What are people seeing in terms of loan rates, difficulty in getting loans?

[sdrealtor]

Lender?

[brg654]

first mortgage solutions. found them through zillow.

[gzz]

brg, I believe cheap mortgages, subsidized by Fannie and the mortgage interest deduction, are the Constitutional right of every American.

How did you negotiate it lower? Did you just politely ask, or threaten to pull out?

[sdrealtor]

Thx I’ve not seen that low but will follow then. I’m seven years in on a 30 yr at 3.125% with balance around 340k with LTV below 30% and 800+ Fico. Trying to find a bottom on a 15 or 20 yr rate. If I could get your rate on the 20 I’d be thrilled

[brg654]

@gzz – sent you a direct message.

[brg654]

piece of advice for those following rates on zillow: my experience in april/may was that pricing is set on the east coast, and as lenders originate loans at the lowest rate, they essentially “sell out of product” and the rate will increase during the day.

translation: i checked zillow multiple times per day, and i consistently found the best rates at between 6 and 7 am.

[brg654]

[quote=scaredyclassic]
Even tho rates are at all time low, i did better w refi in 2013.

Why????[/quote]

there are 2 components to mortgage rates: the benchmark rate (10 year treasury) and the spread over treasuries.

when treasury rates first fell in february/march, spreads between treasuries and MBS widened, so mortgage rates didn’t fall as much. spreads have since shortened, but are still a bit wider than they were in 2013. the spread was compressed in 2013 by the fed buying MBS, and when mortgage rates went down in may, the fed was once again buying MBS.

MBS exhibit negative convexity, so you would expect that as interest rates fall, bond prices would rise at a lower rate than for products with positive convexity, like treasuries.

[pinkflamingo]

@gzz – sent you a direct
Submitted by brg654 on June 27, 2020 – 7:30am.

@brg654 curious as well, pertaining to how one negotiate rates once locked.

[pinkflamingo]

Fees?

Sebonic via Zillow, which is what I used for my last purchase, has a refi rate of 2.99 0 fees right now and 2.818 with 1 point. This is for 480k on 1+ mil property.

I’m inclined to 0 points or less likely go negative points.

Our fees were about 5K. The main reason being we had a high balance loan.

IMO the conquest program by UWM was the best. We looked at sebonics and first mortgage and we almost went with FM. Then I found the article that UWM came up with their conquest program. FM couldn’t beat their rates. They are offering rates between 2.5 – 3.0.

Initially I was concerned with the short close required but they managed to close in 3 weeks. I’m glad I took the leap.

[brg654]

as far as negotiating rates while locked, just continue to shop for rates. if you find a better rate, let the original lender know. the worst thing that can happen is that they say no, and you decide to not refinance with them (may be a small sunk cost with credit check fee).

multiple inquiries in the same 60 day period do not impact your credit score.

[Coronita]

I know I really shouldn’t do this after years of paying off my properties. But its really tempting to do cash out refi on some of them and buy more, or at least put the money off to the sideline until better deals come.

[pinkflamingo]

as far as negotiating rates while locked, just continue to shop for rates. if you find a better rate, let the original lender know. the worst thing that can happen is that they say no, and you decide to not refinance with them (may be a small sunk cost with credit check fee).

Thanks brg654.

I did follow zillow rates during the refi mostly in fear it wouldn’t close in time. Unfortunately and fortunately the rates were never lower. But it’s good to know for the future.

[pinkflamingo]

I know I really shouldn’t do this after years of paying off my properties. But its really tempting to do cash out refi on some of them and buy more, or at least put the money off to the sideline until better deals come.

I am wondering if anyone is considering getting a heloc as oppose to a cashout refi. I don’t know if the heloc payments are much higher …

[Coronita]

[quote=pinkflamingo]

I know I really shouldn’t do this after years of paying off my properties. But its really tempting to do cash out refi on some of them and buy more, or at least put the money off to the sideline until better deals come.

I am wondering if anyone is considering getting a heloc as oppose to a cashout refi. I don’t know if the heloc payments are much higher …[/quote]

I have a HELOC for emergencies but it currently sits at prime minus 0.25%

[gzz]

yields on the 3-year and 5-year Treasury notes at record lows of 0.17% and 0.29%.

[Author]

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