San Diego Housing Market News and Analysis

Is that a 1 point buy down cost in addition to being charged other broker fees to get 4.875%
OR is your only cost to get 4.875% 1pt ??

I was looking for one also... I got

via Lendingtree

30 year fixed 4.87
15 year fixed 4.37

1 % origination
$750 underwriting
plus title, appraisal etc...

Local credit union

30 year fixed 5.1
15 year fixed ... I forgot :)

I haven't looked at numbers seriously until today, so I have no idea about the trend...

I was just asking BofA a few days ago.

I was quoted by the local mortgage broker. Don't know if these are right or not.

$417k/20yr

4.78: 0pt/ 0fee
4 5/8 0pt/ $2600-2700 fee
4.5: 1pt + $2600-$2700 fee

$417k/30yr
5 1/8 0pt/0 fee
4 7/8 0pt/$2600-2700 fee
4 3/4 1pt/$2600-2700 fee

Did not ask for the 15 yr.

I did not delve into further details. Probably more hidden costs etc.

Anyone more current?

Edit. Never mind....I just read more carefully...You said "conforming plus"....sorry.

I locked about a month ago expecting rates to rise as the Fed cut back on MBS purchases. So far that hasn't happened ... I'm guessing that capital is flowing out of the Euro into the dollar due to the Greek crisis.

As for paying discount points ... how much of a break are you getting by paying 1pt? It seems that we don't get a whole lot for our money these days.

I would lock now. I think waiting for a significant downside spike in the next 2 weeks is a fool's game.

who is your broker??? BofA and Aimloan both show a 30 yr fixed jumbo with 1 point at around 5.5 or 5.625 .. How can yours be lower than that???? is it an adjustable???

Two things:

Shop around, and find the lowest rates yourself. Don't rely on a single mortgage broker, who will promote the loan that he can make the most money for selling.

Second, check with Bankrate.com for near term rates. They have a consensus fore cast, but you need to navigate the site a bit to find it.

Upon my 3rd purchase, I did not use a mortgage broker. Its as easy as doing a web search for low rates, and/or making a list of lending institutions and picking up the phone. Make sure you compare apples to apples when you make your calls (keep points and fees constant, and ask what the best rate is they can do). Its pretty easy. I locked down my interest rate after about 8 phone calls within an hour.

Plus fees

Not adjustable, 30-year fixed. Found out today from the broker the rate is through Chase. I checked Chase's site yesterday and they were showing 5.6% with 1 pt...

Amusing advice from "experts" above.
When comparing 15/30YR rate/costs there is no such thing as one rate that applies to every borrower.

The factors for loan pricing on a purchase are credit score and % down payment and lock period.
The factors for a refi are the 3 above AND whether only an existing 1st mortgage is being refi'd OR a 2nd, HELOC or cash is being taken out.

It's not the rate that changes every day, it's the cost to get the rate that does, and there are often intraday changes. Until you are locked, and then fully underwritten and approved, the rate means nothing.

Quoting yesterday's mortgage quote today is as silly as talking about yesterday's stock price on a stock that went up today. Yesterday's price is no longer available.

Different lenders have different guidelines to qualify for the exact same loan. Just because you lock in at the lowest rate, doesn't mean that you will get approved. You may get approved at one lender but not at another. Normally on a purchase, escrow will not work with multiple lenders, you need to pick one and pray.

An ignorant real estate agent may direct to the wrong lender/broker.
800 credit score with $200K income may not qualify to get a $300K loan.

One way or another there are costs with every loan. If you don't want to pay costs, you will just get a higher rate and higher monthly payment that will end up costing more after 3 to 5 years, and a small fortune if the loan is kept 15-20-30 years. You may screw yourself with a no cost/low cost loan.

The right rate today for a well qualified borrow for the OP was 4.875% with .50pt cost OR 5% 0pts

For a loan below $417K 4.75% with a .25pt cost OR
4.875% with 0pts. It's going to be different in the morning.

All you experts probably don't know that a bank/direct lender can screw you without you ever knowing but once a mortgage broker discloses their charge to you, he cannot receive a penny more than what was disclosed.

If there is a benefit from a lower rate, it is credited to the borrower. There is no advantage to a broker after disclosing their fee. The new rules are specific.

