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1. ARDELL - April 13, 2007

Thanks Rhonda,

I have three non-conformings closing this week and it will be interesting to compare actual to estimated. I’m seeing 5.75% as the norm for 30 year, and have been for the last 30 days. But let’s see how reality matches generalizing. I have a 10% down a 20% down and an 80/20 all with varying credit scores, which I can’t reveal, as that is not public info.

Have to admit that 80/20 was giving me aggida, as it was coming to fruition at the very moment everyone was saying it might be impossible…and it clearly was not easy.

I’ll report back when they all close. 17 years and running with no “failed” ones yet, so I am expecting them all to close. Even the 80/20 which was ten times as hard, because it is also a condo conversion project with only 17 or so units closed to date. Under the amount normally required. One of the hardest I’ve ever done, from the loan perspective.

Fingers and knees crossed.

2. Rhonda Porter - April 13, 2007

Hi Ardell,
I’m assuming the 5.75% was with 1 point?
I had two very challenging loans close this week…wait, three. Where I did a “happy dance” each time. I’m so use to being able to comfort clients and tell them not to worry. One two of three, I was waiting until we had recording numbers. One was just a very tough deal (a refi that I worked on since AUGUST that totally made sense to me…but did not fit u/w…I might have to blog about the loan in the future); a purchase that was a 80/10/10 and the first mortgage was fine but the second mortgage is with a company that is considered “alt a” and is tightening up their reigns–second mortgages are much more scrutinized. The lender at this company encouraged us to close the second ASAP, which luckily all parties (seller and buyer) could accomodate that. With these three transactions, I sometimes felt like the lenders were looking for “outs” in light of all the u/w changes. I’m glad their closed and happy for you, too.

3. ARDELL - April 13, 2007

Rhonda,

One thing I’ve noticed about the market, is when everyone says it is supposed to be having a problem, some of us aren’t having that problem. We are are just working a whole lot harder so we DON’T have that problem That’s true of market prices, sale volume and most everything else across the board!

I can’t tell you the point basis yet, but will after closing.

But I can tell you that I would like you to quote rates with 1% origination fee and zero discount points, as that is more the norm for our area…or for my clients anyway. I’d rather know the rates with zero discount and 1% origination fee, and then I can modify as needed from there. Sometimes I pay the origination fee, so quoting it without that, doesn’t help me.

One of my recent transactions had a buy down to 5.5%. This is a shift, as buyers are getting more conservative. Free everything is not always, and rarely, the best way to go. Better to get the seller and or agent (and yes, sometimes even the loan broker) to contribute to the cost, and keep the rate as low as possible for the client, with no fees. My experience anyway.

On the 80/20, the lender on the second wouldn’t let us buy down the rate on the second, but we did on the first.

4. Rhonda Porter - April 13, 2007

Hi Ardell,
the rates that I quote are with a point. Whether it’s a 1% origination or a 1% discount, it comes out the same with the rate.

5. Brian Brady - April 13, 2007

The Friday rates are a great barometer, Rhonda.

QUESTION FOR THE READERS:

CNBC reported tonight that the average 30 year fixed rate mortgage rose from 6.15% to 6.22%. If that’s true, how does Rhonda do it?

ANSWER: It’s all in the “point”

http://www.raincityguide.com/2007/03/03/whats-the-point/

Thanks for the participation today, Rhonda

6. ARDELL - April 13, 2007

Brian,

When and where I started in the real estate business, most buyers used a loan with 3 points and most rates were quoted with 3 points.

I didn’t start seeing 0/0 loans until I moved to California.

7. ARDELL - April 13, 2007

Sometimes I feel like Grandma Moses. 3 point loans and my first cell phone looked like this

I used to lug it around on my shoulder until they started installing them into the cars.

8. Rhonda Porter - April 14, 2007

Too funny! I’m working with a returning client on a refinance right now and he really wanted a set rate that would have cost about 3 points. He’s not planning on staying in the home forever, after reviewing his pricing options, he elected 1 point. I was relieved since I feel it’s a much better option.

Ardell, my first cell phone was a motorolla brick phone–before they had the improved slimmer batteries. It was not portable–hard wired into the car with the fancy attena.

9. Brian Brady - April 14, 2007

Do you know why New Jersey has points, Ardell?

Prepayment penalties are forbidden unless from a loan offered by a federal bank.

I was quoting points on that cell phone in 1991, Ardell.

10. Friday’s Rates and How Frequently Rates Change | Rain City Guide | A Seattle Real Estate Blog... - April 20, 2007

[...] Friday’s Rates and How Frequently Rates Change April 20, 2007 As of 9:00 a.m. PST, mortgage interest rates are the same as what I posted last Friday.   By the time I’ve pressed the “publish” button…these rates may not be accurate. [...]

11. joe - April 23, 2007

I am really out of tune with the rates. I used to be the official rate low hunter for a family/friends in 2001/2002. If I found a good broker with good rates, he/she would get another 20 plus refi’s soon(I cannot keep a good deal secret). Have not needed it for 5 years, but since we are looking at buying a house(moving from the present one).

When we bought our previous house, we both had documented incomes(W2’s) but now my wife is a practicing physician(just started a few months ago). She has the potential but right now not much income to show(mostly expenses), I have a W2. So how do we document income ?

Last time I bought a house 5 years ago in falling rate env, I initially bought the house with 5.5%(7 yr ARM) and refinaced three times in 1.5 year, and finally hit a rock bottom of 3.875% with 7 yr ARM. With the tax benefits, it is almost free money.

12. Rhonda Porter - April 23, 2007

Hi Joe,
It’s really hard to say without having all of your financial details…. It’s possible that you may be looking at a NIV type loan depending on how much money you’ll be putting down towards the new home, credit, etc. And, there are different forms of reduced doc loans that may not impact pricing too significantly–depending on what the rest of your financial picture looks like.

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