Topic: Mortgage Rates are DROPPING. I am a Loan Officer - Any Questions?

[BlackNMild2k1]

Since I figured some of you must own a home or may be in the market to buy a home, some of you would have questions about purchasing a home or refinancing your existing home loans (I also do Home Equity Lines).

Rates right now a dropping and even though they've already been low for a while, I figured I'd chime in and help my online fam save a little money in the short and/or long term.

I just want to say I am a Loan Officer for a big bank and have been in the Mortgage industry since about 2007.
I'm not soliciting for your business (but I won't turn it away), just want to open the door to conversation on the subject of home ownership and mortgages in general since rates are about to be low everywhere on everything (We can thank the Corona Virus, a failing Stock Market, and an administration that is only concerned about the appearance of a strong economy).

So if you got questions, feel free to ask away. Take advantage while you can. I'm certain there are plenty of you out there with Mortgage Insurance, or high rates, or wanting to just pay the home off sooner. I will answer as best I can to help.

FYI:
30yr Fix rates should be in the mid-low 3%'s
15yr Fix rates could be in the low 3's to high 2's

and for my bank, we currently have Home Equity Lines starting as low as 2.74% for the first 12 months.

[Khushrenada]

Do you want this in General Chat? Seems more like the spot for this thread.

[BlackNMild2k1]

yes, could you do that.

Thanks.

[Stratos]

As a counter balance to this, keep in mind that if you couldn't afford a house payment before, you should be cautious jumping in now. You should have an emergency fund in place of about 3-6 months (or more if your income is varied month-to-month). Not just to cover job loss, but also to cover repairs. When renting your landlord is responsible for those things but its up to you to fix the water heater or replace the stove if something is wrong.

Also, make sure that your mortgage is not more than 25%-35% of your take-home pay, so you avoid becoming house-poor.

As a new home owner, it is an awesome experience, but also time consuming and expensive if you are not prepared. Aside from the down payment, inspections, and closing costs, there were also moving expenses and easily 1-2k in additional purchases we made to fill and maintain the home (lawn mower, some furniture, tools & equipment).

[BlackNMild2k1]

Some information for my fellow NWR forumers that may come in handy.
shamelessly stolen from ResetEra for your benefit


https://www.youtube.com/watch?v=eVe8DsfeW70

Does it make sense to Refinance?



Understanding the Loan Estimate - know what you're looking at.

[ShyGuy]

I got a 30 year fixed in 2018 at 5%...

[BlackNMild2k1]

I got a 30 year fixed in 2018 at 5%...

You're time had come my friend.
You are LONG overdue on a refinance.
Go get you a much lower rate right now before you miss out.

The lowest ones might be United Wholesale Mortgage.
Seriously, stroke while the iron is hot.

Your local big bank may price match them too, if you'd rather mortgage at the bank.

[BeautifulShy]

This is something I didn't know about you BlackNMilk2k1.   

Currently I am renting a duplex for about 750 here in Phoenix. It is an old 1950s house converted into a duplex.  Me and mom decided this year that we were going to try and make the best of things since our name haven't come up on the Mesa section 8 list since December 2016 when we intially signed up for the list.  I also have my name on multiple apartments but I haven't heard back from them.  So we are actually going to try and update the duplex to today's standards.  There is no dishwasher, garbage disposal, heat, perhaps update the swamp cooler to central air for the summers here, there might be termites and with wood beams on the ceiling that might be a problem, we also have tile floors so it can get chilly in the winter.  The idea is to upgrade the place and take the upgrades out of our rent so we can actually stay there and have someplace stable.  Any advice?

[BlackNMild2k1]

You're going to spend money to upgrade someone else's property to the way you like it, and expect them to allow you to take it out of the rent....?

I mean, if they allow it.... I guess.
But once it's upgraded, I'm sure he'll just up the rent since it's a nicer place now. But who knows....

[Adrock]

I recently closed on a house (settlement is on 03/23). 30 year conventional loan, fixed at 3.375%. The mortgage is a little less than half of my monthly net pay. Not ideal, but it should be noted that:

• I had no debt. The loan officer literally asked me, "How do you have no liabilities?" I replied, "Painfully."
• I bought a new car in December. Paid in cash. I shouldn't have to worry about it breaking down any time soon. However, **** was falling off the car I replaced, and it was only like eight years old.
• I spend within my means, and I'm generally financially responsible. Just don't look at my games backlog.
• Even with the mortgage, I'm not living paycheck to paycheck. I'm still able to put money into my savings account monthly.
• I still have a decent amount of savings though I spent about $57,000 in the last three months on the car, house, and surgery. I started putting the wheels in motion several years ago.

