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

NEW -> Contingent Buyer Assistance Program
Irvinecommuter said:
quattroporte said:
Irvinecommuter said:
quattroporte said:
nosuchreality said:
quattroporte said:
Even if you lock your rate today, you might be able to get one float down if the rate goes down. You might want to check.
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LOL, no your rate will NOT float down.  The only way your rate is going down is if you walk, or threaten to walk enough that they really bite and get another loan at a lower rate.
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Where did you get your information from? I have talked to both Wells Fargo as well as with Stearns Lending and both of them told me that I can have one float down if the interest rate goes down. I dont know about Wells, but Stearns told me there is no fee associated with this. Also, Stearns mentioned that you can do an 60 day lock with a 30 day extention for free. Besides, not all lenders are the same. It doesnt hurt to ask. It only takes a phone call.
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The float down is definitely not free...depending the type of financing...it's not even available.
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Who is your lender?
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Rather not say...but I have asked around. Float downs are not available for new purchases for me and it's a tough market right now.
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I understand. But congratulations!
 
I do have a question for those in the lending business..why is there such a divergent range of rates online?  I look at bankrate and some are offering 4.3 (Amerisave) v. others are at 4.75% for same lock period and no points. 
 
Some lenders offer a .25 fee benefit (not rate) if you impound. Most internet lenders will require impounds based on their best available rate quotes. Some companies won't lock at application. The lock term (30 days) might be the same, but one will lock now, the other will lock after the application is approved or the appraisal is in which allows for some rate quotes to be less equal in terms than others.

Since the spike, many lenders have seen volume crash by 2/3rds. What used to be a business model based on ringing phones and fat margin loan even at a low rate to the consumer, is now meaningless because phones now aren't ringing. Some companies will push their rates lower by reducing margins just to get some business to come through the door. Other companies don't have those kinds of margins to press into lower rates because they have such a high overhead (brick and mortar stores, 10,000 staff memebers) so they can't cut rates as quickly like the low cost providers do.

When you get a torque in rates like this, some are capable of reactive pricing. Others don't. In about 3 weeks you'll see everyones prices back to about the same spread as before. You'll also hear about some of those 10,000 back office staff getting the hook as well.

My .02c
 
Re: float downs.

Want to know if you're getting a float down? First, ask for their lock policy in writing. Can't get that? Wonder why? I don't. It's uncommon for lenders to give float downs or have said same policy in writing.

If you get a float down agreement, does it say you'll get market rates? No. It will likely say you'll get 1/2 way between the rate you locked and the rate that's at market.

Ask your L.O. "If I lock at 4.0% and see your bank offering 3.75% in a week, will you give me the 3.75% without cost?" Then ask "Great, can I sign that rate lock agreement that says this?".

iMortgage has a form of a rate lock with a float down, but it requires an up front fee, a lock over market rates, and when you float down it's over market rates. Is that a deal?

If you have a float down rate lock agreement, can you send me a copy? It would be one of the few I've seen "in the wild" before, other than iMortgage's program and an old one that Wells Fargo had in the 1990's.
 
Soylent Green Is People said:
Some lenders offer a .25 fee benefit (not rate) if you impound. Most internet lenders will require impounds based on their best available rate quotes. Some companies won't lock at application. The lock term (30 days) might be the same, but one will lock now, the other will lock after the application is approved or the appraisal is in which allows for some rate quotes to be less equal in terms than others.

Since the spike, many lenders have seen volume crash by 2/3rds. What used to be a business model based on ringing phones and fat margin loan even at a low rate to the consumer, is now meaningless because phones now aren't ringing. Some companies will push their rates lower by reducing margins just to get some business to come through the door. Other companies don't have those kinds of margins to press into lower rates because they have such a high overhead (brick and mortar stores, 10,000 staff memebers) so they can't cut rates as quickly like the low cost providers do.

When you get a torque in rates like this, some are capable of reactive pricing. Others don't. In about 3 weeks you'll see everyones prices back to about the same spread as before. You'll also hear about some of those 10,000 back office staff getting the hook as well.

My .02c
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But doesn't it boil down to what the investor is willing to pay for?  I mean it seems silly for anyone to go to a high margin banker/lender.  I mean why would I go to the dealership with a higher selling price?
 
Wow...job numbers came close to 200K and in line with the ADP numbers of 188K. 

Bond yields shot up to 2.71 and are down a little to 2.68.  I don't see how rates don't go up to 5% now with jumbos at 5.25% or higher. 

I wonder how many times the bond market are going to get "shocked" before good economic numbers are no longer a big deal. 
 
Thru Zillow refi

30 yr Jumbo 75%LTV at 4.25% (need around $1500 to close)

5/1 ARM 75% LTV at 2.5% (need around $1000 to close)

both require FICO 760+, single family home, primary residence, not sure if they require impounds.
 
Irvinecommuter said:
Wow...job numbers came close to 200K and in line with the ADP numbers of 188K. 

Bond yields shot up to 2.71 and are down a little to 2.68.  I don't see how rates don't go up to 5% now with jumbos at 5.25% or higher. 

I wonder how many times the bond market are going to get "shocked" before good economic numbers are no longer a big deal.
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Good you locked! Even if you had a float down option, I think you wont have needed it. Lol.
 
ps9 said:
Thru Zillow refi

30 yr Jumbo 75%LTV at 4.25% (need around $1500 to close)

5/1 ARM 75% LTV at 2.5% (need around $1000 to close)

both require FICO 760+, single family home, primary residence, not sure if they require impounds.
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Not sure where you're looking but the lowest I see is 4.5% with a 4.6% Apr. Most are 4.625 or 4.75%

I don't even see 4.25% on a conforming.
 
any predictions on rates next week / next month?

if one could lock this weekend at today (friday's) rates, sound like a good move?  8)

 
Some reprieve from last Friday's unprecedented move...yield is down about 0.07 at 2.67.  You would expect a little pull back today. 

Question is what is what the yield do in the next few weeks...there are some projections that yield will hit 4% by 2016 while others say that it will be slow uptick for the rest the of year.  Minutes of the Fed meeting is going to come out and Bernake is supposed to speak publicly today.

 
Very interesting day...yield fell about 0.11 to 2.64, getting back about half of the losses on Friday.  Of course, it is still about 0.13 above the opening on Friday.  Interesting to see what happens over the next week.
 
Wacky day today...Yield jump 0.09 to 2.60 for no real reason.  There were some good economic news from Europe but nothing really earthshattering.  That's a 0.125 to 0.25 difference in rates from a couple days ago  :-\
 
Decent article on Bond Yields -
http://online.barrons.com/article/SB50001424052748704329604578637791455942204.html

Key line -
"It is widely believed that tapering of asset purchases will occur this coming September, but Bernanke reiterated the analogy that the Fed will merely be letting up on the accelerator rather than braking. The current consensus is for a reduction from $85 billion per month to $60 billion ? $65 billion in September.

To provide some perspective, the experts at PIMCO's mortgage-backed securities (MBS) desk have pointed out that the expected $10 billion reduction in Agency MBS purchases ? the other $10 billion ? $15 billion will be from Treasuries ? will be less than the reduction in MBS origination occurring as a result of the recent plunge in mortgage refinancing activity tied to the increase in mortgage rates. The net effect is that we expect the Fed will be purchasing, on a percentage basis, more Agency MBS than it did when the program began. "

 
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