All Encompassing Mortgage and Real Estate Thread

[Wulaw Horn 19123]

17 minutes ago, hornfan785 said:

What determines the difference in rates for the two Conventional 30's? I just submitted an offer on a house yesterday and the lender my realtor recommended quoted me a rate of 3.375. Seems in line with what you listed, but I'm just curious what the difference between the two were.

Loan size for me. Check your pm 

[Bevo 13579]

On 4/8/2020 at 3:19 PM, Wulaw Horn said:

Locked 4 loans the last 2 days:

VA 30 at 2.875

Conventional 30 at 3.25 

Conventional 30 at 3.375

Conventional 15 at 2.875 

those are all strong credit score refinance people paying no points. No hits for being home equities or odd loan terms (like 20 or 25 instead of 15 or 30). 

Could have done the 2 conventional 30 year loans 1/8 of a point lower if they’d have been purchases

I work cheaper than almost anyone else as a broker shop so your mileage may vary- especially in CA- but that’s what we are doing for our premium credit score buyers. 

Are those APR's?

[Wulaw Horn 19123]

Just now, Bevo said:

Are those APR's?

No. Actual interest rates. I’m not talking about paying points though so APR should be pretty damn close. 

[Sgt Hulk 13791]

Appreciate the reply gents. I never thought about lowest price technically acceptable repair. 

[Firemans4Horn 18112]

Sister was quoted $10k in closing costs and points to get to a 2.5% 15 year rate in Austin (her and my BIL have high 700’s credit at a minimum). If you want me to send you their info PM me with a ballpark price and contact info. 

[Neonmoon 38129]

On 4/8/2020 at 3:19 PM, Wulaw Horn said:

Locked 4 loans the last 2 days:

VA 30 at 2.875

Conventional 30 at 3.25 

Conventional 30 at 3.375

Conventional 15 at 2.875 

those are all strong credit score refinance people paying no points. No hits for being home equities or odd loan terms (like 20 or 25 instead of 15 or 30). 

Could have done the 2 conventional 30 year loans 1/8 of a point lower if they’d have been purchases

I work cheaper than almost anyone else as a broker shop so your mileage may vary- especially in CA- but that’s what we are doing for our premium credit score buyers. 

What was the credit score of the conventional 15 ?

 

[Wulaw Horn 19123]

1 hour ago, Neonmoon said:

What was the credit score of the conventional 15 ?

 

740

[UTPhil2006 3807]

13 hours ago, Firemans4Horn said:

Sister was quoted $10k in closing costs and points to get to a 2.5% 15 year rate in Austin (her and my BIL have high 700’s credit at a minimum). If you want me to send you their info PM me with a ballpark price and contact info. 

pdubord@prodigymbo.com

[Gil Bang 25978]

On 4/10/2020 at 10:16 AM, Sgt Hulk said:

Real estate pros.  Made an offer on a home in VA that was accepted.  Doing the home inspection next week.   I'm no baller but this is my first "used " home buy as all my buys in the past have been new builds.  Meaning this is my first home inspection.  

In the event something comes back, say HVAC unit is nearing its end of life, or water heater, or the roof has a few years left kind of deal, what would be the next steps?  Ask sellers to remedy?  negotiate reduced price and fix myself.   What in terms of home inspection is a minor inconvenience and not worth the haggle vs is yeah haggle. Aside from foundation, termite major systems.

Inspection is next week  

make sure you have a deluxe home warranty, paid for by the seller.  AC, roof, septic (if applicable) all have their own add-ons.   The seller will pay for 1 year.  You will have the opportunity to renew out-of-pocket.  

Meanwhile, as your inspector the following: "Is there anything here that would keep YOU from buying this house?"

[bluto 4932]

“Beginning Tuesday, Chase will require a credit score of more than 700 to grant a customer a new mortgage, CNBC reports. The bank will also demand a 20% down payment from borrowers in most cases.”

FHA will roll on though.

[6th Street 6426]

My broker is still offering me 3.25% on a 30-year refi, zero fees. Thinks rates are still inflated and will come down once the Feb/Mar spike gets processed and margin call pressures from lenders slows

[UTPhil2006 3807]

On 4/14/2020 at 12:03 PM, 6th Street said:

My broker is still offering me 3.25% on a 30-year refi, zero fees. Thinks rates are still inflated and will come down once the Feb/Mar spike gets processed and margin call pressures from lenders slows

Some are definitely releasing the reins on rates, but they're definitely doing it from the top down.  Like you said, I think as they process more of the glut of refinances from a month ago, and open more resources and such more will open up.  Hopefully.

