HELOC with Prime minus 0.76%

[cv2]

Thanks, HLS and DaCounselor.

Hi HLS and DaCounselor,

I want your opinion on the impact of the low Jumbo Conforming loan rate, now below 6%, on housing market. Granted, this is still too early to see the trend since we do not know the loan qualification details and people’s reaction to it. I hope you could update your opinions as the time goes by.

[HLS]

It’s a tiny change to average consumer. You need to think national, not just local.

It’s another explanation of why the rich will get richer and the poor will get poorer.
It’s not going to help that many people who would not have otherwise qualified, it’s just going to be a lower payment for some.

On Monday, I had a well qualified borrower who easily qualified for an $800K purchase, full doc.
As of Wednesday, his payment will now be lower for $800K, or he can now afford an $870K house and with a simliar payment, and still be at the JC limit.

The govt REALLY doesn’t know what to do, but is willing to try ANYTHING to artificially keep prices up and prolong the
downturn, they aren’t got to stop it.

To bail out the irresponsible, the next 2 crazy things that I am expecting from DC are:
a)Refi’s at 120% of property values.
b)Cutting principal balances of loans to keep sheeple from walking. (or some combination/variation)

After the $600 stimulus doesn’t work, they will print $1200 checks for the next one.

This should ALL be an OUTRAGE to responsible people.
I am expecting riots in the streets to ensue when people realize what has happened.

Profits are privitized… Losses are socialized.
Welcome to United Socialist America.

[HLS]

It’s a tiny change to average consumer. You need to think national, not just local.

It’s another explanation of why the rich will get richer and the poor will get poorer.
It’s not going to help that many people who would not have otherwise qualified, it’s just going to be a lower payment for some.

On Monday, I had a well qualified borrower who easily qualified for an $800K purchase, full doc.
As of Wednesday, his payment will now be lower for $800K, or he can now afford an $870K house and with a simliar payment, and still be at the JC limit.

The govt REALLY doesn’t know what to do, but is willing to try ANYTHING to artificially keep prices up and prolong the
downturn, they aren’t got to stop it.

To bail out the irresponsible, the next 2 crazy things that I am expecting from DC are:
a)Refi’s at 120% of property values.
b)Cutting principal balances of loans to keep sheeple from walking. (or some combination/variation)

After the $600 stimulus doesn’t work, they will print $1200 checks for the next one.

This should ALL be an OUTRAGE to responsible people.
I am expecting riots in the streets to ensue when people realize what has happened.

Profits are privitized… Losses are socialized.
Welcome to United Socialist America.

[HLS]

It’s a tiny change to average consumer. You need to think national, not just local.

It’s another explanation of why the rich will get richer and the poor will get poorer.
It’s not going to help that many people who would not have otherwise qualified, it’s just going to be a lower payment for some.

On Monday, I had a well qualified borrower who easily qualified for an $800K purchase, full doc.
As of Wednesday, his payment will now be lower for $800K, or he can now afford an $870K house and with a simliar payment, and still be at the JC limit.

The govt REALLY doesn’t know what to do, but is willing to try ANYTHING to artificially keep prices up and prolong the
downturn, they aren’t got to stop it.

To bail out the irresponsible, the next 2 crazy things that I am expecting from DC are:
a)Refi’s at 120% of property values.
b)Cutting principal balances of loans to keep sheeple from walking. (or some combination/variation)

After the $600 stimulus doesn’t work, they will print $1200 checks for the next one.

This should ALL be an OUTRAGE to responsible people.
I am expecting riots in the streets to ensue when people realize what has happened.

Profits are privitized… Losses are socialized.
Welcome to United Socialist America.

[HLS]

It’s a tiny change to average consumer. You need to think national, not just local.

It’s another explanation of why the rich will get richer and the poor will get poorer.
It’s not going to help that many people who would not have otherwise qualified, it’s just going to be a lower payment for some.

On Monday, I had a well qualified borrower who easily qualified for an $800K purchase, full doc.
As of Wednesday, his payment will now be lower for $800K, or he can now afford an $870K house and with a simliar payment, and still be at the JC limit.

The govt REALLY doesn’t know what to do, but is willing to try ANYTHING to artificially keep prices up and prolong the
downturn, they aren’t got to stop it.

