How low can we go? 30 yr fixed at 3.75% with no fees...
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NEW -> Contingent Buyer Assistance Program
Just to clarify, I'm working with Union Bank on a purchase, not refi, since it's preferred lender of Irvine Pacific.
A few posts earlier, someone recommended Sherry Wang from Citibank. Maybe you can check with her.
US Bank, Wells, and BofA.
I'm aware of the difference in jumbo pricing, but this is shifting the goal posts. Your original comment was in response to Inc's question of "how high will we go?" and rates hit 4% one month to the day from that comment. There are always some products priced cheaper, but the 30Yr conforming rate is the gold standard when quoting rates. The title of this thread is also in reference to conforming rates with no fees.
The taper of MBS purchases has hit conforming rates pretty hard. Jumbo rates are priced by portfolio lenders (mostly large banks) and aren't subject to the whims of the MBS / bond markets. Hence, the taper won't affect jumbo rates directly, but the upcoming increases in the Fed Funds rate, which does affect bank balance sheets directly, should start to affect jumbo rates later this year.
Ok rates are around 4% for confirming loans but here in Irvine and the surrounding areas, a lender can portfolio high balance conforming loans not just jumbo loans to bring the rates back into the low-to-mid 3% so it's not black and white. That being said, a few of my low-end buyers are getting prices out and going onto the sidelines because the higher prices and higher rates but we are talking clients that can't go above $1m. So instead of seeing 25-40 offers on these lower end homes, there will be 15-20 offers. Again, I welcome prices leveling off and more inventory coming because a balanced market is better for everyone and where a good buyer/listing agent can really shine.
It's almost like a cycle.
I don't know... A cycle implies a natural phenomenon. When human beings are making subjective decisions about how many mortgage-backed securities the Fed should hold on its balance sheet, mortgage rates are not really a result of any economic cycle. Quantitative easing has been with us for 13+ years now.
It's too bad I missed out on yesterday's low to lock.
Sorry, but yesterday was not the low... not by a long shot. Monthly mortgage costs are now the highest in history - Higher than the 2007 price bubble. tic, tic, tic...
American Mortgage Payment Costs Are Now 36% Higher Than a Year Ago
Finding a home to buy is only the first struggle. Then there?s paying the mortgage.
That?s become increasingly challenging, with the average American monthly mortgage payment rising to the highest level ever. It?s now $1,230 per month for a 30-year, fixed-rate loan, according to data from home-listing site Zillow. That?s up 36% from the average of $905 a year ago and a 6% increase from January.
In the past year, the typical U.S. home increased almost 20% in value, from about $272,000 to $326,000. Although mortgage rates only inched higher for most of 2021, that uptick combined with rapid home-price appreciation to push the average monthly mortgage payment to a record high.
https://www.bloomberg.com/news/arti...ent-monthly-cost-hits-record-for-30-year-loan
CalBears96
Well-known member
eomly said:
Just to clarify, I'm working with Union Bank on a purchase, not refi, since it's preferred lender of Irvine Pacific.
A few posts earlier, someone recommended Sherry Wang from Citibank. Maybe you can check with her.
usctrojancpa
Well-known member
eomly said:
US Bank, Wells, and BofA.
sleepy5136
Well-known member
You might as well look into Citi then. 0.5% discount if you have 1m with them when closing.https://online.citi.com/US/JRS/portal/template.do?ID=relationship_pricing_landingDanimal said:
sgip
Well-known member
These new to the bank assets are called "Relationship Funds" for a reason. The Banks want some "stickyness" to the accounts that open for a rate discount. Only Wells Fargo for a short time had allowances to use the funds for the down payment, but stopped that due to run off of the entire relationship shortly after the deed recorded.
Some banks will require a portion of the funds to be under management if stocks are being moved. A self directed Merrill Edge (for example) won't get the same mortgage rate discounts as would a fully managed Merrill account.
Chase, Wells, Citi, BofA, Union Bank (now part of USBank), and some of the brokerages like Morgan Stanley (via Rocket from what I can recall) all offer these discounts. First Republic has wider guidelines and some rate improvements when that kind of money is moved.
None of these accounts hold your money hostage post closing, but if the bigger mortgage rate reduction comes if funds are managed, it may be harder to move once you've moved in your new home.
