Mortgage market has gone crazy

[ejman]

Where is the money coming from for these 3.5% 30 year loans? Apparently lots of folks with money to lend are thinking that not only there won't be much inflation at all over the next 30 years but that we are sliding right into deflation. I always read that the Fed was very good at controlling short term rates but no so much for long term rates. Is the Fed so powerful now that it can really control long term rates this much?

 

[Rowdy]

Capwest Mortgage is at 3.375%, 30 year, 0 pts, ~$2k closing costs. I used Capwest on my last refi at a rate of 4.125% about 1.5 years ago.

 

[Lsbcal]

Capwest Mortgage is at 3.375%, 30 year, 0 pts, ~$2k closing costs. I used Capwest on my last refi at a rate of 4.125% about 1.5 years ago.

This is very close to what we locked in today with our credit union.

 

[rayvt]

Suppose one has (1) Social Security income, (2) withdrawals from retirement accounts. What does the government want to see from item #2 to get the best rates? The retirement withdrawals for us are completely discretionary.

They want to see a letter from the IRA custodian that you are getting a fixed monthly draw of $XX per month, and that the account is large enough to sustain that draw for at least 3 years. You need to set this up a couple of months before you apply, and they sometimes want to see the draw show up as a deposit into your checking account. You can cancel it after you close on the mortgage.

I've been through this 3 times now.

 

[Lsbcal]

They want to see a letter from the IRA custodian that you are getting a fixed monthly draw of $XX per month, and that the account is large enough to sustain that draw for at least 3 years. You need to set this up a couple of months before you apply, and they sometimes want to see the draw show up as a deposit into your checking account. You can cancel it after you close on the mortgage.

I've been through this 3 times now.

We refinanced in 2010 and they just wanted to see the Fed 1040 showing the net taxable distributions. We have not set up monthly withdrawals and yesterday I locked in a rate.

So I'm hoping that the loan guy I talked to will be OK with (1) a Fed 1040, (2) perhaps some statements showing the withdrawals at irregular intervals for last year. The loan guy seemed to think this was enough and didn't even think we'd need to bother with the Social Security income. But then he is not the compliance department.

 

[rayvt]

Yeah, the loan guys you talk to on the phone don't know all the details. Mine was all okay until it went to the underwriter, and she was the one who wanted to see the periodic draw confirmation from my IRA custodian and the checking account statement showing the deposit. At the time, they would not accept anything other than a confirm from the broker. And they especially would not accept our irregular withdrawals--it had to be regular fixed amount monthly withdrawals. Near as I can figure, they want it to look like a paycheck.

Wierdly, the last 2 times we refi'd, they did not want to see our 1040. Of course, Roth withdrawals aren't taxable, so those won't show up as taxable distributions at all. I even offered to send in a copy of the 1040's and they had no interest in seeing them.
Maybe it depends on the underwriter who reviews your file, maybe it depends on what side of bed they got out of.

 

[Lsbcal]

Ray, this makes me wonder if they just ask for the maximum and then if you have an alternate situation they accept something less then their optimal choice. We have an LTV of under 20% and plenty of income to cover our loan. It's almost stupid to have to do an appraisal but those are the rules.

BTW, we have security freezes on our accounts and I had to unfreeze with the 3 credit agencies (for myself + DW, so that is 6 forms to deal with) so they could run their credit checks. The world we live in now.

 

[tryan]

And if we follow the path of Japan ...

 

[someguy]

mortgage

Doing a 3.5% 30-fixed with 0 pts, $0 fees. $1.2K on closing, plus prepaids (small). Using National Bank of Kansas City. Unlike some of the others mentioned in this thread, they write in all 50 US states. Also, their process is completely electronic except for one IRS form that requires a true hand signature.

 

[ChiliPepr]

DW and I built a house last year and have a 30 year traditional at 4.375

I just locked in 3.375 for a 20 year refi with Amerisave. The payment on the refi is about $200/mo more than what I pay now, closing costs will be about $1900.

I am just about to close on an Amerisave mortgage. This will be the second refi I have done with them.

I got 3.5% on a 30 year for about $2,200 in closing costs & appraisal, and a $2,350 credit. So into pocket about $150 to me. (There is a bit more of a credit now, I locked about 5 weeks ago)

I recommend Amerisave if you have all your documents, good DTI and LTV ratios. Their appraisal came in a bit low (and the appraiser even said it would).

 

[Bimmerbill]

I am going to try to get my 4.875 fixed rate with about 25-26 years left refinanced into a 15 year at 3.00 or so. Shave off 10 years and my P&I only goes up $200 a month.
Maybe I should price out a 20 year as well.

