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

[daedalus]

The 10yr going up 30% in less than a month was surely a factor.  People were willing to lock money up @ 1.4% for 10 years...think about that.

 

[Irvinecommuter]

WASHINGTON -- Federal Reserve officials signaled Wednesday that they may be ready to launch a new bond buying program when they next meet in September.

The goal would be to try to lower long-term interest rates to encourage more borrowing and spending.

Minutes of the July 31-Aug. 1 policy meeting released Wednesday don't explicitly say what action the Fed would most likely take. But they hint that the central bank is preparing to begin more bond buying.

Get ready for some more drops.
http://www.huffingtonpost.com/2012/08/22/federal-reserve-_n_1823353.html

 

[usctrojancpa]

WASHINGTON -- Federal Reserve officials signaled Wednesday that they may be ready to launch a new bond buying program when they next meet in September.

The goal would be to try to lower long-term interest rates to encourage more borrowing and spending.

Minutes of the July 31-Aug. 1 policy meeting released Wednesday don't explicitly say what action the Fed would most likely take. But they hint that the central bank is preparing to begin more bond buying.

Get ready for some more drops.
http://www.huffingtonpost.com/2012/08/22/federal-reserve-_n_1823353.html

Rates have drifted down about 1/8% this week.  The fun in Europe is not over yet so I could see rates coming down a bit more this year.

 

[usctrojancpa]

Put in a refi application with Amerisave for a 7-year ARM at 2.625% (loan amount under $417k) with enough credit to pay for most all of the closing costs on Friday.  Appraiser already scheduled to come out on Tuesday afternoon and he reminded me to have my carbon monoxide detectors installed (one of each floor).  We'll see how the refi goes.

 

[sgip]

My company is allergic to ARM products. Had a buyer on a $1.7m second home go to Compass Bank and get a $1.25m loan, 5/1 ARM at 2.5% for minor closing costs. Not a bad deal at all considering most 2nd home loans require 30% down.

 

[usctrojancpa]

My company is allergic to ARM products. Had a buyer on a $1.7m second home go to Compass Bank and get a $1.25m loan, 5/1 ARM at 2.5% for minor closing costs. Not a bad deal at all considering most 2nd home loans require 30% down.

I noticed that some lenders have crappy pricing for ARM so I'm guessing like you say they don't want any more of them for the time being.  That 5/1 ARM loan at such a high balance is a great rate....I think in the $417k you would get 2.50% with credits to pick up most of your costs. 

 

[Crispy3]

My company is allergic to ARM products. Had a buyer on a $1.7m second home go to Compass Bank and get a $1.25m loan, 5/1 ARM at 2.5% for minor closing costs. Not a bad deal at all considering most 2nd home loans require 30% down.

I noticed that some lenders have crappy pricing for ARM so I'm guessing like you say they don't want any more of them for the time being.  That 5/1 ARM loan at such a high balance is a great rate....I think in the $417k you would get 2.50% with credits to pick up most of your costs.

Just filled out an application with Amerisave myself to refi... $2.5% with around -200 on fees/costs for a 400ish loan.
wondering if I should lock yet...

I'll setup the appraisal appointment for thurs/friday and see where rates are then.

 

[cubiczirconia]

Crispy, I was writing a post about my experience with Amerisave

Been two months already, they have promised us a great rate with a credit also. Appraisal happened in two days, credit check within minutes, but the paperwork just doesn't end! And the papers they are asking for.. no other lender has ever asked for! I have a feeling something isn't right here.. first they wanted a new insurance policy that covered almost twice of what was covered now. No other lender did that- our insurance agent had to send a letter to them that this coverage was sufficient. Latest issue? Our homes have a different name and HOA a different one- they mention it one their website that they cover both, but Amerisave wants it written on a letterhead of the HOA, addressed to them.

One of those moments where you feel you should have gone the conventional way even if the rate was a little high! These delays with an excellent credit, good appraisal and all clean paperwork. Phew! Waiting for it close. Will never recommend their services, or go back to them. Search the net for 'amerisave scam'.

That said, if it closes, YAY for the best rate!

 

[usctrojancpa]

Crispy, I was writing a post about my experience with Amerisave

Been two months already, they have promised us a great rate with a credit also. Appraisal happened in two days, credit check within minutes, but the paperwork just doesn't end! And the papers they are asking for.. no other lender has ever asked for! I have a feeling something isn't right here.. first they wanted a new insurance policy that covered almost twice of what was covered now. No other lender did that- our insurance agent had to send a letter to them that this coverage was sufficient. Latest issue? Our homes have a different name and HOA a different one- they mention it one their website that they cover both, but Amerisave wants it written on a letterhead of the HOA, addressed to them.

