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

NEW -> Contingent Buyer Assistance Program
Thanks for the shout out.

Back in the day I had been on Zillow Mortgage Market, but it was a complete "hive of scum and villainy"... so I stopped being a member. My profile is there, but I've not updated it for some time.

Lenders would quote 2% rates in a 6% market. Then ZMM began trolling for $$$ to prop up their business model. I'd get the call once a week "hey, this is so and so from ZMM. I think we can raise your profile and lead generation if you pay X for ad space..."

This was well before Z went public. They've put some restrictions in place and tightened up guidelines a bit, but there still are so many paid reviews and misquotes that you've really got to be ready to research the lenders reputation outside of what you see on ZMM.

Every barrel of apples has a few bad ones. The inverse of that there are plenty of good ones in there also. The trick is finding which one is which before taking a bite.
 
OpenSky said:
BTW, Wells needed 80% LTV, plus a full year's payments (including tax + HOA) in reserve to do the deal. Is that reserve requirement new?
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The reserves requirement is new. I think that before it was 3-6 months and recently required 6 months as a minimum (depending on your bank).

12 months is new to me, but I guess Wells wants to be sure.
 
I meant with your 30 yr fixed. What were points at 4.125? I am assuming at 4.25 there was a credit?

I like your saying! Sleep well vs eat well! It's like enjoy now and risk paying later!
 
Chairman said:
I meant with your 30 yr fixed. What were points at 4.125? I am assuming at 4.25 there was a credit?

I like your saying! Sleep well vs eat well! It's like enjoy now and risk paying later!
Click to expand...

who the hell can sleep well without eating well? thats crazy.
 
Whoa...10 year yield down to 2.58.  Down almost 0.5 since the high in early January.

Mortgage Daily has the best execution at 4.25 to 4.375%

Would love to see that drop another .25 or even 0.5
 
irvinehomeowner said:
OpenSky said:
BTW, Wells needed 80% LTV, plus a full year's payments (including tax + HOA) in reserve to do the deal. Is that reserve requirement new?
Click to expand...
The reserves requirement is new. I think that before it was 3-6 months and recently required 6 months as a minimum (depending on your bank).

12 months is new to me, but I guess Wells wants to be sure.
Click to expand...

Based on my recent experience with Wells they have different requirements for different mortgage products. They still have mortgages that require 3 or 6 months of reserves.
 
Thanks for the shout out.

It's pretty common for this kind of "oops, did I forget to tell you...." nonsense to come up when finding a low rate that appears to be a great deal. Either it's tied to an impound account, (undisclosed), an automatic payment (also undisclosed), or some other hoop like also closing with a HELOC at the same time (a notorious practice of some banks back in the day).

The deal isn't just the rate or fees, it's the terms - loan, lock, and language within the agreement -that often turn what looks like a great deal into something else.

Most borrowers sign up for the auto-pay, but I'm curious to know what happens if you cancel it. Mortgage bankers like myself can offer the WF rate reduction program, but the locked rate isn't at the .25% reduction. Post closing, the payment terms are delivered to the customer at -.25% from the note rate. If the auto-pay is cancelled, the payment does revert to the note rate.

Any closed buyers finding they can remove the auto pay and not see a corresponding .25 increase in their rate?
 
OpenSky said:
Mini-update:

Thanks to Soylent Green is People, I discovered my 4% rate has the "auto-pay" feature baked in, which accounts for .25% -- so I need to sign up for a Wells bank account. Surprisingly, this is nowhere (that I can find) in my disclosures. And it isn't mentioned anywhere in the GFE nor rate lock agreement, yet the loan officer confirmed it. Really odd. Not a deal breaker but the rate makes more sense now.

Secondly... my other lender, Union, is floating but is "matching" the 4.25% rate sans origination fee. So they're essentially at parity.

Choice 1 is Wells with auto-pay and customary fees of ~$2k (appraisal + orig), amounting to less than 1/2 point
Choice 2 is Union with no auto-pay BS and no costs. Buy downs are crazy expensive - a point buys 1/8th.

Feeling Choice 1 is the way to go.... the payback is ~16 months.
Click to expand...

I have a Wells Fargo mortgage (both 1st and 2nd). They told me that it's illegal for them to do auto-pay rate reductions on a 1st mortgage (they can't offer lower rates to only certain people as it might be illegal discrimination) and they only offered it to me on my second mortgage.
 
Here's interesting graph of 30-year conventional mortgage rate since 1970 from FRED- St Luis Fed. http://research.stlouisfed.org/fred2/graph/?id=MORTG

I remember my parent bought their home in late 70's with an interest rate of 18%.  When I bough my first home with an interest rate of 9.5%, I though I got the deal of the century.



 

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