fruity pebbles
Footballguy
What are you seeing for rates?The Fed came in and bought up a lot of MBS today, pushing rates down significantly.
What are you seeing for rates?The Fed came in and bought up a lot of MBS today, pushing rates down significantly.
All over the board. But generally slightly worst than they were a couple of weeks ago when this all started and people started refinancing in mass.What are you seeing for rates?
For conforming loans seeing about .25-.375 higher then a few weeks ago for same lock time. Closer to a .25 but then lock times are not really applicable either. Got all that business from the boom a few weeks ago to sort out, tons of staff working from home, issues ranging from appraisers not wanting to enter homes to issues with ability to record mortgages, need for same day VVOE as closing, etc, etc. Just a lot of stuff that is slowing the process down so things are moving a little slow and need longer lock times.What are you seeing for rates?
Slightly worse isn't bad. But Jesus I saw some quoting 30 year rates closer to 5% than 4%. That'll kill the new purchase market with everything else going on.All over the board. But generally slightly worst than they were a couple of weeks ago when this all started and people started refinancing in mass.
Non-QM is dead. Only a few are "lending" but I don't trust them. It will come back but no one is buying paper right now except the Fed which is all conforming.For conforming loans seeing about .25-.375 higher then a few weeks ago for same lock time. Closer to a .25 but then lock times are not really applicable either. Got all that business from the boom a few weeks ago to sort out, tons of staff working from home, issues ranging from appraisers not wanting to enter homes to issues with ability to record mortgages, need for same day VVOE as closing, etc, etc. Just a lot of stuff that is slowing the process down so things are moving a little slow and need longer lock times.
I'm seeing jumbo loan rates much higher, but that is prone to have more variance with different lenders.
As Chadstroma pointed out in an earlier post it's a blood bath in the non-QM market. That feels more like 2008 then anything I've experienced since, as in here yesterday and gone today kind of thing.
Yes, all 4's and 5's as of Friday.Slightly worse isn't bad. But Jesus I saw some quoting 30 year rates closer to 5% than 4%. That'll kill the new purchase market with everything else going on.
Realtors are crazy folk. They will get do an open house with both houses next door on fire, an active riot and a wild animal stampede rolling through the front yard then talk about the added warmth, city character and being close to nature.Just praying we can close on the sale of our flip house next week. Been having a hard time getting contractors out to get minor inspection items resolved. Some of the specialty stores we get supplies from have closed up indefinitely until Corona calms down.
Hearing from some agents that they are swamped and others that it is totally dead. Housing market generally lags so we'll have to see. My gut tells me that the ones that are swamped are dealing with buyers that already locked or working with cash but a lot of that will dry up soon enough as locks expire. Inventory is so low though as no one wants to sell that will probably make things seem ok for the most part.
One agent told me FHA let them close on a purchase even though the buyer has been furloughed for 30 days, all they wanted was a piece of paper from the employer basically saying "yes, he'll be able to come back to work in 30 days." That sounds bonkers to me and a recipe for disaster but I am not in lending.
Thanks for the inside look, much appreciated.What I am seeing right now:
Non-QM is basically dead (non-QM being pretty much any loan that does not fall into the conventional, government backed and jumbo loan boxes) no one is buying up the paper. Jumbo is near dead with the same issue.
Conventional and government backed are still doing but the rates have skyrocketed. An example, I am trying to close a loan today (trying because I can't get a verbal VOE and it is suppose to close in an hour) which is at 3.35% that same loan if we locked today would be 5%.
Lenders seem to be healthy but there is just no appetite for mortgage backed securities and in order to sell the loans off the books the rates are being jacked up in order for investors to bite. Before reluctance to buy was really based on fears of EPO's which would diminish return. Now it seems the fears are shifting to higher rates of defaults. My personal view is that this is temporary and based on being in the middle of a crisis with no known exit point yet. Fear is driving all markets including the MBS market.
There are major disruptions to pretty much the entire loan process right now as you can guess with America working from home.
None right now.@Chadstroma Seeking some advice. A year ago we bought our house at 4.00. Jumbo loan. We refi'd within a few months and are now at 3.625. What prospects do we have for going lower, say 3? Live in Bay Area.
Several lenders coming out with guidance of 640 being min credit score.One more update...
• GINNIE MAE MSR MARKET EVAPORATING: The typical buyers of Ginnie Mae’s servicing are not buying. This may have direct impact on lower end credit scores for government backed loans (USDA, VA, FHA) as lenders will adjust for higher risk. Overlays decreasing Debt to Income Ratios and other risk adjustments are likely which will mean these loans will be harder to obtain and if approved will be for lower dollar amounts.
Hmmmm...should've been this all along. We must not have learned from the last crisis.Several lenders coming out with guidance of 640 being min credit score.
Actually, there was much learned from the last crisis and the lending now is NOTHING like it was then.Hmmmm...should've been this all along. We must not have learned from the last crisis.
I understand, but really don't like the idea of subprime lending in general.Actually, there was much learned from the last crisis and the lending now is NOTHING like it was then.
LOL... This was the three months I was a loan officer. I had 5 deals at the end of my third month. And then the #### hit the fan and the programs changed every day, sometimes more than once, and all five wound up be canceled.***IMPORTANT: During the mortgage meltdown of 2008, loan guidelines changed nearly every day, for months, as loan investors tried to get their arms around the crisis.
We're still at 580 but we also retain the servicing.Several lenders coming out with guidance of 640 being min credit score.
I just finished mine. Everything went great.closing today - was 7 years into a 30 @ 3.75, refi’ing into a 15 @ 2.875. Fingers crossed that there are no hiccups.
Absolutely prime rate is very low.Is this a good time to consider a HELOC for home improvements presuming we maintain our income streams? Excellent credit.
