Yeah, it was silly if you looked at everything I had sent. Paystubs from 2/26 and letter from my wife’s company on 3/1 with a number to call to verify. Her income didn’t even matter and it was still an issue. It’s good to be really streamlined with technology but it seems like it’s hard to have some common sense and keep it super fast/efficient.
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Mortgage Rates (6 Viewers)
- Thread starter MechEng
- Start date
The Z Machine
Footballguy
It's likely a combination of being educated on mortgages in general, no position to refi due to personal factors, and some have recently refi'd and don't want to do it again so soon. Oh and some laziness too.
SFBayDuck
Footballguy
JaxBill
Footballguy
Desert_Power
Footballguy
Chadstroma
Footballguy
Is this how rich people fight? Ish donated the largest amount ever to MSU and then Farner goes and buys the marketing rights (Farner, CEO of the red rocket is a MSU almunis as well)
Chadstroma
Footballguy
The evil empire is throwing 35 bps in pricing bonus to try to fight back. Brokers are reporting getting mutiple calls a day from whatever schmuck VP. They are definitely scared about their wholesale division taking a dive.
Zegras11
Footballguy
Don't understand why Fairway is mentioned also. I work with them and they love RE agents
Chadstroma
Footballguy
It is s broker thing. Their wholesale division is what is called wholetail and they have been extremely aggressive at going after broker LO's.
I also think that their active attempts to spread false rumors about UWM this time last year may be part of it. They essentially were saying UWM was going to fail and was going to investment companies asking for capital or to sell to them etc. Essentially trying to make it happen.
My brokerage does some business with Fairway but I have never and would never send a loan to them. No tears shed from me that they were added.
My guess is this will kill Fairway's wholesale division. They will focus on retail.
pbm107
Footballguy
I just want to thank @Chadstromain this thread, I refinanced with someone he referred me to and for the most part it went fairly smoothly. It just took a little longer than expected and at closing I was charged to extend our rate. Chad encouraged me to reach out to the broker and when I didn’t get answer in a timely fashion he contacted the broker directly. Yesterday I got my refund in the mail, Chad is a good dude. Thanks for your help in the process.
Sand
Footballguy
Latest inflation reading was pretty tame. Predicting interest rates is a fool's game.
BTW, congrats on buying a place. Buying in the Bay area?
Chadstroma
Footballguy
SFBayDuck
Footballguy
Nope, after 25 years in Northern California we’re moving back to Oregon, Eugene specifically. It’s been the plan for sometime in the next few years, but our landlord told us last month that they’re selling the place so the plan got accelerated.
We’ve been looking online for months, and obviously ramped that up the past few weeks. But places are selling within a matter of days, so we really have to be there and ready to act quickly. So we head up on the 4th, have an Airbnb for the month and we’ll go from there.
Chadstroma
Footballguy
Awww, yea, the Oregonians will love to welcome another Californian!
Good luck on the move bud!
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SFBayDuck
Footballguy
Well I’m a native born and raised, and left after graduating from U of O. But yeah until we get new plates on the car I’m sure we’ll get some looks!Chadstroma said:Awww, yea, the Oregonians will love to welcome another Californian!
Good luck on the move bud!
and thanks, appreciate it!
Chadstroma
Footballguy
SFBayDuck
Footballguy
Oh they’re on there already!Make sure you get your Oregon Duck stickers on your car!
Chadstroma
Footballguy
Ministry of Pain
Footballguy
Bought Condo 3-4 yrs ago, interest rate was in the Mid 4s, I know I'm lazy and I should have refinanced already.
I don't think I got the very best deal but I called a few places and most traditional banks like Chase where we have an account and do our banking were going to take roughly 60-90 days+ and that seemed ridiculous to me.
I did get a direct lender on a referral and I think overall we did OK. Again I am sure others got way better somehow but we ended up with 2.9%(30-yr) and no points which was a big deal to me. There was a $995 Loan Fee but I assume that's where the LO and the direct lender charge their fee. Most of the other stuff was Title, Impounds, little junk, we took no cash out and I even offered to pay most of the closing costs out of pocket like the impounds as an example and just pay them up but that would have actually increased the interest rate I was told
About 4.5% down to 2.9% with no points, I used to write loans in SoCal, 2/28 with an 8.5% fixed and times have really changed.
I hope everyone is doing well, still an incredible time to own or purchase RE...the best part was the appraisal and finding out the same Condo we own in other buildings are selling for silly money vs what we paid when we bought in here. We bought it for around 200 and they are now going for around 300, that's crazy to me but Florida is simply booming right now.
