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February 17, 2008 at 9:26 PM in reply to: Jumbo market freezing up (plus details on the CLL increase) #154991February 17, 2008 at 9:26 PM in reply to: Jumbo market freezing up (plus details on the CLL increase) #155067
HLS
ParticipantIt’s foolish for anyone to assume that the “new” conforming loans will be priced the same way as existing $417K and below.
Even though there is a spread between conf & jumbo today, even the current jumbo rates are low by historical standards.
Wait until conf rates are 7%-8% again…
The new plan is only in effect until 12/31/2008 at this time, and many people just won’t qualify full doc for the new loans.
Wiat until you see the rates & programs. They may not be much better than current jumbo rates, which have eased a bunch the last few months.
It’s not frozen up anymore from what I see.
ParticipantRBR, it’s not stupid, it’s just risky.
Next year, you do not know any of the following with certainty:
a)What the value of your house will be
b)What interest rates will be
c)What your credit score will be
d)What your income situation will be
e)What loan you will qualify for at that timeYou have had 4 years at a great low rate. You want to squeeze out one more year at that low rate. It’s your choice.
If rates are one half % higher next year, you will refi into that rate for 30 years, for the sake of your lower rate for one last year. If they are lower, you win.
Last summer, June ’07, conforming rates were about 1 full point higher than they are today. Rates are still very near historical lows. Many people have ARMS that are higher than 30 YR fixed rates today, and many people don’t have 30 YR fixed at below 6%.
Rates can go up or down quickly, nobody has a crystal ball.
ROLY, do you think that Countrywide is your only/best option ?
ParticipantRBR, it’s not stupid, it’s just risky.
Next year, you do not know any of the following with certainty:
a)What the value of your house will be
b)What interest rates will be
c)What your credit score will be
d)What your income situation will be
e)What loan you will qualify for at that timeYou have had 4 years at a great low rate. You want to squeeze out one more year at that low rate. It’s your choice.
If rates are one half % higher next year, you will refi into that rate for 30 years, for the sake of your lower rate for one last year. If they are lower, you win.
Last summer, June ’07, conforming rates were about 1 full point higher than they are today. Rates are still very near historical lows. Many people have ARMS that are higher than 30 YR fixed rates today, and many people don’t have 30 YR fixed at below 6%.
Rates can go up or down quickly, nobody has a crystal ball.
ROLY, do you think that Countrywide is your only/best option ?
ParticipantRBR, it’s not stupid, it’s just risky.
Next year, you do not know any of the following with certainty:
a)What the value of your house will be
b)What interest rates will be
c)What your credit score will be
d)What your income situation will be
e)What loan you will qualify for at that timeYou have had 4 years at a great low rate. You want to squeeze out one more year at that low rate. It’s your choice.
If rates are one half % higher next year, you will refi into that rate for 30 years, for the sake of your lower rate for one last year. If they are lower, you win.
Last summer, June ’07, conforming rates were about 1 full point higher than they are today. Rates are still very near historical lows. Many people have ARMS that are higher than 30 YR fixed rates today, and many people don’t have 30 YR fixed at below 6%.
Rates can go up or down quickly, nobody has a crystal ball.
ROLY, do you think that Countrywide is your only/best option ?
ParticipantRBR, it’s not stupid, it’s just risky.
Next year, you do not know any of the following with certainty:
a)What the value of your house will be
b)What interest rates will be
c)What your credit score will be
d)What your income situation will be
e)What loan you will qualify for at that timeYou have had 4 years at a great low rate. You want to squeeze out one more year at that low rate. It’s your choice.
If rates are one half % higher next year, you will refi into that rate for 30 years, for the sake of your lower rate for one last year. If they are lower, you win.
Last summer, June ’07, conforming rates were about 1 full point higher than they are today. Rates are still very near historical lows. Many people have ARMS that are higher than 30 YR fixed rates today, and many people don’t have 30 YR fixed at below 6%.
Rates can go up or down quickly, nobody has a crystal ball.
ROLY, do you think that Countrywide is your only/best option ?
ParticipantRBR, it’s not stupid, it’s just risky.
Next year, you do not know any of the following with certainty:
a)What the value of your house will be
b)What interest rates will be
c)What your credit score will be
d)What your income situation will be
e)What loan you will qualify for at that timeYou have had 4 years at a great low rate. You want to squeeze out one more year at that low rate. It’s your choice.
If rates are one half % higher next year, you will refi into that rate for 30 years, for the sake of your lower rate for one last year. If they are lower, you win.
Last summer, June ’07, conforming rates were about 1 full point higher than they are today. Rates are still very near historical lows. Many people have ARMS that are higher than 30 YR fixed rates today, and many people don’t have 30 YR fixed at below 6%.
Rates can go up or down quickly, nobody has a crystal ball.
ROLY, do you think that Countrywide is your only/best option ?
ParticipantJosh,
You are correct…
A refi is a refi, regardless of whether any cash is taken out or not.ONLY a purchase loan that is used to acquire the property has NON-recourse status.
30 YR fixed rates were below 5% for about an hour on Jan 23rd. They ended that day at 5.375%, an unbelievable, unprecedented move.
There was a window of opportunity to lock for about an hour, then it moved up quickly. It was chaos.I cannot predict rates…
Desperate times call for desperate measures, and the govt is desperate,,, VERY desperate.
ParticipantJosh,
You are correct…
A refi is a refi, regardless of whether any cash is taken out or not.ONLY a purchase loan that is used to acquire the property has NON-recourse status.