[Sgt Hulk 13791]

Home inspection came back today gents.  Things that are of concern to me, but I am not sure warrant a negotiation of credits.   1) this one I will have addressed, moisture and rotting wood siding in several areas  close to the bottom and several pieces buckling or you can see the rotted wood painted over.    the next 2 ill defer to the experts.   the current HVAC unit wasn't tested something about it wasnt a certain temperature to run it, and if it was ran it could have damaged it.  The issue is the HVAC is 18 years old,  yes passed its end life.   Water heater is 14 years old.    those are the 3 that stuck out.  roof was asphalt shingles and looked a few years old.    back concrete patio had a crack in it and was lifted a bit.  

How would you guys handle if you would handle the HVAC and water heater issue?

Edited April 17, 2020 by Sgt Hulk

[UT_OB1 2224]

1)Are you in any rush to buy this home?  Is it the end of the world if you move on?

2) Does there appear to be serious competition for the house?  Do you think it’s a sellers market (I can’t imagine the answer is yes)

If the answer to 1 is no, tell them you want $10k off. Personally I’d probably ask $25k less, just for shits and grins. My realtor has probably been embarrassed by some of the offers I’ve asked him to make, but who cares?  Worst the seller can do is say no, and the way the market is likely headed, you as the buyer need to make sure you realize there are lots of homes, don’t fall in love with “the one” and lose your negotiating leverage  

Edited April 17, 2020 by UT_OB1

[Sgt Hulk 13791]

1 minute ago, UT_OB1 said:

1)Are you in any rush to buy this home?  Is it the end of the world if you move on?

2) Does there appear to be serious competition for the house?  Do you think it’s a sellers market (I can’t imagine the answer is yes)

If the answer to 1 is no, tell them you want $10k off. Personally I’d probably ask $25k less, just for shits and grins. My realtor has probably been embarrassed by some of the offers I’ve asked him to make, but who cares?  Worst the seller can do is say no, and the way the market is likely headed, you as the buyer need to make sure you realize there are lots of homes, don’t fall in love with “the one” and lose your negotiating leverage  

I wouldnt call it a rush, we move in July, so no panic yet,  def not the end of the world, but in the area that we are looking low inventory and we werent the only offer on the place as i was told.   many thanks 

[Wulaw Horn 19123]

13 hours ago, UTPhil2006 said:

Some are definitely releasing the reins on rates, but they're definitely doing it from the top down.  Like you said, I think as they process more of the glut of refinances from a month ago, and open more resources and such more will open up.  Hopefully.

And I agree with this but I’m also counseling if you have a deal that works for you right now the. You should probably do it. The upside is rates go down a little bit. The downside is they go up and you lose your savings you could have had. 

I would view doing a refinance that works for you now as taking even money in blackjack on a 6/5 table. You are probably giving away a little bit of your win, but you are locking in a win that might not be there in the future. 

When I play blackjack and I have a table minimum bet I don’t take even money. When I have a large bet on the table I do. 

[bluto 4932]

Somehow the contract on my house has held strong. Originally set for an April 27 close, the buyers’ loan docs got cleared and appraisal too, I asked to close early. They balked so we offered a $500 credit to close a week early... they accepted. It’s a wash to me financially as my carrying costs are $70/day anyhow.

 

Just gotta survive these next 90 hours!

[troph 24874]

that's nerve wracking.

[UTPhil2006 3807]

10 hours ago, Wulaw Horn said:

And I agree with this but I’m also counseling if you have a deal that works for you right now the. You should probably do it. The upside is rates go down a little bit. The downside is they go up and you lose your savings you could have had. 

I would view doing a refinance that works for you now as taking even money in blackjack on a 6/5 table. You are probably giving away a little bit of your win, but you are locking in a win that might not be there in the future. 

When I play blackjack and I have a table minimum bet I don’t take even money. When I have a large bet on the table I do. 

