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moorman

Mortgage rates rising after election...

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I noticed the rates have risen to around a average of 4.0 percent since the election. I hope they don't continue to go up or stay up. I was looking forward to those 3 percent rates but can't make a move anytime soon...

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i think the market has absorbed the news of the new President's monetary policy.

we think we might see a little pull back. but it would be short lived and this is just the new rates going forward.

 

i dont see 6% in our near future. but low 3% rates are a goner

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i think the market has absorbed the news of the new President's monetary policy.

we think we might see a little pull back. but it would be short lived and this is just the new rates going forward.

 

i dont see 6% in our near future. but low 3% rates are a goner

Questions:

 

1.What do you forecast two years out from now?

 

2. Va mortgages usually offer a lower percentage rate than conventional. If the rate goes up so say 6 percent, the Va rate should be lower?

 

3. Can you buy down the interest rate on a Va mortgage?

Edited by moorman

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i think the market has absorbed the news of the new President's monetary policy.

we think we might see a little pull back. but it would be short lived and this is just the new rates going forward.

 

i dont see 6% in our near future. but low 3% rates are a goner

Questions:

 

1.What do you forecast two years out from now? lots could happen between now and then. most prognosticators are looking at 4 - 6% no more

 

2. Va mortgages usually offer a lower percentage rate than conventional. If the rate goes up so say 6 percent, the Va rate should be lower? yeah. if conv is 6% then maybe va will be 5.5 - 5.75%. justr a guess

 

3. Can you buy down the interest rate on a Va mortgage? yep

 

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i think the market has absorbed the news of the new President's monetary policy.

we think we might see a little pull back. but it would be short lived and this is just the new rates going forward.

 

i dont see 6% in our near future. but low 3% rates are a goner

Questions:

 

1.What do you forecast two years out from now? lots could happen between now and then. most prognosticators are looking at 4 - 6% no more

 

2. Va mortgages usually offer a lower percentage rate than conventional. If the rate goes up so say 6 percent, the Va rate should be lower? yeah. if conv is 6% then maybe va will be 5.5 - 5.75%. justr a guess

 

3. Can you buy down the interest rate on a Va mortgage? yep

 

 

 

Thanx. I had to file a chapter 7, so i have a mandatory two year wait with a VA loan. I missed out on the 3 percent mortgage. I could possibly deal with a 6 percent rate if i buy it down. Got the next couple of years to get my scores up and get a mortgage...

Edited by moorman

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I have 3.75 on $150k mortgage. Is that reasonable for the times.

 

 

Sent from my iPhone using Tapatalk

30 year? I would say so. I looked at refi options and best I saw for 30 year fixed was ~ 3.6

I did see 2.99 on 15 year fixed at a local credit union.

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I am 3.75 On a 20 year mortgage with quicken fixed rate.

 

 

Sent from my iPhone using Tapatalk

Edited by Muffy127

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On our primary residence I could still get 2.19% with no points and $1,100 in lender fees. This is on 3/1 ARM (up to 85% LTV).

 

On this product the rate can be reset an unlimited number of times at that day's 3/1 rate for an additional three years for a nominal $295 fee. You could do ~10 resets for the price of one refi during the loan's 30-year amortization period.

 

We did this loan this summer, and we're currently paying 1.74% after one reset (it was originated at 1.99%).

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On our primary residence I could still get 2.19% with no points and $1,100 in lender fees. This is on 3/1 ARM (up to 85% LTV).

 

On this product the rate can be reset an unlimited number of times at that day's 3/1 rate for an additional three years for a nominal $295 fee. You could do ~10 resets for the price of one refi during the loan's 30-year amortization period.

 

We did this loan this summer, and we're currently paying 1.74% after one reset (it was originated at 1.99%).

What is the cap on the rate jump in 3 years?

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i think the market has absorbed the news of the new President's monetary policy.

we think we might see a little pull back. but it would be short lived and this is just the new rates going forward.

 

i dont see 6% in our near future. but low 3% rates are a goner

Questions:

 

1.What do you forecast two years out from now? lots could happen between now and then. most prognosticators are looking at 4 - 6% no more

 

2. Va mortgages usually offer a lower percentage rate than conventional. If the rate goes up so say 6 percent, the Va rate should be lower? yeah. if conv is 6% then maybe va will be 5.5 - 5.75%. justr a guess

 

3. Can you buy down the interest rate on a Va mortgage? yep

 

 

 

How many points do most lenders allow you to buy? If the rate goes up to 6 percent conventional, and i do VA, I want to get the rate down to 4 percent.

Edited by moorman

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On our primary residence I could still get 2.19% with no points and $1,100 in lender fees. This is on 3/1 ARM (up to 85% LTV).

