Shopping for a mortgage

[SeatownSlackey]

No worries, almost pulled the trigger to refi with our current bank a few weeks ago but held off because they couldn't get it done without jumping through some hoops.

As a commercial debt and equity guy I can confirm things are still disrupted on the commercial side but not all debt sources are skinning the Covid cat the same way.

Shoot me a pm if you want. Happy to be a sounding board if you want to spitball what a mixed use refi might look like.

[Danno]

Are you licensed in CO? What are you seeing for 30 year today?

he's not licensed in CO.

Zillow shows 3.125% for me in CO. Need it to drop to 3 or below to make it worth my while.

[slcdawg]

Is that for a 30? I tried going through Sebonic on Zillow but the are owned by Cardinal Financial and get terrible reviews. I've always gone through smaller brokers (with referral) but because of the volume being told I need to have an approved application (2-3 weeks) before I can lock. I get trying to manage the volume but sucks as a consumer. It definitely limits your choices.

[Danno]

Is that for a 30? I tried going through Sebonic on Zillow but the are owned by Cardinal Financial and get terrible reviews. I've always gone through smaller brokers (with referral) but because of the volume being told I need to have an approved application (2-3 weeks) before I can lock. I get trying to manage the volume but sucks as a consumer. It definitely limits your choices.

that is for a 30 (with plenty of existing equity, excellent credit). I have talked to a guy at Sebonic who seemed decent, but never actually used them. Sebonic seems to have decent reviews on zillow. I did refi once through Northpointe Bank from zillow, but usually use a local guy.

[liv2ski]

Are you licensed in CO? What are you seeing for 30 year today?

Not licensed in CO, just CA. Like Danno said, best price is 3.125% with about a $2k credit towards costs today. 3% had a cost/points.

[comish]

Not licensed in CO, just CA. Like Danno said, best price is 3.125% with about a $2k credit towards costs today. 3% had a cost/points.

I'm guessing non-conforming, cash out, even with a <50% LTV would be higher? 3.25% or 3 -1/3?

[slcdawg]

Not licensed in CO, just CA. Like Danno said, best price is 3.125% with about a $2k credit towards costs today. 3% had a cost/points.

Cool, thanks. Is it becoming the norm for brokers to require an approved application before locking? I've been working with a local guy and that is their new requirement (as of 2 weeks ago). I'm a little anxious as it'll be 2-3 weeks before I can lock.

[Name Redacted]

As a commercial debt and equity guy I can confirm things are still disrupted on the commercial side but not all debt sources are skinning the Covid cat the same way.

Shoot me a pm if you want. Happy to be a sounding board if you want to spitball what a mixed use refi might look like.

Thanks, PM sent.

[esseff]

Those will be exclusively for renters.

How long til negative rate mortgages?

[Flyoverland Captive]

Signing a cash-out refi 30 @ 3.25% tomorrow. Gonna save about $400/month. Very happy.

[liv2ski]

Cool, thanks. Is it becoming the norm for brokers to require an approved application before locking? I've been working with a local guy and that is their new requirement (as of 2 weeks ago). I'm a little anxious as it'll be 2-3 weeks before I can lock.

That new rule blows. 95% of my investors have gone that route on a refinance. If your in CA I have investors that lock at submission (not approval). And 2-3 weeks for an approval is the loonie shit I refuse to put up with.

Comish, was your loan not Jumbo? Or does it fit FNMA guidelines? Maybe pm me the details and I will get back to you

[Stu Gotz]

https://www.bloomberg.com/news/artic...?sref=6HuIMd2m

Difficulties in Jumbo land.

[retirwntm]

Makes sense once you read it but we thought like the guy in the story...what a great time to refi. Our agent (Wells Fargo, too) told us about the situation. Also said our home may not appraise enough to even go past the next steps. Some rapid changes for realz.


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[liv2ski]

Most of the loans I have done fit FNMA loan limits with 20% equity or more and no appraisal is needed if no cash out.

[retirwntm]

I may want to give you a PM. I can’t remember exact details for our house but it was under $600k and we put 20% down.


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[muted]

Closed on a refi yesterday, thanks for the tips in this thread everyone.