 

[jayc]

Did a refinance at the credit union last week and got a 10 year fixed 3.37% with closing costs capped at $900. No escrow. They even let me keep the current HELOC which is 2.68%. I thought they would make me roll it in. They do not sell the loans. They were more interested in monthly income than total assets. But when asked for any other income, I said 'You guys pay me about 10K year in CD interest', she did not even write it down. We had to show them paycheck stubs 2 different times and at closing. My average CD ladder rate for the next 2 years is 3.9%.

 

[Texas Proud]

I am going to try to get my 4.875 fixed rate with about 25-26 years left refinanced into a 15 year at 3.00 or so. Shave off 10 years and my P&I only goes up $200 a month.
Maybe I should price out a 20 year as well.

I am going to go for the 3% also... lower rates cost more than it is worth...

The 20 year rate does not seem to be that much different than 30...

 

[ronocnikral]

Well...my credit isn't the greatest (long story, and everyone has one). But, with home box loans, I'm at a 3.625 30 yr no cost. It will save just under $100/month. So, I'm in!

 

[Texas Proud]

Well...my credit isn't the greatest (long story, and everyone has one). But, with home box loans, I'm at a 3.625 30 yr no cost. It will save just under $100/month. So, I'm in!

I filled out the app for Box today... but the cost went up from yesterday by about $300 for some reason... I will check it out next week and lock it in soon.. or get a bit higher rate for less money...

 

[brewer12345]

I filled out the app for Box today... but the cost went up from yesterday by about $300 for some reason... I will check it out next week and lock it in soon.. or get a bit higher rate for less money...

Box' pricing comes direct from the MBS market and is updated at least once a day. So the move was due to moves in the MBS market.

I told them that I would be out of town on the proposed date of the closing and they said a POA for DW would be fine. Appraiser showing up on Monday.

 

[tmm99]

And if we follow the path of Japan ...

That's exactly what I was wondering about a few posts back.
I haven't checked in a while, but the mortgage rate was about 2 percent; deposit interest rate 0.5%.

 

[brewer12345]

That's exactly what I was wondering about a few posts back.
I haven't checked in a while, but the mortgage rate was about 2 percent; deposit interest rate 0.5%.

Then I will refinance yet again...

 

[Gabieta]

I am definitely guilty of being a serial mortgage refinancer. I promised my husband last fall when we did a VA streamline refi to a 30 year fixed at 3.75% that we were done.

Then, last week I get an email from the same mortgage broker:

"I hope you are doing well. I am following up with past clients to inform you of the recent rate decrease. I could drop your interest rate to 3.25% for 30 year fixed. Some loan details:
1) No income or assets needed
2) No appraisal needed
3) 0 points and 0 origination fee
4) Lender credit for title charges , so no cost loan"


So, I guess we are going to re-fi again at 3.25% . . . I'm sure this time will be the last . . .

 

[Lsbcal]

...

So, I guess we are going to re-fi again at 3.25% . . . I'm sure this time will be the last . . .

I would do this too. But is it too good to be true? I'd call the lender using a phone number that I knew to be legitimate.

 

[ejman]

I am definitely guilty of being a serial mortgage refinancer. I promised my husband last fall when we did a VA streamline refi to a 30 year fixed at 3.75% that we were done.

Then, last week I get an email from the same mortgage broker:

"I hope you are doing well. I am following up with past clients to inform you of the recent rate decrease. I could drop your interest rate to 3.25% for 30 year fixed. Some loan details:
1) No income or assets needed
2) No appraisal needed
3) 0 points and 0 origination fee
4) Lender credit for title charges , so no cost loan"


So, I guess we are going to re-fi again at 3.25% . . . I'm sure this time will be the last . . .

Amazing, this nails it. It must be deflation for the next 30 years so 3.25 % for 30 years looks awfully good to whoever is lending the money.

 

[Gabieta]

I would do this too. But is it too good to be true? I'd call the lender using a phone number that I knew to be legitimate.

Yes, it's legitimate, and we are in the process now. This one came out of nowhere, and completely unsolicited on my part.

There was a time when VA mortgages cost more than the conventional, but that has changed -- plus they offer a streamline refinance option that is completely painless, officially known as IRRRL (Interest Rate Reduction Refinancing Loan.)

 

[Semiretired2008]

Recently, I have been getting telemarketing calls offering the low rate of 6.75%... What planet are they on?

 

[ripper1]

Amazing, this nails it. It must be deflation for the next 30 years so 3.25 % for 30 years looks awfully good to whoever is lending the money.

Well, I am in the process of getting 3.375 with 0 lender costs but third party costs of 1400 total. So I guess so far it looks like you got the best deal so far. How long was that offer out there......30 seconds.

 

[ripper1]

I would do this too. But is it too good to be true? I'd call the lender using a phone number that I knew to be legitimate.

In talking to my lender at First Financial Services, Inc. he said that 3.25% rate was out there for maybe one day and you had to have at least a 60% equity stake and of course stellar credit.