Mortgage Rates

[eagleeye]

Hi HLS,

I haven’t posted in a while but I’ve been following this site for a few years now. We bought a teardown this summer and we’re currently building a house. We’ve got a 6% construction loan (prime + 1% with a 6% floor). The house won’t be ready until next summer so it’s killing me to watch the rates that are currently available. We’ll need a loan of about $1.45M on a bank appraised completed project price of $2.15M. The three most recent sales for near identical homes have been $2.175M, $2.165M and $2.18M. I’ve been following NFCU’s rates closely. Currently their 30-fixed with 0 pts for a jumbo loan over $730K is 5.5%. Of course, who knows where rates will be in 6 months. Do you have any advise for me? Thanks.

[bob2007]

Thanks asianautica. I espicially like the fact you were updated.

HLS, thank you for the additional information. It was not my intention to say the the presentation was intentional or shifty – I’m just trying to offer some feedback, and if it makes sense it might be useful to you. Most people don’t see what they like an just move on.

[bob2007]

Thanks asianautica. I espicially like the fact you were updated.

HLS, thank you for the additional information. It was not my intention to say the the presentation was intentional or shifty – I’m just trying to offer some feedback, and if it makes sense it might be useful to you. Most people don’t see what they like an just move on.

[bob2007]

Thanks asianautica. I espicially like the fact you were updated.

HLS, thank you for the additional information. It was not my intention to say the the presentation was intentional or shifty – I’m just trying to offer some feedback, and if it makes sense it might be useful to you. Most people don’t see what they like an just move on.

[bob2007]

Thanks asianautica. I espicially like the fact you were updated.

HLS, thank you for the additional information. It was not my intention to say the the presentation was intentional or shifty – I’m just trying to offer some feedback, and if it makes sense it might be useful to you. Most people don’t see what they like an just move on.

[bob2007]

Thanks asianautica. I espicially like the fact you were updated.

HLS, thank you for the additional information. It was not my intention to say the the presentation was intentional or shifty – I’m just trying to offer some feedback, and if it makes sense it might be useful to you. Most people don’t see what they like an just move on.

[SD Realtor]

Eagle did you end up getting something in Coronado? Also what are you looking at in ppsf for your construction? Juct curious as we are considering something similar but on a lower cost scale.

[SD Realtor]

Eagle did you end up getting something in Coronado? Also what are you looking at in ppsf for your construction? Juct curious as we are considering something similar but on a lower cost scale.

[SD Realtor]

Eagle did you end up getting something in Coronado? Also what are you looking at in ppsf for your construction? Juct curious as we are considering something similar but on a lower cost scale.

[SD Realtor]

Eagle did you end up getting something in Coronado? Also what are you looking at in ppsf for your construction? Juct curious as we are considering something similar but on a lower cost scale.

[SD Realtor]

Eagle did you end up getting something in Coronado? Also what are you looking at in ppsf for your construction? Juct curious as we are considering something similar but on a lower cost scale.

[HLS]

EE..
If you are religious, PRAY ! 🙂

I am familiar with their programs and rates. I don’t know what their secondary market is for these jumbo loans or what their underwriting guidelines are.

It is very dangerous for any institution to lend long and borrow short with their own money.

Loaning out money for 30 years below 6% and paying depositors rates below that today is fine, but at some point if/when CD rates rise they will be paying more to get money than they lent it out for if they didn’t offset this risk. (Bad business)
They may use arbitrage offset with bonds or another risk strategy. They aren’t stupid.

Assuming that you qualify in all respects, have you asked them what their extended lock policy is ?

You may be able to get a 6 month lock for a fee.
This would allow you to lock this month or next if you like the current rates, if you are sure you will be ready for occupancy by June/July.

Locks are simply a market commitment at todays market price with a time premium attached. If it’s worth it to you, you may have the choice to pay for the option.

Locks cost money to a lender. Consumers dont understand this. They just want to lock and keep shopping, which isn’t fair. Just like trading stocks, you word should be your bond.

If you want to wait,then wait. If you like the rate, then lock.

I do have a policy with my major lenders if rates drop a certain amount to get a small adjustment.

I have a lender that will lock up to one year out, but only up to $417,000 loan amount. The cost is 1 point of loan amount to get todays rate a year from now. Loans from $417K-$546 are 70 days max right now.

Most people do not get their mortgages at the lowest rate. Very, very few have 30 YR fixed at 5% or below. Now many are paralyzed by greed. Now they want an even lower rate before refinancing.

Maybe it will happen, I don’t know. . HLS

[HLS]

EE..
If you are religious, PRAY ! 🙂

I am familiar with their programs and rates. I don’t know what their secondary market is for these jumbo loans or what their underwriting guidelines are.

