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

[usctrojancpa]

In general, if a 10-year ARM rate is lower by 3/8% or more than a 30-year fixed rate then the ARM loan should be seriously considered (1/2% or more lower for a 7-year ARM).

How can you generalize here when you don't know how interest rates will perform in 10 years? What if the interest rate is 10% when your ARM adjusts?

I'm not talking about where interest rates will be in 10 years, I'm talking about what kind of minimum rate discount a borrower should consider accepting to take on some interest rate risk by getting an ARM loan instead of a 30-year fixed loan. The majority of homes sell every 5-7 years plus it's safe to assume that within a 7-10 year period there will be economic heartburn which will cause interest rates to fall where the borrower can refi into a new ARM loan at a lower rate so why pay for a higher rate when you won't fully benefit from it.

Most borrowers don't get ARM loans because they don't understand how they work. Once I explain how an ARM loan works to my clients and provide a detailed calculation of both the monthly savings along with the lower loan balance at the end of the ARM period vs what it would be with a 30-year fixed loan many of them opt for a 7 or 10 year ARM loan instead of a 30-year fixed loan. One of my jobs is to provide my clients information and different options and giving them a clear explanation of the pros and cons of ARM loans. That being said, ARM loans are not for everyone.

 

[Irvinehomeseeker]

Just Sharing : I refinanced with Interactive Mortgage this month at 2.99% Rate & APR.  Process was pretty smooth and closed within 30 days as indicate. No fees paid as indicated in the offer. The loan processor had tacked on a 200$ fee for HOA cert., which was not needed for my detached condo, so I had to send emails back/forth with her to get that out - Otherwise, pretty good overall experience.
LTV 60%. I was lucky to get in during the brief window Interactive took in apps for High Balance Loans....now it looks like they only do loans upto 510K.

 

[Maserson]

I'm currently refinancing a 7/1 Jumbo ARM into another 7/1 with US Bank. Very few lenders interested in Jumbos. There was only one other option I found and they required LTV 60% as well.

 

[yes2]

If you don't mind sharing, what kind of rate/apr is on the 7/1 at USB?

 

[Maserson]

3.0 w/o points. 2.875 for $2k.

 

[Cornflakes]

I am getting 4.125 rate for a 30-year fixed on investment property at 65% LTV. Looked many places to hop but either they don't do investment at the time or don't have better rate/terms or are crooked (*cough....LofiDirect).

 

[Kenkoko]

Owning is showing lowered rate this week.

2.75% for 30 yr fixed, no closing cost. Loan up to 510k

2.99% for 30 yr fixed, no closing cost. Loan up to 765k

Lenderfi is showing same/similar rate for 30 yr fixed. They also show 15 yr fixed conventional loan at 2.25% with no cost.

 

[Cares]

I am getting 4.125 rate for a 30-year fixed on investment property at 65% LTV. Looked many places to hop but either they don't do investment at the time or don't have better rate/terms or are crooked (*cough....LofiDirect).

Sounds high. Send me a PM with your details and we can see what we can do for you.

 

[Irvinehomeseeker]

Owning is showing lowered rate this week.

2.75% for 30 yr fixed, no closing cost. Loan up to 510k

2.99% for 30 yr fixed, no closing cost. Loan up to 765k

Lenderfi is showing same/similar rate for 30 yr fixed. They also show 15 yr fixed conventional loan at 2.25% with no cost.

Those are awesome rates if one can qualify to get. Looking to see when the rates dip that low for high balance.

 

[usctrojancpa]

I am getting 4.125 rate for a 30-year fixed on investment property at 65% LTV. Looked many places to hop but either they don't do investment at the time or don't have better rate/terms or are crooked (*cough....LofiDirect).

Sounds high. Send me a PM with your details and we can see what we can do for you.

Get me a rate of 3.50% or better on my rental property at no cost for a 30-year fixed rate (sub 50% LTV) and loan amount under $300k and you got my business. My current rate is 3.75% for a 30-year fixed rate.

 

[eyephone]

So now your into 30 year fixed?
I thought arm is the way to go.