To bail out the irresponsible, the next 2 crazy things that I am expecting from DC are:
a)Refi’s at 120% of property values.
b)Cutting principal balances of loans to keep sheeple from walking. (or some combination/variation)

After the $600 stimulus doesn’t work, they will print $1200 checks for the next one.

This should ALL be an OUTRAGE to responsible people.
I am expecting riots in the streets to ensue when people realize what has happened.

Profits are privitized… Losses are socialized.
Welcome to United Socialist America.

[HLS]

It’s a tiny change to average consumer. You need to think national, not just local.

It’s another explanation of why the rich will get richer and the poor will get poorer.
It’s not going to help that many people who would not have otherwise qualified, it’s just going to be a lower payment for some.

On Monday, I had a well qualified borrower who easily qualified for an $800K purchase, full doc.
As of Wednesday, his payment will now be lower for $800K, or he can now afford an $870K house and with a simliar payment, and still be at the JC limit.

The govt REALLY doesn’t know what to do, but is willing to try ANYTHING to artificially keep prices up and prolong the
downturn, they aren’t got to stop it.

To bail out the irresponsible, the next 2 crazy things that I am expecting from DC are:
a)Refi’s at 120% of property values.
b)Cutting principal balances of loans to keep sheeple from walking. (or some combination/variation)

After the $600 stimulus doesn’t work, they will print $1200 checks for the next one.

This should ALL be an OUTRAGE to responsible people.
I am expecting riots in the streets to ensue when people realize what has happened.

Profits are privitized… Losses are socialized.
Welcome to United Socialist America.

[HLS]

To Larry The Renter, In re-reading your post, perhaps I misunderstood your previous question.
I was referring to a 30 YR fixed NOT being available “no cost at 6%” Do you want another ARM ?

IF you qualify,
Below $417K with 40% equity,SFR, NON owner 30 YR fixed P&I, No cash out, WITH a 1pt cost,is 6% today.
For Interest Only ARMS:
5 YR 5.375%
7 YR 5.50%
10YR 5.75%

When you asked about “no points” I’m not sure if you are asking about a total “no cost” loan or just one without an origination point.
For a loan without origination point, but still paying 3rd party closing costs (Title, escrow, Recording, Notary etc)
ARMS
5 YR 5.875%
7 YR 6.00%

If you want a total NO COST/NO FEE loan:
5 YR 6.375%
7 YR 6.375% (Same as 5 YR!)
10YR 6.75%
30 YR fixed 6.625% (P & I)

This means that if your loan is $300K today, it will still be $300K when you are done. (It will require an impound account for the best rate, which is a bit extra)

The above depends on your loan amount, but it appears that you can get a much better loan than you have today by paying some costs. Worst case getting a true no cost loan without adding to your loan balance you can still have a better rate than what you have now, and fixing the rate for another 5-7 years.

(This assumes that you can qualify. Let me know if you need any additional info. As always, rates subject to change until locked)

[HLS]

To Larry The Renter, In re-reading your post, perhaps I misunderstood your previous question.
I was referring to a 30 YR fixed NOT being available “no cost at 6%” Do you want another ARM ?

IF you qualify,
Below $417K with 40% equity,SFR, NON owner 30 YR fixed P&I, No cash out, WITH a 1pt cost,is 6% today.
For Interest Only ARMS:
5 YR 5.375%
7 YR 5.50%
10YR 5.75%

When you asked about “no points” I’m not sure if you are asking about a total “no cost” loan or just one without an origination point.
For a loan without origination point, but still paying 3rd party closing costs (Title, escrow, Recording, Notary etc)
ARMS
5 YR 5.875%
7 YR 6.00%

If you want a total NO COST/NO FEE loan:
5 YR 6.375%
7 YR 6.375% (Same as 5 YR!)
10YR 6.75%
30 YR fixed 6.625% (P & I)

This means that if your loan is $300K today, it will still be $300K when you are done. (It will require an impound account for the best rate, which is a bit extra)

The above depends on your loan amount, but it appears that you can get a much better loan than you have today by paying some costs. Worst case getting a true no cost loan without adding to your loan balance you can still have a better rate than what you have now, and fixing the rate for another 5-7 years.