30 YR fixed rates were below 5% for about an hour on Jan 23rd. They ended that day at 5.375%, an unbelievable, unprecedented move.
There was a window of opportunity to lock for about an hour, then it moved up quickly. It was chaos.I cannot predict rates…
Desperate times call for desperate measures, and the govt is desperate,,, VERY desperate.
ParticipantJosh,
You are correct…
A refi is a refi, regardless of whether any cash is taken out or not.ONLY a purchase loan that is used to acquire the property has NON-recourse status.
30 YR fixed rates were below 5% for about an hour on Jan 23rd. They ended that day at 5.375%, an unbelievable, unprecedented move.
There was a window of opportunity to lock for about an hour, then it moved up quickly. It was chaos.I cannot predict rates…
Desperate times call for desperate measures, and the govt is desperate,,, VERY desperate.
ParticipantJosh,
You are correct…
A refi is a refi, regardless of whether any cash is taken out or not.ONLY a purchase loan that is used to acquire the property has NON-recourse status.
30 YR fixed rates were below 5% for about an hour on Jan 23rd. They ended that day at 5.375%, an unbelievable, unprecedented move.
There was a window of opportunity to lock for about an hour, then it moved up quickly. It was chaos.I cannot predict rates…
Desperate times call for desperate measures, and the govt is desperate,,, VERY desperate.
ParticipantJosh,
You are correct…
A refi is a refi, regardless of whether any cash is taken out or not.ONLY a purchase loan that is used to acquire the property has NON-recourse status.
30 YR fixed rates were below 5% for about an hour on Jan 23rd. They ended that day at 5.375%, an unbelievable, unprecedented move.
There was a window of opportunity to lock for about an hour, then it moved up quickly. It was chaos.I cannot predict rates…
Desperate times call for desperate measures, and the govt is desperate,,, VERY desperate.
ParticipantRolyPoly,
You and millions of others just crack me up.
Mortgage rates are near HISTORICAL lows; within the last 30 days they WERE at the lowest rates EVER, and you want rates to drop (hopefully) this summer ?What do you want ? a 2% mortgage ? I guess it’s possible.
Since the FED cut rates 1.25% a few weeks ago, long term mortgage rates have gone up.
I’m in the mortgage biz, take it for what it’s worth.
Your option #1 would be dumb.
It could go up again in Feb ’10 and again after that.. why risk it when you could get another “no cost” 5 YR ARM for around 5.25% today, and buy yourself an additional 4 years of a fixed rate, and pay it off over the next 5 years if you wish.
(A 5 YR ARM with costs are in the mid 4’s today)#2 I think that a 15 YR mortgage is a huge mistake for most people. It obligates you to a higher payment and restricts many lifestyles.
If you want to pay it off, why would you want #3 taking money out ?
#4) Way too conservative and not advised for most people who are still in their earning years.
The best answers depend on your overall financial & income picture and goals.
Find someone that can explain your options for your personal situation. It will depend on what you actually qualify for, which requires more info than you have provided above. Good luck.
ParticipantRolyPoly,
You and millions of others just crack me up.
Mortgage rates are near HISTORICAL lows; within the last 30 days they WERE at the lowest rates EVER, and you want rates to drop (hopefully) this summer ?What do you want ? a 2% mortgage ? I guess it’s possible.
Since the FED cut rates 1.25% a few weeks ago, long term mortgage rates have gone up.
I’m in the mortgage biz, take it for what it’s worth.
Your option #1 would be dumb.
It could go up again in Feb ’10 and again after that.. why risk it when you could get another “no cost” 5 YR ARM for around 5.25% today, and buy yourself an additional 4 years of a fixed rate, and pay it off over the next 5 years if you wish.
(A 5 YR ARM with costs are in the mid 4’s today)#2 I think that a 15 YR mortgage is a huge mistake for most people. It obligates you to a higher payment and restricts many lifestyles.
If you want to pay it off, why would you want #3 taking money out ?
#4) Way too conservative and not advised for most people who are still in their earning years.
The best answers depend on your overall financial & income picture and goals.
Find someone that can explain your options for your personal situation. It will depend on what you actually qualify for, which requires more info than you have provided above. Good luck.
ParticipantRolyPoly,
You and millions of others just crack me up.
Mortgage rates are near HISTORICAL lows; within the last 30 days they WERE at the lowest rates EVER, and you want rates to drop (hopefully) this summer ?What do you want ? a 2% mortgage ? I guess it’s possible.
Since the FED cut rates 1.25% a few weeks ago, long term mortgage rates have gone up.
I’m in the mortgage biz, take it for what it’s worth.
Your option #1 would be dumb.
It could go up again in Feb ’10 and again after that.. why risk it when you could get another “no cost” 5 YR ARM for around 5.25% today, and buy yourself an additional 4 years of a fixed rate, and pay it off over the next 5 years if you wish.
(A 5 YR ARM with costs are in the mid 4’s today)#2 I think that a 15 YR mortgage is a huge mistake for most people. It obligates you to a higher payment and restricts many lifestyles.
If you want to pay it off, why would you want #3 taking money out ?
#4) Way too conservative and not advised for most people who are still in their earning years.
The best answers depend on your overall financial & income picture and goals.
Find someone that can explain your options for your personal situation. It will depend on what you actually qualify for, which requires more info than you have provided above. Good luck.
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