- Jun 24, 2004
- 2,280
- 135
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Thanks for going up a percentage point in 2 weeks it seems, just when I might put an offer on a house. Feels great!
Cool mortgage rates!
- Thread starter RearAdmiral
- Start date
Eug
Lifer
- Mar 11, 2000
- 24,165
- 1,809
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Well it sucks in your situation, but then again we all knew this was coming. It was just a matter of time.
5-year mortgage rates have gone up about 30 points up here in Canada too in the last few days. Going along for the ride with bond yields, which have actually been rising for some time now.
However, don't you guys have pre-approved rate lock-ins? Here what most people do is say they want a 120-day rate lock-in, and then will go looking for a house. The 120-day lock-in rate is slightly higher than the best rates, but I'd rather pay 10-15 points higher locked-in than say 30-40 points higher if the rates suddenly spike. Plus the lock-in isn't actually locked-in in the true sense, since if the rates are lower when you actually buy, you'll pay the lower rate.
5-year mortgage rates have gone up about 30 points up here in Canada too in the last few days. Going along for the ride with bond yields, which have actually been rising for some time now.
However, don't you guys have pre-approved rate lock-ins? Here what most people do is say they want a 120-day rate lock-in, and then will go looking for a house. The 120-day lock-in rate is slightly higher than the best rates, but I'd rather pay 10-15 points higher locked-in than say 30-40 points higher if the rates suddenly spike. Plus the lock-in isn't actually locked-in in the true sense, since if the rates are lower when you actually buy, you'll pay the lower rate.
Eug
Lifer
- Mar 11, 2000
- 24,165
- 1,809
- 126
Yeah, but that was a crazy time. My colleague paid the same thing. Wowsers. I remember a years later people bragging about their low 8% rates.
However, "low as heck" is not much of a consolation when it was much lower last week. I don't quite feel his pain though since I got my mortgage back in December. It dropped about 10 points by May compared to what I got, but since then has gone back up 30 points.
MiniDoom
Diamond Member
- Jan 5, 2004
- 5,305
- 0
- 76
SunnyD
Belgian Waffler
HardcoreRobot
Lifer
- Nov 7, 2000
- 16,403
- 3
- 81
Unlikely...my best friend's sister is a mortgage broker and she is saying they are seeing a record # of cash bids just so buyers can get a leg up on their offers.
Slew Foot
Lifer
- Sep 22, 2005
- 12,379
- 96
- 86
Yeah, here in silicon valley everyone is paying cash. Im not sure where these people get seven figures to throw around like that.
dr150
Diamond Member
- Sep 18, 2003
- 6,570
- 24
- 81
Zero down with that rate is fantastic.
Something to tell/brag to your kids about when they're older. :biggrin:
Red Squirrel
No Lifer
3.29% FTW. Recently switched to a local bank/credit union. I was at 3.40% or something like that before when I was with RBC.
You did not get a mortgage preapproval? That should be the first step before looking at houses. You are usually guaranteed that rate for 3 months or so.
It's crazy how much money from the mortgage payment goes towards interest though, I never realized it was that high till I looked at the numbers. Almost half of it is interest. I'm paying a couple hundred dollars extra biweekly so hopefully that will make a decent dent in the long run.
You did not get a mortgage preapproval? That should be the first step before looking at houses. You are usually guaranteed that rate for 3 months or so.
It's crazy how much money from the mortgage payment goes towards interest though, I never realized it was that high till I looked at the numbers. Almost half of it is interest. I'm paying a couple hundred dollars extra biweekly so hopefully that will make a decent dent in the long run.
Eug
Lifer
- Mar 11, 2000
- 24,165
- 1,809
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I am not sure I understand the draw of "paying cash" here. The bank providing a mortgage would be "paying cash" to the seller anyways.
It's not as if the buyer is paying in monthly cheques or something.
I'm happy if the buyer has been pre-approved, and has a steady job. Then I don't really care if it's "cash" or not. Well, I will admit if two offers came in at the exact same amount, the cash one might be more attractive, but I'd usually take a higher offer from a buyer getting a mortgage than a lower offer in cash.
Everyone should look at the numbers, and look at them again and again on an ongoing basis. It's a pretty good incentive to stop spending money on unnecessary stuff, and pay down the mortgage faster.
Last edited:
Dr. Detroit
Diamond Member
- Sep 25, 2004
- 8,561
- 951
- 126
Multiple offers will be ending - With rates moving above 4.5%, it sill take a few weeks but offers will be ending.
This is the first week mortgage rates have been above 4% in a long time. Will take time for prices to reflect this.
Although I could be wrong - and people who sat on the fence will look to close before rates go up further!
This is the first week mortgage rates have been above 4% in a long time. Will take time for prices to reflect this.
Although I could be wrong - and people who sat on the fence will look to close before rates go up further!
SearchMaster
Diamond Member
- Jun 6, 2002
- 7,791
- 114
- 106
Investment firms/speculators are scooping up property in some markets.
Should end well.
Eug
Lifer
- Mar 11, 2000
- 24,165
- 1,809
- 126
Oh, here, basically the same thing is just a sales contract that removes any clauses for inspections and appraisals etc.
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