30 Year fixed mortgages @ 4.875%

Mods: this is not in any way a solicitation, just thought a good heads up for the ATS nation out their.

Being in the industry i can answer any questions people may have, but when long term fixed rates drop to the lowest level in 6+ years i figured it's newsworhty.

Just be careful, a lower rate does not always equal a better loan. My opinion is make sure you are lowering your terms not just your payment. Don't get sucked in on refinancing a fixed mortgage you've been paying on for 10 years unless you do a 20 or 15 year term. Dont extend it back out to 30. If you just purchased a home recently make a call you may be able to keep your payment the same while cutting your term 5 or 10 years.

Today will be a busy day so any questions i may be slow getting back to.

Good luck

Great, a 30 year fixed is now below 5%.

Last I heard, the credit markets were still frozen, so obtaining this rate is a stretch for most people now, is it not?

Since you're "in the business", you're obviously in it to make money. How do you sleep at night knowing that you're putting someone in a home they can't afford, or that will drop in value before they make their first mortgage payment?

Forgive me if I seem slightly bitter, but I was screwed over on a property by my supposed "friend" who was also a real estate broker. He sold it to me in a hurry before the housing market went in to the crapper, and after 3 mortgage payments, my tenants moved out, and the house is now in foreclosure, all because someone chose not to inform me that things were on the decline. For a novice just getting into the game, I admit some of the blame is on my shoulders for not better investigating the market, but isn't it also the responsibility of the broker to lay things out for their client?

Don't take it out on the loan officer when it was the seller you're mad at.

It's like buying stock or any investing, you cannot expect it to appreciate only. You should have done research and stop blaming others.

The guy who started this thread just wanted to help people realize now is a good time for home loans. He also directed people to fixed rate loans which is a give-in but for some reason people go for Variable rate loans. All good and valuable info if you ask me.

At least you learned some valuable stuff... Next time LOW-BALL someone when you buy a home that way you, yourself don't get (as) screwed.

reply to post by anotherdad


I am buying a house right now because we are relocating from Chicago to Florida. We were locked in at 5.25% but now I am going to see if they will go even lower. Thanks for the post.

reply to post by Missing Blue Sky


Thats if you buy down to that interest rate... wont you end up at 6% based on credit, dti, Equaty percentage, full documentation approval???

reply to post by Bobbo


So you bought an investment home looking to flip it quick knowing that if you did not have a tenant you could not afford it. A home is a long term investment, i'm sorry if you worked with someone who did not inform you of that.

reply to post by vapedson


Thank you, the point is if someone has an adjustable rate now is a great time to lock it into a fixed or if they have a long term fixed say a 30 year loan they have been paying on for several years, do not extend to 30 years again yet look at a 20 or 15 year fixed loan. This would save ten's of thousands of dollors long term. In the above scenario going back to a 30 would probably cost close to as much. I am hear to tell you knowone looks at amortization schedules anymore. START the numbers dont lie.

reply to post by Missing Blue Sky


5.25% is a great rate, sometimes we by stock one day and it goes down the next. unfortunetly we can't get the lower price. This small amount iMO would not be worth switching companies.

reply to post by FoxStriker


No that is Par rate for today with no buy down. And yes you are correct the other items you mention can have an impact on that dependent on personal situations.

i.e. a client today has good credit 722, is borrowing 260K on a 510k home. The quote for them i sent out was 4.875% 20 year fixed with 1% origination fee.

I tried to refinance the home I bought a few years ago, and I have sterling credit. The problem I have is the home won't appraise for what I owe on it. How do you get around that?

I've heard an ad over the airwaves about this sort of rate. But there was some sort of disclaimer I cannot forget thereafter: SUBJECT TO CHANGE. While I like to believe that a mortgage could be 'fixed' at a rate, it gives me the creeps knowing anyone would agree to being 'locked' into a debt, which is analogous to being in prison for 30 years (so to speak).


[edit on 2008-12-04 by pikypiky]

FHA loans are the ticket for anyone who still has a FICO above 580. These loans are still readily available and are still a great option for anyone who may have had some credit issues in the past or are first time home buyers.

Right now concentional markets are tighter than a frogs butt, you have to have excellent credit and most conventional lenders arent willing to go much over 80-85% LTV. FHA will still go 95% and even higher in some instances. There is an up front MI to pay on these loans but can be financed and rolled into the loan.

FHA rates are excellent right now and soon PAR will be less than 5% with no buy down. So in fact yes they are still lending money for home purchases and refi's so if you can lower your rate, shorten your term up or pay off high interest revolving debt right now is an excellent time to refi.

Just be sure to read your GFE and all RESPA docs thoroughly and before you sign ask to see a copy of the final HUD. If anything is different than what was guaranteed walk away.

Originally posted by pikypiky
I've heard an ad over the airwaves about this sort of rate. But there was some sort of disclaimer I cannot forget thereafter: SUBJECT TO CHANGE. While I like to believe that a mortgage could be 'fixed' at a rate, it gives me the creeps knowing anyone would agree to being 'locked' into a debt, which is analogous to being in prison for 30 years (so to speak).

[edit on 2008-12-04 by pikypiky]

Quite the opposite you WANT a fixed rate. Adjustable rate loans, pay option ARMS, IO loans are what caused this mortgage mess to begin with.

Keep it simple....30 year conventional fixed at the lowest rate possible. If you can afford a shorter term...do it. Designer loans will get you into big trouble.

Duh.

I had the straight up cash to cover a years worth of missed mortgage payments- Roughly $14,000.

But when a tenant destroys the places, steals the appliances, and the copper, $14,000 goes pretty quick towards repairs.

It was not meant as a quick flip to make some money- I bought the home in pristine condition, so no work needed to be done. If I wasn't already living in a quarter million dollar home at the time, I would have lived there myself.

Bad tenants wiped me out, bad advice in the past will keep me out of the game for good.

So AnotherDad, contrary to your statement, it was not a situation where I could not afford it if I didn't have tenants.

Originally posted by VelmaLu
I tried to refinance the home I bought a few years ago, and I have sterling credit. The problem I have is the home won't appraise for what I owe on it. How do you get around that?

You don't. Appraisal manipulation is illegal. You are a victim of an inflated mortgage market and false home values. Thank the realtors for jacking up home prices to an absurd rate so that now when the true market value gets revealed people are upside down in their homes.

All you can do is wait and hope that value on property increases wherever your home is locates. Give it a year or so and I believe eventually values will slowly rise again.

Just my own opinion...take it for what it is.

Only thing that can help right is loan mods.... loan mods.... loan mods.... loan mods....

Get them before you can. bottom line, just gotta show a hardship

reply to post by VelmaLu


Loan Modification.

Originally posted by VelmaLu
I tried to refinance the home I bought a few years ago, and I have sterling credit. The problem I have is the home won't appraise for what I owe on it. How do you get around that?

It will be tough, Your first step is talking to the lender themselves but realize if your rate has not adjusted, you can still afford your payments and you've never been late you probably wont get far. My suggestion if your not looking to move relax and realize you made a long term investment.

Just be careful as far as there offers to you, It will be in there best interest and could be poison that may damage your sterling credit. If something they say sounds iffy feel free to u2u me.

reply to post by pikypiky


Yes this is there gimmick, i believe it usually states at the begining that "you can get a 30 year loan for x%" and yes you should run from these vultures. The fact is an adjustable rate mortgage IS a 30 year loan, its just not a fixed rate for 30 years. This is what so many people fell for.

reply to post by Bobbo


Then why are you mad at the realtor or lender? The renter destroyed the home and home value. Sorry that does suck.