I've been renting since 2007. I wasn't planning on buying yet, but the market for rental properties in the city was and is not great. Rent is stupid high and many places do not allow pets. It was getting to the point where the cost of rent was basically as much as a mortgage. If I'm going to spend this much, I may as well build some equity.

I was starting in panic about my living situation in January. I emailed my realtor and asked how likely it would be to reach settlement before my lease ended on 03/31. She said we'd have to start looking immediately, but luckily this is a good time to buy because interest rates are the lowest they've been in years. That tracks with what BlackNMild stated.

The process was pretty painless comparatively to friends' experiences. I kind of lucked out because the housing market is kind of tight. I'll spare everyone the whole story. I may write a blog about it one day. I've budgeted to buy new furniture and do some small projects around the house. I'm starting with painting the stair risers and replacing the stair posts and balusters. The current ones are loose so I got a seller assist for that. I'd like to update kitchen sink and counters, but I need to do more research. I may have to wait until next year.

[BeautifulShy]

You're going to spend money to upgrade someone else's property to the way you like it, and expect them to allow you to take it out of the rent....?

I mean, if they allow it.... I guess.
But once it's upgraded, I'm sure he'll just up the rent since it's a nicer place now. But who knows....

There has been an agreement.

[Adrock]

There has been an agreement.

I hope you got it in writing.

[nickmitch]

I recently went back to school, so I basically decided on putting off even thinking of buying a house for another 4 years. :^/

[BlackNMild2k1]

Feds dropped their interest rates to 0% on Sunday, which means our HELOC interest rates just went from 2.74% down to 1.74% for the first 12 Months.

If you got debt to consolidate, and you have a home with equity, this may be the time to look into a Home Equity Line. Rates can't get much lower than this if they can go any lower at all.

this is 1.5% in rate drops over the last 2 weeks on HELOC's, that's insane. I've been extremeley busy inputting application for these for the past 2+ weeks....

Our promotion on these end at the end of the month. So if you know someone who needs it, tell them to act fast.

[BlackNMild2k1]

If you own a home, and you didn't shop for a rate this past week (or the 2-3 weeks prior).... you may have missed your window... for now.

It may not be too late. Go to a wholesale broker. Get a Loan Estimate. Take it to a BIG Bank and request a price match.

most of the brokers have overflowed their capacity and now have multi-month turn times (some reporting to have 120-160 days to close).
I can't speak for everyone, by my bank has not done that, and still has reasonable close times.

don't miss out. although rates are rising, they will stay relatively low (compared to history) for a while.

[BlackNMild2k1]

Hewre's more good info from Era

Hey everyone,
These really are crazy times we are dealing with. I think many of you like myself were caught off guard with how quickly things have escalated. A lot of our family members, friends or we ourselves have had to take a temporary leave of absence from our jobs due to federal orders. If you or anyone you know is concerned how you are going to make ends meet or pay your mortgage payment you need to know about Mortgage Forbearance.

First what is Mortgage Forbearance?

From Investopedia - "A mortgage forbearance agreement is an agreement made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on his or her payments."
​
This type of Mortgage Practice is nothing new. What is new is that federally many banks that service your mortgage (Who you pay each month) are being insured to provide this assistance. Based on the new directive the COVID Assistance is to provide:

Ensuring payment relief by providing borrowers forbearance for up to 12 months;
Waiving assessments of penalties or late fees against borrowers;
Suspending the reporting of delinquency related to forbearance, repayment or trial plans to credit bureaus; and
Allowing Servicers to offer borrowers additional loss mitigation options that are typically only enacted to address natural disasters. This includes loan modifications that give servicers options to provide payment relief or keep the payment the same post the forbearance period.

If you or a family member is affected

Click here to read up on the new protocols: https://www.fanniemae.com/portal/media/corporate-news/2020/covid-homeowner-assistance-options-7000.html
Call your mortgage service (The company on your mortgage bills) and tell them you have been affected by COVID-19

Can anyone get this assistance?

You have to prove that your layoffs were due to the virus - Employee letters ect.

