I just looked at, then that is a good deal. It could be a wholesale lender out there who wants to beat everyone on the market and hope that the volume can make up for the difference in pricing. Or, they are hoping they won't qualify for that product and flip them to another more profitable product.



Come on MODM, you know the game, you know there is always a wholesale lender out there who wants to use FNMA 30 year as a loss leader for ulterior reasons. Remember good ole Greenpoint, they used kill it towards quarter end on 30yr FNMA fixed rates. Volume bonuses FTW!</blockquote>


Back in the day, they used to do it. We have a new name for those banks now: bankrupt.



:) :) :)



FYI FNMA bonds are falling apart again this morning.... lowest point they've been in over a year.... ick.</blockquote>


Yeah, the bond market action isn't doing me any favors with regards to selling my condo. I can see my equity eroding more by the day as rates rise...
 
[quote author="Masterofdamoney" date=1213313328][quote author="graphrix" date=1213282843]I just checked a local wholesale lender, 6.5% would be a normal deal, and 6.375% would be a friends and family deal for. If mtg capital can do 6.25%, which they have been in the same ballpark as the lender I just looked at, then that is a good deal. It could be a wholesale lender out there who wants to beat everyone on the market and hope that the volume can make up for the difference in pricing. Or, they are hoping they won't qualify for that product and flip them to another more profitable product.



Come on MODM, you know the game, you know there is always a wholesale lender out there who wants to use FNMA 30 year as a loss leader for ulterior reasons. Remember good ole Greenpoint, they used kill it towards quarter end on 30yr FNMA fixed rates. Volume bonuses FTW!</blockquote>


Back in the day, they used to do it. We have a new name for those banks now: bankrupt.



:) :) :)



FYI FNMA bonds are falling apart again this morning.... lowest point they've been in over a year.... ick.</blockquote>


10 year is 4.20
 
Two closes to report, one on Canopy in QH for $40K off list and 3 Green Hollow in NW Pointe at list for $895K. Green Hollow is an early 2004 rollback, significantly lower than recent trend for Irvine...



<a href="http://www.ipoplaya.com/iposhiller.pdf">Updated IPO Shiller</a>
 
[quote author="awgee" date=1213323506][quote author="Masterofdamoney" date=1213313328][quote author="graphrix" date=1213282843]I just checked a local wholesale lender, 6.5% would be a normal deal, and 6.375% would be a friends and family deal for. If mtg capital can do 6.25%, which they have been in the same ballpark as the lender I just looked at, then that is a good deal. It could be a wholesale lender out there who wants to beat everyone on the market and hope that the volume can make up for the difference in pricing. Or, they are hoping they won't qualify for that product and flip them to another more profitable product.



Come on MODM, you know the game, you know there is always a wholesale lender out there who wants to use FNMA 30 year as a loss leader for ulterior reasons. Remember good ole Greenpoint, they used kill it towards quarter end on 30yr FNMA fixed rates. Volume bonuses FTW!</blockquote>


Back in the day, they used to do it. We have a new name for those banks now: bankrupt.



:) :) :)



FYI FNMA bonds are falling apart again this morning.... lowest point they've been in over a year.... ick.</blockquote>


10 year is 4.20</blockquote>


FNMA Bonds getting absolutely annihilated again today. We have lost over 300bps now so far this week.



It's a true bloodbath. 7% for perfect situations (no profit either) will be here tommorrow/Monday at this rate.



It's bad. REAL bad!
 
They already are!



At indymac a 30 year fixed for a 500k loan amt with 800k value is 7.00% with almost a quarter point! 6.875% will cost you almost a 1/2 point.
 
We all know that isn't likely to happen. Here is the pricing directly thru indymac. This is FULL DOC and LOW LTV too!





30 Year Fixed

Rate Points Points/Credit Costs Total APR Monthly Details

6.750% 0.886% $4,430 $3,451 $7,881 6.858% $3,243 Details

6.875% 0.460% $2,300 $3,451 $5,751 6.942% $3,285 Details

7.000% 0.225% $1,125 $3,451 $4,576 7.044% $3,327 Details

7.125% 0.114% $570 $3,451 $4,021 7.158% $3,369 Details

7.250% 0.000% $1,250 credit $3,451 $2,201 7.247% $3,411 Details
 
Why would someone buy points? Why not use that money for downpayment? I understand that it lowers your interest rate, hence your monthly payment. However, if it's better to buy points rather than using the money for downpayment, shouldn't you only buy points and use 0% downpayment (if possible). If it's not better than downpayment, why use it at all?
 
[quote author="Roo" date=1213348813]Why would someone buy points? Why not use that money for downpayment? I understand that it lowers your interest rate, hence your monthly payment. However, if it's better to buy points rather than using the money for downpayment, shouldn't you only buy points and use 0% downpayment (if possible). If it's not better than downpayment, why use it at all?</blockquote>


The Almighty Awgee knows more on this than I do, but I believe that you can deduct points.
 
[quote author="graphrix" date=1213337544]Here are the wholesale rates from one lender. The numbers to the right are a cost or in (a rebate) or YSP. A broker who is hungry could do a deal 6.625%, making .75% in rebate, and not charge any points.



http://img801.mytextgraphics.com/photolava/2008/06/12/30yrconf612-4atvmt7z6.jpeg



Here is the "jumbo" conforming.



http://img902.mytextgraphics.com/photolava/2008/06/12/30yrjconf612-4atvnv5u8.jpeg



These rates are current as of 1pm rate change, and come tomorrow they could get worse.</blockquote>


Those smell like the rates from the bank I love to hate. :)



You know, the one that advertises attractive rates/pricing but fails to mention the mandatory .25 - .50 pricing hit for declining market (which applies to EVERY CITY AND STATE IN AMERICA WHEN YOU ACTUALLY PRICE IT), in addition to the mandatory .25-.50 hits for non-cashout refi, cashout refi, state specific pricing hits, and mandatory lock pricing hits.



Hate hate hate. :) It's like, here's your 6.5 at par! Er... actually you're doing a no-cashout streamline refi in CA with a 12 day lock? That'll cost ya 1.0! Thanks!
 
[quote author="EvaLSeraphim" date=1213352543][quote author="Roo" date=1213348813]Why would someone buy points? Why not use that money for downpayment? I understand that it lowers your interest rate, hence your monthly payment. However, if it's better to buy points rather than using the money for downpayment, shouldn't you only buy points and use 0% downpayment (if possible). If it's not better than downpayment, why use it at all?</blockquote>


The Almighty Awgee knows more on this than I do, but I believe that you can deduct points.</blockquote>


The almighty adjective is a bit embarrasing, but here goes. Most of the time, points used for purchase are fully deductible in the tax year in which they are paid. Points paid not for purchase or not to refinance a purchase loan, (and sometimes to refinance a purchase loan), are deductible, but not fully deductible in the year the points are paid, but rather amortized throughout the life of the loan.


I have never done the math to see when it may be advantageous to pay points to get the deduction up front instead of over the expected length of ownership. Personally, I think it best to make the largest downpayment as possible, pay off the mortgage as soon as possible, and forget all the clever ways to increase one's deduction.
 
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