Shopping for a mortgage

[Brock Landers]

I found the right person for big loans in mass. 3% 30 yr fixed w closing credit. He sucks at small loans and I'm at the lower end of what he does.

Oh really? May have to look into that. Would 440K meet the size threshold? Credit 810

[mattig]

Spreads between mortgage rates and treasury yields are the widest they’ve been since 2008. So there may be room to go for rates to go lower, should the Fed’s next move be to stop letting the $20B a month in mortgage debt roll off its balance sheet. Which would actually impact the consumer and economy more than another rate drop.

I’m not sure on timeline (Fed meets this month) but I don’t think the risk is to rates suddenly jumping from here. But if they do reinvest that 20B/month back into mortgage backed securities is could be 50-75 bps benefit to a 30 year fixed mtg.

Right track, but I don't see them coming back into full-fledged MBS reinvestment for reasons that took so many words to explain that I just turned them into a commentary piece here: https://housingbrief.com/r/AQ9IYL

This is the fact of the matter folks. Lenders are presently taking huge losses on loans originated over the last 2 years that are already paying off, so lenders are not bidding strong on refinances for the most part yet. Also, as the current health crisis unfolds, there is a good chance the worlds PPI tanks which will put further pressure to lower rates.
Today yields did creep up a bit on the 10 Year T bond and lenders are quick to up rates, but slow to lower them, as over the last 5 days the 10 Year T bond is lower by .25%, but long term rates are not, so hang in there.
I think rates will improve for a variety of reasons and ya, if you're in CA I am kicking everyone's ass, so pm me your details and needs.
Attachment 318909

Mags don't let mags use charts that bad. Set up a free trial to my site. Use the discount code 4WEEKS to avoid having to put in a credit card, and I will hook you up with free time so you can actually follow the market the way an originator should.

Oh really? May have to look into that. Would 440K meet the size threshold? Credit 810

I think he's talking about my buddy Jason. If so, yeah, that'd do, I'm guessing.

[VTeton]

Right track, but I don't see them coming back into full-fledged MBS reinvestment for reasons that took so many words to explain that I just turned them into a commentary piece here: https://housingbrief.com/r/AQ9IYL




Mags don't let mags use charts that bad. Set up a free trial to my site. Use the discount code 4WEEKS to avoid having to put in a credit card, and I will hook you up with free time so you can actually follow the market the way an originator should.


I think he's talking about my buddy Jason. If so, yeah, that'd do, I'm guessing.

Jason couldn't get below 3.25% for me but I found someone who specializes in super jumbos. His rate for a 2M 30 yr fixed loan was 2.75%. Obviously I didnt get that rate/balance, hes not remotely competitive for anything under 650k.

[mattig]

Jason couldn't get below 3.25% for me but I found someone who specializes in super jumbos. His rate for a 2M 30 yr fixed loan was 2.75%. Obviously I didnt get that rate/balance, hes not remotely competitive for anything under 650k.

Sorry for the bum steer. I'll have to give him some shit as he typically has the best rates among my inner circle of buds/clients.

Pricing is pretty crazy right now in terms of volatility from day to day and lender to lender. It's a good time to be a broker or wholesale lender with multiple correspondent options.

[4matic]

Probably get a fresh low in the 10y today.

[VTeton]

Very smart line of thinking considering this guy probably didn't have change for a nickel, but I digress.

[mattig]

Very smart line of thinking considering this guy probably didn't have change for a nickel, but I digress.

Wasn't quite sure how to work it in without my audience wondering wtf I was talking about...

[VTeton]

Sorry for the bum steer. I'll have to give him some shit as he typically has the best rates among my inner circle of buds/clients.

Pricing is pretty crazy right now in terms of volatility from day to day and lender to lender. It's a good time to be a broker or wholesale lender with multiple correspondent options.

No worries, you got me out there looking for better than 3.25% and I could lock a hair under 3% this am based on yesterday afternoons spike but hoping to get 2.875% w no bps.

[4matic]

Short rates making fresh lows. 2yr @.57%

[Name Redacted]

Got offered a 3.25% refi 30yr for a portfolio loan from my bank yesterday. Holding out for lower but that’s still much better than what I’m at now and it is a 30. Currently in a 7/1.

[HD333]

Help an uninformed consumer out.

My current mortgage provider , WF, is giving me 3.375 for a 20 year, with 3200 in closing costs.

Should I be able to do better than that?


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[4matic]

Signs point to yes. You always have to shop it. Try Quicken. I was happy with their process and people when I was shopping. Didn’t use them but it was useful.

[Brock Landers]

Right track, but I don't see them coming back into full-fledged MBS reinvestment for reasons that took so many words to explain that I just turned them into a commentary piece here: https://housingbrief.com/r/AQ9IYL
.