Although well intentioned, info from some above posts is just plain ignorant.

HLS
In complete agreement with you regarding comparing yesterdays rate, You can't walk into a bank and ask for last weeks CD rate either. You need to compare apples to apples and that mean product, time fees etc.

What I seem to have a problem wit is the fact that you continually sell (FUD) Fear Uncertainty and Doubt.

Simple position. There are a lot of Mortgage brokers out there. Why not identify the PAR rate and see who is willing to take the least in fees YSP etc to do the loan. Seems to me that is the best way to get the best deal. If a broker wants to hit a certain funding volume so as to keep his wholesaler happy then they may take a thin profit on a loan.

aimloan.com says 4.875% for jumbo conforming. Your middle score has to be higher than the threshold (it was 740 6 months ago) to get that and you need to put 20% down. If you put 25%+ down you get the advertised rate regardless of the credit score (again, 6 months old info).

They have $300-500 discount in their newsletter, I can try to dig through my old emails tomorrow morning. I don't think there is a specific coupon code, you just need to ask for it when you apply for the loan.

Capt
It's not true that with 25% down credit score doesn't matter, and it wasn't true 6 months ago for Fannie/Freddie.

Rayb,, I respect your opinions, but you don't know what you're talking about.
A direct lender or bank does not have to disclose YSP.
They are able to say" we don't charge fees/points"
That is only true because they have HIGHER RETAIL rates, and ignorant consumers fall for this, including many intelligent people.

A broker offers WHOLESALE rates, and at the lowest rates, THERE IS NO YSP. It's not a complicated secret. There are no backdoor deals, EVERYTHING is disclosed.

If a broker is fair, the end rate to the consumer is fair and often lower than any bank or credit union. If the broker is a pig, the consumer will pay more than they should.

The MOST important things today are proper disclosures and getting approved. Plenty of people might lock at the lowest rate they think can find, but they aren't going to get approved.
Having a 2% rate that you can't qualify for is meaningless.

It's also that people here with a little bit of information that THINK they know what they are talking about are dangerous to get advice from, even though they mean well.
There's a HUGE difference between an opinion and facts.

Different lenders have different wholesale rates as well, and some are VERY difficult to work with, even though they have the best pricing.

Today, some people can qualify for 30YR 4.875% 0 cost, 0 points OR 3.50% ARMS. It sounds real good, but most people don't qualify, and people will lock the rate long before they find out that they cannot qualify.... HLS

HLS
Only you know. You are the omnipotent one on this board. Everyone else is the fool.

Here is a question. Have you ever had a second look at a person loan docs and said "wow that is a screaming deal" Your broker did a good job.

Yes yes yes. Lock right now. Once fed stops buying MBS's March 31st they will go up!

http://www.calculatedriskblog.com/2010/0...

HLS you typed a bunch of hot air, and not much else.

There is nothing a mortgage broker can do that you can't do for your self. I've gotten screwed by a mortgage broker on a purchase. On the other two, I found that I could and did do better than what they quoted.

Of course you can't compare yesterdays rates to todays. Who said that? Of course rates depend on your credit score. Who said they didn't? You threw a bunch of crap out there to try and make yourself sound "smart". You failed.

Shop around and you'll do your self well. Ignore the hot air that insist you use a broker.

All 3 houses I bought I posted the scenerio of downpayment, ficos, purchase cost, and state on brokeroutpost.com forum where hundreds of brokers viewed the post and not 1 ever said "I can beat them". Retail was the way to go for me. May not be the same for all but was for me.

I agree. No sure way for all. I guess the point is, if you have questions regarding your mortgage broker, take a few minutes to call some lending institutions and see if he/she is in the ball park, or to see if you can do better on your own. Its not difficult or time consuming, and could save you thousands of dollars over the life of the loan. For those that would rather let the broker handle it without question, then I guess that works fine for them.

Daniel, you've got all of 10 days on this site and are now the resident expert on mortgages. I'm real impressed with your resume.

I don't know what is sadder:
The fact that you think that you know what you are talking about
OR
That someone may actually listen to you.

I never said that a broker will always beat other options but you don't even understand that in most cases banks are mortgage brokers and perform the same function, often with employees that are clueless to explain other options that may be better.