Cheers from South Florida everyone.
I don't think I got the very best deal but I called a few places and most traditional banks like Chase where we have an account and do our banking were going to take roughly 60-90 days+ and that seemed ridiculous to me.
I did get a direct lender on a referral and I think overall we did OK. Again I am sure others got way better somehow but we ended up with 2.9%(30-yr) and no points which was a big deal to me. There was a $995 Loan Fee but I assume that's where the LO and the direct lender charge their fee. Most of the other stuff was Title, Impounds, little junk, we took no cash out and I even offered to pay most of the closing costs out of pocket like the impounds as an example and just pay them up but that would have actually increased the interest rate I was told
About 4.5% down to 2.9% with no points, I used to write loans in SoCal, 2/28 with an 8.5% fixed and times have really changed.
I hope everyone is doing well, still an incredible time to own or purchase RE...the best part was the appraisal and finding out the same Condo we own in other buildings are selling for silly money vs what we paid when we bought in here. We bought it for around 200 and they are now going for around 300, that's crazy to me but Florida is simply booming right now.
Cheers from South Florida everyone.
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Ministry of Pain
Footballguy
Ministry of Pain
Footballguy
DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT!!!
Chadstroma
Footballguy
Soooooo.... I am not clear on what you think I should do. Can you unpack that?
Sand
Footballguy
Ministry of Pain
Footballguy
Honestly, I was going to say that part of a good home buying process for anyone is getting their finances in order first. That means working on credit and credit worthiness, cleaning up credit reports if they have blemishes and showing folks the difference between an asset and a debt.
I was walking my son thru some of this ReFi we are doing and I showed him what we pay P&I then the taxes and then the HOA because this place doesn't look immaculate on its own, but in the end I have figured out that whatever we are paying per month isn't as much as we are making in appreciation monthly. As an example let's say the Mortgage is $1500 a month but the appreciation is around $2k a month...it's nice to know you could sell and get almost every single penny you have paid monthly that many folks factor in as "rent" never to be seen again...we should be teaching our children how mortgages work when they are young and especially those in poorer communities who might not have 1 relative or family member that even owns a home.
I used to get shot down when I was teaching math and took the first 2 weeks o the school year when others were going over classroom rules and setting a slow n steady pace, we learned the Rules of Money and specifically compound interest and how it works for and against them throughout their lives, that didn't go over well with administration for some reason
Chadstroma
Footballguy
One of the biggest failures of the school system as is is that it fails to teach personal finance (and other basic skills). I see it on a daily basis, so many people are clueless and never even have the most basic of foundations of how to operate as an adult with finances.Honestly, I was going to say that part of a good home buying process for anyone is getting their finances in order first. That means working on credit and credit worthiness, cleaning up credit reports if they have blemishes and showing folks the difference between an asset and a debt.
I was walking my son thru some of this ReFi we are doing and I showed him what we pay P&I then the taxes and then the HOA because this place doesn't look immaculate on its own, but in the end I have figured out that whatever we are paying per month isn't as much as we are making in appreciation monthly. As an example let's say the Mortgage is $1500 a month but the appreciation is around $2k a month...it's nice to know you could sell and get almost every single penny you have paid monthly that many folks factor in as "rent" never to be seen again...we should be teaching our children how mortgages work when they are young and especially those in poorer communities who might not have 1 relative or family member that even owns a home.
I used to get shot down when I was teaching math and took the first 2 weeks o the school year when others were going over classroom rules and setting a slow n steady pace, we learned the Rules of Money and specifically compound interest and how it works for and against them throughout their lives, that didn't go over well with administration for some reason
Chadstroma
Footballguy
Chadstroma
Footballguy
Instinctive
Footballguy
Fully aware that I could do more research, but would love your thoughts/knowledge @Chadstroma:
One of my best friends just got in his head to buy his first home. He is probably above average financial health for Americans (which makes me sad), but I would say has a long way to go (e.g., makes like 5-6k post-tax, and his only savings are a maxed Roth IRA I convinced him to start like 18 months ago).
Anyway, a place came on the market, and he could put together like 3.5% down + closing costs. Would completely wipe out the small semblance of savings he has outside of that IRA. This is the same guy who spent the last 6 months throwing extra money at a car loan to get rid of it...and planned to get a new car this summer as a result.
