Mortgage Rates

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[quote author="Trooper" date=1229600983]<em>I see 30-year mortgage rates in the high 3% range by Spring of next year.</em>



usc, seriously ? Tell us what makes you think that.... WOW ! That would be great !</blockquote>
The Fed is going to be buying longer dated bonds and fannie mae/freddie mac mortgage securities which will drive rates down further from current levels. I've heard something like only $8-$10 billion has been purchased by the Fed so far and they'll have hundreds of billions in dry powder to keep buying. Isn't interesting that the ARM products have rates in the 6% range and the 15-year fixed rate mortgage have a higher rate than the 30-year fixed rate mortgage? Well, that's called market manipulation.
 
[quote author="No_Such_Reality" date=1229601426]sub-5% mortgage rates are going to create a real quandry in regards to rental parity.



Direct ownership costs, PITA, will be below rent quickly. Indirect costs, maintenance accurals, etc, while leave it close. Provided you can qualify and pony up the 20%.</blockquote>




Sure, and are OK with losing your 20% dp when you sell (or have it eaten by inflation, i guess). Only comes out well for investment properties that you plan to hold forever, i'm thinking.
 
Hmmm so I have a 30 year mortgage at 5.75% and a 15 year at 5.25%.



I'm thinking I should call in to get a GFE pretty soon...or do you guys think the rates will drop even lower. Anyone have a good contact they recommend?
 
[quote author="Shooby" date=1229684229]Hmmm so I have a 30 year mortgage at 5.75% and a 15 year at 5.25%.



I'm thinking I should call in to get a GFE pretty soon...or do you guys think the rates will drop even lower. Anyone have a good contact they recommend?</blockquote>


If we had the equity, I would wait because I really think USC is right about rates going lower. We're doing the refi now because there are a couple of listings that will be total comp killers and destroy our chances of getting the even lower rates that are coming.
 
[quote author="freedomCM" date=1229655482][quote author="No_Such_Reality" date=1229601426]sub-5% mortgage rates are going to create a real quandry in regards to rental parity.



Direct ownership costs, PITA, will be below rent quickly. Indirect costs, maintenance accurals, etc, while leave it close. Provided you can qualify and pony up the 20%.</blockquote>




Sure, and are OK with losing your 20% dp when you sell (or have it eaten by inflation, i guess). Only comes out well for investment properties that you plan to hold forever, i'm thinking.</blockquote>


That's the quandry. You can't sell. Your monthly run will be below rent, but you won't be able to sell. The DP will be permenantly locked up and future rents will be soft and problematic, IMHO.



Likewise, renting will be losing it's luster quickly over the next year. Landlord investment in existing rentals has dried up and much like the 90s, the existing rental pool is in the first year of an extended deferred maintenance beat-down. In addition, I suspect we will be seeing an overall 'roughening' of the renter stock. You what I mean, all those people that exited renting with NINJA loans are coming back to a rental near you.
 
[quote author="freedomCM" date=1229655482][quote author="No_Such_Reality" date=1229601426]sub-5% mortgage rates are going to create a real quandry in regards to rental parity.



Direct ownership costs, PITA, will be below rent quickly. Indirect costs, maintenance accurals, etc, while leave it close. Provided you can qualify and pony up the 20%.</blockquote>




Sure, and are OK with losing your 20% dp when you sell (or have it eaten by inflation, i guess). Only comes out well for investment properties that you plan to hold forever, i'm thinking.</blockquote>


You're right. I just purchased an investment condo in DT LA that is well into positive CF after I just locked in a 4.625% no points mortgage. This is a great time for long term investors to start nibbling and fence sitters who need/want a home and have 20% down. With rates this low, alot of properties are now at or below rental parity(yes, i do acknowledge the risk rents will keep dropping).



Guys, take a look at indymac for the best rates right now. People have gotten rates as low as 4.7% 30 year fixed with NEGATIVE 1 point. Basically a no cost refi. Rates have bumped up a bit today but I'm fairly certain they will go back down and perhaps even lower in the next few weeks. Looks like the fed is determined to flood the economy with money and do everything they can to stop the bleeding.
 
I just talked with one broker and she suggests we to wait because the rate will be even lower next year.

Anyone get a good deal on a jumbo-comforming loan? The broker told me that the rate below 5% is basically for loans under $417K.

And if they terminate the jumbo-comforming program next year, would that affact the re-fi?
 
So I called Indy early this morning and was told the hold time might be a bit. I put it on speaker and went about doing some work. ONE HOUR AND A HALF later it starts to ring to a human being, but do I get the human being? No, I get human being's v/m. I go to leave a message and two seconds into it the thing tells me my message won't be sent and disconnected me!
 
[quote author="Meatball" date=1229745605]I just talked with one broker and she suggests we to wait because the rate will be even lower next year.

Anyone get a good deal on a jumbo-comforming loan? The broker told me that the rate below 5% is basically for loans under $417K.

And if they terminate the jumbo-comforming program next year, would that affact the re-fi?</blockquote>


I hope that you mean $625k, since the $729k is long gone.



$625k is supposed to last all next year.
 