When the "know it all" rate shoppers show up just thinking that they are getting the lowest rate possible, that's when the real fun begins, and loans often can't close.

I spoke to someone today that is having a HUGE problem with AIM, and he can't get his phone calls returned. He regrets his decision now. He may lose his lock and the home.

My hot air can actually get someone a loan, your experience was fine for you, but pointless otherwise. It's never been more difficult to get a loan through any lender, and the lowest/cheapest means nothing if the loan can't close.

This is true. Wells retail was a friggin joke. I almost switcherd at the end due to their incompotence. 30%dti buyer with no debt 20% down and they pissed me off bad. You have to watch it with those retail lenders as their processors are back who knows where with the UW. Stay on top of em or your file will get old fast on some shelf while they process all those losers getting loan mods ahead of you.

WH..
It's beyond crazy, but guidelines are guidelines that MUST be met. You probbably would not have had a different experience if your DTI was 10% or 50%
or if the down payment was 50%. They simply do not say that because this borrower has a lower DTI that we can over look guidelines. An approval is only the first step.

A low paid wage earner may get an FHA loan for 96.5% with 3.5% down, however a retired couple with a $800,000 home cannot qualify to refi a $300,000 loan to a lower rate.

At most banks/credit unions, the application taker/processor is an underling to the underwriter and never questions anything (for fear of losing their job ?)

I deal directly with underwriters and question them all the time to get issues resolved. This is what holds deals together or gets them closed faster.

Now of course if you listen to our new resident expert Daniel, he says that "there is NOTHING that a broker can do for you that you cannot do for yourself"

You have no idea how silly something can be that will kill a loan, regardless of income, assets, equity, credit score, down payment or how important somebody thinks they are.

If a borrower huffs and puffs and threatens to walk away from the loan, the underwriter doesn't care, they just move on to the next file.

In some cases raising a credit score by ONE point can result in thousands of dollars of savings, or being able to qualify at all.

All the resident experts know how to make phone calls and shop for a rate, usually without a clue whether they even qualify. No loan is done until it gets funded and the delays and stress these days are beyond belief. The system is completely broken.

I think that mortgage brokers begin to provide a lot or value to those who deviate form the traditional high documented income high down payment low DTI.

If I am a sergeant on the Police force with a wife who is a nurse and household income is 200K and have 200K in cash and are looking for a 500K home. I think that it is pretty safe to say that that person can pretty easily shop around.

On the other hand if I am self employed and wife is a salesperson and we make the same amount of money but document it differently then I think the added complexity introduces opportunities where broker expertise comes into play.

HLS. Is this a fair statement?

Perfect post HLS. My first house I bought was 50% down, 8% DTI back end, 775 fico, and I still needed an extention to not pay the per diem through BofA. Yes they dont care and what really held me up was cash. DO NOT dump cash into your account up to 2 months. That almost killed my primary deal right there. Even though it was only 15k that is a ton to them. Line yourself up for a smooth transaction ahead of time. One broker said it best, "when your file falls off the tracks at a retail office it is hard to get it cruising on the track again". But their rates and fees were low. You just have to prepare ahead of time.

I think this is a perfect example that is equally applicable to a RE agent. It could be an easy transaction and not make a difference. Then again it could be a mess and require the skills of an experienced agent/mortgage guy. You just dont know which way its going to go until you are knee deep in it. Some people get lucky and it goes smoothly. That is not necessarily the norm but to them it is because that was their experience thus far. As professionals we see so many more transactions that we know what can happen. Go it alone or get help, the decision is yours.

You're the one with the hot air, showing up like you know it all. Just read the comments, and you'll see I'm not the only one that notice that.

LMAO, posting on Pigginton's site makes one an expert now? Now I've heard it all. I don't care if I've posted for 10 days, or 10 years. I am not an expert. But I've been around the block a time or two: actually four, having purchased 4 investment properties. That means I might have something to contribute. Just because you don't like my contribution, doesn't make you any more right. In fact in my last posting, I noted that one approach does not fit all.

Unfortunately by your arrogant posts, you do think you are an expert. A lot of "experts" who knew it all like you, were left hanging with the pants down since 2006. Just because you are in the field, doesn't mean you know it all. What ever floats your boat dude. If you want to get angry and arrogant, go for it.