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MechEng

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I remember 14% FHA loans. Money is still cheap compared to when I bought my first house.

People just do not think in terms of historic context. This is why people were making such insane comments as "Real estate does not lose value" just a few short years ago. It is the same short sightedness that thinks 6.5% 30 year fixed is high. Historically, 7% is a solid rate for a 30 year fixed even though in the last few years that is a very high rate. It is very hard to nail a rate in the short term perfectly, almost as hard as timing the stock or real estate markets. I would not try to over think trying to get the time it to the last bp.
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  • 2 months later...

Any of you mortgage experts care to guess how low the rates may go? They've been dropping steadily for several days now, and I need to refinance sometime before May. Tell me when to jump. TIA

Well, rates are down almost .75%, which is a big dive down. Honestly, with how low bond rates are and the market a little soothed by Fannie/Freddie, we may see rates testing earlier year lows. I don't want to say rates were artificially high, but they went up quite a bit due to the mortgage meltdown versus tracking long term bonds, so maybe they test historic lows. I look at the 10 year Treasury and it is at 3.66, which I believe is very low historically, so it wouldn't surprise me to see rates continue to drop if the market feels soothed about mortgages.I took a look and while mortgage rates <> 10 year rates, the big lows in mortgage rates in 2003 and early 2008 correspond to 10 year rates about where we are now and a bit lower, like 3.4s/3.5s. Edited by stbugs
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Any of you mortgage experts care to guess how low the rates may go? They've been dropping steadily for several days now, and I need to refinance sometime before May. Tell me when to jump. TIA

Well, rates are down almost .75%, which is a big dive down. Honestly, with how low bond rates are and the market a little soothed by Fannie/Freddie, we may see rates testing earlier year lows. I don't want to say rates were artificially high, but they went up quite a bit due to the mortgage meltdown versus tracking long term bonds, so maybe they test historic lows. I look at the 10 year Treasury and it is at 3.66, which I believe is very low historically, so it wouldn't surprise me to see rates continue to drop if the market feels soothed about mortgages.I took a look and while mortgage rates <> 10 year rates, the big lows in mortgage rates in 2003 and early 2008 correspond to 10 year rates about where we are now and a bit lower, like 3.4s/3.5s.
I have not been paying much attention recently but I do not see anything in this post that I disagree with.
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Any of you mortgage experts care to guess how low the rates may go? They've been dropping steadily for several days now, and I need to refinance sometime before May. Tell me when to jump. TIA

Well, rates are down almost .75%, which is a big dive down. Honestly, with how low bond rates are and the market a little soothed by Fannie/Freddie, we may see rates testing earlier year lows. I don't want to say rates were artificially high, but they went up quite a bit due to the mortgage meltdown versus tracking long term bonds, so maybe they test historic lows. I look at the 10 year Treasury and it is at 3.66, which I believe is very low historically, so it wouldn't surprise me to see rates continue to drop if the market feels soothed about mortgages.I took a look and while mortgage rates <> 10 year rates, the big lows in mortgage rates in 2003 and early 2008 correspond to 10 year rates about where we are now and a bit lower, like 3.4s/3.5s.
I have not been paying much attention recently but I do not see anything in this post that I disagree with.
:thumbup: I hadn't either. Still mad about missing out on a refinance that one day in January. I called my guy and by the time he got back to me the 5.125% loan was gone. He said they reset rates multiple times that day, which I hadn't ever heard of before. Granted, not in the mortgage business, but during refinances/purchases previously there was usually a time in the afternoon that you could lock in by and the rates stayed the same for each day.I may have to log into bankrate.com and get email alerts to see how things continue to progress. I honestly think that if things settle down and the stock market continues to limp along that we may touch around that 5% helluva rate number. I have been suffering at almost 6% since I had to leave my 0 closing cost 4.875% 30 year fixed loan two years ago. Yes, that rate is correct, I locked in at the bottom of the rates in 2003. That loan was the only thing that I regret in moving to NC. :)
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Any of you mortgage experts care to guess how low the rates may go? They've been dropping steadily for several days now, and I need to refinance sometime before May. Tell me when to jump. TIA

