Just bought a house in Woodbury

NEW -> Contingent Buyer Assistance Program
Sorry. haven't officially offered on a place yet. But I am thinking 41 Ascension. I am also thinking of Serra at Portola Sprints. I like Ascension since it is in Turtle Rock and no mello roos, plus gated. For Serra, you get more bang for the $$ which is what I do not get... so I am confused on what to do. You do have to pay more mello roos and you are near the freeways and you are much further north. Both addresses will have their kids go to good High Schools - University and Northwood. However, I have to admit that I am much more biased toward University. Even though they are called the Trojans - I am a UCLA grad.



I am planning to use Wells Fargo. I have submitted all my paper work with them so they know my income etc. They have also given me a commitment letter already. I just need to find a place!
 
[quote author="now.buying" date=1207484870]I guess you are getting a conforming loan right? $417k or lower? 6% or lower - zero points?



That looks like a pretty good rate... much better than what is shown on the website that IPOplaya likes to link to. </blockquote>


Huh? MTG Capital has a 30-year conforming for 5.625% at par with $950 in lender fees. ETrade has a 30-year conforming at par with $995 in lenders fees. My credit union, same loan is at 5.875%. Sorry to say but 6% on a conforming 30-year today isn't very good at all.
 
[quote author="now.buying" date=1207486312]Sorry. haven't officially offered on a place yet. But I am thinking 41 Ascension. I am also thinking of Serra at Portola Sprints. I like Ascension since it is in Turtle Rock and no mello roos, plus gated. For Serra, you get more bang for the $$ which is what I do not get... so I am confused on what to do. You do have to pay more mello roos and you are near the freeways and you are much further north. Both addresses will have their kids go to good High Schools - University and Northwood. However, I have to admit that I am much more biased toward University. Even though they are called the Trojans - I am a UCLA grad.



I am planning to use Wells Fargo. I have submitted all my paper work with them so they know my income etc. They have also given me a commitment letter already. I just need to find a place!</blockquote>


You can never go wrong with turtle rock. My boss owns a condo in there and i really love that area..it's more establish.



Yes, I do pay Mellow Roos (400 bucks a month). Actually, I refer woodbury over portola springs because it's closer to the freeway. Easy access.

One thing I have to point out is that as more houses are developed in portola springs, the drive on sand canyon from the 5 to portola springs will be a nightmare.
 
[quote author="now.buying" date=1207485931]congrats to you. that looks like a good rate - My lender quoted me a jumbo 30-yr fixed at 7.5% no points..</blockquote>


Just another word of caution now.buying, the land big banks like Wells Fargo, Bank of America, etc. are going to have likely the highest mortgage rates around. Jumbo 30-year loans are running 6.75-7.0% with zero points for well-qualified buyers. I'm curious, why would you want to pay .50 to .75 more than you had to if you shopped around? On a $600K loan, three-quarters of a point is $4500 per year...
 
[quote author="ipoplaya" date=1207486848][quote author="now.buying" date=1207485931]congrats to you. that looks like a good rate - My lender quoted me a jumbo 30-yr fixed at 7.5% no points..</blockquote>


Just another word of caution now.buying, the land big banks like Wells Fargo, Bank of America, etc. are going to have likely the highest mortgage rates around. Jumbo 30-year loans are running 6.75-7.0% with zero points for well-qualified buyers. I'm curious, why would you want to pay .50 to .75 more than you had to if you shopped around? On a $600K loan, three-quarters of a point is $4500 per year...</blockquote>


Thank you for the insight. I am planning to shop around once I officially buy a place. That 7.5% quote is two weeks old now so it might have changed. I am just using Wells Fargo to for pre-approval letters and to provide a copy of the commitment letter to a desperate buyer so that I might be able to get a discount on the purchase price. I am think sellers now are willing to give a little bit of price concession to a well-qualified buyer. I could be wrong. I haven't even gone thru one offer process yet!



As for other mortgage providers - who else is really underwriting 30-yr mortgages right now? I figured that Washington Mutual, Countrywide and smaller players probably can not offer good rates given their troubles? Not to say that Wells and BOA are not having problems....



Which website do you use IPO to get the latest rates? I see you post that link today and I remember checking but I see the jumbo rate on that site in excess of 7% today for a jumbo. Also, can you really depend on smaller guys??? since you can lose your deposit if you promise to release your contingency early?
 
[quote author="irvineowner" date=1207487214]Last week, I had my rate locked at 5.375% 0 point for 30 year fixed conforming loan.</blockquote>
wow that's pretty good rate.

may i ask who's ur lender?
 
