30 year fixed mortgage rates down to 4.25% today

[cougjunkie]

So, if I have $129k at 5.875% with 27 years left (with BofA), maybe $20k in equity, and some census moderate-income tract program is paying the mortgage insurance, and my wife and I, when we bought the house, had credit scores around 790 each, is it worth my time? I wish I knew more about this.

Any help would be appreciated.

Will that program continue paying your MI? If not it might end up being a wash if you have to start paying it yourself. MI will be about $75 per month. So you would really only be saving about $75 per.

I would definitely look in to it, we are not licensed in South Carolina so I would call Chase, US Bank, or GMAC. That is who I reccomend.

[cougjunkie]

All you need is a house to buy that will appraise for the sale price, a 20% down payment, and an income to support the loan based on underwriting guidelines form the 1980s, ie - a lot of non-model-based determination of risk - Income/debt & income/value ratios, consumer debt ceilings, work histories, etc.

One of the main reasons the rates are so low - currently, an historically low number of people/houses meet the requirements for the mortgage. Right off the top, 40% of those with loans now are underwater, so you simply can't refinance. And the ever-increasing downpayment requirements for standard mortgages are making it harder and harder for new entrants into the housing market.

It's supply and demand baby. New lending restrictions have dramtically constricted demand...

Someone is still bitter, how about this 4.5% with 3.5% down and a 600 credit score. That is what FHA is at right now.

Or better yet Rural Housing loan (Anything south of Spanish Fork as well as Eagle Mountain and Saratoga Springs) 4.75%, 102% loan to value and only no credit score restrictions, if you have higher than a 620 its guaranteed if not you have to have zero lates in the last 6 months.

Not to mention 5% down on conventional loans is back, as well as DU Refi Plus that allows refis up to 105% of the value with no hit to the rate. I can refi you up to 100% and still get you 4.25%.

The products are coming back.

[Solon]

Just curious, how long did it take to buy? We are selling our house right now and we can get a much better house if we go after a short sale, but we are hesitant because we don't want to be stuck in between houses too long since we don't have anyone we can stay with while waiting.

It's a total crapshoot. We got very lucky: the house was approved for a short-sale in mid-May but the buyers decided they wanted a bigger place and bailed on the sale. So, 10 or 12 days later we offered the exact same price. In theory, all the bank had to do was change the names on the application (it's not like the comparable sales changed much in that 10-12 days), and it still took 4 weeks. I hear it's pretty standard to wait 3-4 months.

So, we made the offer at the end of May and just got approval today. And that was with every scrap of paperwork already in place. What I can't figure out about the way these short-sales are done is how they're going to revive the market, since ordinary folks can't afford to wait 3-4 months to hear if their bid has been accepted or not. Most people have jobs or circumstances that require them to move within a set timeframe. So, it seems to me that short-sales are only a good bet for investors or people who already live in the area but don't own a place. Not exactly the recipe for recovery that I would expect but hey, what do I know?

ER Coug might be the guy to ask. He had some good pointers for me on short-sales. The guy's sharp.

[Solon]

That's great! Great area, great price. Sounds like you could be there for a long, long time.

It's possible. We'll see how we like the jobs. It is a great deal for us. I'm pretty pumped.

[dabrockster]

Someone is still bitter, how about this 4.5% with 3.5% down and a 600 credit score. That is what FHA is at right now.

Or better yet Rural Housing loan (Anything south of Spanish Fork as well as Eagle Mountain and Saratoga Springs) 4.75%, 102% loan to value and only no credit score restrictions, if you have higher than a 620 its guaranteed if not you have to have zero lates in the last 6 months.

Not to mention 5% down on conventional loans is back, as well as DU Refi Plus that allows refis up to 105% of the value with no hit to the rate. I can refi you up to 100% and still get you 4.25%.

The products are coming back.

Do you work in Ohio??

[wuapinmon]

So, the best I can find is 30 year fixed at 4.875/5.386% APR.

Because we lose the program that pays our PMI, we'll have to add $55 a month back into our payment until we get to 20% equity. This drops our total payment (including escrow) from $994.97 to $957.55.

By comparing amortization and dropping the PMI after 7-10 years, this will save us around $43k in interest over the life of the loan. I think we're going to do it.

Anyone see any reason why I shouldn't? Actual closing costs are $1336.

[Mormon Red Death]

So, the best I can find is 30 year fixed at 4.875/5.386% APR.

Because we lose the program that pays our PMI, we'll have to add $55 a month back into our payment until we get to 20% equity. This drops our total payment (including escrow) from $994.97 to $957.55.

By comparing amortization and dropping the PMI after 7-10 years, this will save us around $43k in interest over the life of the loan. I think we're going to do it.