Well, rates are down almost .75%, which is a big dive down. Honestly, with how low bond rates are and the market a little soothed by Fannie/Freddie, we may see rates testing earlier year lows. I don't want to say rates were artificially high, but they went up quite a bit due to the mortgage meltdown versus tracking long term bonds, so maybe they test historic lows. I look at the 10 year Treasury and it is at 3.66, which I believe is very low historically, so it wouldn't surprise me to see rates continue to drop if the market feels soothed about mortgages.I took a look and while mortgage rates <> 10 year rates, the big lows in mortgage rates in 2003 and early 2008 correspond to 10 year rates about where we are now and a bit lower, like 3.4s/3.5s.
I have not been paying much attention recently but I do not see anything in this post that I disagree with.
:rolleyes: I hadn't either. Still mad about missing out on a refinance that one day in January. I called my guy and by the time he got back to me the 5.125% loan was gone. He said they reset rates multiple times that day, which I hadn't ever heard of before. Granted, not in the mortgage business, but during refinances/purchases previously there was usually a time in the afternoon that you could lock in by and the rates stayed the same for each day.I may have to log into bankrate.com and get email alerts to see how things continue to progress. I honestly think that if things settle down and the stock market continues to limp along that we may touch around that 5% helluva rate number. I have been suffering at almost 6% since I had to leave my 0 closing cost 4.875% 30 year fixed loan two years ago. Yes, that rate is correct, I locked in at the bottom of the rates in 2003. That loan was the only thing that I regret in moving to NC. :)
Ouch. I do not think I would ever move if I had a property at 4.875%. Ever. Yea, rates are usually static through a day but they can get crazy. More than a few days with multiple rate changes in my day. With not working right now, the rates going lower does me no good. My 6.375% is not horrible but if rates go below 6% I would be interested in a re-fi but I need a stinking job to qualify. Argh, with my luck, it will go lower in the near future and turn around heading higher right when I get a job. Such is life.
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Any of you mortgage experts care to guess how low the rates may go? They've been dropping steadily for several days now, and I need to refinance sometime before May. Tell me when to jump. TIA

Well, rates are down almost .75%, which is a big dive down. Honestly, with how low bond rates are and the market a little soothed by Fannie/Freddie, we may see rates testing earlier year lows. I don't want to say rates were artificially high, but they went up quite a bit due to the mortgage meltdown versus tracking long term bonds, so maybe they test historic lows. I look at the 10 year Treasury and it is at 3.66, which I believe is very low historically, so it wouldn't surprise me to see rates continue to drop if the market feels soothed about mortgages.I took a look and while mortgage rates <> 10 year rates, the big lows in mortgage rates in 2003 and early 2008 correspond to 10 year rates about where we are now and a bit lower, like 3.4s/3.5s.
I have not been paying much attention recently but I do not see anything in this post that I disagree with.
:goodposting: I hadn't either. Still mad about missing out on a refinance that one day in January. I called my guy and by the time he got back to me the 5.125% loan was gone. He said they reset rates multiple times that day, which I hadn't ever heard of before. Granted, not in the mortgage business, but during refinances/purchases previously there was usually a time in the afternoon that you could lock in by and the rates stayed the same for each day.I may have to log into bankrate.com and get email alerts to see how things continue to progress. I honestly think that if things settle down and the stock market continues to limp along that we may touch around that 5% helluva rate number. I have been suffering at almost 6% since I had to leave my 0 closing cost 4.875% 30 year fixed loan two years ago. Yes, that rate is correct, I locked in at the bottom of the rates in 2003. That loan was the only thing that I regret in moving to NC. :(
Ouch. I do not think I would ever move if I had a property at 4.875%. Ever. Yea, rates are usually static through a day but they can get crazy. More than a few days with multiple rate changes in my day. With not working right now, the rates going lower does me no good. My 6.375% is not horrible but if rates go below 6% I would be interested in a re-fi but I need a stinking job to qualify. Argh, with my luck, it will go lower in the near future and turn around heading higher right when I get a job. Such is life.
Well, the move was worth it seeing as my house dropped $100k in less than a year after I sold it. I am sure my house in NC has dropped since I bought it, but not nearly as much as the one I sold. I bet that one is down close to $200k now. I have 5.75% right now and based on taxes, I am really only paying about .5-.6% more now, so not bad for a much, much, much better house in a better location with a smaller mortgage. It was getting really sucky outside of DC. So much freaking traffic and stress.
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  • 3 weeks later...
  • 1 month later...

Well, what's the word today? I'm thinking rates have to drop.

Yep. Fully expect rates on a 30-year Fixed to be near 2 year lows. This morning we've seen Mortgage Backed Securities trading WAY up. We were already at 6% yesterday; today probably in the 5.75 range (if this trend continues). Anyone in the PA/NJ/DE area looking to refi? :bag:
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Well, what's the word today? I'm thinking rates have to drop.

