Anyone else watching mortgage rates?

[Miramonti]

Currently bankrate.com is at 4.98%. I'm in at 6%, so a refi now would take 3 years to make up.

I'm hoping to see 4.625-4.75 before I jump, or roughly 2 years to make up.

 

[Scouzer]

Wow.. that's high for you Americans. I've heard of people with interest rates below 2% here in Canada... 2.5% is certainly common

 

[OCGuy]

I am doing 4.5% @ par on 30yr Fixed for good Fannie borrowers here in CA all day right now.

Rates are great.

 

[dirtboy]

We got 4.75% with no points for a 30 year. Closing escrow Nov 30 on a brand new house!

 

[JD50]

Wow.. that's high for you Americans. I've heard of people with interest rates below 2% here in Canada... 2.5% is certainly common

I'm pretty sure we're talking a standard 30 yr fixed mortgage. How would a rate below 2% even make sense, it wouldn't even beat out inflation, the bank would lose money.

 

[JD50]

Are people able to get 100 percent financing anymore?

 

[jlee]

I am hoping they stay low -- I'd like to buy a house within 2 years...we'll see how it goes.

 

[Scouzer]

I'm pretty sure we're talking a standard 30 yr fixed mortgage. How would a rate below 2% even make sense, it wouldn't even beat out inflation, the bank would lose money.

Oh, I was talking variable. My bad.

 

[OCGuy]

are people able to get 100 percent financing anymore?

96.5% fha.

 

[iGas]

Oh, I was talking variable. My bad.

Even with variable it is not that low any longer because Banks don't lend below prime since early spring of this year. Below 2% is because people are now reaping the variable rate at below prime that the bank signed in the last few years, but that will end shortly.

Sentiment is that in the next few years once below prime rates are up, many people in Canada will have problem making payment because they are stretched to the max at the present, and have to pay slightly higher rate (5-7% mortgages instead of the typical 2-4% in the last 2 years).

I bought my house in the 2006 and the best variable rate that I got at that time were .9% below prime, and I ended up paying 6.019% variable mortgage.

 

[iGas]

Are people able to get 100 percent financing anymore?

Not sure, but the last time I check with my bank (late summer 2009) is that the best I can get is 10% down. There are places that you can put 5% down, but it is similar to a second mortgage hence higher mortgage rate for that portion.

PS. I'm in Canada

 

[Miramonti]

I am doing 4.5% @ par on 30yr Fixed for good Fannie borrowers here in CA all day right now.

Rates are great.

How did you get 4.5%...when were they that low?

 

[richardycc]

How did you get 4.5%...when were they that low?

probably have to pay points...I got 4.875 fixed 30yr with 0.5 points(I think) in Jan 09. my old rate was 6.5%.

 

[bignateyk]

I got mine for 4.875 in July (30 yr fixed).

 

[The-Noid]

I got 4.625 for close tomorrow and since my wife works for the bank they pick up all closing costs besides the .0025 tax that goes to our state...

 

[Taughnter]

Are people able to get 100 percent financing anymore?

My office closed on a purchase with 100% financing last week. The Buyers were apparently informed by the bank (PNC) that they would be "the last" 100% financing. Whether they meant literally the last or that 100% financing was basically being phased out, I'm not sure, but it was definitely a pain in the ass securing the commitment for that loan.

Realistically, I'd say that the average person can't get 100% financing and that the people who can have other property to use as collateral or money in the bank.

 

[alkemyst]

Are people able to get 100 percent financing anymore?

no. best is about 3% with FHA.

If one cannot come up with a down payment (which is different from those that didn't have too) they have no business buying a home.

 

[Miramonti]

no. best is about 3% with FHA.

If one cannot come up with a down payment (which is different from those that didn't have too) they have no business buying a home.

I don't agree with that. People that can put down 20% can be just as strapped after the purchase as anyone. What's more important is income security, and many have that but just not cash sidelined for a down payment.

 

[Mojoed]

This thread could really use some APR numbers. The rate by itself isn't the entire story.

I refi'd for 4.575% in January of 2009 with a 4.82% APR.

 

[Via]

Man, my mortgage broker told me to lock in at 5.25% around August because he was sure that's as low as it would go.

 

[JD50]

no. best is about 3% with FHA.

If one cannot come up with a down payment (which is different from those that didn't have too) they have no business buying a home.

That's ridiculous. For a first time home buyer, I might agree, but there are plenty of people that would've had money to put down on a home if they didn't lose money on their current home.

 

[spidey07]

Yep. Getting ready to get a new home, take advantage of the gubment 6500 home buyers credit (this is not first time buyers one) AND the realtor is buying both our homes at two point sellers fee and we get the rest of the gain.

They're desperate to sell houses. There will probably never be a better time to buy than right now.

 

[Miramonti]

This thread could really use some APR numbers. The rate by itself isn't the entire story.

I refi'd for 4.575% in January of 2009 with a 4.82% APR.

How does APR work? Right now, I'm quoted 4.875% (0+0) with 2% closing costs.

Yep. Getting ready to get a new home, take advantage of the gubment 6500 home buyers credit (this is not first time buyers one) AND the realtor is buying both our homes at two point sellers fee and we get the rest of the gain.

They're desperate to sell houses. There will probably never be a better time to buy than right now.

Your realtor is buying two of your homes for an investment of their own? Nice.

 

[JS80]

probably have to pay points...I got 4.875 fixed 30yr with 0.5 points(I think) in Jan 09. my old rate was 6.5%.

I was quoted 4.5% FHA 30 year fixed no points.

see link http://www.zillow.com/mortgage/BorrowerQuoteDetail.htm?quote=ZQ-NDLZBKG

 

[RaistlinZ]

Can a loan still qualify for FHA if you put down more than just 3.5%? Ideally, I would like to get a 4.5% 30 year fixed with no points and put at least 20% down.