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

[irvinehomeowner]

And there is no fight here... again.. just putting history back where it belongs.

I am not disagreeing with you or saying you are "wrong"... I just want to include the context for anyone who wasn't here or doesn't remember.

If there?s no fight, then why be condescending ?

In my memory we always had civil discussions and substantive debate. It?s especially odd since my comments this time weren?t even addressed to you.

I apologize but there is no intent of condescension here. Internet does not convey tone. Was Nostradamus an insult to you?

I just chimed in because I think this is the 2nd time you said you predicted this.

 

[Kenkoko]

I apologize but there is no intent of condescension here. Internet does not convey tone. Was Nostradamus an insult to you?

I just chimed in because I think this is the 2nd time you said you predicted this.

No need to apologize, just clarification. It was just strange to me because it felt unwarranted because I wasn?t taking a shot at you or anyone. I wouldn't call it an insult but it certainly wasn?t meant as a compliment right?

I posted the context of my prediction and did not use it to ?dunk? on anyone who was bullish here. I never said I predicted this pandemic. But I was correct to be bearish. I did predict the market would go down in the time frame I gave (ballpark not exact). And when it comes to investments, you either made money or you didn?t. It matters more if you were right/wrong more than why you were right/wrong.

Since you want to bring historical context, l was always clear what I advocated for.
I was against young readers on TI buying homes as an investment. I even gave my own personal story of how I achieved financial freedom by not doing so. I repeatedly said that I believe young people should not buy their primary homes as investments. I cautioned about job lock and advised people to stay financially nimble so they can take advantage of stock downturns.

I still remember many TI posters brushing it off ? calling the great depression of 09 once in a lifetime event. I think it?s now safe to say they were wrong.

I am slightly bummed that I would now never know if the scenario I predicted would have come to fruition without the coronavirus. The scenario I predicted would have taken longer to play out and certainly wouldn?t have been this severe.

 

[icey]

So bro fighting aside, do we expect rates to floor at 3%?

Assuming I don't end up with a lung full of Corona fiberglass, anyone in the business know the backlog of existing refi applications and when that is expected to clear?

 

[irvinebullhousing]

I apologize but there is no intent of condescension here. Internet does not convey tone. Was Nostradamus an insult to you?

I just chimed in because I think this is the 2nd time you said you predicted this.

No need to apologize, just clarification. It was just strange to me because it felt unwarranted because I wasn?t taking a shot at you or anyone. I wouldn't call it an insult but it certainly wasn?t meant as a compliment right?

I posted the context of my prediction and did not use it to ?dunk? on anyone who was bullish here. I never said I predicted this pandemic. But I was correct to be bearish. I did predict the market would go down in the time frame I gave (ballpark not exact). And when it comes to investments, you either made money or you didn?t. It matters more if you were right/wrong more than why you were right/wrong.

Since you want to bring historical context, l was always clear what I advocated for.
I was against young readers on TI buying homes as an investment. I even gave my own personal story of how I achieved financial freedom by not doing so. I repeatedly said that I believe young people should not buy their primary homes as investments. I cautioned about job lock and advised people to stay financially nimble so they can take advantage of stock downturns.

I still remember many TI posters brushing it off ? calling the great depression of 09 once in a lifetime event. I think it?s now safe to say they were wrong.

I am slightly bummed that I would now never know if the scenario I predicted would have come to fruition without the coronavirus. The scenario I predicted would have taken longer to play out and certainly wouldn?t have been this severe.

You were bearish on buying homes in Irvine. You suggested to one of your colleagues to buy a condo in Tustin as you see it as a better values, I then asked if you buy a condo which in this case similarly to an apartment styles why not rent it? You went silence.

 

[irvinebullhousing]

You see investment better in Singapore and over sea than in Irvine homes? Don?t recall you mention anything about stock market over values. Fortune11 did a good call and he not on anymore.

 

[Kenkoko]

I think this is the post you were referring to?

I have a friend interested in Tustin Levity either the Velocity or the Icon.

Any realtor here willing to do partial rebate on the broker co-op ? also what's the current co-op for Tustin Levity?

