Yes. But that’s what I am at right now so I didn’t refi. But that’s the quote I got. BofA is very aggressive if you can bring them lots of assets and can deal with their asinine back end team that needs documentation on everything multiple times
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Pls PM me as well
Primary, I didn’t ask about any of that.
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The Freddie Mac Weekly Rate survey should be an indicator of the direction of rates, but not a very strong one. First, it’s the source of information that every new org uses to say “RATES ARE FALLING!!!” Unfortunately they leave out the cost associated with the rate that Freddie listed.
This week Freddie Mac lists a 3.82% average rate… with .50 in fee.
A show of hands who is going to pay a half point to get a loan done? Any one? Bueller… Bueller? Also, this average includes purchase loans. When buying a home rates are often .125 to .250 better for a purchase loan than a refi. Still, this index is helpful. It shows trends, but that’s all it’s best used for IMHO.
Thanks for reading,
LbJW
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Was the cost / benefit paying to buy the rate down within 3 years or less?
Example: Let’s say a .125 difference in rate is a $100 differential in payment and .50 in fee is a cost of $2,400. By the 24th payment the expense is recouped. Its unlikely that within 24 month you’ll re-refinance so paying the fee makes sense. A 5 year or longer pay back might not be a wise use of resources.
If the pay back was 5 years or longer, what was the compelling reason to pay the fee?
Thanks for reading
Fed ignored Trump and he blames them. Not sure whether the Fed will resist lowering rate for the sake of defying him
I see you think rates are in a secular downtrend. 3.5% 30 years (BoA rate) for Primary not low enough? BoA keeps dropping point required from 3.625 to 3.5%. Feel like 3.5% is as low as it gets. Can get to 3.25% with new money.
BOA also sells the 30 year fixed mortgage to Fannie Mae or Freddie Mae. Why can they provide low rate but other lenders can not?
Low margin means go for volume. BAC is the best and largest consumer bank.
During the last low in rates there were customers getting sub 3% 30 fixed when money was moved. No guarantee this will reoccur, but it should be considered when a fee payment is presented.
BAC wants deposit funds and new mortgage loans. That’s why the Bank is aggressively fighting for each deal. There are fewer rate options with Agency paper which is why discounting for Fannie/Freddie loans aren’t as strong as compared with Portfolio Jumbo stuff.
Thanks for reading
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Is the artificially high agency mortgage rate benefiting the investors or the agency? Or is the lender pocketing a fat fee?
The finance regulations from Obama is now hurting homeowners. Maybe a de-regulation can be considered when Fannie Mae and Fannie Mae are privatized
I don’t think the regulations are hurting anybody. Mortgage rate is still at decades low. Privatizing Fannie and Freddie would actually push up rates and fixed-rate mortgage may disappear from the market, or at least at substantially higher rate.
I also just paid 2 points in my re-fi. I am not on a steady W-2 so better do the re-fi once and forget about it. Rates are low enough for me now.
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Also one of my ARM loans just told me they will reset the rate lower.
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1 year libor rate is 2.35 today, was 2.74 one year ago and 2.72 last month.
If your ARM was floating last year, you can expect a 0.375% rate decrease.
However, I think floating rate today is higher than 30 year fixed rate.
Regulations hurt everyone. Conforming rate is higher than jumbo rate, it’s so easy to see that. De-regulation will come sooner or later.
Privatization is a different issue.
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Jumbo rate is lower because people getting the jumbo loans are much stronger financially. People spending over 1M on their homes have much better credit, make much more money and have assets to move around.
No. Agency mortgage is guaranteed by USA, that trumps every other dubious argument.
Jumbo mortgage has been around for many many years, it’s not even a new thing to spin around