New Mortgage News....

#1
rjd970

rjd970

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#1
#4
#4
Got locked in on a 6% rate early last week to close on my new home on Monday (12/8/2008). :banghead2:
 
#5
#5
rwemyss said:
Got locked in on a 6% rate early last week to close on my new home on Monday (12/8/2008). :banghead2:
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And I just refinanced at 5.375 and was feeling pretty danged good until now.
 
#7
#7
hey, it was a link to a Fox News article, so you know you can't believe it.
 
#8
#8
this sounds pretty costly. they should limit this to first time home buyers
 
#9
#9
We locked in at 6.5% exactly a year ago. I have some reserve and I am punching some numbers to see what kind of rate I need for it to be worthwhile for me to refi.

Droski....costly for whom?
 
#10
#10
I've been at 5.875 for the last 7 years. I need 15 year rates to hit about 4.5 to make it worth the switch.
 
#11
#11
rjd970 said:
We locked in at 6.5% exactly a year ago. I have some reserve and I am punching some numbers to see what kind of rate I need for it to be worthwhile for me to refi.

Droski....costly for whom?
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the fed. even at 4.5% will still see some defaults. and who is to say we can still sell 30 year treasuries at 3% if we implement this.
 
#12
#12
droski said:
the fed. even at 4.5% will still see some defaults. and who is to say we can still sell 30 year treasuries at 3% if we implement this.
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But wouldn't this kind of program see much less defaults than others they are talking about with buying up bad loans so people can stay in houses they can't afford? Even if the Fed does lose money, isn't doing something like this to correct the problem better than implementing programs to bail-out people who got in over their heads with the subprimes?

I like the idea, because if the Fed is going to lose money it should be done in a way like this where people who were responsible and followed the rules will feel less hurt by circumstances for which they had no control over.

At the very least, if they banks get their bail-out loans for for risky and irresponsible lending, then it's the least they can do for the responsible lendees that stayed away from the subprime crap, yet are still feeling the sting of lower housing prices.
 
#13
#13
you are right. it might be the lessor of evils. we certainly don't want to bail out those who bought houses they can't afford.
 
#15
#15
10 years ago, would anybody have ever believed that we would be slightly complaining about our mortgage rates being 5.5-6% rather than 4.5-5%? I remember buying my first house in 1997 and locking in at 7.875% because it was deemed a steal to get a rate below 8%.
 
#16
#16
GAVol said:
10 years ago, would anybody have ever believed that we would be slightly complaining about our mortgage rates being 5.5-6% rather than 4.5-5%? I remember buying my first house in 1997 and locking in at 7.875% because it was deemed a steal to get a rate below 8%.
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First time and new buyers are just lucky I guess. Sooner or later it will cycle and any rate under 8-9% will be considered a steal again. It's just a good time to buy...and may get even better if rates drop they way they are talking about here.

If you have the money and credit, get in now with rates and prices at historical lows. If I had the capital I would look at getting in on a rental property too. Rates will eventually rise and renting will become more attractive too for those that can't afford to buy.
 
#17
#17
rjd970 said:
We locked in at 6.5% exactly a year ago. I have some reserve and I am punching some numbers to see what kind of rate I need for it to be worthwhile for me to refi.

Droski....costly for whom?
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costly for the gov't.
 
#18
#18
Bought a house in Feb of 07 got a ten year ARM at 6.125% because I felt rates were going to come down, my bet is looking like it may pay off. Planning on locking in somewhere below 5%

Am I crazy?
 
#19
#19
last time i looked at arms they had higher interest rates than fixed. strangest thing i've ever seen. personally i think any 30 year rate under 6% is good enough to lock in.
 
#20
#20
VolsNSkinsFan said:
Bought a house in Feb of 07 got a ten year ARM at 6.125% because I felt rates were going to come down, my bet is looking like it may pay off. Planning on locking in somewhere below 5%

Am I crazy?
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Sounds perfectly logical to me.
 
#21
#21
GAVol said:
10 years ago, would anybody have ever believed that we would be slightly complaining about our mortgage rates being 5.5-6% rather than 4.5-5%? I remember buying my first house in 1997 and locking in at 7.875% because it was deemed a steal to get a rate below 8%.
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Try 14 or 15% in the late 70's
 
#22
#22
ok all you finance gurus...

We bought our house in August.

the Principal balance is $132,241.61

monthly payment is $1,082.95

interest rate is 6.75%

when would be the best time to refinance and what would be the approximate closing costs? I am not very smart when it comes to this stuff. Thanks for anyone that can help!
 
#23
#23
Plano Vol said:
Try 14 or 15% in the late 70's
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Well that's what I was really afraid of at first I was happy that the fed was cutting rates but gort nervous because the mortgage rates were not falling. But now my bet is about to pay off.

What worries me is the bubble forming in the 10yr and 30yr t bills. That will pop and mortgage rates could move up with them? Dorski?
Posted via VolNation Mobile
 
#24
#24
VolsNSkinsFan said:
What worries me is the bubble forming in the 10yr and 30yr t bills. That will pop and mortgage rates could move up with them? Dorski?
Posted via VolNation Mobile
Click to expand...

i have no idea where mortgage rates will go. all i do know is that historically anything below 6% is a good deal for a 30 year.
 
#25
#25
rjd970 said:
How do you guys think this will affect things:

Treasury Department Considers Plan to Lower Mortgage Rates - FOXNews.com Transition Tracker

It looks like it is something that will finally reward the responsible people who have not over-bought, paid their mortgage, and maintained good credit. If the rate does drop the way they are talking about (ie...40 year lows), I will definitely refinance next year.
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This article is misleading. The current plan is for purchase transactions only -- and only those transactions that qualify under Fannie/Freddie/FHA guidelines and loan limits. The refinancing aspect is still under heavy debate -- though I'd be all for it.

This would certainly spur home buying -- but would do nothing to "unfreeze" the jumbo loan market and spark any sort of lending by the banks. The fact that banks are taking TARP money and sitting on it is a crime. The lack of regulation on the TARP money is a problem.

I like the overall idea because the housing market got us into this mess and it will get us out. We need to spur buying and stem foreclosures creating an overall reduction in inventory. Once the inventory clears up we can reach some stability.
 
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