Anyone else watching mortgage rates?

[sdifox]

Don't really care. Currently on variable rate and it's like 1.25 or something like that. My principal is only 30k, even if it is 10% I can still afford it.

 

[Miramonti]

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.

Yes, 20% is the max, and by doing so you'll avoid having to pay PMI.

 

[spidey07]

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

The money they would make from the sale of the new home would make up for any risk they would incur by buying mine and my fiancee' at FMV. We're looking are nicer homes in a new neighborhood and they're simply unable to sell them and getting hurt by sitting on them. The neighborhood is stuck at like 25% developed and they can't move forward, hence the great incentives by the realtor for those homes.

I'm getting the distinct impression that realtors/sellers are getting even more desperate and today's news about new housing starts would put even more power into the buyers hand. Of course this is my area, YMMV of course.

 

[Ausm]

My house is paid off so I don't watch the rates.

 

[OCGuy]

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

I'm in the industry, I process and underwrite mortgages....that was the par rate the last few days at our best investor without risk adjustments.

It went back up to 4.75% today though.

 

[Miramonti]

I'm in the industry, I process and underwrite mortgages....that was the par rate the last few days at our best investor without risk adjustments.

It went back up to 4.75% today though.

That's outstanding, way to jump on it.

 

[Linflas]

I am. I am currently at 5.5% and doing a VA streamline doesn't cost much and we are not going to be selling in the near future.

 

[alkemyst]

those talking rate and points really should quote the fees too. Often times paying a point with one lender is way better than the junk fees another charges with no-points.

I just qualified for Obama's HAMP, my 6.875% loan went to 2.11% with a payment $800 less than I was paying. I am still upside down as putting me at 31% debt to income didn't have any impact on my principal balance, but now after taxes I am 'renting' cheap if I ever decide to walk. I am hoping everything rebounds, but if I had to move tomorrow there is no way I could sell this house without at least $125k being short.

 

[Bignate603]

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.

If they have income security but lack the will power to pull a downpayment together they are a bad credit risk. For most people this takes years of commitment saving up for it, that proves their financial responsibility.

There's no guarantee that somebody with 20% to put down is going to see the mortgage through but there is a better chance. If someone had to work to build up the down payment they're probably in better control and in a better financial situation than someone who hasn't had the ability or the willpower to get a large downpayment.

There's also the fact that the 20% downpayment covers a bank's loss if you default. Unless you burn the house down or the market completely falls apart the bank can recover the money they loaned out if you've put up a decent amount of money.

 

[stinkynathan]

We close on a nice 1800 foot house on November 30. 4.875% with 5.16% APR. No points and nothing down (VA loan). $104k. Sellers are paying $2k of closing costs. I think we'll owe a couple hundred at closing.

 

[FlashG]

What is this mortgage thing that you talk of?