 

On this product the rate can be reset an unlimited number of times at that day's 3/1 rate for an additional three years for a nominal $295 fee. You could do ~10 resets for the price of one refi during the loan's 30-year amortization period.

 

We did this loan this summer, and we're currently paying 1.74% after one reset (it was originated at 1.99%).

What is the cap on the rate jump in 3 years?

 

 

+2% per adjustment, +6% total.

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I have 3.75 on $150k mortgage. Is that reasonable for the times.

 

 

Sent from my iPhone using Tapatalk

 

Excellent rate. The ONLY good thing about mortgage rates rising in the future is that same $150,000 house price will drop. I'm seeing houses waaaaay overpriced right now because of the low interest rates. That $150,000 house in the areas i have looked should drop to around $110,000- $120,000 if the rates go up...

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Thank you for the info. I really appreciate it.

 

 

Sent from my iPhone using Tapatalk

 

No problem. The only way you could get hurt is if you wanna sell if prices drop. If rates continue to rise, and housing prices drop ( depends on where you live), then a lot of people with low interest rates will suddenly be in negative equity positions if they purchased overpriced houses with the low interest rates. If you plan on staying for a long time, you should be ok...

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Makes sense. We do plan on staying at least 10 or more years. And I am confident that the price we bought for in our area was pretty low compared to surrounding sales. Fingers crossed. Happy holidays. Thanks again.

 

 

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i think the market has absorbed the news of the new President's monetary policy.

we think we might see a little pull back. but it would be short lived and this is just the new rates going forward.

 

i dont see 6% in our near future. but low 3% rates are a goner

Questions:

 

1.What do you forecast two years out from now?

 

2. Va mortgages usually offer a lower percentage rate than conventional. If the rate goes up so say 6 percent, the Va rate should be lower?

 

3. Can you buy down the interest rate on a Va mortgage?

 

What exactly is the benefit to buying down an interest rate when rates are at historic lows? I can see the benefit if interest rates were 10-12%. Outside of knowing that you will keep the property until it's paid off, what are other perks? Aren't you just relieving yourself of cash for a future that's not exactly guaranteed? Your buy down is going to save you money, but is it that significant compared to keeping the cash?

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i think the market has absorbed the news of the new President's monetary policy.

we think we might see a little pull back. but it would be short lived and this is just the new rates going forward.

 

i dont see 6% in our near future. but low 3% rates are a goner

Questions:

 

1.What do you forecast two years out from now?

 

2. Va mortgages usually offer a lower percentage rate than conventional. If the rate goes up so say 6 percent, the Va rate should be lower?

 

3. Can you buy down the interest rate on a Va mortgage?

 

What exactly is the benefit to buying down an interest rate when rates are at historic lows? I can see the benefit if interest rates were 10-12%. Outside of knowing that you will keep the property until it's paid off, what are other perks? Aren't you just relieving yourself of cash for a future that's not exactly guaranteed? Your buy down is going to save you money, but is it that significant compared to keeping the cash?

 

 

I bought my rate down from 2.875% to 0.125%. It cost around $11,818 ($4318 of my own money). This saved around $47,000 in interest over 15 years.

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i think the market has absorbed the news of the new President's monetary policy.

we think we might see a little pull back. but it would be short lived and this is just the new rates going forward.

 

i dont see 6% in our near future. but low 3% rates are a goner

Questions:

 

1.What do you forecast two years out from now?

 

2. Va mortgages usually offer a lower percentage rate than conventional. If the rate goes up so say 6 percent, the Va rate should be lower?

 

3. Can you buy down the interest rate on a Va mortgage?

 

What exactly is the benefit to buying down an interest rate when rates are at historic lows? I can see the benefit if interest rates were 10-12%. Outside of knowing that you will keep the property until it's paid off, what are other perks? Aren't you just relieving yourself of cash for a future that's not exactly guaranteed? Your buy down is going to save you money, but is it that significant compared to keeping the cash?

 

 

Because this whole thread is about the fact that those historic low rates are RISING. Thats the reason i asked about the buy down. I want to buy BACK down to those low historic rates.

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i think the market has absorbed the news of the new President's monetary policy.

we think we might see a little pull back. but it would be short lived and this is just the new rates going forward.

 

i dont see 6% in our near future. but low 3% rates are a goner

Questions:

 

1.What do you forecast two years out from now?

 

2. Va mortgages usually offer a lower percentage rate than conventional. If the rate goes up so say 6 percent, the Va rate should be lower?

 

3. Can you buy down the interest rate on a Va mortgage?

 

What exactly is the benefit to buying down an interest rate when rates are at historic lows? I can see the benefit if interest rates were 10-12%. Outside of knowing that you will keep the property until it's paid off, what are other perks? Aren't you just relieving yourself of cash for a future that's not exactly guaranteed? Your buy down is going to save you money, but is it that significant compared to keeping the cash?

