Mortgage Q&A

[PoorHouse]

Talked to our current mortgage holder (US Bank), the best they could offer today is

3.85% for a investment property. If it was a primary residence they could do 3.33%.

$1700 in fees.

At this point I'm going to wait and watch rates for a while.

[dunhamjr]

Talked to our current mortgage holder (US Bank), the best they could offer today is

3.85% for a investment property. If it was a primary residence they could do 3.33%.

$1700 in fees.

At this point I'm going to wait and watch rates for a while.

Those are pretty killer rates. Especially on the investment property.
and $1700 in fees seems pretty good as well.

[PoorHouse]

Those are pretty killer rates. Especially on the investment property.
and $1700 in fees seems pretty good as well.

That is for a 15 year fixed.

I was thinking the rates look pretty average.

[ruetzal]

yeh it wasn't bad. Your always going to get a tad higher rate on investment properties. Also it all depends on LTV as stated before. Don't be afraid to call around and asks for people rates. Especially these days it varies greatly between lenders.

[jnm2.0t]

Quoted at 3.75% 30 year fixed last night.

[ruetzal]

Quoted at 3.75% 30 year fixed last night.

thats where it should be! Keep in mind it may get lower but if you are happy with that rate lock it in. Its pretty turbulent out there right now where I don't see it pushing much higher but we may be looking at 3.25% on a 30 year in our near future. Its hard to say where they are going.

[jnm2.0t]

thats where it should be! Keep in mind it may get lower but if you are happy with that rate lock it in. Its pretty turbulent out there right now where I don't see it pushing much higher but we may be looking at 3.25% on a 30 year in our near future. Its hard to say where they are going.

I'm okay not locking it in just yet because I agree with you, more likely to go down than up before we're signed and closed.

[dunhamjr]

That is for a 15 year fixed.

I was thinking the rates look pretty average.

ok. for a 15yr the 3.33 is pretty normal... but the rate on the investment is pretty great.

investment rates are typically a lot higher, not just .5% higher.

[VT1.8T]

thats where it should be! Keep in mind it may get lower but if you are happy with that rate lock it in. Its pretty turbulent out there right now where I don't see it pushing much higher but we may be looking at 3.25% on a 30 year in our near future. Its hard to say where they are going.

If that happens for 30 yrs, what will happen with 15 yr rates? The bank I locked with for 15yr @ 3.25 does not have a lock fee and I have not sent them any money yet for an appraisal, so until I do so, I can walk without losing any money. Mortgage officer said she has my application scheduled for her to work on 10/6. Their 30 yr 0 point just went to 4% this am, with APR of 4.145

[PoorHouse]

If that happens for 30 yrs, what will happen with 15 yr rates?

2.25%

Here's hoping.

[VT1.8T]

2.25%

Here's hoping.

Will hope so anyway. I want my house interest free.
Ditto. But don't see how it can happen if the 10yr yield gets back to 2%.
Backward posting

[Rob Cote]

Will hope so anyway. I want my house interest free.
Ditto. But don't see how it can happen if the 10yr yield gets back to 2%.
Backward posting

Wow man. Mind f. I thought you were drunk posting at first.

Trying to get approved for $130k. Haven't heard back from the bank yet. WISH US LUCK!

[BAM6I4]

3.75% on a 30 year, 3.25% on a 15 year and 2.75% on a 5/1 ARM

Are these rates based on any points? I'm not seeing that rate anywhere near me (Columbus, Ohio), but if you could give me more specific's on fees/etc or places to check I'd appreciate it.

I'm currently at 5% 30yr fixed and if I can get 4% or less I'll take it in a heartbeat. 3.5% would be ridiculous.

[00boraslow]

I am semi looking for a house and these rates are just insane. Realistically, how long will rates stay this low?

I am in no rush to buy, but if rates start going up I may start to look a little harder.

[jnm2.0t]

Are these rates based on any points? I'm not seeing that rate anywhere near me (Columbus, Ohio), but if you could give me more specific's on fees/etc or places to check I'd appreciate it.

