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

NEW -> Contingent Buyer Assistance Program
best_potsticker_in_town said:
They want $1,600 or so. I have a high risk tolerance and my gut tells me rates will be flat through Q1. Additionally, I'm starting to think a 5/1 ARM might be a better choice than 30yr fixed. 3.5%-3.75% for 60 months might be better than a 4.125%-4.25%, especially as I'll likely sell or refi within 5-7 yrs.
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$1600 is a small price to pay for peace of mind. But if you plan on selling then 5/7 year ARM would be a good choice. If the market dips you might not have enough equity to refi unless you're putting a large down payment. Then again that would mean a weak economy and maybe the fully-indexed rate would be low anyway.
 
Isn't the rate on a 30 year jumbo below what is mentioned (4.125% - 4.25%)?  Or am I looking at bad rates?  I was thinking you could still get 4% these days. At least I've seen a few credit unions advertising that rate. 
 
For those looking to purchase a house in 2017, what can we expect interest rates (30Yr and 15Yr fixed) to be this summer?

Anybody have any guesses?  Currently it's 3.75% for a 15 yr at BofA. 
 
paydawg said:
For those looking to purchase a house in 2017, what can we expect interest rates (30Yr and 15Yr fixed) to be this summer?

Anybody have any guesses?  Currently it's 3.75% for a 15 yr at BofA.
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Another house?
 
eyephone said:
paydawg said:
For those looking to purchase a house in 2017, what can we expect interest rates (30Yr and 15Yr fixed) to be this summer?

Anybody have any guesses?  Currently it's 3.75% for a 15 yr at BofA.
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Another house?
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Yes, quite possibly. 
 
Ahhh.... the good old days roughly 1 year ago. Sub 3.5 30 fixed (coming back IMHO) and fully indexed LIBOR rates in the mid 1's. A bit late to the party, but this week we added a nearly identical 1mo IO program Morgan Stanley had been offering back then. With a .77 LIBOR today, plus a 1.625 margin, it's not the crazy rate it was in 2016 but pretty much the lowest deal around right now.

My .02c





ps9 said:
Here's the old flyer from MS

The rate is now 1.90% instead of the 1.75% in the ad.  I believe the 0.25 bump is from the fed, and then they discount 0.10 for FICO 740+ and LTV < 60.  If you were to do this at no cost, its another 0.25 to get the lender credit which would bring the rate to 2.15%.  Looking over my old emails, looks like you can also do a cash out, I would assume without going over the LTV 60. 

If I do this... monthly mortgage IO would be around a grand.  Make a big principal payment end of year/bonus time.. This might work out. 
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Soylent Green Is People said:
Ahhh.... the good old days roughly 1 year ago. Sub 3.5 30 fixed (coming back IMHO) and fully indexed LIBOR rates in the mid 1's. A bit late to the party, but this week we added a nearly identical 1mo IO program Morgan Stanley had been offering back then. With a .77 LIBOR today, plus a 1.625 margin, it's not the crazy rate it was in 2016 but pretty much the lowest deal around right now.

My .02c





ps9 said:
Here's the old flyer from MS

The rate is now 1.90% instead of the 1.75% in the ad.  I believe the 0.25 bump is from the fed, and then they discount 0.10 for FICO 740+ and LTV < 60.  If you were to do this at no cost, its another 0.25 to get the lender credit which would bring the rate to 2.15%.  Looking over my old emails, looks like you can also do a cash out, I would assume without going over the LTV 60. 

If I do this... monthly mortgage IO would be around a grand.  Make a big principal payment end of year/bonus time.. This might work out. 
Click to expand...
Click to expand...

wait..you think the sub 3.5 30YR fixed is coming back?  How do you figure?  I thought there's a good chance for a rate hike in March. 
 
paydawg said:
Soylent Green Is People said:
Ahhh.... the good old days roughly 1 year ago. Sub 3.5 30 fixed (coming back IMHO) and fully indexed LIBOR rates in the mid 1's. A bit late to the party, but this week we added a nearly identical 1mo IO program Morgan Stanley had been offering back then. With a .77 LIBOR today, plus a 1.625 margin, it's not the crazy rate it was in 2016 but pretty much the lowest deal around right now.

My .02c





ps9 said:
Here's the old flyer from MS

The rate is now 1.90% instead of the 1.75% in the ad.  I believe the 0.25 bump is from the fed, and then they discount 0.10 for FICO 740+ and LTV < 60.  If you were to do this at no cost, its another 0.25 to get the lender credit which would bring the rate to 2.15%.  Looking over my old emails, looks like you can also do a cash out, I would assume without going over the LTV 60. 

If I do this... monthly mortgage IO would be around a grand.  Make a big principal payment end of year/bonus time.. This might work out. 
Click to expand...
Click to expand...

wait..you think the sub 3.5 30YR fixed is coming back?  How do you figure?  I thought there's a good chance for a rate hike in March. 
Click to expand...

Rate hikes don't necessarily mean that long term mortgage rates will go up.
 
wait..you think the sub 3.5 30YR fixed is coming back?  How do you figure?  I thought there's a good chance for a rate hike in March.
[/quote]

Yellen rate hikes will primarily impact credit cards, HELOC's and auto loans.

I wouldn't be surprised to see mortgage rates go down if the Fed raises rates. Money will come flowing into bonds.
 
USCTrojanCPA said:
paydawg said:
Soylent Green Is People said:
Ahhh.... the good old days roughly 1 year ago. Sub 3.5 30 fixed (coming back IMHO) and fully indexed LIBOR rates in the mid 1's. A bit late to the party, but this week we added a nearly identical 1mo IO program Morgan Stanley had been offering back then. With a .77 LIBOR today, plus a 1.625 margin, it's not the crazy rate it was in 2016 but pretty much the lowest deal around right now.

My .02c





ps9 said:
Here's the old flyer from MS

The rate is now 1.90% instead of the 1.75% in the ad.  I believe the 0.25 bump is from the fed, and then they discount 0.10 for FICO 740+ and LTV < 60.  If you were to do this at no cost, its another 0.25 to get the lender credit which would bring the rate to 2.15%.  Looking over my old emails, looks like you can also do a cash out, I would assume without going over the LTV 60. 

If I do this... monthly mortgage IO would be around a grand.  Make a big principal payment end of year/bonus time.. This might work out. 
Click to expand...
Click to expand...

wait..you think the sub 3.5 30YR fixed is coming back?  How do you figure?  I thought there's a good chance for a rate hike in March. 
Click to expand...

Rate hikes don't necessarily mean that long term mortgage rates will go up.
Click to expand...

True.  The Fed raised the rate and after Brexit long term interest rates tanked. It doesn't directly correlate with the 30-year fixed, but is a sign of in increasing rate environment.  Will likely still have opportunity to lock and catch the 'dips' for refi.
 
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