Correct.  I was more pointing out that we're slowly getting back to where rates should theoretically be, rather than being strangleheld by lenders for various reasons

[Wulaw Horn 19123]

58 minutes ago, UTPhil2006 said:

Correct.  I was more pointing out that we're slowly getting back to where rates should theoretically be, rather than being strangleheld by lenders for various reasons

Oh absolutely. I took it that way. Based upon my pricing from 3 months ago and a month ago based upon where the market was and my price I’d say 30 should be around 3/8 to 1/2 a point lower than it is right now. But, at least now it’s based upon something other than the whim of any particular lender. 

Also- I’m starting to wonder if it will be possible for rates to stay in the 2’s for any appreciable amount of time without just swamping the industry again and bringing all these problems back to the fore. 

 

Maybe if it happened in an orderly fashion down instead of falling off a cliff like last time. 

[Gil Bang 25978]

13 hours ago, Sgt Hulk said:

Home inspection came back today gents.  Things that are of concern to me, but I am not sure warrant a negotiation of credits.   1) this one I will have addressed, moisture and rotting wood siding in several areas  close to the bottom and several pieces buckling or you can see the rotted wood painted over.    the next 2 ill defer to the experts.   the current HVAC unit wasn't tested something about it wasnt a certain temperature to run it, and if it was ran it could have damaged it.  The issue is the HVAC is 18 years old,  yes passed its end life.   Water heater is 14 years old.    those are the 3 that stuck out.  roof was asphalt shingles and looked a few years old.    back concrete patio had a crack in it and was lifted a bit.  

How would you guys handle if you would handle the HVAC and water heater issue?

Is there a termite report?  No idea about Texas, but out here, rotted siding would be on the pest report, and any competent agent would have included "clear pest report is seller's expense" in the contract.  As far as the other two, were the HVAC and WH systems visible to you when you made the offer?  If so, then you knew that they were old.  

I'd demand that the HVAC be in working order, at the very least.  I'd ask that the system be serviced by a licensed company, and certified to be in working order. 

Certainly, you can ask for a credit.  I'd highly recommend buying a home warranty policy that includes HVAC, and keeping it active until the HVAC and WH shit the bed.  

[Gil Bang 25978]

1 hour ago, Wulaw Horn said:

Oh absolutely. I took it that way. Based upon my pricing from 3 months ago and a month ago based upon where the market was and my price I’d say 30 should be around 3/8 to 1/2 a point lower than it is right now. But, at least now it’s based upon something other than the whim of any particular lender. 

Also- I’m starting to wonder if it will be possible for rates to stay in the 2’s for any appreciable amount of time without just swamping the industry again and bringing all these problems back to the fore. 

 

Maybe if it happened in an orderly fashion down instead of falling off a cliff like last time. 

Well, with unemployment the way it is, I don't think that the industry would be all that swamped.  Lots of folks know full well that they won't qualify for a refi.

[Longhornmaniac8 255]

Locked in a 3.625% 30-year with 5% down, no PMI the other day. Feeling pretty good about that one.

[Wulaw Horn 19123]

23 minutes ago, Gil Bang said:

Well, with unemployment the way it is, I don't think that the industry would be all that swamped.  Lots of folks know full well that they won't qualify for a refi.

No doubt. But, only 67% of America is a homeowner and my bet is that the job losses as of right now are hitting non homeowners disproportionately harder. That’s a guess, but I obviously think it’s right or I wouldn’t have said that. 

[Sgt Hulk 13791]

28 minutes ago, Gil Bang said:

Is there a termite report?  No idea about Texas, but out here, rotted siding would be on the pest report, and any competent agent would have included "clear pest report is seller's expense" in the contract.  As far as the other two, were the HVAC and WH systems visible to you when you made the offer?  If so, then you knew that they were old.  

I'd demand that the HVAC be in working order, at the very least.  I'd ask that the system be serviced by a licensed company, and certified to be in working order. 

Certainly, you can ask for a credit.  I'd highly recommend buying a home warranty policy that includes HVAC, and keeping it active until the HVAC and WH shit the bed.  

Thank you,   I'm in LA and they are in VA so this is all virtual, so no i didnt not know the age of the HVAC and WH, after sleeping on it, and some research, the WH isnt as much of a concern to me as the HVAC and siding,  The sellers are throwing in a 1 year home warranty, so i'm not sure how far i should press on a credit.   My agent is drafting language about pest and getting the moisture looked at as that is top priority.  Thanks for reply 

[LebongJames 1813]

We closed on our current house today. We accepted a full price offer on the first day we put it on the market. 28 days later everything went smoothly. Was pretty nervous with everything going on. We were in SE Austin in a new community called Easton Park. 

