Posted:
#1
Pretty crazy. 
Wow 4.875% is par today on 30 yr fixed rate.
Posted:
#7
Wallstreet would he be happy with 5.25%-5.375% no lending costs.
So that mean all mortgage cost are out the door and no money out of his pocket for lending costs from me.
He will have to choose a title company though and there fees run accordingly to the state which he resides.
Where is he living?
Also I have about 3 lenders that are this low today. All very great companies.
KOAJ:
When the Feds cut the rate, it is more for the prime rate of banks. In this circumstance it has made the regular mortgage rates come down, but usually a Fed cut rate is for long term stability and you usually won't see a change in the regular mortgage rates.
So that mean all mortgage cost are out the door and no money out of his pocket for lending costs from me.
He will have to choose a title company though and there fees run accordingly to the state which he resides.
Where is he living?
Also I have about 3 lenders that are this low today. All very great companies.
KOAJ:
When the Feds cut the rate, it is more for the prime rate of banks. In this circumstance it has made the regular mortgage rates come down, but usually a Fed cut rate is for long term stability and you usually won't see a change in the regular mortgage rates.
I give up. 
Posted:
#13
asloper,
The loan isnt for me..I am actually in progress of listing and selling, then moving. I wish it were for me.
The last no-cost loan I did (which was I think 2 yrs ago when rates were low back then) I actually saw the real closing statements, the courier showed me both copies..the ones which the home owner signs, then the one which the broker gets..the difference being that many services are filled with higher costs that the lender negociates at lower rates, but since the state laws allow certain fee structures to be passed on to the consumer no matter what, there are differences.
So I saw that based on the .25 no cost bump in rate, plus the side deals with the title company, discounted courier fees, discounted title insurance, discounted appraisal etc..that even with a "no-cost" loan the guy made around 5k off the loan.
I have done this enough to know you arent going to lose money off a .25 no-cost loan.
Tell me you cannot be serious that you need to mark up by a HALF point to make any money?
The loan isnt for me..I am actually in progress of listing and selling, then moving. I wish it were for me.
The last no-cost loan I did (which was I think 2 yrs ago when rates were low back then) I actually saw the real closing statements, the courier showed me both copies..the ones which the home owner signs, then the one which the broker gets..the difference being that many services are filled with higher costs that the lender negociates at lower rates, but since the state laws allow certain fee structures to be passed on to the consumer no matter what, there are differences.
So I saw that based on the .25 no cost bump in rate, plus the side deals with the title company, discounted courier fees, discounted title insurance, discounted appraisal etc..that even with a "no-cost" loan the guy made around 5k off the loan.
I have done this enough to know you arent going to lose money off a .25 no-cost loan.
Tell me you cannot be serious that you need to mark up by a HALF point to make any money?
Posted:
#16
wallstreet:
It's kinda hard to explain if your not in the business and I really don't feel like typing it all out. Here is gist of it though.
I have to pay lender fees for using the investor which in return you are getting the best rate by me being your broker. The fees aren't much, but around 1k depending on the company. There is not enough yield at 5.25% to really even cover the fees. Then in return I only get a percentage of what is left and that would be about almost nothing. It really all depends on the loan amount, but still even then it's nothing left over if any.
There is a lot more to it than what I have just explained also and really has nothing to do with the .25 bump which I really don't understand.
No one can give a semi no cost loan off a .25 bump from the par rate and make 5k. Just doesn't make since bro.
It's kinda hard to explain if your not in the business and I really don't feel like typing it all out. Here is gist of it though.
I have to pay lender fees for using the investor which in return you are getting the best rate by me being your broker. The fees aren't much, but around 1k depending on the company. There is not enough yield at 5.25% to really even cover the fees. Then in return I only get a percentage of what is left and that would be about almost nothing. It really all depends on the loan amount, but still even then it's nothing left over if any.
There is a lot more to it than what I have just explained also and really has nothing to do with the .25 bump which I really don't understand.
No one can give a semi no cost loan off a .25 bump from the par rate and make 5k. Just doesn't make since bro.
Posted:
#18
In reality though you give someone a par rate, then they just argue with you about the closing costs. So in reality you never tell a customer what the lowest rate is because you want to make yield to cover some of the closing costs cause you know the customer is going to bitch.
Its a very tough business right now. Everyone wants the lowest rate they could possibly get and no closing costs. 2 things that just don't go hand and hand and everyone for some reason thinks they do. This is just with the customer, I am not talking about all the other BS that goes along with the business like other brokers, banks, and realtors.
Its a very tough business right now. Everyone wants the lowest rate they could possibly get and no closing costs. 2 things that just don't go hand and hand and everyone for some reason thinks they do. This is just with the customer, I am not talking about all the other BS that goes along with the business like other brokers, banks, and realtors.