One of those moments where you feel you should have gone the conventional way even if the rate was a little high! These delays with an excellent credit, good appraisal and all clean paperwork. Phew! Waiting for it close. Will never recommend their services, or go back to them. Search the net for 'amerisave scam'.

That said, if it closes, YAY for the best rate!

That's the downside of using them....they can be painfully slow.  I've been told that they are easier to deal with on detached SFRs versus condos (especially if you have no HOA).  Another option would be Provident or PenFed (for the 5/5 ARM).

 

[Irvine_Dreamer]

Crispy, I was writing a post about my experience with Amerisave

Been two months already, they have promised us a great rate with a credit also. Appraisal happened in two days, credit check within minutes, but the paperwork just doesn't end! And the papers they are asking for.. no other lender has ever asked for! I have a feeling something isn't right here.. first they wanted a new insurance policy that covered almost twice of what was covered now. No other lender did that- our insurance agent had to send a letter to them that this coverage was sufficient. Latest issue? Our homes have a different name and HOA a different one- they mention it one their website that they cover both, but Amerisave wants it written on a letterhead of the HOA, addressed to them.

One of those moments where you feel you should have gone the conventional way even if the rate was a little high! These delays with an excellent credit, good appraisal and all clean paperwork. Phew! Waiting for it close. Will never recommend their services, or go back to them. Search the net for 'amerisave scam'.

That said, if it closes, YAY for the best rate!

I guess I won't be contacting Amerisave.

 

[Irvine_Dreamer]

That's the downside of using them....they can be painfully slow.  I've been told that they are easier to deal with on detached SFRs versus condos (especially if you have no HOA).  Another option would be Provident or PenFed (for the 5/5 ARM).

Thanks for the recommendation.
I will try Provident Funding.
Is PenFed's rate for 30 years fixed not competitive?

 

[usctrojancpa]

That's the downside of using them....they can be painfully slow.  I've been told that they are easier to deal with on detached SFRs versus condos (especially if you have no HOA).  Another option would be Provident or PenFed (for the 5/5 ARM).

Thanks for the recommendation.
I will try Provident Funding.
Is PenFed's rate for 30 years fixed not competitive?

Their rates would be except that PenFed tacks on a 1% origination fee to all their fixed rate products which makes their 30-year fixed rate high.  Provident is usually a touch higher in pricing than Amerisave but isnt as slow.

 

[Crispy3]

well I got all the docs uploaded already... lets see how it it takes to close... I figure they would be better than going through my regular brokers since they advertise that they are a direct lender

 

[homer_simpson]

What are the rates today?

 

[usctrojancpa]

What are the rates today?

For 30-year fixed rates....3.25% with a credit back for a loan <$417k and 3.50% with a smaller credit back for a loan >$417k.  5-year ARM is around 2.375% near par and 7-year ARM is around 2.625% near par.

 

[homer_simpson]

It's generally add .25% for a detached condo right?

 

[usctrojancpa]

It's generally add .25% for a detached condo right?

Lenders will add a 1pt Fannie Mae based fee (.75pt condo fee and .25pt fee for being above 75% LTV) if you have an LTV of 75.01% to 80% on a condo (both attached and detached).  1pt can range from 1/8% to 1/4% in the rate.  If you are at 75% LTV or lower, that 1pt fee goes away.

 

[Crispy3]

well I got all the docs uploaded already... lets see how it it takes to close... I figure they would be better than going through my regular brokers since they advertise that they are a direct lender

Guess what.. I submitted an offer last night and the seller accepted... gotta cancel the refi on my current place now... The appraisal was just done yesterday... hopefully they'll only charge me a "going out fee"

3.5% with $-2962 towards closing on a high balance conforming seems like the sweet spot today... will still be about 1k out of pocket to close.

 

[irvinehomeowner]

@Crispy: Are you selling your current place?

If you are keeping it, you may want to try to finish out the refi to make your payments lower.

 

[usctrojancpa]

@Crispy: Are you selling your current place?

If you are keeping it, you may want to try to finish out the refi to make your payments lower.

You can't have two loans going where you get primary residence pricing.  His current property will need to be classified as an investment property which will result in a 2pt adjust or about a 3/8% to 1/2% higher interest rate.