San Diego Housing Bubble News and Analysis

I am trying to get a jumbo conforming but my credit union has temporarily stopped offering them and I don't want to miss the low rates. Anyone offering 15 year jumbo conforming, excellent credit, for less than 5%? Thanks

What are the comparable rates for 10 and 15 year loans?

Former,,,
I AM...

Depends on your equity, credit score and what you qualify for.

15 YR rates have finally dropped enough to make a difference again...
At the moment..

I have jumbo up to $546K in San Diego County @ 4.875% no points
4.50% .50 points
4.375% .75 points

SUBJECT TO CHANGE + 3rd party closing costs

JEE
Rates are up from where they were this morning, 70 bps. On a $400K loan that is $2800 more than it cost this morning...

Depends on loan amount..
Right now on a 15 YR
4.25% 1 point
OR
4.625% no point...

SUBJECT TO CHANGE

I realize this has nothing to do with you, but if I understand correctly, MBS prices skyrocketed today which I thought should mean lower interest rates and yet the lenders raised rates throughout the day? Looking at MBS prices I would think rates should be at 4% right now. There is a very good chance I don't understand what is going on though.

More specifically, I am in Contra Costa county and looking for a $625K loan, luckily the house hasn't depreciated much and have about 30% equity I think.(former SoCal you see. Hope to retire to San Diego as soon as my retirement funds recover.) We have excellent credit and my husband and I both have steady jobs that are not in jeopardy of any sort. We were looking for 4.675 with 0 points until we discovered that we were too late for the Dec 31 closing deadline and too early for the credit union's next conforming jumbo program.

Former,,
At this moment, I can do your $625K loan at 4.875% 0 points
OR
4.50% with $3500 fee

Either way, 3rd party closing costs will be about $2500 which includes the appraisal, escrow, title etc. GUARANTEED.

Based on at least 20% equity and "excellent" credit. 740+

RATES SUBJECT TO CHANGE

David,
I cannot explain rates either...

I tell people that if you can predict rates, just trade bonds on Wall Street and you can make enough money to pay cash for your house, why bother with a mortgage...

There are bulls and bears and the market is relentless and brutal....

Today was one of the craziest days I have seen with rates.

Tomorrow is another day!~ Today isn't over yet! HLS

All I can say to 20% equity is hahahahaha ...ha Yeah that will get the economy moving again

wake me up when stated (liar's) loans come back ...

Do you think rate will go down further? what is the contact information for this lender?

I am looking for 410k refinance. I have 5 year , 5.75% ARM loan. I would like to get loan around 4.5% for 30 year fix.

The 10 YR bond is up about 25% in the last week.
Crazy volatility...

The 5.00% that was available at zero points this morning, closed the day at a cost of 1pt. Huge move in a day.

The cost to get 4.50% right now is 2.50pts.

Kent, it's impossible to know where rates are headed.

If you want to know what you qualify for you can email me sheldon [at] HomeLoanSheldon [dot] com for current rates.

Wednesday opening rates were lower than yesterdays close.

At the moment Loans below $417K
30 YR rates:
5.00% is .50pt cost
4.50% is 1.8 pts cost

15 YR rates
4.375% NO points
4.25% .50 points

Former SoCal...

I replied to your private email yesterday, but did not hear back from you..

Perhaps it went to your SPAM folder ?

HLS

Newbie question for HLS..

If you need to borrow 700K...Do you pay the lower rate up to the conforming amount, then a separate loan at a higher rate for the amount above that..or is it a jumbo loan at a higher rate for the whole loan amount..(assuming you qualify of course)???? or can you do either?

thanks

USAA offers VA 30yr fixed at 5.00%, no points.

Looks like the VA hybrid ARM is no longer available ... if it were it would be something like 2.4% initial rate with a 7.4% cap!!! That's the kind of ARM I could go for.

HLS, how would only having 10% down affect the rates?

That's the category I'm in!!!! With only 15K available to put down, 20% would put me at $75,000 purchase price whereas 10% would let me buy up to $150,000 of property.

Thanks for asking the question.

We owe $137k on our home in Murrieta which is currently worth about $250k. Right now we are at 5.5 fixed on a 15 year mortgage.

Are there any 4.0 refis out there? Aimloan.com is close, offering a 15 year 4.25% for a point+

Anyone think rates will go down even more?

JS

"Anyone think rates will go down even more?"

Best guess.Rate manipulation is going to favor low rates for a while to see if in conjunction with other methods it can put a floor on housing and do damage control. If it doesn't work,causes unintended and unwanted consequences, or its effect is deemed sufficient, we will see movement again. This may be lower depending, I guess. The stated target was 4.5%. I don't see a reason why rates should be assumed to be going much lower yet.If I had to bet today with the info available, I would bet not much lower.Someone else might be able to speak better as to how low they could possibly go and why.That would be interesting.

MyDogs,,
I just checked your quoted site.
The cost for 4.25% 15 YR is 1.545 points, with total closing costs of $5001 for the amount you mentioned..
They also require you to add $3459 for an impound account for total closing costs of $8460

At this same moment, my price for the same loan is $4617 without an impound account required. Total closing costs $4617 Guaranteed. I guarantee my closing costs on a refi too.

