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August 13, 2007 at 3:04 PM #74696August 13, 2007 at 3:07 PM #74568
stop_the_bubble_hype
Participantlocked this morning (30 day) with an A-paper loan. This was a jumbo loan and while we put 25% down, the required was only 10% and it’s reduced documentation.
We were afraid to lock earlier not knowing what the rates were going to do over the summer. Had a chance to do so in May/June timeframe but that’s when the 10-year was through the roof.
Not trying to be a pain in the butt here, but I want to let you all know to check the information provided before getting “hyped” about the comments shared here. Just so happens I was in a position to share some insight today!
August 13, 2007 at 3:07 PM #74684Participantlocked this morning (30 day) with an A-paper loan. This was a jumbo loan and while we put 25% down, the required was only 10% and it’s reduced documentation.
We were afraid to lock earlier not knowing what the rates were going to do over the summer. Had a chance to do so in May/June timeframe but that’s when the 10-year was through the roof.
Not trying to be a pain in the butt here, but I want to let you all know to check the information provided before getting “hyped” about the comments shared here. Just so happens I was in a position to share some insight today!
August 13, 2007 at 3:07 PM #74690Participantlocked this morning (30 day) with an A-paper loan. This was a jumbo loan and while we put 25% down, the required was only 10% and it’s reduced documentation.
We were afraid to lock earlier not knowing what the rates were going to do over the summer. Had a chance to do so in May/June timeframe but that’s when the 10-year was through the roof.
Not trying to be a pain in the butt here, but I want to let you all know to check the information provided before getting “hyped” about the comments shared here. Just so happens I was in a position to share some insight today!
August 13, 2007 at 3:19 PM #74581Arraya
ParticipantAnyone else have any input regarding this rather large discrepancy in rates?
First SBH said he paid 1.5 points to get his 6.5%. That probably puts the actual “par” rate around 7.2-7.5%. You can always pay to bring down a rate.
Second, regarding the CW rate sheet. That is just a small portion of the programs they have availble. It looks to be a subprime rate sheet. Most likely only used for borrowers with lower credit. Though they have 700+ ficos listed on that rate sheet, most likely that credit range would use a different sheet.
From what I here from my broker freinds jumbos for people with good credit are starting in the low 7s now. Keep in mind just a few weeks ago they would be just a hair over prime rates which was about 6.5. So basically rates on jumbos have gone up .75 points and up depending on the exact situation in the past week.
August 13, 2007 at 3:19 PM #74698ParticipantAnyone else have any input regarding this rather large discrepancy in rates?
First SBH said he paid 1.5 points to get his 6.5%. That probably puts the actual “par” rate around 7.2-7.5%. You can always pay to bring down a rate.
Second, regarding the CW rate sheet. That is just a small portion of the programs they have availble. It looks to be a subprime rate sheet. Most likely only used for borrowers with lower credit. Though they have 700+ ficos listed on that rate sheet, most likely that credit range would use a different sheet.
From what I here from my broker freinds jumbos for people with good credit are starting in the low 7s now. Keep in mind just a few weeks ago they would be just a hair over prime rates which was about 6.5. So basically rates on jumbos have gone up .75 points and up depending on the exact situation in the past week.
August 13, 2007 at 3:19 PM #74703ParticipantAnyone else have any input regarding this rather large discrepancy in rates?
First SBH said he paid 1.5 points to get his 6.5%. That probably puts the actual “par” rate around 7.2-7.5%. You can always pay to bring down a rate.
Second, regarding the CW rate sheet. That is just a small portion of the programs they have availble. It looks to be a subprime rate sheet. Most likely only used for borrowers with lower credit. Though they have 700+ ficos listed on that rate sheet, most likely that credit range would use a different sheet.
From what I here from my broker freinds jumbos for people with good credit are starting in the low 7s now. Keep in mind just a few weeks ago they would be just a hair over prime rates which was about 6.5. So basically rates on jumbos have gone up .75 points and up depending on the exact situation in the past week.
August 13, 2007 at 3:41 PM #74593LA_Renter
ParticipantA good bellwether to follow on high quality jumbo loans is Thornburg Mortgage which is getting slammed right now on Wall Street
“AP
Thornburg Shares Hit 52-Week Low
Monday August 13, 1:49 pm ET
Thornburg Shares Fall on Lower Credit Rating and Mortgage Market Worries, Hit 52-Week LowNEW YORK (AP) — Shares of Thornburg Mortgage Inc., a prime mortgage lender and real estate investment trust, fell in Monday trading after Standard & Poor’s downgraded its credit rating Friday and as concerns in the mortgage market persist.’