Countrywide is actually offering pretty good rates nowadays. I locked a refi up with MTG (the link I provided) last Friday, checked with the Countrywide rep, and she couldn't beat it. She called me back on Wednesday and offered to beat it by an eighth of a point and to knock most of the $ off the lender fee. Rates has actually gotten worse between when I locked and Countrywide offered, so she was giving me a decent premium to current market.



I have used MTG in the past and they performed well. If I was you, I wouldn't worry about losing your deposit on a purchase. It's hard to find a buyer today so a seller isn't going to kick a well-qualified one to the curb just because their lender is being a little slow... You could ask for 21 days on contigency removal to buy an extra few days just in case too.
 
[quote author="catchmeifyoucan" date=1207487863][quote author="irvineowner" date=1207487214]Last week, I had my rate locked at 5.375% 0 point for 30 year fixed conforming loan.</blockquote>
wow that's pretty good rate.

may i ask who's ur lender?</blockquote>


I went with Standard Pacific Mortgage and builder also gave $2000 incentive.
 
What is the typical cost to refinance anyways with another lender? is it a % of the loan? assuming I will be refinancing it to another zero point upfront loan?
 
[quote author="irvineowner" date=1207488387][quote author="catchmeifyoucan" date=1207487863][quote author="irvineowner" date=1207487214]Last week, I had my rate locked at 5.375% 0 point for 30 year fixed conforming loan.</blockquote>
wow that's pretty good rate.

may i ask who's ur lender?</blockquote>


I went with Standard Pacific Mortgage and builder also gave $2000 incentive.</blockquote>


you mean 20k? what rate did you get from the lender?

what area did you buy and how long ago was that?
 
[quote author="catchmeifyoucan" date=1207488582][quote author="irvineowner" date=1207488387][quote author="catchmeifyoucan" date=1207487863][quote author="irvineowner" date=1207487214]Last week, I had my rate locked at 5.375% 0 point for 30 year fixed conforming loan.</blockquote>
wow that's pretty good rate.

may i ask who's ur lender?</blockquote>


I went with Standard Pacific Mortgage and builder also gave $2000 incentive.</blockquote>


you mean 20k? what rate did you get from the lender?

what area did you buy and how long ago was that?</blockquote>


Builder provides $2000 incentive for going with Standard Pacific Mortgage. I am buying Serra Plan 3. It's in escrow right now. The house is about $1.29M after discount.
 
[quote author="irvineowner" date=1207488883][quote author="catchmeifyoucan" date=1207488582][quote author="irvineowner" date=1207488387][quote author="catchmeifyoucan" date=1207487863][quote author="irvineowner" date=1207487214]Last week, I had my rate locked at 5.375% 0 point for 30 year fixed conforming loan.</blockquote>
wow that's pretty good rate.

may i ask who's ur lender?</blockquote>


I went with Standard Pacific Mortgage and builder also gave $2000 incentive.</blockquote>


you mean 20k? what rate did you get from the lender?

what area did you buy and how long ago was that?</blockquote>


Builder provides $2000 incentive for going with Standard Pacific Mortgage. I am buying Serra Plan 3. It's in escrow right now. The house is about $1.29M after discount.</blockquote>
only $2000 incentive? Are you sure it's not 20K??? lenders don't usually give incentive that little.
 
Builder gave deep discount for the home. Folks bought the same house one year ago paid $300K+ more than I have to pay now. $2K incentive is for the loan. It's enough to cover loan fee and whatever leftover will be used for the closing cost.
 
Luckily, there is still a wholesale lender alive, that I can check their rates on. Conforming 30 year fixed, as of Friday, was 5.875% and the jumbo was 6.875%. The 100 bps above conforming seems to be the norm for the Fannie/Freddie jumbo loan rates.



As for the 5.375% rate Irvineowner stated, that seems way too low for a true zero point loan, and most likely includes a 1% origination fee. Which, BTW, is the same exact thing as a point.



As for a refi, it always costs more for a refi, and the pricing will always be higher than a purchase money loan. The % of the loan amount fees are arbitrary and vary between lenders, they do need to eat after all. The secondary market is the same for everyone, and it is all about volume and profit margins. I would suggest doing a search about paying points, I have posted about it in ad nauseam, sometimes it makes sense to do a zero point loan, other times you would be financially stupid not to pay points. You just need to do the math, and do not trust the loan officer for advice on this, as very few rarely understand it.
 