 

[Mety]

So now your into 30 year fixed?
I thought arm is the way to go.

Rental properties are different. I believe 30yr fixed is the right choice for rentals unless you?re paying full cash. I don?t have one, but I probably will do that if I own rentals.

 

[eyephone]

So now your into 30 year fixed?
I thought arm is the way to go.

Rental properties are different. I believe 30yr fixed is the right choice for rentals unless you?re paying full cash. I don?t have one, but I probably will do that if I own rentals.

My question was meant for Trojan.

 

[Mety]

So now your into 30 year fixed?
I thought arm is the way to go.

Rental properties are different. I believe 30yr fixed is the right choice for rentals unless you?re paying full cash. I don?t have one, but I probably will do that if I own rentals.

My question was meant for Trojan.

Yeah, I was nice enough to answer you meanwhile. You don?t like that?

 

[usctrojancpa]

So now your into 30 year fixed?
I thought arm is the way to go.

ARM rates for rentals are not good, so I opted for a 30-year fixed rate because of the adjustment fee that you get hit for a non-owner occupied property.  I need at least 3/8% to 1/2% lower rate to accept a 7 or 10 year ARM vs. a 30-year fixed loan for the amount of interest rate risk that I am assuming. I have another rental that has an ARM loan that adjusted with a rate of 3.50% currently (got the loan in 2009) but will go down to 2.875% if 1-year LIBOR rates hold into next spring. That loan is not worth refinancing because the loan balance is around $100k.

 

[irvinebullhousing]

So now your into 30 year fixed?
I thought arm is the way to go.

ARM rates for rentals are not good, so I opted for a 30-year fixed rate because of the adjustment fee that you get hit for a non-owner occupied property.  I need at least 3/8% to 1/2% lower rate to accept a 7 or 10 year ARM vs. a 30-year fixed loan for the amount of interest rate risk that I am assuming. I have another rental that has an ARM loan that adjusted with a rate of 3.50% currently (got the loan in 2009) but will go down to 2.875% if 1-year LIBOR rates hold into next spring. That loan is not worth refinancing because the loan balance is around $100k.

#BALLER 

 

[CogNeuroSci]

So now your into 30 year fixed?
I thought arm is the way to go.

Rental properties are different. I believe 30yr fixed is the right choice for rentals unless you?re paying full cash. I don?t have one, but I probably will do that if I own rentals.

My question was meant for Trojan.

Yeah, I was nice enough to answer you meanwhile. You don?t like that?

To answer your question, YF, no he doesn't like that.

 

[Mety]

So now your into 30 year fixed?
I thought arm is the way to go.

Rental properties are different. I believe 30yr fixed is the right choice for rentals unless you?re paying full cash. I don?t have one, but I probably will do that if I own rentals.

My question was meant for Trojan.

Yeah, I was nice enough to answer you meanwhile. You don?t like that?

To answer your question, YF, no he doesn't like that.

Oh hey! Remember the last time eyephone sent PM to both of us?

 

[Maserson]

Does anybody know if you can serial refinance a grandfathered loan ($1 million limit)?

 

[eyephone]

So now your into 30 year fixed?
I thought arm is the way to go.

Rental properties are different. I believe 30yr fixed is the right choice for rentals unless you%u2019re paying full cash. I don%u2019t have one, but I probably will do that if I own rentals.

My question was meant for Trojan.

Yeah, I was nice enough to answer you meanwhile. You don%u2019t like that?

To answer your question, YF, no he doesn't like that.

Oh hey! Remember the last time eyephone sent PM to both of us?

Now you making things up. That I previously PM CogNeuroSci with you Mety.
(Even other TI members share the same thoughts as myself and believe it is true.)

Here are the facts:
1. For some reason you know exactly when YF logged on TI. That means you went to his profile and checked the last time he logged on. Who does that? Unless that is you or you have an obsession with him. Idk
2. You liked my post tight after I questioned how did YF knew I messaged you? (Btw: everybody it was nothing exciting. It was only about the zip line at the park.)