>
“Despite the fact that Thornburg has executed well on its strategy to underwrite, purchase, and hold extremely high quality assets, it appears lenders are not differentiating,” among mortgage products, Hochstim wrote in the note. “Thus, Thornburg may be getting very little credit for its careful management of credit risk.”
http://biz.yahoo.com/ap/070813/thornburg_mortgage_mover.html?.v=1
If these guys are having problems then they are all having problems.
August 13, 2007 at 3:41 PM #74708ParticipantA good bellwether to follow on high quality jumbo loans is Thornburg Mortgage which is getting slammed right now on Wall Street
“AP
Thornburg Shares Hit 52-Week Low
Monday August 13, 1:49 pm ET
Thornburg Shares Fall on Lower Credit Rating and Mortgage Market Worries, Hit 52-Week LowNEW YORK (AP) — Shares of Thornburg Mortgage Inc., a prime mortgage lender and real estate investment trust, fell in Monday trading after Standard & Poor’s downgraded its credit rating Friday and as concerns in the mortgage market persist.’
>
“Despite the fact that Thornburg has executed well on its strategy to underwrite, purchase, and hold extremely high quality assets, it appears lenders are not differentiating,” among mortgage products, Hochstim wrote in the note. “Thus, Thornburg may be getting very little credit for its careful management of credit risk.”
http://biz.yahoo.com/ap/070813/thornburg_mortgage_mover.html?.v=1
If these guys are having problems then they are all having problems.
August 13, 2007 at 3:41 PM #74716ParticipantA good bellwether to follow on high quality jumbo loans is Thornburg Mortgage which is getting slammed right now on Wall Street
“AP
Thornburg Shares Hit 52-Week Low
Monday August 13, 1:49 pm ET
Thornburg Shares Fall on Lower Credit Rating and Mortgage Market Worries, Hit 52-Week LowNEW YORK (AP) — Shares of Thornburg Mortgage Inc., a prime mortgage lender and real estate investment trust, fell in Monday trading after Standard & Poor’s downgraded its credit rating Friday and as concerns in the mortgage market persist.’
>
“Despite the fact that Thornburg has executed well on its strategy to underwrite, purchase, and hold extremely high quality assets, it appears lenders are not differentiating,” among mortgage products, Hochstim wrote in the note. “Thus, Thornburg may be getting very little credit for its careful management of credit risk.”
http://biz.yahoo.com/ap/070813/thornburg_mortgage_mover.html?.v=1
If these guys are having problems then they are all having problems.
August 13, 2007 at 9:27 PM #74779
CoronitaParticipantHype Buying something today, are we? Brilliant! There's no bubble, right? Riiiiight…
What's with the buyer flames anyway? The way that I look at it, most purchases everyone makes are rarely for financial reasons. Take for instance a car. Sure, it basic transportation, but I don't see so many folks driving that POS Kia Sephia. People make purchases based on what they like (and hopefully what they can afford). if someone has the financial means to "own" now, and doesn't need to stretch to do so, and feel comfortable doing so, well kudos to that person.If someone has the means to assume a $600k+ loan now, great. Not everyone (here) can. Doesn't mean they person is dumber than anyone else. He/she must be doing something right to have the means. It's no different than would be that you see some guy able to purchase say a sports car and think it's a stupid/POS thing to do because you don't own one. Sounds to me a lot of sour grapes imho. (ok, a lot finance them too, but that's a different story).I can say that while I exactly don't like driving a german car that takes a 25% depreciation the first year and has a horrible reliably record, I definitely prefer driving that than any domestic or Japanese brand because of the handling/ride/performance of the car.