Buyers for our closing on April 3rd asked for an extension today due to Stay At Home issued. I certainly understand their skittishness but there's no guarantee that will be lifted after 2 weeks is up. Trying to convince them to close some other way and this is one idea that has been floated.I just finished mine. Everything went great.
Whats funny is Saturday my wife had us sign our loan docs in the driveway. She didn’t want the notary in our house.
If you can get one, might jump on it or check out a cash-out refinance as mentioned above. I am not in lending, but one lender told me a few days ago that she was hearing that many of the banks that specialize in HELOC's have stopped taking new applications until things settle down/normalize.Is this a good time to consider a HELOC for home improvements presuming we maintain our income streams? Excellent credit.
I've emailed my banker at WF. Let's see what she says.If you can get one, might jump on it or check out a cash-out refinance as mentioned above. I am not in lending, but one lender told me a few days ago that she was hearing that many of the banks that specialize in HELOC's have stopped taking new applications until things settle down/normalize.
Can't get lower rates than now on them.Is this a good time to consider a HELOC for home improvements presuming we maintain our income streams? Excellent credit.
Not uncommon right now. Another broker told me about telling the client to basically do the closing with the notary on the porch while they were in the house. Such are the times we are living in.I just finished mine. Everything went great.
Whats funny is Saturday my wife had us sign our loan docs in the driveway. She didn’t want the notary in our house.
Yes, cash out costs more than a rate/term refi. At 3.625% right now you are best off doing a HELOC. You may want to advance on it right away and deposit the cash in the bank. In the deteriorating conditions banks may lower those line amounts after issue.I've emailed my banker at WF. Let's see what she says.
My mortgage lender (not WF) has said a cash-out refi comes at a higher rate than a standard one. We are currently at 3.625 (refi'd in December). If we wanted $200k, would we have to take on a higher rate or is there another way of going about it?
The ghost of WaMu that lost all of it's soul... they should be in trouble as other big time servicers that buy their portfolio.And Mr Cooper just suspended operations...
Does not need to be your same lender and usually is not. Most major banks offer them whether your bank with them or not.How do get get a HELOC? Just call the same lender your home is through?
I've emailed my banker at WF. Let's see what she says.
My mortgage lender (not WF) has said a cash-out refi comes at a higher rate than a standard one. We are currently at 3.625 (refi'd in December). If we wanted $200k, would we have to take on a higher rate or is there another way of going about it?
I respectfully must say the bolded may not be the case. It might be, but takes further delving into.Yes, cash out costs more than a rate/term refi. At 3.625% right now you are best off doing a HELOC. You may want to advance on it right away and deposit the cash in the bank. In the deteriorating conditions banks may lower those line amounts after issue.
I met Barry in February in Vegas, went out to eat dinner with him and his group. That guy is awesome and while he did not predict Coronvirus he was pretty adamant we were heading for a major recession.https://www.mbshighway.com/mortgage-crisis.html?fbclid=IwAR1BeDNYdDJSJnKaJZQBrBGJM43UC9NVp59k6S-YsgvhSsxrpSrNGVGXCkc
An excellent run down in understandable language to explain what is happening right now from an industry leader Barry Habib. If you are interested in understanding the mortgage market right now, this is a must read.
Usually best options are found at a Credit Union or community bank. Failing that out of the bog banks US Bank tends to have the best terms (at least they did when I worked there and again a couple of years ago when I shopped equity options for my own home)How do get get a HELOC? Just call the same lender your home is through?
Agreed. I am eyeballing it and making assumptions on certain numbers. I don't disagree with anything here.I respectfully must say the bolded may not be the case. It might be, but takes further delving into.
You should analyze the blended rate of your current 3.625% vs Heloc and compare that to a new first mortgage cash out, since Sandeman is requesting a sizeable cash out it might be best to do a first mortgage cash out, just depends on how much is owed on the first mortgage and rate on the HELOC. Good chance Chad is right here, but I'd do that blended rate comp to make sure.
Barry is a solid good guy and very smart. He is right more than he is wrong on interest rates and related market info. I respect him greatly.I met Barry in February in Vegas, went out to eat dinner with him and his group. That guy is awesome and while he did not predict Coronvirus he was pretty adamant we were heading for a major recession.
Anybody else getting similar rates?closing today - was 7 years into a 30 @ 3.75, refi’ing into a 15 @ 2.875. Fingers crossed that there are no hiccups.
Similar rates, likely a tad higher, are possible now depending on variables on a 15 yr term.Anybody else getting similar rates?
Did you get cash out?
No. We’re fortunate that our loan to value is less than 50% and we have good credit, so really no hurdles. I just hope we didn’t move too early. Rates could be stupid cheap later this year.Anybody else getting similar rates?
Did you get cash out?
First Interstate has the best terms now from what I've found but they're a smaller bank and not in every market. They're still going up to 90% LTV and my rate just dropped to 3.15% lolUsually best options are found at a Credit Union or community bank. Failing that out of the bog banks US Bank tends to have the best terms (at least they did when I worked there and again a couple of years ago when I shopped equity options for my own home)
I'll check them out to see if they're around Nashville. Also found a couple community banks in a suburb of Nashville that I'll check into.CR69 said:First Interstate has the best terms now from what I've found but they're a smaller bank and not in every market. They're still going up to 90% LTV and my rate just dropped to 3.15% lol
I’m a long time Citibank customer and went with them for my HELOC. Rates seemed the same as others I could easily find, and I liked the convenience of having the HELOC account show up right besides my checking and savings account on Citibank’s website, so I can easily transfer in or out as needed, and set up auto-transfer payments monthly to pay down a bit extra principal to pay it off a little quicker.I'll check them out to see if they're around Nashville. Also found a couple community banks in a suburb of Nashville that I'll check into.