Mortgage rates around 5%...who's buying?

[ShowdOWN]

with the prices of real estate going up every year, its a no brainer if you can afford to buy right now instead of waiting till a year or two. you could be paying about 5 to 10 thousand bux for the same property.

 

[joecool]

it's been around 5% for so long everyone's already refi'ed. i've got a 15 year at 5.125.

 

[LordSnailz]

Is bankrate trustworthy ... seems like any advertiser can just go in there and put their "low" rate ... I got 5.625% 30yr fixed not long ago, maybe I should check what's it at again ...

 

[royaldank]

Originally posted by: isasir
Most prepayment penalties are only a year max though, which, 95% of the time likely doesn't matter to the individual. While your point it valid, I believe prepayment penalities generally can get a customer an extra 3/8ths of a point savings, so for most people, it's worth it.

Agreed. However, there are plenty of mortgage companies that do much longer pre-payment penalties, etc. It's something smaller and greedier companies can get you with in some cases. I wouldn't worry about a year...anything longer than that you might want to shop somewhere else.

 

[Apathetic]

I currently have a 5.5% 15-year fixed mortgage. I think it's time to see if I can get a lower rate and, if so, how much it would cost me to refinance.

Dave

 

[WolverineGator]

Bought my house about 3 weeks ago: 3/2/2. Quitclaim deed, line of credit, prime + 0%, variable rate 😱

 

[Vic]

Originally posted by: isasir
Here's something I never fully understood - what's the concern with which lender your mortgage is with? Banks sell mortgages to one another all the time. So even if you went with Chase, they may sell it to another lender anyways.

Also, a mortgage means that you're paying the bank. I can understand if you're concerned about the bank you have your savings account with, but with a mortgage, you're giving them money, so why does it matter?

The only thing I can think of is customer service, but with a mortgage, how important is that really? Is it worth a couple extra thousand to go with a well known bank, but a higher rate?

No, it is not worth it.

Originally posted by: isasir

Originally posted by: royaldank
On smaller companies watch out for things like pre-payment penalties and things of that nature. DiTech, as example, can in many cases really stick it to you should you try and pay the loan off early. That's just one of the most common things lessor mortgage companies do. This applies to early payoffs which can be a result of you relocating. Say you get transfered in your company to another state and have to sell the house...you might have steep penalties in addition to the remainder of your loan.

Most prepayment penalties are only a year max though, which, 95% of the time likely doesn't matter to the individual. While your point it valid, I believe prepayment penalities generally can get a customer an extra 3/8ths of a point savings, so for most people, it's worth it.

I don't understand the point of bringing up prepayment penalties and smaller companies and then DiTech, which is a part of RFC which is owned by GMAC, the world's largest mortgage lender.
Whether or not a loan will have a prepayment penalty (PPP) is determined first by loan program and second by state laws. All of the premier loan programs do not have PPP's, not even as an option to get a lower rate. Generally PPP's are seen in subprime loan programs and for 2nd mortgages. A typical PPP is for the first 3 years of the loan and the charge is 6 months advance interest. Some PPP's are "soft", which means the borrower can sell the home without penalty, but will pay the penalty if they refinance.
Whether or not a loan has a PPP will be included in the loan documents. Ask and read carefully. If your loan officer does not disclose the presence of a PPP prior to closing, making for a lovely surprise, cancel the transaction and shop elsewhere. Do not reward the liars.
Many states have outlawed PPP's, but under various circumstances.

The rate bankrate.com shows as the "average" on their front page is a "buy-down" rate, or one where the borrower would have to pay discount point(s) to acquire it. Actual rates are higher. The actual average rate last week for a 30 fixed was 5.59% Text

 

[HeroOfPellinor]

Originally posted by: Apathetic
I currently have a 5.5% 15-year fixed mortgage. I think it's time to see if I can get a lower rate and, if so, how much it would cost me to refinance.

Dave

If you've been paying more than a couple years, it makes NO sense to refinance.....you'll start back paying mostly interest again.

 

[LikeLinus]

We close on Feb 28th but our locked rate was 5.65% Fixed 30 years. I'm happy with the rate considering the house we're in how has almost a 7% rate (we had it built in 1998). This house is an unbelieveable deal (the owner is an engineer for the electric company and owns a custom home building company). The owner has a timeline of upgrades he's done over the past 4 years (including a 30yr diminsional roof, berber carpets, italian tile throughout the bathrooms, kitchen floor and counter). We can't wait to move in.

It's about 800-900sqft more than our current home and only $200 more a month. We are very pleased.

 

[rh71]

Any more no-cost Wells Fargo refi programs ? Last one for us was I think a year ago... 30 years down to 5.875%.

 

[purbeast0]

Originally posted by: Davegod75

Originally posted by: Triumph
Talked to a realtor today. Looks like I'm going to have to spend about $300k for a 2 bedroom townhouse. 🙁 Don't know what to do. Bite the bullet and buy, or continue renting.

what area are you in...It's not quite that bad yet in MD, but getting there

i'm in MD as well, in silver spring, and i work in columbia.

right now i'm actually in the process of saving for a downpayment on a house. i graduated last may, and instead of going out and getting the fancy car that i had always wanted (a 2001 M3) i decided to not do it and save for a DP on a house. i'm not actually in the market right now, but i wish i had enough $$$ saved up right now to put a downpayment on a house ...