He asked for some help/what would I do (I'm a good friend, so I keep my mouth shut unless asked) and I said there's n universe I'd empty my savings to buy anything, and especially not to only be able to put down 3.5%.
Anyway, the questions:
One of my best friends just got in his head to buy his first home. He is probably above average financial health for Americans (which makes me sad), but I would say has a long way to go (e.g., makes like 5-6k post-tax, and his only savings are a maxed Roth IRA I convinced him to start like 18 months ago).
Anyway, a place came on the market, and he could put together like 3.5% down + closing costs. Would completely wipe out the small semblance of savings he has outside of that IRA. This is the same guy who spent the last 6 months throwing extra money at a car loan to get rid of it...and planned to get a new car this summer as a result.
He asked for some help/what would I do (I'm a good friend, so I keep my mouth shut unless asked) and I said there's n universe I'd empty my savings to buy anything, and especially not to only be able to put down 3.5%.
Anyway, the questions:
- I wouldn't buy a home until I could put 20% down. What is the tradeoff of putting less?
- What's an FHA mortgage? Realtor mentioned it. I know Fair Housing Act, but what are the practical consequences?
- How is buying a condo different from a SFH?
Chadstroma
Footballguy
-I am generally not a fan of waiting to save 20% for a down payment unless you are living with the parents and not paying rent. 100% of the rent you pay every month is sunk cost. Meanwhile, if you own you are paying principal as well as property averages appreciation over time (including boom and busts) at about just over 5% a year. On top of that, rates are low and will only be going up from here so waiting to build up a down is going to cost in terms of the interest rates available as well.
-FHA (Federal Housing Administration) is a government backed loan that allows for as low as 3.5% down. In short, you generally want to try to qualify for conventional over FHA but FHA fills in some options that conventional do not allow. Conventional can potentially do 3% down or 5% down.
-The buying process is pretty close as being the same. The one big difference is the condo will need to be warrantable or it causes issues/cost and rates are generally slightly higher than SFR. Property taxes and insurance is generally less than similar SFR but then you have HOA dues.
Instinctive
Footballguy
Thank you sir!
So to clarify: from a mortgage perspective what is the downside of not having 20% down? Is it "just" PMI? Does it affect your actual rate? I assume some sellers may be wary?
KGB
Footballguy
Chadstroma
Footballguy
95% and 80% LTV rates on conventional, all else being the same, generally run the same so the difference is the PMI.
Generally, it isn't an issue for sellers but in a hyper competitive market like this even small details could tip an offer one direction or another.
Chadstroma
Footballguy
KGB
Footballguy
Craig_MiamiFL
Footballguy
Looking to refinance a home. Would be new lender. Have about 70k left on mortgage. Currently at 4.5%. Been offered 2.725% and locked that in.
Final closing costs seem a bit high at $4200 and $1200 greater than estimate 4 days ago. It appears the added is coming from the Prepaid Homeowner Insurance and Property Taxes. (Initial Estimate was 3 mos prepaid of each....now it's 12 mo home insurance and 8 total mos property taxes)
Origination charges = 1.89% of loan amount
Credit Report = $75
Endorsement Fee = $125
Lender Title Insurance = $850 (This figure went up $300 in 4 days)
Settlement Fee = $375
Prepaids:
$850 (6 mo property tax).
Intial Escrow Payment at Closing:
Homeowners Insurance ($675 total for 12 months)
Property taxes 2 months ($283 total for 2 months). *Not sure why on this*
What should and can I be working on negotiating here? (I'm not paying $4000+ in closing costs with this new lender). Not sure if makes a big difference but excellent credit in the high 700s and 300k equity in home. I think there will be ~$600 in escrow account from current lender (after April 1 property tax payment) around the proposed closing date of new loan so assume will receive that back.
Any help is greatly appreciated!
-------------------
(EDIT: Went from $3800 Total closing costs with $800 back to borrower on 3.19.21 to $4400 total closing costs with $200 back to borrower today 3.23.21. So actually $1200 swing.
Seems a bit extreme to me. Lender's insurance increased $300 in 4 days and now asking for 9 months prepaid property taxes and 12 months prepaid insurance (vs. 3mo. and 3mo. 4 days ago).
Final closing costs seem a bit high at $4200 and $1200 greater than estimate 4 days ago. It appears the added is coming from the Prepaid Homeowner Insurance and Property Taxes. (Initial Estimate was 3 mos prepaid of each....now it's 12 mo home insurance and 8 total mos property taxes)
Origination charges = 1.89% of loan amount
Credit Report = $75
Endorsement Fee = $125
Lender Title Insurance = $850 (This figure went up $300 in 4 days)
Settlement Fee = $375
Prepaids:
$850 (6 mo property tax).