Sorry, I received more than 5 PMs from different realtors. I forgot to check the comments in the post.

I was just passing info along to a friend. She was planning to do a 1031 exchange. For a rental, Tustin Levity's location, lower Melo (compared to GP) and it being new construction were very appealing to her. Also the price point of Velocity & Icon matched her exchange price point.

I am not familiar with Singapore. My family has RE holdings in Taiwan. The rental cap rate sucks compared to Irvine. Around 1% cap rate. But the advantage is international banks in TW offer very low cash out rates at less than 2%. They cashed out of Taiwan and invested in rentals here in the US.

 

[OCtoSV]

Bay area data point: I closed my 15 yr fixed jumbo conforming refi yesterday (2.99%, no fees, no appraisal, $150 cash to close, Quicken agent). Mobile notary stayed outside and we passed docs back and forth from the tonneau cover of his truck. This was at 4pm and he had already done 10 signings, and had more to do.

 

[eyephone]

Bay area data point: I closed my 15 yr fixed jumbo conforming refi yesterday (2.99%, no fees, no appraisal, $150 cash to close, Quicken agent). Mobile notary stayed outside and we passed docs back and forth from the tonneau cover of his truck. This was at 4pm and he had already done 10 signings, and had more to do.

Smart. You will own your house in 15 years. Better than me.
Road to financial freedom. 

 

[OCtoSV]

I debated as it's really a 3% yielding investment, not great, for the additional principal I'm paying each month, but I figured a free loan with appraisal waiver was a 10/10 deal, so I grabbed it.

 

[Innosint]

man, I thought the rate is finally settling down again.. and then it spiked ever higher today =____=

I know it should probably smooth out and lowered in a few month, but just can't stop worrying about the rate Orz

 

[qwerty]

I debated as it's really a 3% yielding investment, not great, for the additional principal I'm paying each month, but I figured a free loan with appraisal waiver was a 10/10 deal, so I grabbed it.

Depending on your tax situation it could be a 5% pretax investment. 3% / .6 = 5% pretax yield. 

 

[OCtoSV]

a friend that is an exec for JPMC in NYC is closing today on a 2.25% 15 yr fixed conforming that includes a 50 bps employee discount, implying 2.75% 15 yr fixed conforming is still out there.

He has also been judged to be essential infrastructure for capital markets as defined by Mnuchin's letter on Treasury.gov yesterday,meaning he has to go in. A tough time to be a Wall St exec.

 

[sgip]

Employee loan programs, plus cash with the bank you are funding with = rates you can't get - just like any other employee discount lets say for Disney park admission or Dodger season tickets passed out to employees. Depends also on Loan To Value, purpose, property type, loan size etc. Pretty sweet deal, but not unusual for an employee discounted program.

My .02c

 

[sgip]

Some of the Underwriting / Pricing changes being enacted.

1) Many lenders will not lock your rate until you are "clear to close". Yes, there are rate quotes being shown on every website out there, but can you lock the rate? that's the $1m question. The answer at more and more lenders is "No".

2) Appraisal procedures are changing. Fannie/Freddie released guidelines on what they will accept to verify collateral. Guidelines are not set in stone. Every lender can add "overlays" to base guidelines based on  their own risk tolerance. Since the asset securing the loan IS NOT your ability to repay, but the underlying collateral, no one knows where these new appraisal rules will work themselves out. These are Agency Conforming loans only, not FHA/VA/Bank Portfolio, but as Agency goes, so does the rest of the market eventually.

3) Verification of Employment methods - during processing and at close of the loan - is very unclear at this moment. Some lenders will verify employment AND make a judgement on sustainable employment. Do you manage a restaurant? That's a salaried job. Will that job be there in 30-45 days? That's a judgement call by an Underwriter.  At this time the only way to know your loan is a "sure thing" is once the deed records. Anything before then? Hard to know for certain if you can close.