[JimmyCarter]

Any of you think we’ll dip below 3% again? In MA trying to refi and roll a HELOC into a 15 yr fixed and my guy seems to think 3.0 is the best I’ll see any time soon.


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[liv2ski]

Depending on the details, 15 year loans are in the 2.625% range, so 3% sounds high unless it is a Jumbo/Hi Balance loan amount or something is funky with the deal. O and the cash out is costing you .125% in rate, but it is what it is.

[liv2ski]

Legit article for you guys with big loan amounts.

The jumbo loan market is facing a classic liquidity crunch. A perfect storm is brewing as millions of homeowners are seeking forbearances as the economy crashes into depression from coronavirus lockdowns, and firms who usually bundle up jumbo loans have immediately exited the market.

Jumbo loans are mortgages for the best credit risk borrowers who want to purchase mansions. In pre-corona times, lenders were falling over each other to welcome jumbo borrowers, but not anymore.

Greg McBride, the Bankrate chief financial analyst, recently said demand has dried up for jumbo mortgages as investors shift to mortgage bonds for government-backed loans where "they're assured of receiving payments even if large numbers of borrowers are in forbearance."

"Most mortgages get made by lenders who then sell it to someone else," McBride said. "If there is no willing buyer, lenders will stop closing loans so as not to be stuck holding the bag."

Tendayi Kapfidze, the chief economist at LendingTree Inc., said in normal times, jumbo loans were all the rage. Now because these loans "don't have the government guarantee, a lot of those loans end up on the bank balance sheet."

According to Optimal Blue, a Texas-based firm that monitors mortgage rates, lenders are charging more for jumbos than conventional mortgages, and this is the first time in seven years. Lenders have also tightened lending standards for wealthy households.
https://www.zerohedge.com/markets/th...risk-borrowers

[HD333]

Closing on our refi soon.

Questions for the experts.

We have an open line of credit with about $20k outstanding. 6 years left of 10 year pay down. Rate is prime plus 1%. We draw off of it for home projects and try to pay it off with bonuses and start the cycle over again as needed.

As part of the refi they said it either has to be subordinated or closed and reopened, maybe that subordinates it too? Both cost us $110 at closing.

I don’t see any downside to re-upping it. Thoughts?

New rate would be prime minus 1/2% and the term resets to 10 years, same principle, max available will either stay the same or go up.


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[liv2ski]

HD333, if you subordinate the present heloc, there is typically a fee bump to price of around .375% in fee of the loan amount. If you pay it off by adding the balance to the new loan amount, there is a cash out hit for more.

To get the best price, you pay it off at closing with your own savings, then there is no cash out or subordination hits to the pricing. That should result in a .125% better rate for similar or lower total fees than doing the subordination on the new 1st TD.

[HD333]

HD333, if you subordinate the present heloc, there is typically a fee bump to price of around .375% in fee of the loan amount. If you pay it off by adding the balance to the new loan amount, there is a cash out hit for more.

To get the best price, you pay it off at closing with your own savings, then there is no cash out or subordination hits to the pricing. That should result in a .125% better rate for similar or lower total fees than doing the subordination on the new 1st TD.

Thanks for the info still confused though.

We are dealing with local CU, the current LOC is through them and the refi will be through them too.

They spun it as no matter what we do we are spending $110, either to subordinate the LOC or get a new line of credit, that we use to pay off the existing LOC. So rather that dipping into savings to pay it off we are re-upping with a new LOC. Does this make sense?

They say no change in rate on mortgage no matter what we do, we locked in at 3%.

Am I overthinking it?





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[liv2ski]

If your locked at 3% on a 30 year fixed with minimal fees, then fuckin go for it. With me, a quote with subordination or cash out to pay off the heloc is always worse due to the chart I posted, so I have no idea what your credit union is doing.

[Benny Profane]

I posted this in the RE Crash thread. It's worth a listen.



Just listening to a very informative podcast. Barry Ritholtz interviewing Chris Whelan , a real smart credit and mortgage nerd I used to hear a lot back during the great recession. Among many other important topics of the day that are discussed, he predicts a 3.0 mortgage rate later in the year.

https://castbox.fm/vb/254984859

Masters of Business, today's episode, Chris Whelan.

[retirwntm]

So is this officially the second time Benny is right about the end of the world (since 2001?)


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