I'm currently at 5% 30yr fixed and if I can get 4% or less I'll take it in a heartbeat. 3.5% would be ridiculous.

We got quoted 3.75% with no points. What our guy said though is that it is FHA only, if you go conventional it is 4%.

[BAM6I4]

We got quoted 3.75% with no points. What our guy said though is that it is FHA only, if you go conventional it is 4%.

Is this on a purchase or refi? Thanks for the info.

[jnm2.0t]

Is this on a purchase or refi? Thanks for the info.

Purchase

[ruetzal]

If that happens for 30 yrs, what will happen with 15 yr rates? The bank I locked with for 15yr @ 3.25 does not have a lock fee and I have not sent them any money yet for an appraisal, so until I do so, I can walk without losing any money. Mortgage officer said she has my application scheduled for her to work on 10/6. Their 30 yr 0 point just went to 4% this am, with APR of 4.145

well 15 year should drop as well but I haven't saw this yet. Everyone in the market seems to be buying longer term so the 15 year bonds aren't dropping that fast but they will come inline eventually. And you may have to pay for the appraisal depending on what you signed. Otherwise you can always walk away or renogiate rates with your lender.

Are these rates based on any points? I'm not seeing that rate anywhere near me (Columbus, Ohio), but if you could give me more specific's on fees/etc or places to check I'd appreciate it.

I'm currently at 5% 30yr fixed and if I can get 4% or less I'll take it in a heartbeat. 3.5% would be ridiculous.

no fee rates I post. Keep searching and go to some bigger bank names for quotes you will find it. The market is skewed between lenders so you just have to find one that likes doing Mtg's

I am semi looking for a house and these rates are just insane. Realistically, how long will rates stay this low?

I am in no rush to buy, but if rates start going up I may start to look a little harder.

If I knew that I would be retired the fed stated that they will try to keep rates low thru 2013 IMO rates aren't going anywhere fast you will see a 3.25-4.25 level for the next year possibly 2, for a 30 year. For most homes under 200k rate swings between this level don't effect payments That much. I mean it definately is cheaper at 3.25 than 4.25 but I wouldn't worry about that ensure you buy the home you want and are happy with your purchase. Essentially don't rush into anything becuase rates go to 3.25. The payment would probably only go up 50 at most anyway with a 1/2 swing.

[ruetzal]

Rates with no lender fees are 3.875% on a 30 year, 3.25% on a 15 year and 3.0% on a 5/1

[Rob Cote]

Ruet-

What's good with the 203k mortgages? A house we looked at needs at a minimum a new roof. Good idea, bad idea? It seems like a good deal, which sketches me out.

[ruetzal]

LOL it actually is a pretty good deal. As long as you find a broker experienced in doing them.

Pretty easy really you can do a 203k purchase streamline which allows you to fix up things like roof/siding and simple maintenance items. As in your situation the other 203k full purchase is a bit trickier.

Since all you would need is a new roof and maybe a furnace or a few other items you should really consider this route granted the rate/terms make sense to you. Its a FHA product really which is good since refi'ing a fha is often easier than a conventional loan. You will be able to disburse 50% of the "repair" funds at the closing table to the contractor so they can start the work. After the work is completed there is a little admin work. You need to get a hold of the appraiser to come back out to your house and inspect the work (talk to your broker about this part so you understand what needs to happen). As long as it passes he/she will have to do a little paperwork on the completion of the project and then you will submit to your lender for final payout on the repairs (payable to you and the contractor) if you are happy you sign over and go on with life.


For a first time buyer like you I always suggest to keep as much cash in your pocket as possible. Your young and will need it for just in case emergencies unlike older people that have the better ability to afford cash out of pocket. Plus your on air and will probably need to replace those bags after awhile

Also I am pm'ing you now considering air myself just not 100% sold.