Posted:
#19
Quote Originally Posted by asloper6001:
wallstreet:
It's kinda hard to explain if your not in the business and I really don't feel like typing it all out. Here is gist of it though.
I have to pay lender fees for using the investor which in return you are getting the best rate by me being your broker. The fees aren't much, but around 1k depending on the company. There is not enough yield at 5.25% to really even cover the fees. Then in return I only get a percentage of what is left and that would be about almost nothing. It really all depends on the loan amount, but still even then it's nothing left over if any.
There is a lot more to it than what I have just explained also and really has nothing to do with the .25 bump which I really don't understand.
No one can give a semi no cost loan off a .25 bump from the par rate and make 5k. Just doesn't make since bro.
wallstreet:
It's kinda hard to explain if your not in the business and I really don't feel like typing it all out. Here is gist of it though.
I have to pay lender fees for using the investor which in return you are getting the best rate by me being your broker. The fees aren't much, but around 1k depending on the company. There is not enough yield at 5.25% to really even cover the fees. Then in return I only get a percentage of what is left and that would be about almost nothing. It really all depends on the loan amount, but still even then it's nothing left over if any.
There is a lot more to it than what I have just explained also and really has nothing to do with the .25 bump which I really don't understand.
No one can give a semi no cost loan off a .25 bump from the par rate and make 5k. Just doesn't make since bro.
You need to make 5K on a refi? How much time do you spend on a typical deal like this
I didn't realize rates were getting this low, seemingly back to '03 levels? I refi'd in '03 at 5.75% fixed 30 year and figured I'd never refi again. But hell, if it's no cost and I can get 5.25%, then sure why not.
Posted:
#21
Quote Originally Posted by depeche2:
You need to make 5K on a refi? How much time do you spend on a typical deal like this
I didn't realize rates were getting this low, seemingly back to '03 levels? I refi'd in '03 at 5.75% fixed 30 year and figured I'd never refi again. But hell, if it's no cost and I can get 5.25%, then sure why not.
You need to make 5K on a refi? How much time do you spend on a typical deal like this
I didn't realize rates were getting this low, seemingly back to '03 levels? I refi'd in '03 at 5.75% fixed 30 year and figured I'd never refi again. But hell, if it's no cost and I can get 5.25%, then sure why not.
Depeche,
No I don't need to make 5k on a loan I am happy with 1-2k. Wallstreet said he seen the Hud of his last deal and he said the broker made 5k on a .25 bump off the par rate.
I could probably do a true no cost loan at about 5.5% depeche. Includes title work and everything. You would actually get money back from the reserves being held in 30days and also would be able to skip a months payment. Sounds great to me.
Posted:
#22
Quote Originally Posted by SteelHop:
that has to be for a conforming loan back by frannie or freddie - i doubt you could get a non-conforming one - meaning anyone living where I do wouldn't get that rate.
Yea, definitely is conforming although jumbo rates aren't to bad, coming in around the low 6's even hitting 6 dead on at some places. It all depends on an arm or fixed rate of course too. All in all though, the rates are fucking great right now. Go to your lender and get a no cost loan at 5.5% or lower if you're rate is higher than 5.5% or you are in a arm.
Posted:
#23
asloper,
Thanks for the comments.
My response was based on actual experience, no reason for me to make anything up.
One thing that has changed is of the two times I did this over a 5 yr period, both times the lender who is a small timer carried the loan for a short period..I imagine that couldnt happen now days.
10 yr bounced pretty strong since mid day.
Thanks for the comments.
My response was based on actual experience, no reason for me to make anything up.
One thing that has changed is of the two times I did this over a 5 yr period, both times the lender who is a small timer carried the loan for a short period..I imagine that couldnt happen now days.
10 yr bounced pretty strong since mid day.
Posted:
#25
Wallstreet,
Most all loans are sold on the secondary market, no matter how big the company is, unless it is being portfolioed which is usually around 5-10% of all deals maybe less. This is what is causing so much back up with people trying to buy homes that have been short sold. Short sale is when the 2nd lien position on a home gets screwed in case you were unaware. In return the 2nd has been sold to another company packaged and repackaged in return the primary lien holder has to find that second and work out all the nucks and crannies to try and make the new deal work, which could take 90+ days.
Most all loans are sold on the secondary market, no matter how big the company is, unless it is being portfolioed which is usually around 5-10% of all deals maybe less. This is what is causing so much back up with people trying to buy homes that have been short sold. Short sale is when the 2nd lien position on a home gets screwed in case you were unaware. In return the 2nd has been sold to another company packaged and repackaged in return the primary lien holder has to find that second and work out all the nucks and crannies to try and make the new deal work, which could take 90+ days.
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