Reminder **Mortgage Rates are way low ** Not an Ad, just a reminder

[jlee]

Wow, and my lender told me about a month ago that rates were going up.

I guess not.

 

[mmntech]

You can't even get a place that size in the ghetto around here for that price!

KT

UK? Yeah, it's pretty bad in Europe now. Problem where I am is there's a lot of urban sprawl. City folk are moving to the outlying areas and causing a lot problems in places that were small towns only a decade ago. Low mortgage rates have created a housing bubble. Supply can't meet demand and it's driven prices up astronomically. What was a $350k house ten years ago is now $500k. I'm hoping for a correction soon. Prices just rose too much over too short a period. The government just passed a law requiring mortgages be maximum 25 years at 20% down. A lot of people were getting into the market at as little as 5% down with 30+ year mortgages to afford their half million dollar homes. It was creating a bit of a houshold debt crisis since people can't weather rate increases. The other issue is Generation Y is now starting to get to home buying age and are finding they can't afford to enter the market. So that should trigger a drop in demand, and a drop in prices.

It's worse out in Vancouver. The average price for a typical suburban two story home is almost a million out there. Only the wealthy can own property out there. Has to do with rich foreign investors going on a property buying spree. Nobod owns out there. Just rents. Rents are as much as a mortgage payment for a nice house here. Vancouver is one of those places I've never got the appeal of. Everyone I know that's actually lived there for awhile says it's an awful place.

 

[boomhower]

I bought my first house earlier this year at 3.5% for 15 years. I knew they were going to keep falling but didn't they would get this low. I wonder where the bottom is going to be?

 

[fstime]

Sure they are low but lending standards are as high as ever.

Good luck getting approved unless your credentials are 100% flawless.

 

[OCGuy]

Sure they are low but lending standards are as high as ever.

Good luck getting approved unless your credentials are 100% flawless.

False...depends on many factors. I just sold a house to someone with a 619 mid FICO with 3.5% down.

But yes, you have to prove you can actually afford the house now.

 

[OverVolt]

http://www.zerohedge.com/news/mortgage-refinancing-and-feds-perverse-incentives

Also remember operation twist is extended to Dec 2012. Lowering Treasury 10y yields drops mortgage rates.

 

[goobee]

I had to refinance a few years ago back to 30 years due to the wife losing her job. 4.85% @ 30 years was decent then but if I can get it down to low 3's, that would be most excellent.

Any suggestions where to look in So Cal?

 

[boomhower]

Sure they are low but lending standards are as high as ever.

Good luck getting approved unless your credentials are 100% flawless.

Certainly not true. I was approved with a couple of old collections, my middle score was a 699. But you do have to show you have a stable job and can actually afford the loan.

 

[edro]

Are these sub 4% numbers for refis? Or just new mortgages?
I have a rental at 5.375% and my house is at 4.875%.

I would love to get that rental down to 4%...

 

[Fingolfin269]

This is definitely good timing for me. Our house will be complete in a few weeks and will need to refi the construction loan into a permanent 30 year.

 

[Dubb]

speaking of construction loans, what's the recent story on those? Probably about to start shopping soon.

 

[lokiju]

Even being upside down we've been able to get 4.25% from the 6.9% we've been at.

We sign the closing papers next Monday!

 

[EagleKeeper]

I anticipate my VA adjustable 3/15 will be coming in at 2.25. Now at 5.25 with 4 years gone off of a 30.

Saves over 350/month that will go right back to principal.

 

[Vdubchaos]

God, almost time to refinance AGAIN. I've refinanced 2 times past 2 years......from 6.25% to 5.125% and from 5.125 to 4.25.....very close to pulling the trigger again (waiting for low 3s.

and remember, if you fix up an old house... dont get laminate for flooring!!!
i just fixed up a house and decided to get laminate flooring.
1 month later, water damage in the living room. oh man, theres a bulge on the floor now and i have no idea who dropped water without me knowing.

Key words "cheap laminate"

I had Pergo laminate flooring throughout my house for over 10 years and spilled water MANY times....no bulges etc.

 

[Drekce]

Can anyone here recommend a good broker/lender? I'm in Florida and have perfect credit, but I am only at about 85% loan/value ratio. I current have a 4.625% rate on a 20 year (17 left), and would like to drop to a 10 or 15 year. I don't want to have to pay PMI, but the one broker I've called said there is no way around it.

I don't pay PMI currently, so if I have to pay that it will eat in to any savings based on the rate.

 

[Vdubchaos]

Can anyone here recommend a good broker/lender? I'm in Florida and have perfect credit, but I am only at about 85% loan/value ratio. I current have a 4.625% rate on a 20 year (17 left), and would like to drop to a 10 or 15 year. I don't want to have to pay PMI, but the one broker I've called said there is no way around it.