 

[purbeast0]

Originally posted by: sohcrates
Just bought townhouse on a lake here right outside DC.

market is BEYOND crazy. took 4 contracts to get a house

we're pumped. we close in march.

got a 10 year ARM

any more details on that house? like the cost of the house and what lake it is located on 🙂

just curious ...

 

[dirtboy]

No, but I'm selling. Hopefully someone will buy. 🙂

 

[royaldank]

Originally posted by: Vic
I don't understand the point of bringing up prepayment penalties and smaller companies and then DiTech, which is a part of RFC which is owned by GMAC, the world's largest mortgage lender.
Whether or not a loan will have a prepayment penalty (PPP) is determined first by loan program and second by state laws. All of the premier loan programs do not have PPP's, not even as an option to get a lower rate. Generally PPP's are seen in subprime loan programs and for 2nd mortgages. A typical PPP is for the first 3 years of the loan and the charge is 6 months advance interest. Some PPP's are "soft", which means the borrower can sell the home without penalty, but will pay the penalty if they refinance.
Whether or not a loan has a PPP will be included in the loan documents. Ask and read carefully. If your loan officer does not disclose the presence of a PPP prior to closing, making for a lovely surprise, cancel the transaction and shop elsewhere. Do not reward the liars.
Many states have outlawed PPP's, but under various circumstances.

The rate bankrate.com shows as the "average" on their front page is a "buy-down" rate, or one where the borrower would have to pay discount point(s) to acquire it. Actual rates are higher. The actual average rate last week for a 30 fixed was 5.59% Text

Dude, calm down. I was suggesting that when looking at smaller places watch out for this sort of stuff. Granted, it doesn't happen everywhere and it doesn't happen all the time. But, as you said, read the documentation and know what it says. That's all I was suggesting.

The reason I mentioned DiTech was because they have been known in the past to really screw some people over. I've seen it for myself since I've been working at a mortgage lender. I've seen their previous customers come in and what some of their loans look like. It's up the consumer to make a good choice and protect themselves. I was just offering up some info that I've seen first time buyers get trapped in.

 

[sohcrates]

Originally posted by: purbeast0

Originally posted by: sohcrates
Just bought townhouse on a lake here right outside DC.

market is BEYOND crazy. took 4 contracts to get a house

we're pumped. we close in march.

got a 10 year ARM

any more details on that house? like the cost of the house and what lake it is located on 🙂

just curious ...

over 400k. it's in southern alexandria around huntley meadows park

so glad we found something. as spring approaches its getting even crazier out there.

i'm talking people paying 30-50K OVER already inflated asking prices, and striking home inspection AND appraisal. and i'm talking about houses over 20 years old in some cases.

 

[imported_chuckey]

We got a townhouse at 5.5% for a 30yr mortgage in December. 🙂 Watch out for the ones on bankrate; they like to tack on a lot of different fees and what nots. Plus you need extraordinary credit with a decent down payment just to get one of those 5% plans! If you go locally, you'll get better service, but will probably wind up paying points.

FYI, if its your first time buying a house, make sure to check if your state or parish/county has a first time homeowner's incentive. I know we got one which saved us $3500 in closing costs and it gave us our 5.5 rate. Oh, and make sure to get pre-approval for a mortgage, you gain soooooo much bargaining pwoer with it!

 

[aeroguy]

Bought in December, first time homebuyer

3% down, 6% interest rate, no PMI

 

[Vegito]

I bought a condo in vegas.. 3 bed room, 10 min from the strip.. i live in nyc 🙂

150k, 35k down.. 5.5%

 

[Vic]

Originally posted by: royaldank
Dude, calm down. I was suggesting that when looking at smaller places watch out for this sort of stuff. Granted, it doesn't happen everywhere and it doesn't happen all the time. But, as you said, read the documentation and know what it says. That's all I was suggesting.

The reason I mentioned DiTech was because they have been known in the past to really screw some people over. I've seen it for myself since I've been working at a mortgage lender. I've seen their previous customers come in and what some of their loans look like. It's up the consumer to make a good choice and protect themselves. I was just offering up some info that I've seen first time buyers get trapped in.

Oh, I'm calm 🙂

I'm no fan of DiTech, and I've never lost one to them either. Their service and product are decidedly inferior.

Anyway, as always, buyer beware. Know what you're doing, read the documents, make a sound decision, and... if it sounds too good to be true, that's because it definitely is. If you call 10 lenders/brokers and 9 of them quote you similar rates and terms but 1 of them quotes you something much better, that's not because he has some kind of special product, it's because he's a crook who is going to bait-and-switch you at the closing table where you'll get to decide between signing the papers anyway or sleeping in the U-Haul.

 

[cpals]

I'm looking hopefully to either buy or build sometime this year. What would be the max time to usually buy to get good rates?

 

[Brutuskend]

I'm looking

 

[Vic]

Originally posted by: cpals
I'm looking hopefully to either buy or build sometime this year. What would be the max time to usually buy to get good rates?

Mortgage interest rates are market dependent. No one knows what rates will be like in the future. They could stay low, or they could up at any time.