Cool write up! Agree with fed explicitly stating they want MBS off their balance sheets...but they’re running out of effective tools. And it’s not like they need to nix the idea of drawing down the mortgage portfolio, just put the brakes on for 6 months or whatever and get money into consumers hands. It’s taken what 8 years? Whats another year. Typical government shit taking longer than planned.

[4matic]

Shorts rate are really dropping.

[mattig]

Cool write up! Agree with fed explicitly stating they want MBS off their balance sheets...but they’re running out of effective tools. And it’s not like they need to nix the idea of drawing down the mortgage portfolio, just put the brakes on for 6 months or whatever and get money into consumers hands. It’s taken what 8 years? Whats another year. Typical government shit taking longer than planned.

Yes, they could pause the roll off, but they'd be better served by reinvesting that into treasuries. I don't think they'd entertain messing with the mbs roll off unless spreads remain blown out, even after yields stabilize, for some unforeseen reason.

[huckbucket]

Locked in 3% on 15 year fixed (maybe lower by close?). Been at 4.875% on a 30 year for 9 years so will be cutting 6 years off for an extra $70/month. Couldn't be happier.

Just heard from my credit union and they are getting swamped with refi's. However, they just locked me at 2.75% for that 15 year fixed refi. Bonus!

[VTeton]

Guy pulled a switcheroo on me, offered 2.875% on a 10/1arm. Not a 30 year fixed. Will keep house for 20 years min. I assume I should lock lowest 30yr fixed.

[mattig]

You'll see a lower mortgage rate at some point in the next 10 years most likely, but I understand not wanting to make assumptions about things that aren't guaranteed.

In other news, I talked to the dude I sent you to today. They're not even taking refi apps today (which is unheard of) and are being forced to lock 90 days out due to turn times. So that would be why his rate was a bit higher than I expected.

[Danno]

In other news, I talked to the dude I sent you to today. They're not even taking refi apps today (which is unheard of) and are being forced to lock 90 days out due to turn times. So that would be why his rate was a bit higher than I expected.

I have been checking zillow a few times a day the last few days. Yesterday and today there was a smoking rate first thing in the morning, then crazy high rates the rest of the day, like in the 4s. I interpreted it as the mortgage version of a quote from a super busy contractor, where the quote is so high that it means they really can't handle any more business unless you REALLY make it worth their while.

[huckbucket]

I have been checking zillow a few times a day the last few days. Yesterday and today there was a smoking rate first thing in the morning, then crazy high rates the rest of the day, like in the 4s. I interpreted it as the mortgage version of a quote from a super busy contractor, where the quote is so high that it means they really can't handle any more business unless you REALLY make it worth their while.

Am I delusional in thinking that credit unions aren't motivated by the same thing and assuming you can find one that isn't swamped you'll get the best rate?

[liv2ski]

What's the best rate at any given time? Impossible to know without a pricing engine and even then, I don't know what direct lenders (like a credit union) are offering. So do your shopping, check in here and if in CA reach out to me. New business is now being locked in for 45 days, as I am busy and leaving for France 3/30.

[Flyoverland Captive]

Just got 3.25 on a 30 refi in OR. Had to pay points, but it pencils out pretty sweet compared to my current 4.375. In happy.

[4matic]

30Y bond at 1.49% tonight

[jmedslc]

Just got 3.25 on a 30 refi in OR. Had to pay points, but it pencils out pretty sweet compared to my current 4.375. In happy.

I had the same prior and got 3.5% no points no cost closing.

Edit to add that I agree it’s very difficult to determine the “best rate” you can get. I obviously did not get a 3.25 or lower and there apparentlyare folks who did, but I pressed my guy hard after seeing this thread and he and his varied cohorts in Az Ca and Utah could not see how to get 3.375 or 3.125 a couple weeks back without paying points or excessive closing costs.

So, yay to saving 210/mo

[mattig]

What's the best rate at any given time? Impossible to know without a pricing engine and even then, I don't know what direct lenders (like a credit union) are offering. So do your shopping, check in here and if in CA reach out to me. New business is now being locked in for 45 days, as I am busy and leaving for France 3/30.

I post the best rate at any given time at least once a day. It's the gold standard in terms of being timely and averaging the rate a top tier borrower would see in the second most aggressive quintile of lenders (top group is generally more hit and miss in terms of getting it closed).

http://www.mortgagenewsdaily.com/mor...tes/daily.aspx

3.15 means you're looking at a mix of 3.125 and 3.25 quotes.

(I appreciate that the "gold standard" claim sounds cocky, but I'm not trying to sell you a mortgage and I don't care if you read my website. In fact, I work really hard to get the truth out when the rest of the news media is quoting bad or stale info).

To clarify, I agree with Liv. Do your shopping. I do however have the mother of all pricing engines and a system of distilling the output into a single number that has been proven time and again (although it doesn't really need to be proven because it's directly derived from raw correspondent pricing at the biggest lenders. Blah blah blah... Sorry this is boring and esoteric.)