It is very dangerous for any institution to lend long and borrow short with their own money.

Loaning out money for 30 years below 6% and paying depositors rates below that today is fine, but at some point if/when CD rates rise they will be paying more to get money than they lent it out for if they didn’t offset this risk. (Bad business)
They may use arbitrage offset with bonds or another risk strategy. They aren’t stupid.

Assuming that you qualify in all respects, have you asked them what their extended lock policy is ?

You may be able to get a 6 month lock for a fee.
This would allow you to lock this month or next if you like the current rates, if you are sure you will be ready for occupancy by June/July.

Locks are simply a market commitment at todays market price with a time premium attached. If it’s worth it to you, you may have the choice to pay for the option.

Locks cost money to a lender. Consumers dont understand this. They just want to lock and keep shopping, which isn’t fair. Just like trading stocks, you word should be your bond.

If you want to wait,then wait. If you like the rate, then lock.

I do have a policy with my major lenders if rates drop a certain amount to get a small adjustment.

I have a lender that will lock up to one year out, but only up to $417,000 loan amount. The cost is 1 point of loan amount to get todays rate a year from now. Loans from $417K-$546 are 70 days max right now.

Most people do not get their mortgages at the lowest rate. Very, very few have 30 YR fixed at 5% or below. Now many are paralyzed by greed. Now they want an even lower rate before refinancing.

Maybe it will happen, I don’t know. . HLS

[HLS]

EE..
If you are religious, PRAY ! 🙂

I am familiar with their programs and rates. I don’t know what their secondary market is for these jumbo loans or what their underwriting guidelines are.

It is very dangerous for any institution to lend long and borrow short with their own money.

Loaning out money for 30 years below 6% and paying depositors rates below that today is fine, but at some point if/when CD rates rise they will be paying more to get money than they lent it out for if they didn’t offset this risk. (Bad business)
They may use arbitrage offset with bonds or another risk strategy. They aren’t stupid.

Assuming that you qualify in all respects, have you asked them what their extended lock policy is ?

You may be able to get a 6 month lock for a fee.
This would allow you to lock this month or next if you like the current rates, if you are sure you will be ready for occupancy by June/July.

Locks are simply a market commitment at todays market price with a time premium attached. If it’s worth it to you, you may have the choice to pay for the option.

Locks cost money to a lender. Consumers dont understand this. They just want to lock and keep shopping, which isn’t fair. Just like trading stocks, you word should be your bond.

If you want to wait,then wait. If you like the rate, then lock.

I do have a policy with my major lenders if rates drop a certain amount to get a small adjustment.

I have a lender that will lock up to one year out, but only up to $417,000 loan amount. The cost is 1 point of loan amount to get todays rate a year from now. Loans from $417K-$546 are 70 days max right now.

Most people do not get their mortgages at the lowest rate. Very, very few have 30 YR fixed at 5% or below. Now many are paralyzed by greed. Now they want an even lower rate before refinancing.

Maybe it will happen, I don’t know. . HLS

[HLS]

EE..
If you are religious, PRAY ! 🙂

I am familiar with their programs and rates. I don’t know what their secondary market is for these jumbo loans or what their underwriting guidelines are.

It is very dangerous for any institution to lend long and borrow short with their own money.

Loaning out money for 30 years below 6% and paying depositors rates below that today is fine, but at some point if/when CD rates rise they will be paying more to get money than they lent it out for if they didn’t offset this risk. (Bad business)
They may use arbitrage offset with bonds or another risk strategy. They aren’t stupid.

Assuming that you qualify in all respects, have you asked them what their extended lock policy is ?

You may be able to get a 6 month lock for a fee.
This would allow you to lock this month or next if you like the current rates, if you are sure you will be ready for occupancy by June/July.

Locks are simply a market commitment at todays market price with a time premium attached. If it’s worth it to you, you may have the choice to pay for the option.

Locks cost money to a lender. Consumers dont understand this. They just want to lock and keep shopping, which isn’t fair. Just like trading stocks, you word should be your bond.

If you want to wait,then wait. If you like the rate, then lock.

I do have a policy with my major lenders if rates drop a certain amount to get a small adjustment.

I have a lender that will lock up to one year out, but only up to $417,000 loan amount. The cost is 1 point of loan amount to get todays rate a year from now. Loans from $417K-$546 are 70 days max right now.

Most people do not get their mortgages at the lowest rate. Very, very few have 30 YR fixed at 5% or below. Now many are paralyzed by greed. Now they want an even lower rate before refinancing.

Maybe it will happen, I don’t know. . HLS

[Author]

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