Mortgage Rates to Drop

Well I think we have sold our house along with half the furniture in it as incentives.

My question is... does anyone have any idea if the mortgage rates will drop further? We will be building a 2 story concrete home with ICF's including the roof, along with solar panels and I am hoping for an even lower rate when we go to the bank in about 30 days.

Any ideas? Credits good, no bills but a car note. We will be getting a VA loan.

reply to post by Bachrk


Well dont count the chickens before they hatch, thats bad juju and may jinx you, be careful......LOL Good luck! At least someone has sold there house (almost)!!

edit:, don't know about home interest rates, but talking to folks at the banks the lending has been a lot more strict but the interest rates seem to be the same as a few months ago..if anything my gut feeling tells me rates are going to go up.

[edit on 2-3-2009 by 38181]

I'm in the business- you can't have ANY late mortgage pymts on your credit, you're gonna need verifiable, steady, reported (IRS) income, at least a 600 credit mid-score, (avg of all 3 credit reporting agencies), and finance less than 80% of property value.(Unless you wanna pay pmi), (required on VA).

If you meet all of the above, and you can get the value out of the house, (you need 2 appraisals for VA), should be a snap.

Thanks a lot! We always get a VA dollar down loan and we don't have to pay the "monthly insurance" since he is a disabled vet. Is that the same as pmi? I know we bought this house for 245,000 and only pay approx 1600/month

We also have always gotten 100% financing with no money down. Again I think its because he is a disabled in the line of duty during war times vet. Credit is 795-825. No late mortgage payments ever (its deducted every two weeks) Good income, same job since 2001

The new house and land together is going to cost us $350,000 so I am hoping for a 5.50% or better rate -30 yr

[edit on 2-3-2009 by Bachrk]

SEnt you a U2U-

Give me a call.

reply to post by MajesticJax

My one recommendation is to start the process as early as possible. I am building a custom concrete (AAC) home for a client who had prequalified in the summer to fund half themselves, and half with the bank, total of $520k. Large acreage (144 acres) free and clear, $310K personal money paid out of pocket to build at the time of getting the bank involved. Construction Mortgage rate given for a $350k loan was around 4.55 apr, BUT even with preplanned bank involvment it took 8 weeks for the bank to close the construction loan. Delay was result of incompotentcy of bank staff and pure laziness. I feel that the bank staff has been in shell shock and just like most investors did not know what tomorrow would bring, thus delayed day after day. The home is a sustainable home with Hebel block, Geothermal, Bluwood, etc. Very frustrating.

I firmly believe that BO actions are going to force very high interest rates in the near future, so I would get locked in as soon as possible.

Good luck with the build. I personally dont care for the ICF compared to AAC, but if it is built right with maximum fresh air exchange and attention to the roof structure you should be happy with your new home.

Jessee

reply to post by JesseeAAC


Whats the best way to get a Construction mortgage to build a house if I still owe a little (privatley)on the land it self? I know the VA won't allow me to get a loan, only on a house thats already built, any ideas, sorry to somewhat change subjects.

Edit: does the bank or whom ever is building the home need to purchase the land from me then resell ti to me with the house built using a bank loan? this is confusing to me. THanks!

[edit on 2-3-2009 by 38181]

I, for one had sold my homes temporarily, the last one in 2006. I saw the decline coming. Unfortunately I didn't put 2&2 together far enough to do the same for my 401K and stock until the DOW hit 8400. I thought that was too late, but with the DOW at 6800, I was lucky.

Right now there's no way I'm going to buy someone else's falling knife. Homes will fall another 20-30% on average, they have even further to fall in high cost areas like California thanks to new mortgage deduction rules and higher taxes for 'the rich'.

It's not the time to buy. Wait until next year.

[edit on 2-3-2009 by Dbriefed]

reply to post by 38181


The VA will guarantee a construction loan and "land package". I would recommend visiting www.va.gov and researching the VA guarantee process and then consulting with a VA rep and/or approved lender.

Good luck with the process, and hope this helps a little. There is alot of info at the VA site.

Jessee

after you have the blueprints & details (details of the green & solar featurews)
after you have the site plan or Plat on where the custom home is situated,

gotten tentative approval of your plans, for wells/waste/electric grid or
hooking into the public water/sewer etc.

gather all that stuff, including OKs for your custom solar & such (because
exotic stuff like that, once required special waivers by some lenders)

perhaps go to a local community credit union or S&L for a maybe 1 year
and loan-limit type of construction financing.. which will be rolled over into a long-term mortgage.

practice your various dance steps, because its almost a act of Waltzing
to accomplish what your thinking of doing....

reliable contractors? subs? guaranteed cost/pricing a must,
as those out-of-pocket costs for over-runs or delays can't be added to the construction loan.
I went through the build-your-own just once....
I made sure i paid myself $4k in the construction loan limit...

reply to post by JesseeAAC


I must have missed something while researching that, I will definetly look again, Thanks

You know, with all the members here there should be a post specifically for people wanting to talk about mortgage stuff. Straight advice from people in the business to help fellow members. Mortgage people, construction people, credit people, any help for those selling, buying, building.

You can't trust anyone anymore but maybe since we are all here with a common interest as members we should help eachother.

reply to post by Bachrk


I have another question, what do you do when the New Mortgaage company (ASC) calls you every month asking why your late with the payment when IN FACT the original mortage contract I signed at closing stated I have 15 days of grace period after the 1st, I usually pay on the first but the mail gets to them a few days later but WITH-IN the grace period. Thanks