[1inhiding]

Have been watching interest rates - my wife and I bought our house in May of last year - we got 4.875% on a 30 year fixed. Home value is ~430,000 and we owe ~337,000. Based on the simple calculators out there, it looked like we could lower our monthly payment AND reduce the amount of interest we're paying by a SIGNIFICANT margin while only extending the loan out an additional year and a half. Our credit scores are both excellent. Am I nuts? Did I miss something? Is this a good idea to look into?

[ruetzal]

generally but its all situational. If you plan on staying in your home for the 30 years most likely it is. A refi will cost an add'l 1k-2k depending on who you will go thru. You have to take the monthly savings and do the math on when you will recoup the upfront money for the refi. So essentially if you spend 2k to refi and you save an add'l 100 per month it will take you 20 months to recoup your money. IMO thats pretty good. Now if you were only staying in that home for 2-4 years I probably would leave it alone.

The rule of thumb to refi is 1 point lower so this would fit your category depending on your situation. Also the mortgage is somewhat a higher dollar amount so it benefits your more. If you only borrowered 150k the lower rate wouldn't effect you as much as it does with a amount borrowered of 350k. IE with the lower amount borrowered it would take you longer to recoup the fees from the Refinance. thus making it more or less beneficial depending on the situation.

Financial advisor will tell you to refi for a 1 point lower interest rate if you are in it for the long haul though.

[1inhiding]

Thanks! We are still planning on being in the house long term (10-15 years) so I think I'll start looking into it.

[ruetzal]

Rates went up slightly, we are going to see a bit of up/down for awhile here

4.0% on a 30 year, 3.375% on a 15 year and 3.0% on a 5/1 ARM

seemed this paragraph fit for this thread. From our company blog/web video this morning

If any of you want I can add you to our web video that gives a little advice on Mtg's daily. Just pm me your email

You and your lender should focus on your long-term goals when planning for your mortgage needs.
For example, if you put 20% down on your home and anticipate pulling out some equity for repairs, you will be disappointed. A conventional loan only allows for 80% loan to value on a cash out refinance. You are better off putting 10% down at the start. Since purchase transactions allow you to go to 95% loan to value based on your credit, you may want to put down as little as 5%.
These are conversations you should have with your lender to make sure you are making the right decision. Your lender should be a trusted advisor. If you have any doubts about their advice, you should find another lender.

[BAM6I4]

Hey guys, looking to lock in a rate today but just wanted to make sure i covered all my bases....

4%, 30yr fixed, no points

Here's the fees...
Our closing costs, assuming credit above 740 and no LTV issues are:

$250 application fee
- Covers appraisal, credit report, and flood certification
- Non-refundable but credited back to you at closing as a lender paid principal reduction
County recording fee of $72
Courier fee of $35

So basically I will be out of pocket $357 but will get a principal reduction at closing of $250, so my total cost will be $107.

No escrow required or fees to not have it.

Can close in 15 days...

---

Anything I'm missing or should ask before locking in the rate? I'd love to get in the 3's % wise but I'm currently at 5% so I'm still dropping a full % for next to nothing.

Thanks, I've got til 6pm to lock it in....

[ruetzal]

Hey guys, looking to lock in a rate today but just wanted to make sure i covered all my bases....

4%, 30yr fixed, no points

Here's the fees...
Our closing costs, assuming credit above 740 and no LTV issues are:

$250 application fee
- Covers appraisal, credit report, and flood certification
- Non-refundable but credited back to you at closing as a lender paid principal reduction
County recording fee of $72
Courier fee of $35

So basically I will be out of pocket $357 but will get a principal reduction at closing of $250, so my total cost will be $107.

No escrow required or fees to not have it.

Can close in 15 days...

---

Anything I'm missing or should ask before locking in the rate? I'd love to get in the 3's % wise but I'm currently at 5% so I'm still dropping a full % for next to nothing.