For long term new construction buyers, I'd suggest moving as much as you can now into a Bank account. After sitting there for 60 days, discounts are applied. If you can move "non down payment" funds into an account at closing, more discounts are offered.
As a note some banks discount only their jumbo products, and lightly discount their conforming. Don't expect low rate bonuses if the loan balance is below $640k compared to what you find for a portfolio jumbo.
My .02c
Some banks will require a portion of the funds to be under management if stocks are being moved. A self directed Merrill Edge (for example) won't get the same mortgage rate discounts as would a fully managed Merrill account.
Chase, Wells, Citi, BofA, Union Bank (now part of USBank), and some of the brokerages like Morgan Stanley (via Rocket from what I can recall) all offer these discounts. First Republic has wider guidelines and some rate improvements when that kind of money is moved.
None of these accounts hold your money hostage post closing, but if the bigger mortgage rate reduction comes if funds are managed, it may be harder to move once you've moved in your new home.
For long term new construction buyers, I'd suggest moving as much as you can now into a Bank account. After sitting there for 60 days, discounts are applied. If you can move "non down payment" funds into an account at closing, more discounts are offered.
As a note some banks discount only their jumbo products, and lightly discount their conforming. Don't expect low rate bonuses if the loan balance is below $640k compared to what you find for a portfolio jumbo.
My .02c
sleepy5136
Well-known member
You have to leave 1m in account and it cannot be used towards closing funds. But you can take all that money out after closing.Cares said:
Liar Loan
Well-known member
USCTrojanCPA said:
I'm aware of the difference in jumbo pricing, but this is shifting the goal posts. Your original comment was in response to Inc's question of "how high will we go?" and rates hit 4% one month to the day from that comment. There are always some products priced cheaper, but the 30Yr conforming rate is the gold standard when quoting rates. The title of this thread is also in reference to conforming rates with no fees.
The taper of MBS purchases has hit conforming rates pretty hard. Jumbo rates are priced by portfolio lenders (mostly large banks) and aren't subject to the whims of the MBS / bond markets. Hence, the taper won't affect jumbo rates directly, but the upcoming increases in the Fed Funds rate, which does affect bank balance sheets directly, should start to affect jumbo rates later this year.
usctrojancpa
Well-known member
Liar Loan said:
Ok rates are around 4% for confirming loans but here in Irvine and the surrounding areas, a lender can portfolio high balance conforming loans not just jumbo loans to bring the rates back into the low-to-mid 3% so it's not black and white. That being said, a few of my low-end buyers are getting prices out and going onto the sidelines because the higher prices and higher rates but we are talking clients that can't go above $1m. So instead of seeing 25-40 offers on these lower end homes, there will be 15-20 offers. Again, I welcome prices leveling off and more inventory coming because a balanced market is better for everyone and where a good buyer/listing agent can really shine.
Hugo Township
Active member
daedalus said:
It's almost like a cycle.
Liar Loan
Well-known member
HMart said:
I don't know... A cycle implies a natural phenomenon. When human beings are making subjective decisions about how many mortgage-backed securities the Fed should hold on its balance sheet, mortgage rates are not really a result of any economic cycle. Quantitative easing has been with us for 13+ years now.
CalBears96
Well-known member
Soylent Green Is People said:
It's too bad I missed out on yesterday's low to lock.
Liar Loan
Well-known member
CalBears96 said:
Sorry, but yesterday was not the low... not by a long shot. Monthly mortgage costs are now the highest in history - Higher than the 2007 price bubble. tic, tic, tic...
American Mortgage Payment Costs Are Now 36% Higher Than a Year Ago
Finding a home to buy is only the first struggle. Then there?s paying the mortgage.
That?s become increasingly challenging, with the average American monthly mortgage payment rising to the highest level ever. It?s now $1,230 per month for a 30-year, fixed-rate loan, according to data from home-listing site Zillow. That?s up 36% from the average of $905 a year ago and a 6% increase from January.
In the past year, the typical U.S. home increased almost 20% in value, from about $272,000 to $326,000. Although mortgage rates only inched higher for most of 2021, that uptick combined with rapid home-price appreciation to push the average monthly mortgage payment to a record high.
https://www.bloomberg.com/news/arti...ent-monthly-cost-hits-record-for-30-year-loan