[quote author="freedomCM" date=1229768662][quote author="Meatball" date=1229745605]I just talked with one broker and she suggests we to wait because the rate will be even lower next year.

Anyone get a good deal on a jumbo-comforming loan? The broker told me that the rate below 5% is basically for loans under $417K.

And if they terminate the jumbo-comforming program next year, would that affact the re-fi?</blockquote>


I hope that you mean $625k, since the $729k is long gone.



$625k is supposed to last all next year.</blockquote>


Yes, 625K now. Your broker is wrong. I've found that most brokers I talked to this week and trying to make a bundle on your loans by giving you higher rates.



Indymac quoted 4.75% no cost no points for a jumbo conforming on thursday. Just go on their site and do a quick quote. Right now, it's showing 4.75% with .375 pts.



Indymac is being flooded with calls, so there is a really long wait on the phones right now. Leave a message and they will eventually call you back. My hope is after the first wave of refi's the volume will slow, and rates will fall again.
 
[quote author="stepping_up" date=1229602269][quote author="No_Such_Reality" date=1229601426]sub-5% mortgage rates are going to create a real quandry in regards to rental parity.



Direct ownership costs, PITA, will be below rent quickly. Indirect costs, maintenance accurals, etc, while leave it close. Provided you can qualify and pony up the 20%.</blockquote>


actually, rates on 90:10 LTV ratios are lower than 80:20 because the PMI gives lenders more insurance. you can do a 90:10 without PMI by paying 1/2% higher rate so ultimately it's not lower, but the point is that you don't have to put 20% down to get a really great rate right now, but you do need 10%.</blockquote>


That is extremely interesting. Under this scenario someone who had the money to put 20% down could put 10% down and sign up for PMI, then pay the additional 10% off on the loan balance and extinguish the PMI and enjoy the lower overall rate. Something I'll have to consider when I look to buy in 2010-2012
 
aimloan.com is quoting 5.125% with zero points on a jumbo-conforming 30 year today. Indymac is quoting way cheaper right now...
 
Hi everyone, long time no speak...hope you're all doing well.



Troop - good luck on your refi. Graph - hope you're no longer fixing computers at 2am 3 nights a week.



Can I ask a question please? What would be reasonable closing costs on a 30-yr $622,500 fixed rate refi with 0-point, assuming full docs, over 30% equity, 680-700 credit score? I was shown a $8000 Good Faith Estimate today, with these being big ticket items:

Loan Orig Fee $3000

Title Insurance $1500

Underwriting Fee $700

Escrow Fee $650

Processing Fee $600



Many thanks.



P.S. It's good to see the forum still thriving with many old names I recognize!
 
Hi Almon ! What was the rate quoted ? Origination fee is the same as points.....so the $3000 is around 1/2 a point. Graph would know more about the rest. The $1500 title fee seems about right for a new purchase, but for a re-fi you should be able to piggy back off the old one (as long as it hasn't been more than 10 years since the last one so I understand) If so, you should be able to get that down to the $750 range.
 
The rate quoted was 4.875%, but we cannot lock it because we just started the process and just met the mortgage broker for the first time yesterday.



We bought the place this past January, so hopefully I can do the piggybacking as you suggested. How does that work? Do I approach the title company that provided the previous title insurance, and ask them to give me a quote for the same title insurance?
 
Rates are dropping like flies, who'd of thunk?? We got a call from our BofA account manager to refinance our existing bofa to 4.75% no points.. would we like to refi? Uh sure, talked with their mortgage dept who took our docs, faxed them more docs, and just waiting to go in to sign papers once they're done. Of course, we're still going to be making our same payments as before, just making sure whatever savings from the 1 point difference goes back to principal.
 
[quote author="almon" date=1230050688]Hi everyone, long time no speak...hope you're all doing well.



Troop - good luck on your refi. Graph - hope you're no longer fixing computers at 2am 3 nights a week.



Can I ask a question please? What would be reasonable closing costs on a 30-yr $622,500 fixed rate refi with 0-point, assuming full docs, over 30% equity, 680-700 credit score? I was shown a $8000 Good Faith Estimate today, with these being big ticket items:

Loan Orig Fee $3000

Title Insurance $1500

Underwriting Fee $700

Escrow Fee $650

Processing Fee $600



Many thanks.



P.S. It's good to see the forum still thriving with many old names I recognize!</blockquote>


I think thats way high, unless your going with a broker. Its cheaper just to call your local bank and get the loan direct. It usually about $2500 if you go directly to a bank and cut the middleman.
 
[quote author="Bubblegum" date=1230173485]Rates are dropping like flies, who'd of thunk?? We got a call from our BofA account manager to refinance our existing bofa to 4.75% no points.. would we like to refi? Uh sure, talked with their mortgage dept who took our docs, faxed them more docs, and just waiting to go in to sign papers once they're done. Of course, we're still going to be making our same payments as before, just making sure whatever savings from the 1 point difference goes back to principal.</blockquote>
Rates are actually gonna keep getting lower as the economy gets worse and the Fed keeps buying long bonds and Fannie/Freddie paper. 30-year mortgage rates will lower into the high 3%/low 4% range before the middle of next year.
 
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