…Now, if someone is going to stretch to the point that they really can't meet ends meet, well I can understand the ridicule of that. And frankly, I have little sympathy when those folks lose their homes, because they were irresponsible. But it's all about living in one's financial means. And besides, not like any of this money is really good when your dead. Great that some folks can penny pince and save all they way up to when they are too old and veggitated to enjoy it. My philosophy, spend responsibly. If you have the means and don't mind the depreciation that's coming,
Anyway, back to the regular scheduled ridicule of the irresponsible ALT=A/subprime/refinanced to buy bling folks
August 13, 2007 at 9:27 PM #74896CoronitaParticipantHype Buying something today, are we? Brilliant! There's no bubble, right? Riiiiight…
What's with the buyer flames anyway? The way that I look at it, most purchases everyone makes are rarely for financial reasons. Take for instance a car. Sure, it basic transportation, but I don't see so many folks driving that POS Kia Sephia. People make purchases based on what they like (and hopefully what they can afford). if someone has the financial means to "own" now, and doesn't need to stretch to do so, and feel comfortable doing so, well kudos to that person.If someone has the means to assume a $600k+ loan now, great. Not everyone (here) can. Doesn't mean they person is dumber than anyone else. He/she must be doing something right to have the means. It's no different than would be that you see some guy able to purchase say a sports car and think it's a stupid/POS thing to do because you don't own one. Sounds to me a lot of sour grapes imho. (ok, a lot finance them too, but that's a different story).I can say that while I exactly don't like driving a german car that takes a 25% depreciation the first year and has a horrible reliably record, I definitely prefer driving that than any domestic or Japanese brand because of the handling/ride/performance of the car.
…Now, if someone is going to stretch to the point that they really can't meet ends meet, well I can understand the ridicule of that. And frankly, I have little sympathy when those folks lose their homes, because they were irresponsible. But it's all about living in one's financial means. And besides, not like any of this money is really good when your dead. Great that some folks can penny pince and save all they way up to when they are too old and veggitated to enjoy it. My philosophy, spend responsibly. If you have the means and don't mind the depreciation that's coming,
Anyway, back to the regular scheduled ridicule of the irresponsible ALT=A/subprime/refinanced to buy bling folks
August 13, 2007 at 9:27 PM #74902CoronitaParticipantHype Buying something today, are we? Brilliant! There's no bubble, right? Riiiiight…
What's with the buyer flames anyway? The way that I look at it, most purchases everyone makes are rarely for financial reasons. Take for instance a car. Sure, it basic transportation, but I don't see so many folks driving that POS Kia Sephia. People make purchases based on what they like (and hopefully what they can afford). if someone has the financial means to "own" now, and doesn't need to stretch to do so, and feel comfortable doing so, well kudos to that person.If someone has the means to assume a $600k+ loan now, great. Not everyone (here) can. Doesn't mean they person is dumber than anyone else. He/she must be doing something right to have the means. It's no different than would be that you see some guy able to purchase say a sports car and think it's a stupid/POS thing to do because you don't own one. Sounds to me a lot of sour grapes imho. (ok, a lot finance them too, but that's a different story).I can say that while I exactly don't like driving a german car that takes a 25% depreciation the first year and has a horrible reliably record, I definitely prefer driving that than any domestic or Japanese brand because of the handling/ride/performance of the car.
…Now, if someone is going to stretch to the point that they really can't meet ends meet, well I can understand the ridicule of that. And frankly, I have little sympathy when those folks lose their homes, because they were irresponsible. But it's all about living in one's financial means. And besides, not like any of this money is really good when your dead. Great that some folks can penny pince and save all they way up to when they are too old and veggitated to enjoy it. My philosophy, spend responsibly. If you have the means and don't mind the depreciation that's coming,
Anyway, back to the regular scheduled ridicule of the irresponsible ALT=A/subprime/refinanced to buy bling folks
August 14, 2007 at 12:06 AM #74814Anonymous
GuestSorry, but there is no rational excuse to purchase real estate right now. If you do you are a dumbass, bottom line. You never want to purchase an asset of that scale that is about to plunge in value.
Sure, new or luxury cars are a terrible investment in terms of devaluation as well. But let’s be realistic with the scale here. While buying a new $50,000 Beamer is surely wasteful, but nothing like a $500,000 house.
August 14, 2007 at 12:06 AM #74930GuestSorry, but there is no rational excuse to purchase real estate right now. If you do you are a dumbass, bottom line. You never want to purchase an asset of that scale that is about to plunge in value.
Sure, new or luxury cars are a terrible investment in terms of devaluation as well. But let’s be realistic with the scale here. While buying a new $50,000 Beamer is surely wasteful, but nothing like a $500,000 house.
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