Wow 4.875% is par today on 30 yr fixed rate.

I wish all my customers were like you. You kinda sound like you are in the business or maybe were at one point?

So what kind of lenders are allowing short sales on seconds?

If the owner is in foreclosure, then the second gets wiped dry, getting nothing unless the first gets paid and there is left over from that balance.

Short sale actually means a second party tries to negociate with the bank to take payment for the note, first or second in return for a lower ammt..the bank then eats the difference and the obligation is eliminated.

I know quite a bit about short sales and have even considered starting one and either position, first or second can be short sold.

5.5% (vs. 5.75%) even at no cost probably not quite worth my time.  But if it falls to where I can get 5.375% or better and doesn't cost me a penny (or very very little) to do so, then what the hell.

asloper, can you do a mortgage for someone in IL?  Let me know if you can and when you can do 5 3/8% or better, let's do it.

 

      used to be in the biz, but i still follow the industry closely. Plus my new buisness venture I have to find financing for solar projects so I show consumers pay back schedules on taking a loan out for a system. It helps having the background being able to show customers monthly payments on a loan compared to their utility bill payment. If I can I will try to redo the home owners first to get them a lower payment on their house plus it will cover the cost of the solar system......

but i know what you are talking about, everyone wants their loan for free......crazy.

Depeche,

I do Illinois ! If the market holds steady and comes down just a tad bit more I will be able to do a true no cost for you in the next couple of days at 5.375% or better. My email is in my profile. Email me and I can give you more details.

Cool.  I assume we're talking 30 year fixed.  I have almost (gulp!) 25 years (gulp!) left.  And I am definitely PRIME.  Spotless credit, never a late payment on anything ever, and probably close to 50% equity now in my home.

Hey, I have a question....if I have 25 years left and I refi into 30-year fixed, does that mean I go back to 30 years and the loan wouldn't be paid off for 30 years or would it pick up where I left off and have that many years left?  Don't really want to increase the years remaining.  Obviously I know I could prepay principal each month and pay it off faster, but I think I'd rather not count on myself doing that.

Depeche,

Yes, I am talking about a 30 yr Fixed. Unfortunately you will have to start back at 30 if you decided to refinance. THINK ABOUT ALL THE INTEREST YOU WILL SAVE LOL. I would have to do a total cost analysis for you to see if it would make since to do. Most likely it would because the first 5 years you have been paying mostly interest, but I see what you are saying. You don't want to start over from scratch, because you don't feel like doing the math each month to pretend you were still only 25 light years away lol.

What rate can you quote for a 15 yr fixed?

Just looked at couple rate sheets, but I say around 4.5% - 4.75%.

Well rates are tanking again. Yesterday was definitely the day to lock. 4.875% is back up to about 5.5% now.

Market is supposed to be getting a lot worse now this week.


ffffuuuuuccckkkkk.

I called a friend late yesterday who was in Disneyland, the guy I was talking about concerning the refi and told him to stop the vacation and call his local mortgage broker to lock in a rate with a float down, he did..good thing for him.

10 yr moving back strong today.

4.875% went to 5.5% in one day, seriously?

That is a crazy change.  I ran the numbers this morning and went to put the application in this afternoon and the rates had already gone up

Will the mortgage rates continue to be this volatile for the near future?

Rates can never continue to get better all the time. Even though mortgage rates do not go hand and hand with the stock market, it is kinda the easiest way to explain it. The market has to correct itself back to current conditions. It goes up and it goes down. Sometimes on a weekly basis and sometime on a day to day basis.

For example Wells Fargo had three different rate price changes today. At one point it was 5.5% then mid day dropped to 5.375% then at the end of the day went back up to 5.5%.

Folks the reasoning for my job being a broker is to watch this shit everyday go up and down and advise you when to lock in. Most people don't have the time of the day to even think about mortgages. Therefore this is why I value my job, but like a lot of people think the market is always going to get better than what you claim.

I called 10 clients I had in the past yesterday and told them all about now is the time to lock in a no cost refi for 5.5% or if they wanted I could get them 4.875% with few closing costs.

I did 1 and the rest told me it was going to get better. I am not complaining, but I just think people don't like to save more money. It comes with the territory though and all I am trying to do is help. Most people are just dumb or have their head stuck so far up their ass they have no clue in what the hell is going on.

On a side not any rate in the 5's is pretty damn good.

yea, i was thinking this would be better for depeche if he has top notch credit and 50% true equity .

asloper, what would be the minimum credit score needed to get in on one of these discount rates?

Most investors like to at least see a 680 or above. As long as you can go full-documentation it could probably slide a little lower than 680, but not by a whole lot. Also depends on what exactly is on your credit to as far as mortgage lates and collections and all that good stuff. 680+ though and you should be alright.

Also remember when talking about credit scores, in the mortgage industry it is based off the middle score out of the three bureaus.

Ex: 780 Experian, 670 transunion, 700 beacon.

I would take the beacon score at 700 because it is in the middle of the two. Bureaus always report deferently too, so it might be Experian the next time I pull your credit, that becomes your middle score.

Yeah, the 15-year crossed my mind and may make some sense.  I ran some numbers and at 4.75% it looks like I'd increase my monthly only about $300 from what I do now.  That's palatable to knock off 10 years.

I got a general question on that though, so take somebody halfway through a 30-year, isn't it often going to make sense to refi into a 15-year for a better rate?

Assuming everything else the same, what is usually the % difference between a 30-year and a 15-year?

Depeche,

In reality it takes almost to the 21st year of the 30 yr fix to hit even on paying principal and interest. Most people think that by the 15yr they are half way to paying off there home in reality they are not. Well they are if they intended to stay in that loan, but if they switched into a 15 yr note it would not balance out that way.

Switching to a 15 yr note will more than double your payment and quiet simply most people just can't afford that.

Might have not been able to explain this that great over the computer, but hopefully it makes since.

Interesting.  I wish I understood this stuff better.  So are you saying, generally speaking which I know is difficult, that it is generally a bad idea with 15 years left on a 30-year to refi into a 15-year loan?

I have 25 years left on a 30-year note and I ran some numbers and figured if I refi'd my 5.75% 30-year into a 4.75% 15-year note that my P&I would go up around 24%.  Of course I'd be reducing the end length of the note by 40% (10 out of 25 years).  It's not something I'm dying to do or feel I really have to, but if rates fall nicely and the spread between 15/30 is significant then it seems like the thing to do.

Sorry my last post was kinda confusing. Switching to the 15 yr note will be very beneficial for you Depeche.