Yep. Fully expect rates on a 30-year Fixed to be near 2 year lows. This morning we've seen Mortgage Backed Securities trading WAY up. We were already at 6% yesterday; today probably in the 5.75 range (if this trend continues). Anyone in the PA/NJ/DE area looking to refi? :thumbup:
I'm in DE and taking a look.
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Well, what's the word today? I'm thinking rates have to drop.

Yep. Fully expect rates on a 30-year Fixed to be near 2 year lows. This morning we've seen Mortgage Backed Securities trading WAY up. We were already at 6% yesterday; today probably in the 5.75 range (if this trend continues). Anyone in the PA/NJ/DE area looking to refi? :pickle:
I'm in DE and taking a look.
Absolutely. It obviously depends on what your rate/program is now - but the next few days could show some of the lowest rates we've seen in a while. In the past we usually had a handful of hours/days where rates may have dipped down to around 5.5% (zero points) but this may be a bit more prolonged. Also take into account that many retailers are expected show horrendous 4th quarter earnings and even more investors may flee to MBS's, possibly pushing rates down more :thumbup:.
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Well, what's the word today? I'm thinking rates have to drop.

Yep. Fully expect rates on a 30-year Fixed to be near 2 year lows. This morning we've seen Mortgage Backed Securities trading WAY up. We were already at 6% yesterday; today probably in the 5.75 range (if this trend continues). Anyone in the PA/NJ/DE area looking to refi? :goodposting:
I'm in DE and taking a look.
Absolutely. It obviously depends on what your rate/program is now - but the next few days could show some of the lowest rates we've seen in a while. In the past we usually had a handful of hours/days where rates may have dipped down to around 5.5% (zero points) but this may be a bit more prolonged. Also take into account that many retailers are expected show horrendous 4th quarter earnings and even more investors may flee to MBS's, possibly pushing rates down more :goodposting:.
I'm 2 years into a 30 year fixed at 6.5%. I'd love to knock a few years off and get to about the same payments, maybe a little less, with a 20 or 25 year at 5.25% (0 points) or lower.
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Well, what's the word today? I'm thinking rates have to drop.

Yep. Fully expect rates on a 30-year Fixed to be near 2 year lows. This morning we've seen Mortgage Backed Securities trading WAY up. We were already at 6% yesterday; today probably in the 5.75 range (if this trend continues). Anyone in the PA/NJ/DE area looking to refi? :)
I'm in DE and taking a look.
Absolutely. It obviously depends on what your rate/program is now - but the next few days could show some of the lowest rates we've seen in a while. In the past we usually had a handful of hours/days where rates may have dipped down to around 5.5% (zero points) but this may be a bit more prolonged. Also take into account that many retailers are expected show horrendous 4th quarter earnings and even more investors may flee to MBS's, possibly pushing rates down more :unsure:.
I'm 2 years into a 30 year fixed at 6.5%. I'd love to knock a few years off and get to about the same payments, maybe a little less, with a 20 or 25 year at 5.25% (0 points) or lower.
20 year rates are actually slightly higher than 30-year lately - more demand for 30-year Mortgage backs. 30-year today is 5.5%, 20 year is 5.625%, but we're trending in the right direction...
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I've got to refinance a rental property before February, should I be looking at doing this now? Should I wait a while?

Now is the time to get the process started - maybe not necessarily to lock as rates could go down slightly more (but don't get greedy, it's MUCH easier to lose .5% in rate than to gain .125% in some cases). Give your mortgage consultant a call and ask him what you would be looking at in terms of fees / rate/points today, at worst he'll have all your info and be set to lock you in in case the market turns for the worse.
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  • 3 weeks later...

Anyone in PA I can get people in at 4.875 as of a today for those who qualify.

Don't live in PA but what are the general qualification requirements? Does it vary much by state?
Yes..it can vary from state to state...the pricing can be slightly differnt and certain lenders only do business in certain states. For me..I am only licensed to do business in PA, anyone in NY I can handle as well....As far as requirements...the main ones are credit (fico) score, Loan to value ration (your equity), Your debt ratio and assets. If you're sitting at a 720 score or more with decent income/assets and have at least 10% equity you should be fine...20% equity and you'll have no problem at all....If you're credit is in the 600's you can still get a pretty darn good rate but will cost you more.
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Anyone in PA I can get people in at 4.875 as of a today for those who qualify.