 

 

Because this whole thread is about the fact that those historic low rates are RISING. Thats the reason i asked about the buy down. I want to buy BACK down to those low historic rates.

 

So is this strictly about minimizing the monthly payment? Are we assuming that everyone that does a buy down is in their dream home and will keep it for the duration of the mortgage terms?

 

I'm reminded of the Warren Buffet quote about "shorting the dollar" while rates are low(because the dollar over time, will diminish in value, meaning you'll ultimately owe less as time progresses) and maximizing your purchase power while preserving cash reserves. Maybe that only applies to real estate Investors?

Edited by vacantstance

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I am 3.75 On a 20 year mortgage with quicken fixed rate.

 

 

Sent from my iPhone using Tapatalk

 

I locked in a refi rate of 3.625% with a 1400 lender credit for a 20 year on December 5 through a zillow referral. Hoping it closes out before the holidays as my financials and credit have zero issues. I made a bet (to myself) that quick dip that day in rates was the lowest the market would be and I got extremely lucky. Locked it in right before close of business for the company, just did my appraisal last thursday and hit the LTV I needed right on the head. Currently waiting for the loan to keep going and then close it out. I'll be out of pocket only 1300 and my payment will go up a mere 13 dollars going from my 30 year to the 20 year. If your wondering, FHA was chosen initially due to the huge grant money I got with a local program here in CA.

 

But I hear you on needing to wait OP, I had to wait on mine, due to the time needed between when I purchased my FHA-program mortgage in March. Lenders told me I need 6 months of payments. As rates for a 20 year were between 3.25 to 3.5. I saw back in September, I could have gotten a 3.375 with a lender credit of over 2k. Those were the days...

 

I agree with the predictions here. Mortgage rates will be around 5%-6% by the end of next year for a 30 year.

Edited by Imma make it rain trick

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On our primary residence I could still get 2.19% with no points and $1,100 in lender fees. This is on 3/1 ARM (up to 85% LTV).

 

On this product the rate can be reset an unlimited number of times at that day's 3/1 rate for an additional three years for a nominal $295 fee. You could do ~10 resets for the price of one refi during the loan's 30-year amortization period.

 

We did this loan this summer, and we're currently paying 1.74% after one reset (it was originated at 1.99%).

Would you mind sharing where you obtained this?

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On our primary residence I could still get 2.19% with no points and $1,100 in lender fees. This is on 3/1 ARM (up to 85% LTV).

 

On this product the rate can be reset an unlimited number of times at that day's 3/1 rate for an additional three years for a nominal $295 fee. You could do ~10 resets for the price of one refi during the loan's 30-year amortization period.

 

We did this loan this summer, and we're currently paying 1.74% after one reset (it was originated at 1.99%).

 

Would you mind sharing where you obtained this?

Third Federal Savings & Loan. It's based in Cincinnati I think, but they do mortgages across the US.

 

This is an incredible mortgage product, and the origination team I worked with was diligent and great with communication.

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i think the market has absorbed the news of the new President's monetary policy.

we think we might see a little pull back. but it would be short lived and this is just the new rates going forward.

 

i dont see 6% in our near future. but low 3% rates are a goner

Questions:

 

1.What do you forecast two years out from now?

 

2. Va mortgages usually offer a lower percentage rate than conventional. If the rate goes up so say 6 percent, the Va rate should be lower?

 

3. Can you buy down the interest rate on a Va mortgage?

 

What exactly is the benefit to buying down an interest rate when rates are at historic lows? I can see the benefit if interest rates were 10-12%. Outside of knowing that you will keep the property until it's paid off, what are other perks? Aren't you just relieving yourself of cash for a future that's not exactly guaranteed? Your buy down is going to save you money, but is it that significant compared to keeping the cash?

 

 

Because this whole thread is about the fact that those historic low rates are RISING. Thats the reason i asked about the buy down. I want to buy BACK down to those low historic rates.

 

So is this strictly about minimizing the monthly payment? Are we assuming that everyone that does a buy down is in their dream home and will keep it for the duration of the mortgage terms?

 

I'm reminded of the Warren Buffet quote about "shorting the dollar" while rates are low(because the dollar over time, will diminish in value, meaning you'll ultimately owe less as time progresses) and maximizing your purchase power while preserving cash reserves. Maybe that only applies to real estate Investors?

 

Bumping for a response to my question. It's not a challenge. I'm just trying to learn.

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Buy downs pay off in the long term. Typically for dream home or long term investment property. I discourage buy downs for fthb because they tend to stay short term

 

 

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