Thread: Mortgage Rates Drop

With the new lower rate maybe this will get some people off the fence that have been sitting waiting to buy that home.

Maybe some people still having a little money after the market stole it to buy a home.

Rick

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It doesn't matter what they are today.... some Washington nitwit will promise they'll be a half point lower in a couple months just to keep people on the sidelines.

Realistically, I'm surprised it's not a little busier now. Honestly, in the ten years I've been doing this and the 20 year history of the company that I have to look at, this is by far the slowest it's ever been.

Prices are down a lot from where they were and money is cheap right now. It's hard for my hopes to not interfere with what logic is telling me now but I have to think things are going to pick up a bit after the first of the year.

In the meantime, I guess I'll just keep counting the pine needles on the Christmas tree.

I don't think it much matters what the rates are. People are in a scared mood right now. Is my job secure? Who knows which company will be next on the news? Mine?
It's a psychological problem that I think will only be molified with time. I'm just glad I can still drag my tools out and find the occasional remodel job.
JLMathis

The discount rate offered by the Feds has no effect on mortgages. The banks are not lending. They are sitting on huge cash reserves waiting for the next slew of ARMS to default. HOLD on we are in for the perfect storm

Originally Posted by JORY LANNES

The discount rate offered by the Feds has no effect on mortgages. The banks are not lending. They are sitting on huge cash reserves waiting for the next slew of ARMS to default. HOLD on we are in for the perfect storm

Jory, This just isn't true. Many of the banks are lending. A close friend of mine who is a investment banker at Chase has told me that people aren't coming in right now and asking for loans because the Feds have mentioned that a 4.5% interest rate is coming in Jan.

He also stated that the banks would have to start loaning out the monies given to them for new home loans (not refinaces) in Jan. or they would be having to give the monies back.

Rick

Originally Posted by Rick Hurst

Jory, This just isn't true. Many of the banks are lending. A close friend of mine who is a investment banker at Chase has told me that people aren't coming in right now and asking for loans because the Feds have mentioned that a 4.5% interest rate is coming in Jan.

He also stated that the banks would have to start loaning out the monies given to them for new home loans (not refinaces) in Jan. or they would be having to give the monies back.

Rick

Frost Bank just gave my last client 5%, the client before from his bank was 5 1/4. These folks made great money and had great credit. The credit better be in the 770 and up range with no hick ups and no deap credit card debt. Just the 770 and up on credit just took 40 to 50% of the buyers on homes and cars out of the market. I am hoping that that does not reflect my next years take on the home inspection business.

Thanks Rick, my brother is a mortgage banker for the second largest bank in the US in Chicago. He says the party line is what you quoted. However they are not writing any conventional loans 20% down unless the borrower has an 800 and above credit score and has been employed at the same company for 3 yrs or more. In Dec he has written 2 mortgages. I hope it is different where you live. FHA are doing 3% or 97% principal loans. However the houses in our area (Chicago) are to pricey for FHA

Originally Posted by JORY LANNES

Thanks Rick, my brother is a mortgage banker for the second largest bank in the US in Chicago. He says the party line is what you quoted. However they are not writing any conventional loans 20% down unless the borrower has an 800 and above credit score and has been employed at the same company for 3 yrs or more. In Dec he has written 2 mortgages. I hope it is different where you live. FHA are doing 3% or 97% principal loans. However the houses in our area (Chicago) are to pricey for FHA

Even FHA is going to 3 1/2% down

Rates are great but getting the bank to approve the loan is difficult. I am looking at investment property and I was used to 3/8 % higher rate than owner occupied now I am being quoted 6 3/8 with 1 to 2 points and thats with 25 to 30% down. But their are great deals to be had.

My last two rental houses took months to fill. I used to only compete with 4 to 5 houses now with nothing selling I am competing with 40 house's in a given suburb.

Steve Reilly
Owl Inspection Services

Originally Posted by Steve Reilly

Rates are great but getting the bank to approve the loan is difficult. I am looking at investment property and I was used to 3/8 % higher rate than owner occupied now I am being quoted 6 3/8 with 1 to 2 points and thats with 25 to 30% down. But their are great deals to be had.

My last two rental houses took months to fill. I used to only compete with 4 to 5 houses now with nothing selling I am competing with 40 house's in a given suburb.

Steve Reilly
Owl Inspection Services

I just talked to my mortgage person today and got a quote for 4.875 to refi - she said the rates could go down further if tomorrow's unemployment numbers are worse than expected, which seems inevitable.

I asked about a re-fi on my rental house and she said a lot of the rules had changed which basically results in much higher rates on investment properties. She said is would be between 5.75-6.00 which is pretty much where I'm already at. Now, if these low rates can just force some people off the fence and into new houses....

I am looking to refi my home. i was just quoted 4 3/4 plus 1 point and $1000 closing costs......I think the rates and fees are going to drop..At least I hope so

Expect rates of about 4.5 in mid Feb. but it won't be available for refi's.

rick

My friends in the mortgage industry are busy now with refinances. I haven't figured out how to take advantage of this as an HI. Does any one have an idea for making a hot refi market into a hot HI market?

Darrel Hood
DILIGENT PROPERTY SERVICES
(936)827-7664

I've never had a call for an inspection on a refinance other than a WDI report that the lender might request.

Does a lender actually require a HI on a refinance? Never seen it around this area.

rick

Rick,
As far as I know, the refi lenders do not require inspection. I was hoping that maybe some of you "old pros" knew a trick of the trade you could share.

Darrel Hood
DILIGENT PROPERTY SERVICES

One of the reasons that folks are not buying now is that you now need a down payment, good credit and be able to pay the loan! BIG SHOCK! This is one of the reasons we are not seeing folks buying homes like they use to do.

Who can maintain a 700+ credit score in this type of economy.

Almost everyone has some type of glick on their credit report which in turn hurts them buying anything at the moment.

Pay something late or the mail is slow, your screwed.

rick

Originally Posted by Scott Patterson

and be able to pay the loan!

And with the jobless numbers going sky high ...

Originally Posted by Darrel Hood

Rick,
As far as I know, the refi lenders do not require inspection. I was hoping that maybe some of you "old pros" knew a trick of the trade you could share.

Darrel Hood
DILIGENT PROPERTY SERVICES

The only trick that I can relate too is one I had forgot yesterday.

Always make sure the tub shower head valve is off before you lean over the tub to turn on the water. Nothing like a good head soaking at the first inspection of the day.

Rick

Originally Posted by Darrel Hood

Rick,
As far as I know, the refi lenders do not require inspection. I was hoping that maybe some of you "old pros" knew a trick of the trade you could share.

Darrel Hood
DILIGENT PROPERTY SERVICES

On my estimate from the mortage company I saw a spot for 'Pest Inspection' - which of course was empty because they usually don't require it. Maybe they used to or in some areas do. I suppose that would imply that the banks are concerned about what they're loaning money on, which still doesn't seem to be the case.

The trick I learned the hard way is to make sure of the direction the bathtub jets are pointing. I'm slow . . . I learned this one more than once.

Darrel Hood
DILIGENT PROPERTY SERVICES

I'm doing a no cost refi... with Wells Fargo at 4% Thats absurd. No Inspection, No appraisal. They are not even looking at my books...

buyers in my area are far and few these days... I see complete trash homes or 7 or 8 Mill/dollar pads...Lots of great deals on homes.

Some agents have hard money lenders. Buyer is able to fund the home and then go after a refi loan with a band. makes the buying prosess easier.

We will see how next year rolls out...

Best

Ron