Them $5001/$8460 ....Me: $4617

If their rates drop, mine should too.

It is a single loan for one amount. $700K is over the limit for FNMA. Loans are available at higher rates.

Rates are based on loan amount and equity. If you have less than 20% equity, mortgage insurance will be added as a separate payment, but will be removed at some point in the future. You get one loan for the whole amount.

One way to avoid mortg ins, is to have an 80% 1st, and then a 2nd for the balance, however it is harder to find 2nds today and some loan programs restrict it.

The current loan limits are $417,000 for one program and $546,250 in San Diego County ($417K in Riverside county, $625,500 in OC & LA county)

,,,HLS

Assuming that you qualify, there still are FNMA loans available with as little as 5% down.

You get the same interest rate as a borrower with 20% down, (you can actually get a slightly better rate) but then you have to add the mortgage insurance payment.

With FNMA depends on your credit score.
With FHA, you can have a lower credit score, but the costs are much higher than FNMA and it is harder to qualify for a loan.

Mortgage insurance is based in 5% increments, starting with a loan amount of 80.01-85%, then 85.01-90%, then 90.01 to 95%..

The lower loan % comes with a lower premium. The mortgage insurance premium can be based on credit score and loan amount, so it is hard to be exact.

A mortg ins payment can easily add $100-$200 a month to your payment, but it should be removed at some future date.

At the moment, with a credit score above 720, a purchase loan amount under $417K with 5% or 10% down has a wholesale rate of 4.75%.. 30 YR fixed, no prepayment penalty.

Not all lenders offer 95% loans and an impound account is probably required at 95%, which means higher closing costs.
At 90%, an impound account is not required and you get the same rate.

Some lenders charge .25% more if you don't want an impound account. I don't below 90%.

Everybody is in a different situation. It's impossible to quote a rate that applies to everybody.

Houses are much easier to finance than condos.
Some condos have very little chance of being financed, even for a borrower with an 800 credit score and a 50% down payment.

Rates can change at any minute, up or down...

If you want to know what you qualify for, contact me privately. I try to be available 7 days a week.....HLS

Rates were up and down this week. I finally locked in at 4.47/30 year at 1 pt at BofA, wells fargo was 4.625 for the same. I have perfet credit (790 me/820 wife) and more than 60% equity. This is more than 1% less than the current 5.5

I locked in my second house, the inlaws place, at nearly a 2 pt drop.

Total savings in monthly payments of $550 combined. Will take 3 years to break even on the fees and costs. By paying the same payment as we were before, was an extra payment per year, will now be 2-3 extra payments per year reducing the loan below 20 years.

I suggest looking at several and pulling the trigger soon. Weird things are happening, all loan agents are swamped. worst case if rates go substantially lower in the 60 days before closing, you lose the $500 lock fee.

I believe that the FED/Govt has told the TARP banks to make loans near 4.5% or else. They believe turning all of this money over will help the financial community by taking in fees, but what then? no one who was speculating or far under water is not going to be able to take advantage. Many loans will change over but most housing won't. We know an agent in CA, less then 200K priced product in Riv/SBDO is moving again. Many soon to be landlords picking up deals.

Lots of product on the market.

Best to all,
StevenO

StevenO,
Are you saying that you are saving $6600 a year and it will take 3 years to recover your cost, meaning that these 2 loans cost you $20,000 in closing costs....
Can you please clarify ?

And they charge a $500 lock fee ?

Hi HLS,

Thanks for letting me know about your fees etc.

I can't figure our how to find your private e-mail, but would like to be able to contact you in the future. If rates go down just a bit, I think we may want to go ahead with a refi.

JS

MyDogs..

You can contact me @ sheldon [at] HomeLoanSheldon [dot] com

Feel free to check with me, there's no obligation.
If there is a target rate or max costs that you are looking for, I can try to monitor them for you.
There has been much movement lately.

www.HomeLoanSheldon.com

Bump

Wow in reading this thread I just had a minor epiphany. All the rate drops are doing is creating more wealth for those who don't need it.

Its like watching boiling water, where one group of molecules has enough energy to separate from the main body and keep rising while the rest are left in the pot.

You see these low rates are only available to the most secure borrowers. Meaning those with lots of equity. Those without cannot qualify and are stuck with the higher prices creating even more incentive to walk away. This is for two reasons.

One nothing the govt is doing will keep home prices from reverting. There isn't enough volume, people are scared and its thankfully going to stay that way.

Two those who can lock in and refi at a low rate have two great options. One they can keep the house which is now cheaper to maintain or rent it out for even less than the competition, as their cost basis is lower.

The problem with this scenario is its horribly unstable. Take the top 15% of homeowners (number pulled out of ass) and give them much more stability leaving the the other 85% completely fucked, I'd love an explanation of how that helps us form a bottom or even encourages would be home buyers to buy.

Just lovely.

Josh

Said another way: The prudent are now being rewarded, while the profligate are being punished. As it should be. If you were a credit risk in a good economy, which many of these folks were, you are triple the risk in a bad one.

Stan