How low can we go? 30 yr fixed at 3.75% with no fees...
- Thread starter ps99472
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NEW -> Contingent Buyer Assistance Program
1.99% is for $3,068 in total costs, you can pay $295 out of pocket for 2.44%. After three years it is 2-2-6, prime + 0
The cool thing is that For 495 you can relock your rate at anytime for another 3 years at the prevailing rate without doing a refi.
OK OK, i'm listening
ok...
Yes, but, Dodd-Frank's Ability to Repay rules require the creditor use the borrower's real proven income to qualify for the higher P&I payment due to the 100% LTV feature, and the back-end DTI can't stray from 43% much. I'd guess this 100% LTV $2M product is targeted at very high income tech workers who haven't saved much and/or have large shares of their employer's stock that may not be vested or sold easily.
Agreed. I like to use the Rule of Thumb that you should only have housing costs that you could reasonably manage for an extended period at half your current household income.
usctrojancpa
Well-known member
At no cost? Does it adjust at 1-year LIBOR plus 2.25% like the ARM loans?qwerty said:
qwerty
Well-known member
USCTrojanCPA said:
1.99% is for $3,068 in total costs, you can pay $295 out of pocket for 2.44%. After three years it is 2-2-6, prime + 0
The cool thing is that For 495 you can relock your rate at anytime for another 3 years at the prevailing rate without doing a refi.
homer_simpson
Well-known member
qwerty said:
OK OK, i'm listening
irvinehomeowner
Well-known member
Stop fronting... you don't finance, you pay all cash.Homer_Simpson said:qwerty said:
OK OK, i'm listening
homer_simpson
Well-known member
irvinehomeowner said:Stop fronting... you don't finance, you pay all cash.Homer_Simpson said:qwerty said:
OK OK, i'm listening
ok...
Perspective
Well-known member
Gulp! The 10Y is trading in the 2.34% range after the jobs report this morning. That's 30 bps higher than just two weeks ago.
ps99472
New member
$2 million mortgage: No down payment, no joke!http://www.cnbc.com/id/103232653
I wonder what the rate is.... If only I was a warriors fan
I wonder what the rate is.... If only I was a warriors fan
Perspective
Well-known member
ps9 said:
Yes, but, Dodd-Frank's Ability to Repay rules require the creditor use the borrower's real proven income to qualify for the higher P&I payment due to the 100% LTV feature, and the back-end DTI can't stray from 43% much. I'd guess this 100% LTV $2M product is targeted at very high income tech workers who haven't saved much and/or have large shares of their employer's stock that may not be vested or sold easily.
Perspective
Well-known member
Most creditors don't allow the front-end ratio to hit 43%. 30% would be closer to the norm. So, a $2M mortgage for thirty years fixed at 3.5% would likely require a real proven income of ~$300K for the back-end ratio, but ~$415K for the front-end ratio.
Ok...so in reality, the 415K is your more realistic cap...even than I'd have a hard time actually justifying being in that situation (if I make that much money...I don't want to stress a mortgage like someone who makes 75K (or by Irvine standards lets just say 150K) does just so I can have a few extra rooms). Given these metrics I could qualify for the 2M loan but no way in hell would I be doing it. Hell, I'm cringing at the thought of having a 800 or 900K loan (after putting 25 - 30% down). My personal belief is, if you make a few hundred thousand per year, you should be able to sleep better and worry less about your finances than a family making $75K (or $150K in Irvine). Meaning...living below your means should be super easy as you make more (as your needs shouldn't increase at the same pace as your income). To just put all that extra money so you have that much nicer of a house (and the same stress and house to income ratio's as the family with 150K) just doesn't make much sense to me.Perspective said:
Perspective
Well-known member
Bullsback said:
Agreed. I like to use the Rule of Thumb that you should only have housing costs that you could reasonably manage for an extended period at half your current household income.
http://www.nytimes.com/2015/12/15/upshot/why-very-low-interest-rates-may-stick-around.html?_r=0
Thought this was an interesting read.
Thought this was an interesting read.
sgip
Well-known member
The math puts a $2m loan at 3.25%, 1.25% tax rate, and some measure of HOA dues close to a 50% debt to income ratio for a $300k wage earner. It might drop a bit without HOA and a 1.1 tax rate, but not that much. A mortgage like this would have to have been approved with a sub 3% rate, under the best possible conditions.
Most articles will say "$300k income" which could be $299 all the way to $399k. Never know.
So... what's the over / under on rate changes tomorrow? Per MND, FNMA 4.0's closed at 105.61. That's roughly a .125 price (not rate) change for the day. Assuming 3.625% at -0- points, Where oh where will the FNMA's end up by EOB tomorrow?
http://www.mortgagenewsdaily.com/mbs/
My .02c? It's going to be a meh event.
Most articles will say "$300k income" which could be $299 all the way to $399k. Never know.
So... what's the over / under on rate changes tomorrow? Per MND, FNMA 4.0's closed at 105.61. That's roughly a .125 price (not rate) change for the day. Assuming 3.625% at -0- points, Where oh where will the FNMA's end up by EOB tomorrow?
http://www.mortgagenewsdaily.com/mbs/
My .02c? It's going to be a meh event.