I've had a lot of people ask me about this concerned about it and have been getting a lot of positive results. I hope this helps.

Either you or someone you know may find this useful if necessary. Please Share.

[BlackNMild2k1]

Freddie Mac Loan Look Up Tool:
https://ww3.freddiemac.com/loanlookup/

Fannie Mae Loan Look Up Tool:
https://www.knowyouroptions.com/loanlookup


If you or someone you know has been put in a situation that paying your mortgage may be become a problem, these last two post are for your benefit.

[BlackNMild2k1]

So as you probably heard, all major lenders are doing some sort of Mortgage Moratorium.
All but 1 are doing a flat 90 Day Deferment.
1 (BofA) is doing a 30 Day Deferment, every 30 days as long as necessary.

Now I sat in my office today with a client who was on the phone with Mr. Cooper, who while on speaker phone explained how their Mtg Deferment worked....

you could apply and you would not have to make a payment for 90 days.
BUT..... and this is a big but, your payment will not delay the payoff of your loan by being tacked on to the back, instead, once the 90 days is up, you will be expected to make a lump sum payment and make your currently due Monthly Mortgage Payment.

Meaning, once that 90 day deferment is up, you could owe 4 months of Mortgage payments due in that 4th month.... I'm not really sure how that helps except to defer your panic of foreclosure and/or ruining of your credit for 90 days as well....
If you weren't working, and can't make the payment for those 3 months, how are you suddenly supposed to come up with those 3 months of payments, and then make your now due monthly payment while only receiving a single stimulus check of $1200 and possibly unemployment that went to buy food and keep the utilities on...?


The BofA deferment is tacked on to the back of the loan, so that once the crisis is over, you will just pick back up like usual, and it will just take you that many extra months that you were deferred to pay off the loan.

So when you are signing up for your deferment, please check to see if they are doing a lump sum or delayed payoff. /PSA

[Kairon]

Random question I was wondering about: people are always talking about regular mortgage rates, but what about mortgage rates for an investment property? How much higher are those expected to be in general compared to the comparison to the "primary home" type of mortgage that gets front-page placement?

[BlackNMild2k1]

In this environment, it depends on who you go to, and the different factors of the loan, but I'd guess anywhere from .5% to 1% difference from the rates you are seeing for primary residence.

Credit Score, Loan to Value, Property Type, Loan Amount, Loan Type, and Loan Program all are factors.

and for us, we are matching all offers, so I invite customers to shop us if they want, and just bring me back a legit quote and get your loan secured a major lender for the same rate and in lots of cases less cost.

[Kairon]

What amount is too low for it to be worth the bank's time to do a mortgage or refinance? For example, I've been been toying with online "get a quote" tools for a refinance in that amount (50k balance + 50k cash out) and I keep getting ZERO results.

[BlackNMild2k1]

$50k on a first mortgage is low.... rate wouldn't be optimal.
At that point, I would suggest you pay it off into a HELOC with a lower rate, even if it's adjustable.

$65k and below is usually were pricing is not the best from what I've seen.

$100k cash out is good. You should have taken advantage of the low rates over the last month, or the Home Equity promotion we just had (ended 3/31) that had a starting rate of 1.74% for the first 12 months.

But for a $100k cash out loan, I would look at a smaller lender for better rates (get a quote/loan estimate), and if you'd rather have your loan at a larger establishment, just take the quote to them.

PSA: Some Larger lenders like Wells Fargo have stopped doing Cash Out and Jumbo Loans for the time being. They have also temporarily stopped ordering appraisals. so choose your lender wisely.

(my Bank is business as usual for now, and we are matching all legitimate offers in writing)

If you want me to look at a Loan Estimate for you to make sure you're getting a good deal, just message me. Be sure to compare the APR between lenders.

[UncleBob]

...what

[RABicle]

When will rates drop again Elmo? My family and I are suffering under 6% interest!
Also ****, your original post. 30year fixed rates? In Australia the banks don’t offer any more than 3 years fixed.

[BlackNMild2k1]

they are slowly ticking down over the last week... but not enough to make a difference for most.

I know in Canada they also do not have 30yr fix mortgages....must be rough.
Here in the US though, we're not really expecting anything major in rate reductions till sometime mid to late next year, which sucks, and is also an estimate I really hope proves to be wrong, as I really hope reductions in rates start happening much much sooner than that.