Intial Escrow Payment at Closing:
Homeowners Insurance ($675 total for 12 months)
Property taxes 2 months ($283 total for 2 months). *Not sure why on this*
What should and can I be working on negotiating here? (I'm not paying $4000+ in closing costs with this new lender). Not sure if makes a big difference but excellent credit in the high 700s and 300k equity in home. I think there will be ~$600 in escrow account from current lender (after April 1 property tax payment) around the proposed closing date of new loan so assume will receive that back.
Any help is greatly appreciated!
-------------------
(EDIT: Went from $3800 Total closing costs with $800 back to borrower on 3.19.21 to $4400 total closing costs with $200 back to borrower today 3.23.21. So actually $1200 swing.
Seems a bit extreme to me. Lender's insurance increased $300 in 4 days and now asking for 9 months prepaid property taxes and 12 months prepaid insurance (vs. 3mo. and 3mo. 4 days ago).
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Chadstroma
Footballguy
First, keep in mind the prepaids and escrow funding is not costing you ADDED money. These are things you will pay one way or another and for the same amount whether you don't refinance, refinance with that company or another company. It will increase cash to close but don't consider that as a cost. Your property taxes and insurance will never cost you less or more based on what you do with the mortgage.
The one thing that looks like you could do though is that they are funding to pay that April 1st payment with the 6 months due. The 2 months of property taxes is funding the escrow moving forward (you will skip two months of payments which means skipping two months of funding the new escrow account). If payment has been made from the existing escrow you could show proof of that and get the 6 months removed. That may delay closing though. In the end, when all the dust settles, you will be at a zero sum game on this. It will not cost you more or less for the property taxes and insurance. It is just how you get there.... and if you overpay, where you get your money back from.
Based on today's rates, the points to buy down to 2.725% seem more than reasonable. I am not seeing anything from your post that tells me that you currently could get better. If you want, you can shoot me the Loan Estimate and I can double check it for you. cmasters@marketplacemortgage.com
But based on the info provided, the loan amount, and making a couple of assumptions, this looks good to me.
Craig_MiamiFL
Footballguy
Thanks for explanation. Agree rate is fine. I was content with paying $3k closing. (Current lender gave estimated $3600 closing costs a week or two ago at same rate so now that this jumped $1200 with potential new lender, this just seems like a waste of my time)
Just seems odd for a $1200 swing in 4 days. (The Loan Estimate docs dated 4 days apart 3/19 and 3/23). Just thinking of keeping my current lender for refinancing at this point. Not sure how Title Insurance could jump $300 in 4 days.
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Chadstroma
Footballguy
If you are comparing lenders then that is a whole different ball of wax. I thought you had an initial estimate with a lender and then got the loan estimate and it showed higher.
If the difference is in prepaids/escrow then I wouldn't let that drive any decisions unless you just dont have the cash to close to do it, in that case you could look at rolling it into the loan as an option. You could also take a higher rate and lower your points.
If the difference is in title, you can shop title on your own and use whatever title company you want to use. Like everything, title companies do charge differently so one may be better than another.
Craig_MiamiFL
Footballguy
I might shoot you an email with Loan Estimate doc.
It's same lender. Loan Estimate docs 3.19 and 3.23 from same lender have quite a substantial closing cost difference ($3000 vs. $4200).
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Chadstroma
Footballguy
If the difference is prepaid/escrow, then I wouldn't be concerned unless you don't have the cash available. In the end, you will even out to no extra cost in those areas.
Feel free to send the loan estimate. It doesn't take me long to review them to catch anything off, suspicious or bad etc.
Chadstroma
Footballguy
JaxBill
Footballguy
@flasportsbuzz: loanDepot discloses tonight that the P in park will no longer be capitalized when Marlins Park becomes loanDepot park. (I kid not.) I don't know what they'll do to you if you capitalize the P, but I wouldn't recommend it: https://www.miamiherald.com/sports/spt-columns-blogs/barry-jackson/article250311009.html
Ron Swanson
Footballguy
Bears_Man2
Footballguy
Big thanks to @Chadstromafor the hook up with his guy on a refinance. Very painless and think it took right at 30 days from start to finish.
Wound up reducing rate almost 2% and chopped 5 years off.
Wound up reducing rate almost 2% and chopped 5 years off.
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