Don't live in PA but what are the general qualification requirements? Does it vary much by state?
Yes..it can vary from state to state...the pricing can be slightly differnt and certain lenders only do business in certain states. For me..I am only licensed to do business in PA, anyone in NY I can handle as well....As far as requirements...the main ones are credit (fico) score, Loan to value ration (your equity), Your debt ratio and assets. If you're sitting at a 720 score or more with decent income/assets and have at least 10% equity you should be fine...20% equity and you'll have no problem at all....If you're credit is in the 600's you can still get a pretty darn good rate but will cost you more.
Does this mean 10-20% real equity, or can a 2nd mortgage make up some or all the difference?
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Chase is offering 4.75% if you buy 2.25 points.

Bankrate.com commenter's seems to think rates will drop i nthe near future. Thoughts?

link

locked in @ 4.75 today - required points dropped to 1.625 which was nice. 4.625 was available for more points.

interesting article:

Time to refinance -- or buy a home?

Interest rates on 30-year fixed mortgages are at their lowest levels in more than 3 years and could fall further. Here's what potential borrowers should consider.

By SmartMoney

Between holiday shopping and decorating the house this weekend, carve out some time to review your mortgage or rethink your home-buying plans -- this just might be the perfect time to make a major move.

Mortgage rates are already hovering around 5.5%, the lowest levels since 2005, and recent reports suggest they could fall by an additional percentage point in upcoming weeks.

Treasury Secretary Henry Paulson reportedly is considering a plan that would have lending giants Fannie Mae and Freddie Mac encouraging banks to issue 30-year fixed mortgages at rates as low as 4.5%. No official announcement has been made. Treasury and Freddie Mac officials did not return calls for comment. And a spokeswoman for Fannie Mae declined to comment.

Should the plan materialize, rates would be among the lowest seen in 50 years, says Keith Gumbinger, vice president of HSH Associates, which tracks rates on mortgages and consumer loans. But it’s far too early to count on such a move. "It's all rumor at this point," he says. "They're 'discussing the potential.' There's no plan, no details."

Even without the rumored plan in place, mortgage rates still remain well below those of the past year.

Rates began to drop last week after the Federal Reserve announced it would purchase $600 billion in mortgage-related debt held by Freddie, Fannie, Ginnie Mae and the Federal Home Loan Banks. Rates have bounced around since but have yet to creep above 6%.

On Wednesday, the national overnight average 30-year, fixed-rate mortgage was 5.70%, up slightly from 5.64% a week earlier but down from 6.33% two weeks ago, according to mortgage tracker Bankrate.com.

Consumers have been quick to take advantage. Mortgage applications jumped 112% last week, while refinancing requests were up an astonishing 203%, according to the Mortgage Bankers Association, an industry group.

While the latest news has some consumers wondering how low rates can go, potential borrowers shouldn't stay in limbo too long. Here's what they should consider:

Prepare to pounce on great rates. Analysts agree: Current rates are very attractive, and they aren't going to rise anytime soon, thanks to government efforts like last week's bailout.

"I don't think the window of opportunity is going to slam shut on anyone," says Gumbinger. That said, rates fluctuate daily based on any number of market factors. Whether you're considering buying or refinancing, pull together your financial paperwork, including federal tax returns, investment records and proof of income, so you can jump on good rates immediately.

Polish your credit score. The almighty credit score is king these days, and, given some of the early details leaked about the Treasury's plan, it will continue to be.

Most likely, the more favorable mortgage rates will be reserved solely for those with the very best credit scores -- at least a 760 on the 300- to 850-point scale, says Cristian de Ritis, a director of credit analytics for Moody's Economy.com, an economic forecaster.

That's all the more reason to build up your credit and avoid mistakes that could trash your score, like late payments and big balances. Help for those with less-than-stellar scores has yet to materialize, although Federal Reserve Chairman Ben Bernanke urged the government last week to take steps to stem foreclosures by buying delinquent mortgages and offering bigger incentives for banks to refinance loans.

Refinance based on rates, not rumors. Early indications are that the Treasury’s low-rate plan would apply only to new mortgages, says Gumbinger. So if you’re looking to refinance, there's no sense in hesitating. Bear in mind, however, that lending standards are still tight. You'll need a great credit score and at least 10% equity in your home to qualify in most markets.

House hunters should stay the course. Don't wait to buy a home based on a government plan that may not materialize, says de Ritis. Even if the plan does go through, those low 4.5% mortgages will be extended only to borrowers who fit the plan criteria and won't be offered to borrowers across the board. If you were already thinking about buying, there's no reason to put off your search.