(This assumes that you can qualify. Let me know if you need any additional info. As always, rates subject to change until locked)

[HLS]

To Larry The Renter, In re-reading your post, perhaps I misunderstood your previous question.
I was referring to a 30 YR fixed NOT being available “no cost at 6%” Do you want another ARM ?

IF you qualify,
Below $417K with 40% equity,SFR, NON owner 30 YR fixed P&I, No cash out, WITH a 1pt cost,is 6% today.
For Interest Only ARMS:
5 YR 5.375%
7 YR 5.50%
10YR 5.75%

When you asked about “no points” I’m not sure if you are asking about a total “no cost” loan or just one without an origination point.
For a loan without origination point, but still paying 3rd party closing costs (Title, escrow, Recording, Notary etc)
ARMS
5 YR 5.875%
7 YR 6.00%

If you want a total NO COST/NO FEE loan:
5 YR 6.375%
7 YR 6.375% (Same as 5 YR!)
10YR 6.75%
30 YR fixed 6.625% (P & I)

This means that if your loan is $300K today, it will still be $300K when you are done. (It will require an impound account for the best rate, which is a bit extra)

The above depends on your loan amount, but it appears that you can get a much better loan than you have today by paying some costs. Worst case getting a true no cost loan without adding to your loan balance you can still have a better rate than what you have now, and fixing the rate for another 5-7 years.

(This assumes that you can qualify. Let me know if you need any additional info. As always, rates subject to change until locked)

[HLS]

To Larry The Renter, In re-reading your post, perhaps I misunderstood your previous question.
I was referring to a 30 YR fixed NOT being available “no cost at 6%” Do you want another ARM ?

IF you qualify,
Below $417K with 40% equity,SFR, NON owner 30 YR fixed P&I, No cash out, WITH a 1pt cost,is 6% today.
For Interest Only ARMS:
5 YR 5.375%
7 YR 5.50%
10YR 5.75%

When you asked about “no points” I’m not sure if you are asking about a total “no cost” loan or just one without an origination point.
For a loan without origination point, but still paying 3rd party closing costs (Title, escrow, Recording, Notary etc)
ARMS
5 YR 5.875%
7 YR 6.00%

If you want a total NO COST/NO FEE loan:
5 YR 6.375%
7 YR 6.375% (Same as 5 YR!)
10YR 6.75%
30 YR fixed 6.625% (P & I)

This means that if your loan is $300K today, it will still be $300K when you are done. (It will require an impound account for the best rate, which is a bit extra)

The above depends on your loan amount, but it appears that you can get a much better loan than you have today by paying some costs. Worst case getting a true no cost loan without adding to your loan balance you can still have a better rate than what you have now, and fixing the rate for another 5-7 years.

(This assumes that you can qualify. Let me know if you need any additional info. As always, rates subject to change until locked)

[HLS]

To Larry The Renter, In re-reading your post, perhaps I misunderstood your previous question.
I was referring to a 30 YR fixed NOT being available “no cost at 6%” Do you want another ARM ?

IF you qualify,
Below $417K with 40% equity,SFR, NON owner 30 YR fixed P&I, No cash out, WITH a 1pt cost,is 6% today.
For Interest Only ARMS:
5 YR 5.375%
7 YR 5.50%
10YR 5.75%

When you asked about “no points” I’m not sure if you are asking about a total “no cost” loan or just one without an origination point.
For a loan without origination point, but still paying 3rd party closing costs (Title, escrow, Recording, Notary etc)
ARMS
5 YR 5.875%
7 YR 6.00%

If you want a total NO COST/NO FEE loan:
5 YR 6.375%
7 YR 6.375% (Same as 5 YR!)
10YR 6.75%
30 YR fixed 6.625% (P & I)

This means that if your loan is $300K today, it will still be $300K when you are done. (It will require an impound account for the best rate, which is a bit extra)

The above depends on your loan amount, but it appears that you can get a much better loan than you have today by paying some costs. Worst case getting a true no cost loan without adding to your loan balance you can still have a better rate than what you have now, and fixing the rate for another 5-7 years.

(This assumes that you can qualify. Let me know if you need any additional info. As always, rates subject to change until locked)

[Author]

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