"The new fee increase would amount to about $15 a month more for a $200,000 mortgage, according to a senior Democratic official.
That's $180 a year, or $360 a year for a $400,000 mortgage. Homeowners would have the fee hike built into their loan -- the mortgage provider would then send that extra revenue to the Treasury."
http://www.foxnews.com/politics/2011/12/17/mortgage-fees-would-rise-under-payroll-tax-cut-deal/
Kyle Bass previously said Fannie and Freddie were not charging enough insurance (?) to appropriately compensate for the risk they were taking, so this is actually a move in right direction:
http://www.youtube.com/watch?v=5V3kpKzd-Yw (after 28:30 minute mark)
He said they were charging
g-fee (?)
20 basis points and it should have been
70 basis points.
IIRC, 15 year fixed historically should run about 0.5% below comparable 30 year fixed, and "par" rate for best qualified buyer on a 30 year fixed (owner occupied detached single family home, good down payment, 1% origination fee, no yield spread premium, pay actual closing costs out of pocket) historically was 1.5% - 1.75% above yield on 10 year Treasury
(if things in Europe get really messing first half of next year and looks like U. S. is going into double dip recession, I have heard commentary on CNBC that yield on 10 year could
conceivably dip down to 1.5%; we're at 1.85% right now and had dipped as low as 1.7% in early September, and don't know if another round of quantitative easing next year would collapse historical spread more - previously I read commentary that QE had reduced rates by guesstimated 0.4% previously, QE2 has ended but someone said effects linger because Fed still has all of those securities on their balance sheet still?) All in all, though, my guess is years in future people who got these rates
right now will look back in amazement at what a good deal they got, even if they didn't catch absolute bottom in retrospect.
My guess is that best qualified buyer could get 3.75% on 30 year fixed, though probably very difficult to find that "par" wholesale rate when only paying 1% origination fee and actual closing costs. And historically, anything below 6.5% on 30 year fixed used to be considered cheap (this is all stuff I read on Lou Barnes blog in past when it used to be free on Friday / Saturday when he originally posted it to the web).
I think people often trading no closing costs for 0.25% bump in rate, and possibly another 0.5% yield spread premium bump in rate may be needed to cover overhead and profit for bank or large mortgage lender where profit has to be split around among multiple people and ever increasing profits have to be shown to stock shareholders for publicly traded companies.
"
Where's my super cheap mortgage?":
http://realestate.yahoo.com/promo/wheres-my-super-cheap-mortgage.html
Mortgage Rates Are All In Your Head:
http://www.cnbc.com/id/40533411/Mortgage_Rates_Are_All_in_Your_Head
Mortgage Re-Fi rule of thumb (divide mortgage amount into $125000 to see minimum rate reduction required to make refi make sense):
http://video.cnbc.com/gallery/?video=3000050857 (3 minute mark)