Thanks, I've got til 6pm to lock it in....

thats a pretty good deal. Can you find a lower rate probably but at most will only be .125 lower and you will probably have to pay more in fees. Don't let them fool you though with a 4% rate you are paying for all your fees they make some $ on the back end and thats why they can cover your fees, however it is beneficial to you not to have to bring money to the table.

As far as a lower rate well thats going to be your risk. No one can predict mortgage rates its pretty much impossible although people have tried some successful some not. if you are happy with the payment/rate today take it. If rates go down you could probably get the same deal anyway.

Just an FYI appraisals alone are 400 a piece so for you to only bring in 100 or so is a great deal although you are paying for it in rate. If you wanted they probably would give you a lower rate but you would have to bring money in then you would have to do the math of when the money brought to closing would pay off. See above from my posts on this page.

[BAM6I4]

thats a pretty good deal. Can you find a lower rate probably but at most will only be .125 lower and you will probably have to pay more in fees. Don't let them fool you though with a 4% rate you are paying for all your fees they make some $ on the back end and thats why they can cover your fees, however it is beneficial to you not to have to bring money to the table.

As far as a lower rate well thats going to be your risk. No one can predict mortgage rates its pretty much impossible although people have tried some successful some not. if you are happy with the payment/rate today take it. If rates go down you could probably get the same deal anyway.

Just an FYI appraisals alone are 400 a piece so for you to only bring in 100 or so is a great deal although you are paying for it in rate. If you wanted they probably would give you a lower rate but you would have to bring money in then you would have to do the math of when the money brought to closing would pay off. See above from my posts on this page.

Appreciate the info, but I'm misunderstanding how I am paying for it in the rate? Isn't the rate 4%?

[dunhamjr]

Appreciate the info, but I'm misunderstanding how I am paying for it in the rate? Isn't the rate 4%?

what he means is...
technically you might be able to push them and get a lower rate... 3.85% for example.
but then you would be paying the fees up front.

so by 'paying for it in the rate'.
ruetzal is saying that you are paying the fees a little at a time over the life of the loan by getting 4% with very little out of pocket to close... versus 3.85% with $$$ out of pocket right at the front to close.

[ruetzal]

all rates pay to the originator....Rates today are paying $0 at roughly 3.875 but at 4 the rate pays the loan officer lets say .12% so .0012 x your loan amount. This is their income on the loan now they can take a portion of that and credit it back to you which is what they are doing. Loan officer makes money in terms of the rate they sell to you. this is why if you go below the 4% you would have to bring in money since the paying rate under 4% is less. Most of these guys have a standard amount they need to make and credit everything else back to you.

[BAM6I4]

Right on, well I locked it in. I couldn't find any better and I always told myself if I could drop my rate by 1% or e more I'd jump on it as long as my break-even was a year or less. This is a single month. No brainer to me.

Will update at closing.

[ruetzal]

congrats man definately a good decision. I mean I don't really for see it but if rates do come down to a 3.25 level you could always refi again. I think the odds are against us for those low of rates but you never know. Saving money with low money down never a bad decision

[jnm2.0t]

Had our offer accepted but then the mortgage guy showed us the real figures. **** that. What should have been easily affordable given our income suddenly became just an awful idea all around. Honestly having seen this I have no idea why anyone would want to do an FHA loan. I can now understand how the economy got to where it is today. Luckily we hadn't even written the down payment check yet.

[patrickgti]

I have complete crap credit what steps do I need to take in order to get a loan. I know it's broad but I don't even know where to start. I have come cc debt but that is all.. Cs=524 very poor I know. Help please. I was 18 and ignorant and am 23 now and just realizing my mistakes!!

[joness0154]

I have complete crap credit what steps do I need to take in order to get a loan. I know it's broad but I don't even know where to start. I have come cc debt but that is all.. Cs=524 very poor I know. Help please. I was 18 and ignorant and am 23 now and just realizing my mistakes!!

Uh good luck.

I'd wait until the negatives disappear off your credit score and you get it back into the 700s at least. Otherwise you're going to be paying out the ass for a loan if someone would even give you one.