You don’t have to sell loans to Fannie and Freddie. If you don’t sell to them why do you care whether it’s jumbo or not?
My cash out re-fi had to stay below the conforming limit. Otherwise the rate took a quantum jump.
If the mortgage can be sold to agency, only a fool will keep it.
Yes, jumbo lenders hate cashout
Rates are not impacted by Obama era policies. Although I did not support the President, I strongly endorse the re-regulation policies passed during The Obama administration.
The reason why Agency pricing blows is the “G-Fee” increases passed by Congress as well as unwise Loan Level Pricing Adjustment increases. Congress is using the Agencies as piggy banks, funding things like extended Unemployment Insurance by hiking Agency fees. It’s this raiding by Congress, not reregulation that pushes rates higher.
Thanks for reading
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Banks are one of the few sectors that really requires strong regulation. It’s very highly leveraged, and anything wrong could easily land us in a great depression, as what happened in 08 showed.
Libor will be replaced by US Fed. Hopefully they can find a better rate to avoid higher ARM rate than 30 years fixed rate.
- Mortgage rates dropped to their lowest level in nearly two years, so mortgage applications surged 26.8% in just one week, according to the Mortgage Bankers Association.
- Volume was 41% higher than the same week one year ago.
- Refinances, which are most rate-sensitive, led the surge, jumping a remarkable 47% week to week and 97% annually.
I was one of those who had applied for a mortgage for a new purchase 
last week.
No refi.
Austin? How many you have in Austin now?
I was chatting with my CPA and somehow Austin came up. She said insurance is expensive in Austin. Is that true?
All these talks is BS, what matters is the net cashflow.
See my numbers for two of the rentals that I bought few years ago.
78759 (relatively expensive neighborhood compare to Cedar Park, Avery Ranch and Round Rock).
Purchase Price $230k
Rent $1695 per month
Property tax $8500 per year, appraisal $338k
Landlord insurance $839 per year
HOA none
Yield 8.8%
78660 (cheaper than Cedar Park, Avery Ranch and Round Rock)
Purchase Price $280k
Rent $2210 per month
Property tax $9900 per year, appraisal $314k
Landlord insurance $880 per year
HOA $744 per year
Yield 9.5%
Make your own judgement 
No. Can’t tell you.
Property tax expensive! 
5 years prior, even though rate is high (2.5% there about), appraisal is low relative to market price e.g. $230k was appraised at $120k. Some smart asses came around and started adjusting the land cost for the past five years, bring the land cost more or less to market price. In fact, this year, rate has dropped! Some appraised value has dropped too. I guess appraisal has caught up with market price.
I think nationally price appreciation is faster than rent appreciation. As the market stabilizes, rent yield has been going up 
Move to Austin and vote the liberal mayor down to bring down property tax. How can they increase property tax so much? Did government spending also increase 50% when home price increased 50%?
That’s how California was before prop 13. In Seattle, tax revenue is up 50% while population growth is 10%. They still say they don’t have enough tax revenue and spend it stupidly.
Tax increases 10% per year because appraised land worth jump 50-100%. Already has movement to limit tax increases to 2.5%. Current max is 10%.
Btw this happened in liberal controlled Travis county. Republican control Williamson county has dropped tax
Move to Austin and introduce Prop 13 to the naive Austinites
How big is this one? I am only getting $2000 for 4/2.5 and probably valued around $265K
4/3.5/2 2900/7600. Z$326k. R$317k. T$314k. So mine is lower yield at current price.
3 year contracts $55 increment per year, starting from $2155.
At $2210 rent, house is slightly cashflow positive since PITI + HOA = $2128 for 20% down, 80% loan. Slightly negative after accounting for PM 
Even more negative if account for maintenance and asset replacement 
I’ve heard of muliti-year lease but haven’t happened yet. Longest was 2 years - 1 yr lease and renewed for one more year. Does your PM insist on multi year when signing contact?
The usual contract is 1 year. After renting for 2 years, tenants wish to have a 3 years contract for stability not to disrupt their children school going. My house is within walking distance to all three schools 
, club house, CVS and Costco 
. I hate turnover so I allow a multi year contract. Current rent is $2300, so $90 discount. My PM like to give $50-$100 discount to market rent.