I don't pay PMI currently, so if I have to pay that it will eat in to any savings based on the rate.

a) go with local small (reputable) bank or credit union /Stay away from big banks is the rule of thumb

b) there is no going around/magic trick to PMI (like there used to be).

c) pull up "does it make sense to refinance" calculator> plug in the numbers and see how much you will save over 30 years and see when your break even point is.

d) remember, if you are moving within next 3-5 years...chances are, no point to refinance

e)Paying PMI might still save you TON of cash

f)don't EVER drop your mortgage from 30 years to 15 or 10. Just get 30 year mortgage and pay it like you would if you had 15 years. Sure it will cost you more in the long run but you ALWAYS have the option of paying LESS. Once you take out 10-15 year mortgage, there is no option....

My advice would be to save money so that you can put it down as a downpayment on a refinance to get you over 20% mark. If you are able to pay 10-15 year loan...you should have no problems of saving that money in relatively short amount of time.

Also, keep in mind there is always a room for Appraisal person to put the value of your house little higher (especially when you are refinancing), but don't count on it.

I'm a big believer in "if you don't have 20% down you cannot affort a house". In your case, if you don't have 20% equity/down payment you cannot afford to refinance.

 

[GT1999]

I'm going with the fiancee to Chase tonight to see how much we can get approved for. We're getting married in two months, and our lease is up in October. Unfortunately we're short on cash. So PMI is going to happen.

I really could use some opinions on this - should we buy in October after we get married, or wait a year and maybe get a higher interest rate? We both have perfect credit, so I'd love to get a sub 4% interest rate now instead of something higher next October.

I don't know what to do.

 

[GT1999]

Also, as it looks like we will need an FHA loan, are those easy to get if both parties have good credit and stable jobs?

 

[mshan]

"Thursday the Obama Administration will renew its push for a major refinancing program that would involve all loans, but it would need congressional approval. There are several proposals under consideration.

The “Responsible Homeowners Refinancing Act,” sponsored by Senators Barbara Boxer, D-Calif., and Robert Menendez, D-NJ, would expand the HARP program, extending streamlined refinancing for Fannie and Freddie borrowers and eliminating up-front fees and appraisal costs. Jaret Seiberg at Guggenheim Partners puts the odds of that passing at around 60 percent.

Seiberg is less optimistic about another bill that would allow non-agency mortgages refinance into FHA loans, regardless of negative equity. The bill would raise GSE (Fannie and Freddie) guarantee fees to offset its costs."

http://www.cnbc.com/id/48149524

 

[Vdubchaos]

I'm going with the fiancee to Chase tonight to see how much we can get approved for. We're getting married in two months, and our lease is up in October. Unfortunately we're short on cash. So PMI is going to happen.

I really could use some opinions on this - should we buy in October after we get married, or wait a year and maybe get a higher interest rate? We both have perfect credit, so I'd love to get a sub 4% interest rate now instead of something higher next October.

I don't know what to do.

If you don't have 20% down and 6-9 months of Emergency fund you are simply NOT ready to buy a house.

I'm sure Bank will throw money at you though....do not let BANK make "ready/not ready" decision FOR you. It's your responsibility.

 

[vi edit]

speaking of construction loans, what's the recent story on those? Probably about to start shopping soon.

A buddy of mine has been in the mortgage brokering industry for years and we were talking about this last week. I guess construction loans are getting *very* hard to find. Some places that used to offer them flat out aren't lending. Others' that used to be 10% down are now 20% if not 30% down to build.

 

[rcpratt]

I'm excited to see what rate I get when I close on the condo in February. 3.50% range would be nice.

 

[GT1999]

If you don't have 20% down and 6-9 months of Emergency fund you are simply NOT ready to buy a house.

I'm sure Bank will throw money at you though....do not let BANK make "ready/not ready" decision FOR you. It's your responsibility.

We wouldn't be able to save 20% for probably another 5 years, unless if we get some absolutely huge amounts from the wedding. Am I really supposed to wait until I'm 41 to buy a house?

I want to start a family next year, so I do appreciate your advice, but getting a 20% downpayment just isn't going to happen.

I've been putting money into rent for the past 10 years, which is all money wasted.

Not to mention the fiancee is literally crying over the fact that we would have to wait to save up $50k

 

[rcpratt]

We wouldn't be able to save 20% for probably another 5-10 years, unless if we get some absolutely huge amounts from the wedding. Am I really supposed to wait until I'm 41 to buy a house?

I want to start a family next year, so I do appreciate your advice, but getting a 20% downpayment just isn't going to happen.

I've been putting money into rent for the past 10 years, which is all money wasted.

Not to mention the fiancee is literally crying over the fact that we would have to wait to save up $50k

There are plenty of situations where buying a house is a perfectly financially responsible decision even if you have only 5-15% to put down. I'm not saying you have one, because I don't know your situation, but ignore those who say that you can't do it without knowing your situation.

<-- Putting 5% down on my condo early next year.

 

[vi edit]

I'm really not sold on the 20%. Rates are so low that putting an extra $10,000-$20,000 down on a modest house does very little over 30 years, PMI is tax deductable for a lot of people and most people can simply use that money on more expensive short term debt if they have it.