4) Self-Employed? Contract Worker? Tough times ahead. Some lenders are refusing to close Non-QM loans or have exited the business entirely. The same is true with non-bank Jumbo financing (Hedge Fund backed products) Many lenders are checking the type of employment against the list of essential infrastructure business types that Homeland Security has.
https://www.cisa.gov/publication/guidance-essential-critical-infrastructure-workforce

On the list? Perhaps you can close. Not showing? It's a good chance your mortgage will not be funded for a while longer than expected.

5) On the brighter side, lenders are extending rate locks due to infrastructure delays at no cost to the customer. If you are in trouble with your employment outlook, most lenders are delaying late payment fees and or forbearing 1 or 2 payments WITHOUT a ding on your credit.

This is 2008 all over again. Nothing was certain. Loans were being de-approved at documents. Funding lines for anything other than "Plain Vanilla" loans were extinguished...yet still we persisted. The best advice I can offer at this moment is to accept the fact that change (good and bad) is coming throughout the purchase or refinance process you're in.

My .02c

 

[sgip]

Still haven't pulled the chain yet on my own refinance as my ARM loan adjusted downward to just above 3% while still staying on it's payoff path. Every 12 months this will loan change and expect to stay in the high two's / low 3's at least for another year. Sure. I could get a 2.x handle 15 year loan, but the hassle, documentation (2 years 1040's at minimum is the starting point in my world...) and thinking there is still more to come here has me holding off.

Anyone else still in their ARM loan and also seeing rates move in their favor?

My .02c

 

[usctrojancpa]

Still haven't pulled the chain yet on my own refinance as my ARM loan adjusted downward to just above 3% while still staying on it's payoff path. Every 12 months this will loan change and expect to stay in the high two's / low 3's at least for another year. Sure. I could get a 2.x handle 15 year loan, but the hassle, documentation (2 years 1040's at minimum is the starting point in my world...) and thinking there is still more to come here has me holding off.

Anyone else still in their ARM loan and also seeing rates move in their favor?

My .02c

Yeah, I have a small loan on a rental property that just reset to 3.25% from 5.00% with the lower LIBOR.

 

[irvinehomeowner]

Anyone else still in their ARM loan and also seeing rates move in their favor?

This happened to us during that last downturn when we had the highly controversial Option ARM.

Interest rate went lower than fixed rates and our minimum payment was actually paying down principal too.

 

[sgip]

I know two folks who still have their WAMU Option ARM right now. Best deal they ever made!
My .02c

 

[usctrojancpa]

I know two folks who still have their WAMU Option ARM right now. Best deal they ever made!
My .02c

If not abused, Option ARM loans weren't all that bad. It's when you paid less than the actual interest and the loan balance kept going up is when things went wrong fast.

 

[irvinebullhousing]

I know two folks who still have their WAMU Option ARM right now. Best deal they ever made!
My .02c

If not abused, Option ARM loans weren't all that bad. It's when you paid less than the actual interest and the loan balance kept going up is when things went wrong fast.

[size=14pt]The next financial crisis: A collapse of the mortgage system[/size]
https://www.yahoo.com/news/next-financial-crisis-collapse-mortgage-200154233.html

The U.S. mortgage finance system could collapse if the Federal Reserve doesnt step in with emergency loans to offset a coming wave of missed payments from borrowers crippled by the coronavirus pandemic.

Congress did not include relief for the mortgage industry in its $2 trillion rescue package %u2014 even as lawmakers required mortgage companies to allow homeowners up to a year's delay in making payments on federally backed loans.

When individuals stop making payments on their home mortgages, the companies that handle the loans and process those payments, so-called mortgage servicers, are still on the hook: They're legally obligated to keep sending money to insurers and investors in mortgage-backed securities, the giant bundles of home loans that are packaged and sold on the securities markets.

My Questions

1) : how would that effects the Adjustable Loans that is getting close to reset or happens when soon before the reset take place? Instead of adjust down, now it might be frozen? Could that be possible?

2) : So the FED is the mother of all bail out. They are plugs in holes after holes, these are Trillions, yes dizzy amount, what do you think the consequence of this bail out would do?



Oh, and Zillow and Redfin stop temporary buy homes to flip.