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I'm being offered 4.875 with zero points for a 30 year fixed refi. The broker advised that I should NOT lock yet as it was going to go lower (he predicted close to 4.5 -- no points -- by late dec).

This is possible but the outlook is still unclear regarding whether this will be available to refi'ers or purchase only borrowers. I would take 4.875 and run.
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I got 5.125% $1000 in closing costs 0 points.

Im happy as hell. Thank you bad economy.

Where did you get this?
Pentagon Federal Credit Union is once again showing some pretty good rates with 0 points, plus they pay a good portion of your closing costs.

15 year fixed = 4.875 0 points

30 year fixed = 5.5 0 points

Does it matter where you live (in the US) to get this offer? Looks sweet.
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I got 5.125% $1000 in closing costs 0 points.

Im happy as hell. Thank you bad economy.

Where did you get this?
Pentagon Federal Credit Union is once again showing some pretty good rates with 0 points, plus they pay a good portion of your closing costs.

15 year fixed = 4.875 0 points

30 year fixed = 5.5 0 points

Does it matter where you live (in the US) to get this offer? Looks sweet.
I don't think so. I signed up through option #7 in their Top 7 ways to join, and it was a piece of cake. I did all of the application online and they sent out the appraiser and the arranged the title work and sent a guy out to my home for the closing. Membership in the NMFA was a one time fee of $20, and I opened up a share account with $5. Got a great rate and a bunch of my closing costs paid. It was a great deal (and it looks like it is getting close to what I got on the one day that mortgage rates dropped back in the beginning of this thread).
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I got 5.125% $1000 in closing costs 0 points.

Im happy as hell. Thank you bad economy.

Where did you get this?
Pentagon Federal Credit Union is once again showing some pretty good rates with 0 points, plus they pay a good portion of your closing costs.

15 year fixed = 4.875 0 points

30 year fixed = 5.5 0 points

Does it matter where you live (in the US) to get this offer? Looks sweet.
I don't think so. I signed up through option #7 in their Top 7 ways to join, and it was a piece of cake. I did all of the application online and they sent out the appraiser and the arranged the title work and sent a guy out to my home for the closing. Membership in the NMFA was a one time fee of $20, and I opened up a share account with $5. Got a great rate and a bunch of my closing costs paid. It was a great deal (and it looks like it is getting close to what I got on the one day that mortgage rates dropped back in the beginning of this thread).
I went through the application process but it says with zero points I will have to pay almost 3k in closing costs to refi. You?
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I went through the application process but it says with zero points I will have to pay almost 3k in closing costs to refi. You?

From post #373 - made in this thread in January.

The closing costs are as follows, and some of them (*) are paid for by the Pentagon.

Appraisal $320*

credit report $12*

CLO access fee $65

tax service fee $62 (poc - lender)

flood cert fee $7*

interest due at closing $25

hazard insurance escrow deposit $333

Property tax escrow deposit $1066

Settlement or closing fee $250*

title insurance $550

recording fee $80

state mortgage tax $232

lein release $40

Total closing costs from lender (after what the pentagon pays)

$1029

Total closing INCLUDING tax & insurance & escrow & interest

$2453

The taxes & escrow stuff will be the same no matter what company you use. The other ones were either substantially less than what the competition was charging, were comped by Pentagon Federal, or both.

Good luck, and I hope you get a great loan. :bag:

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Anyone in PA I can get people in at 4.875 as of a today for those who qualify.

Don't live in PA but what are the general qualification requirements? Does it vary much by state?
Yes..it can vary from state to state...the pricing can be slightly differnt and certain lenders only do business in certain states. For me..I am only licensed to do business in PA, anyone in NY I can handle as well....As far as requirements...the main ones are credit (fico) score, Loan to value ration (your equity), Your debt ratio and assets. If you're sitting at a 720 score or more with decent income/assets and have at least 10% equity you should be fine...20% equity and you'll have no problem at all....If you're credit is in the 600's you can still get a pretty darn good rate but will cost you more.
Does this mean 10-20% real equity, or can a 2nd mortgage make up some or all the difference?
Real equity....If you have some sort of 80/20 mortgage combo right now and attempt to just redo the 80 (the first mortgage) and leave the 2nd mortgage alone, you can do that but the origination software takes into count the cltv of the loan (combined loan to value ratio) and you'll have to get the 2nd mortgage company to agree to allow you to refi the first. In this mortgage climate, I dont see that happening. Now...if you decided to go FHA....borrowing more than 90% of the value of your home is definitely possible depending on your situation.
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