Shopping for a mortgage

[4matic]

??? The 10 year is up 5 basis points.

From .50>.66. is a big percentage move. One month high

[zion zig zag]

Probably covered somewhere in here but, when you guys negotiate closing costs are you negotiating with loan originator and title company separately? Guy I've been emailing makes it sound like I'd have to shop for my own title company to negotiate those costs.

Also, the rates you guys are throwing around in here, is that APR with costs included or just straight loan rate?

[liv2ski]

ZZZ, a few pointers for you. Everyone is talking Note Rate, not APR. APR is a reflection of the costs paid to get the loan, so if the lender is giving you a credit to pay the loan costs, the APR is the same or lower than the Note Rate. An APR higher than the Note Rate means you are paying fees for the loan. The higher the APR over the Note Rate, the more fees you paid. DON'T do that on a refi.
Most combined escrow / title fees are $300-$500 higher than the company I use. You can open an escrow / title order with Amrock or have your lender do it. www.amrock.com to save some money.

[Garbowski]

The higher the APR over the Note Rate, the more fees you paid. DON'T do that on a refi.
Most combined escrow / title fees are $300-$500 higher than the company I use. You can open an escrow / title order with Amrock or have your lender do it. www.amrock.com to save some money.

Decision time- I was getting a lender credit of about $1650, but the appraisal put us at 59% LTV. Appeal was denied, so my choices are now between losing the credit and sticking with the locked 2.875 rate, or keeping the $1650 credit with a 2.94 rate. I am currently at 3.75 and owe $650k, so this will save me about $600 a month. We've been here 5 years on a 30 year and getting another 30.

We plan to stay for a long time here- and plan to keep paying the same amount every month. So I'm leaning towards keeping the lower rate and extending my break even a few months and paying less in interest overall.

All and all I'll be paying $3460 in closing costs (before prepaid/escrow/credits) in Seattle with a $695 appraisal included. My broker is already using Amrock for the "stuff I can shop for" - fees jumped a bit from my first disclosure/quote but I guess that's how they make their money. $1012 for the policy and $450 to close from Amrock. $999 for Underwriting fee.

[ICantLogIn]

Looks good?

UWM announces 1.99% rate for 30-year fixed mortgage

[liv2ski]

Pfffft, UWM has some of the worst pricing around. Your going to pay out the ass for that rate with them through this or any broker. They are just trying to do something similar to what Quicken rolled out a few weeks ago. Low rate to get your attention and YUGE Fees for the clueless.

[snowaddict91]

So I'm working with a mortgage guy my friend recommended in Western CO. Looking at houses in the 300k range with 20% down, wife and I both have ~780 credit scores. He got back to me with preapproval at 3.00% with points to pay down from 3.25%. I think I should be able to do a little better, no?

[liv2ski]

So I'm working with a mortgage guy my friend recommended in Western CO. Looking at houses in the 300k range with 20% down, wife and I both have ~780 credit scores. He got back to me with preapproval at 3.00% with points to pay down from 3.25%. I think I should be able to do a little better, no?

Likely not with a traditional lender. Per the below screen shot, I only charge my clients a .75% comp fee. Most companies charge easily double that. So per the below screen shot I can understand how doubling my comp amount leaves him a 3% for 0 points where as I am quoting a $2,296 credit back to CA borrowers. If he wants more than 3% for no points, keep shopping IMO.

[snowaddict91]

Thanks, much appreciated.

[jm2e]

I had a pretty good experience here with the online lender I found. Actual bank out of KS. Low rate, low fees, good communication good online portal. No shady shit. PM me if you want the contact.


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[Danno]

So I'm working with a mortgage guy my friend recommended in Western CO. Looking at houses in the 300k range with 20% down, wife and I both have ~780 credit scores. He got back to me with preapproval at 3.00% with points to pay down from 3.25%. I think I should be able to do a little better, no?

I have only been tracking refi rates, not purchase rates, but zillow shows 3.25 with $200 in fees today. But if you are ok with using someone not local to you or the property, and you are in Colorado (I see Sandy as your location), I have a guy in the front range and a guy in Minnesota who does Colorado mortgages; first guy I found through cruiser and has been great, second guy I found recently on zillow and everything went smoothly with the refi.

[SeatownSlackey]

pretty brazen money grab by FHFA.

https://www.nationalmortgagenews.com...us-for-lenders

Glad i locked in 2.875%/30yr last month.

Liv2ski or other industry Mags, 1/2 point fee roughly traslates to how much higher interest rate if the fee is rolled in? 20bps?

[mattig]

C'mon man, go to the source!

https://housingbrief.com/r/CI879M

A follow up with more detail:

https://housingbrief.com/r/PK6F9V

And finally, a backfire at all the 1.99 nonsense:

https://housingbrief.com/r/FDPZ2Y


This has been about the biggest FU I've ever seen from regulators to the industry and to homeowners. Read that stuff if you really want to understand it. Sorry it's wordy.