[quote author="graphrix" date=1207502480]



As for the 5.375% rate Irvineowner stated, that seems way too low for a true zero point loan, and most likely includes a 1% origination fee. Which, BTW, is the same exact thing as a point.</blockquote>


The mortgage is through the builders lending arm it sounds like Graph, so it could be below market pricing...
 
I love reading these types of threads for the different opinions, but can someone explain to me why one would ask about risk <strong><em>after</em></strong> they have already signed their purchase contract. How does this make sense? I mean, I could see this possibly happening if someone had just found IHB after their purchase, but original poster even says he has been "reading posts in this forum for quite a few months." Is there something else going on here that is not obvious to me? Sorry, it just doesn't make sense to me why someone would take the time to ask about risk after they "just bought a house."
 
[quote author="BLUE FIRE" date=1207534361]I love reading these types of threads for the different opinions, but can someone explain to me why one would ask about risk <strong><em>after</em></strong> they have already signed their purchase contract. How does this make sense? I mean, I could see this possibly happening if someone had just found IHB after their purchase, but original poster even says he has been "reading posts in this forum for quite a few months." Is there something else going on here that is not obvious to me? Sorry, it just doesn't make sense to me why someone would take the time to ask about risk after they "just bought a house."</blockquote>


it doesn't make sense to someone who does not know how to read carefully.



I said I just signed a contract. I still have time to back out of the contract. The lender gave me a week to cancel the contract.



And if you have been in this forum for quite a while, you should know better how the process of buying new homes work. . I am sorry, If you didn't know how to read this thread correctly, how can i expect you to follow all the threads and have them make sense to you.



Just my 02 cents.
 
catchme,



if you think about the intel you've been given, it would still tell you to hold off.



<blockquote>They all give me indication that market wont bottom untill the end of this summer.</blockquote>


many would argue that recovery by the end of the yr is nearly impossible. bernanke JUST finally admitted the economy is sliding into recession. job losses are mounting. the housing mkt will not recover until AFTER recession passes because 1) people need jobs and income growth before they can go back to buying homes, and 2) even once jobs come back, it takes time for people to get over their fear of the mkt. all these events will take years to play out, not months.



<blockquote> California especially high demanded area like newport beach, irvine, hb will go down at most another 10%.</blockquote>


10% is way too optimistic. consider all the homes on the mkt right now. would a 10% reduction be enough to move all that inventory? is 10% what's keeping the housing mkt down?



<blockquote> However, it's definitely buyer's market...</blockquote>


is it though? i'd say its a stagnant market. its not good to be neither seller or buyer. whatever your position might be, its best to hunker down for the storm.



even if you believe your own intel, you should still at least wait until end of the summer. the unit you're looking at is a standard design that exists all over irvine. you'll still find that same house in a few months. if you're right, you will save 10% at the end of the summer. if you're wrong, you will have saved yourself from a much bigger mistake. whats the advantage of buying right now?
 
[quote author="acpme" date=1207555234]catchme,



if you think about the intel you've been given, it would still tell you to hold off.



<blockquote>They all give me indication that market wont bottom untill the end of this summer.</blockquote>


many would argue that recovery by the end of the yr is nearly impossible. bernanke JUST finally admitted the economy is sliding into recession. job losses are mounting. the housing mkt will not recover until AFTER recession passes because 1) people need jobs and income growth before they can go back to buying homes, and 2) even once jobs come back, it takes time for people to get over their fear of the mkt. all these events will take years to play out, not months.



<blockquote> California especially high demanded area like newport beach, irvine, hb will go down at most another 10%.</blockquote>


10% is way too optimistic. consider all the homes on the mkt right now. would a 10% reduction be enough to move all that inventory? is 10% what's keeping the housing mkt down?



<blockquote> However, it's definitely buyer's market...</blockquote>


is it though? i'd say its a stagnant market. its not good to be neither seller or buyer. whatever your position might be, its best to hunker down for the storm.



even if you believe your own intel, you should still at least wait until end of the summer. the unit you're looking at is a standard design that exists all over irvine. if you're right, you will save 10% at the end of the summer. if you're wrong, you will have saved yourself from a much bigger mistake.</blockquote>


Thanks for your input.



There's a saying: One should only buy a house to live in if the moment is right for himself, not based on the market, not someone else's opinion.

Can you really predict when the market hits bottom? How can you be so sure? Predictions are just predictions. Nothing more nothing less.

If we all can predict the future, i guess you and I should be somewhere in tropical paradise enjoy our vacation.
 
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