Anyone see any reason why I shouldn't? Actual closing costs are $1336.

the only disparity is that time lengths will be different. IE you will making your payment for 36 more months. However, when you consider the time value of money its a good deal.

[Mormon Red Death]

BTW what you should do is take that extra $40 you are paying right now and keep paying it to your principle. If you do that you will finish your mortgage in 26 years. Not to mention PMI will end sooner. Additionially, if you keep paying that pmi towards your mortgage you will finish in 24 years.

[Tim]

Someone is still bitter, how about this 4.5% with 3.5% down and a 600 credit score. That is what FHA is at right now.

Or better yet Rural Housing loan (Anything south of Spanish Fork as well as Eagle Mountain and Saratoga Springs) 4.75%, 102% loan to value and only no credit score restrictions, if you have higher than a 620 its guaranteed if not you have to have zero lates in the last 6 months.

Not to mention 5% down on conventional loans is back, as well as DU Refi Plus that allows refis up to 105% of the value with no hit to the rate. I can refi you up to 100% and still get you 4.25%.

The products are coming back.

Can I make a totally unsolicited comment here? It's not directed at you or at any other person on the board involved with mortgages, banking, investments, etc. It's just a thought that I've had for a while, and I want to share it. Again, though, this isn't aimed at anyone in specific, it's just me waxing philosophical in a general way.

I hate the use of the term "product" in the mortgage/investment/banking world, and part of me wonders how much of the financial mess we've seen recently has been caused by the fact that far too many people have been fooled into thinking that these really are "products." They're not products, though. It's not a mortgage product, it's someone's house. A real person's home, someone who's worked and saved to buy a home. It's not an investment product, it's some person's retirement, someone who worked and saved for 40 years to be able to retire at a reasonable age and enjoy the final years of their life. It's not a banking product, it's someone's paycheck, it's used to buy food for their family and put a roof over their head. Calling these things "products" takes away from what they really are, and who they really affect, and what they mean to the people trying to obtain them.

That's all I wanted to say.

[Mormon Red Death]

Can I make a totally unsolicited comment here? It's not directed at you or at any other person on the board involved with mortgages, banking, investments, etc. It's just a thought that I've had for a while, and I want to share it. Again, though, this isn't aimed at anyone in specific, it's just me waxing philosophical in a general way.

I hate the use of the term "product" in the mortgage/investment/banking world, and part of me wonders how much of the financial mess we've seen recently has been caused by the fact that far too many people have been fooled into thinking that these really are "products." They're not products, though. It's not a mortgage product, it's someone's house. A real person's home, someone who's worked and saved to buy a home. It's not an investment product, it's some person's retirement, someone who worked and saved for 40 years to be able to retire at a reasonable age and enjoy the final years of their life. It's not a banking product, it's someone's paycheck, it's used to buy food for their family and put a roof over their head. Calling these things "products" takes away from what they really are, and who they really affect, and what they mean to the people trying to obtain them.

That's all I wanted to say.

uhhh what?

[wuapinmon]

BTW what you should do is take that extra $40 you are paying right now and keep paying it to your principle. If you do that you will finish your mortgage in 26 years. Not to mention PMI will end sooner. Additionially, if you keep paying that pmi towards your mortgage you will finish in 24 years.

We're already paying $1100 a month to the mortgage, just to get in the extra payment per year. I know that this reduces the overall interest savings, but we think it's the best thing to keep doing even when we refinance. We don't really have any plans to drop down to the actual payment unless we HAVE TO (crosses fingers, hopes for the recovery soon).

[Mormon Red Death]

We're already paying $1100 a month to the mortgage, just to get in the extra payment per year. I know that this reduces the overall interest savings, but we think it's the best thing to keep doing even when we refinance. We don't really have any plans to drop down to the actual payment unless we HAVE TO (crosses fingers, hopes for the recovery soon).

Since you are doing that then it definitely makes sense to refinance. One thing to make sure of is that your extra $150 a month payment is going to principle only.

[ERCougar]

Any reason to think these are going any lower? I just talked to my mortgage guy today and we're all set to refinance--should cut about $550 off our payment. I'm about to pull the trigger, but I'm just wondering if there is any thought out there that these will go lower? Maybe with the recent housing news?

[ERCougar]

ER Coug might be the guy to ask. He had some good pointers for me on short-sales. The guy's sharp.

Ha--I can tell you how to get totally screwed over on a short sale. I'm really sharp at that!

[dabrockster]

Cougjunkie:

Just got off with my Mortgage guy and I am in the top 1% of all consumers (Credit score is well above 740). He gave me a 4.5% FHA loan with 3.5% down.. Can I get better or is this the bet I can get??

Is this good? And if I go conventional would I qualify for the 4.25%??