[mattig]

pretty brazen money grab by FHFA.

https://www.nationalmortgagenews.com...us-for-lenders

Glad i locked in 2.875%/30yr last month.

Liv2ski or other industry Mags, 1/2 point fee roughly traslates to how much higher interest rate if the fee is rolled in? 20bps?

Half point fee SHOULD be an eighth of a point in rate on average, but due to the pucker-inducing nature of the announcement, and the hundreds of millions of dollars instantly confiscated from lenders that they now need to offset by charging higher rates on new loans, the average lender is up at least a quarter point from Wednesday morning. Again, all this is in those links if you want to know the most.

Anyway, crazy week. Much crazier than I ever imagined when I was one of only a few people that knew about this on Monday (brushed it off figuring it was far too unrealistic to ever happen as billed).

[4matic]

I’m sure there are other factors but the 10y rate is up 22 basis points low to high in a week. So 1/4 point rise seems reasonable to the market.

Decompression of the yield curve could be dramatic.

[byates1]

yeah there is a tightening for sure. i just closed my by owner sale. dude and his dad got 2.8%, astounding.

i got full price. no re agents involved. same lair, i mean lawyer.

good luck w anyone under 770 and 20/30 % going forward.

tightening is happening swiftly

[mattig]

I could go on and on, and it would be boring and abstruse for most.

Suffice it to say, we're not talking about the typical trickle down effect from benchmarks to MBS to mortgage rates.

Rates were already moving higher before the big spike over the last 2 business days. Treasuries had already hit their ceiling for the week before the big mortgage rate spike.

Most importantly, the big spike occurred on days where MBS said rates should be flat to lower. Bottom line, it was exclusively a function of this regulatory bullshit.

Fuck me, that ended up being more abstruse and boring than I'd hoped. If anyone really cares deeply, shoot me a PM and I'll make a video with charts and such to explain it in detail. Something about the written word on this kind of stuff that just puts me to sleep.

[jm2e]

I could go on and on, and it would be boring and abstruse for most.

Suffice it to say, we're not talking about the typical trickle down effect from benchmarks to MBS to mortgage rates.

Rates were already moving higher before the big spike over the last 2 business days. Treasuries had already hit their ceiling for the week before the big mortgage rate spike.

Most importantly, the big spike occurred on days where MBS said rates should be flat to lower. Bottom line, it was exclusively a function of this regulatory bullshit.

Fuck me, that ended up being more abstruse and boring than I'd hoped. If anyone really cares deeply, shoot me a PM and I'll make a video with charts and such to explain it in detail. Something about the written word on this kind of stuff that just puts me to sleep.

All anyone wants to know is:
1. Are rates going up for good?
2. Is it solely the fault of this regulatory bullshit?
3. Is it a tax on the non-rich?

[liv2ski]

All anyone wants to know is:
1. Are rates going up for good? I doubt it, have things got better?
2. Is it solely the fault of this regulatory bullshit? No, the market goes up and down + this BS
3. Is it a tax on the non-rich? Yes and it should be repealed

1234....

[Name Redacted]

I thought this BS tax on refis didn't go into effect till next month. If you start a refi now, will you have to pay it?

[mattig]

All anyone wants to know is:
1. Are rates going up for good?
2. Is it solely the fault of this regulatory bullshit?
3. Is it a tax on the non-rich?

1. Probably not, but anyone who says they know for sure is lying or overconfident. That said, the risk of higher rates is bigger now than it was in June/July.
2. If we're talking about the .25-.375 increase in mortgage rates since Wednesday (on top of the .125-.25 increase from last Thursday), yes.
3. Most definitely. It's a tax on anyone with a mortgage, and thus far, it's much bigger than the stated half a point. Most frustratingly, at best, regulators showed a blatant disregard for the pocketbooks of the non-rich in how they implemented this. At worst, they showed they have no idea what they're doing.

[mattig]

I thought this BS tax on refis didn't go into effect till next month. If you start a refi now, will you have to pay it?

Yes, absolutely. It's for loans delivered to the agencies after 8/31. The doc custodians who act as middlemen between lenders and agencies are so slammed that you'd have to close before the end of next week.

[jm2e]

Anyone still getting loans?


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[liv2ski]

Anyone still getting loans?


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Yes, I received 4 new files yesterday.

[Boissal]

Quick question: Ms Boissal has been working with 2 different brokers for a couple weeks now, 1 being about 1 week behind in the process. She just locked the rate at 2.75% with the first broker then asked me if she was 100% committed at this point and should tell the other broker that she had found a better option and not waste anymore of her time.
Thoughts? No money has changed hands at this time and I don't know how firm a commitment a rate lock is. I think the change that the 2nd broker will come up with a better offer is slim to none so I don't see the point of stringing them along but I don't know enough about the process to give her solid advice.

Question has been answered.