 

Edited April 17, 2020 by LebongJames

[Chewbacca 7780]

Locked in a 3.625% 30-year with 5% down, no PMI the other day. Feeling pretty good about that one.

How the fuck is this a thing again? We learned nothing from the last recession.

[Longhornmaniac8 255]

Just now, Chewbacca said:

2 hours ago, Longhornmaniac8 said:

Locked in a 3.625% 30-year with 5% down, no PMI the other day. Feeling pretty good about that one.

How the fuck is this a thing again? We learned nothing from the last recession.

It's not readily available. Only certain programs and certain people qualify.

[Chewbacca 7780]

It's not readily available. Only certain programs and certain people qualify.

Nobody should qualify for that, imo. Because if the value of your home drops 20% (as it might here soon), many people would just walk. That's the point of PMI.

[Gil Bang 25978]

3 hours ago, Sgt Hulk said:

Thank you,   I'm in LA and they are in VA so this is all virtual, so no i didnt not know the age of the HVAC and WH, after sleeping on it, and some research, the WH isnt as much of a concern to me as the HVAC and siding,  The sellers are throwing in a 1 year home warranty, so i'm not sure how far i should press on a credit.   My agent is drafting language about pest and getting the moisture looked at as that is top priority.  Thanks for reply 

So, the home warranty will cover you should the WH or HVAC crap out.  MAKE SURE THAT AC IS COVERED!  It costs extra.  Get a cadillac plan, and make sure to renew it when it expires.  400 bucks or so is cheap insurance with old HVAC

[bluto 4932]

Effin Realtors man. Buyers agent didn’t get the amendment to the lender and rules require 3 days lead time on getting things squared away before closing. So pushed back to late next week... butttt buyer agent is now paying buyers the $500 early close credit so I’m coming out ahead a few hundo. I’d rather have it closed though

[LTtxfan 49279]

19 hours ago, bluto said:

Somehow the contract on my house has held strong. Originally set for an April 27 close, the buyers’ loan docs got cleared and appraisal too, I asked to close early. They balked so we offered a $500 credit to close a week early... they accepted. It’s a wash to me financially as my carrying costs are $70/day anyhow.

Just gotta survive these next 90 hours!

 

23 minutes ago, bluto said:

Effin Realtors man. Buyers agent didn’t get the amendment to the lender and rules require 3 days lead time on getting things squared away before closing. So pushed back to late next week... butttt buyer agent is now paying buyers the $500 early close credit so I’m coming out ahead a few hundo. I’d rather have it closed though

 

Hang in there...

[Upgrayedd 5815]

5 hours ago, Chewbacca said:

5 hours ago, Longhornmaniac8 said:

It's not readily available. Only certain programs and certain people qualify.

Nobody should qualify for that, imo. Because if the value of your home drops 20% (as it might here soon), many people would just walk. That's the point of PMI.

You think it's a 20% drop?  Trying to convince the gf to be patient (after I killed the last deal).

[Wulaw Horn 19123]

7 hours ago, Longhornmaniac8 said:

Locked in a 3.625% 30-year with 5% down, no PMI the other day. Feeling pretty good about that one.

That’s a good deal man. Congrats. 

[troph 24874]

You think it's a 20% drop?  Trying to convince the gf to be patient (after I killed the last deal).

Absolutely depends where. In some spots no way.

[Upgrayedd 5815]

1 minute ago, troph said:

Absolutely depends where. In some spots no way.

Lower Vail Valley, CO.

[Chewbacca 7780]

You think it's a 20% drop?  Trying to convince the gf to be patient (after I killed the last deal).

I could be wrong, but i think mountain RE is going to get hammered this summer. Second homes are the first thing to go when cutting costs.

That's what happened in 08-10.

[Upgrayedd 5815]

16 minutes ago, Chewbacca said:

I could be wrong, but i think mountain RE is going to get hammered this summer. Second homes are the first thing to go when cutting costs.

That's what happened in 08-10.

And that was with ski areas open.  I doubt they open this year.  That’s 18 months of no rental/air bnb/vrbo rental for owners up there.  She didn’t want to stay here another summer, but I’m digging in.

[LebongJames 1813]

56 minutes ago, Upgrayedd said:

You think it's a 20% drop?  Trying to convince the gf to be patient (after I killed the last deal).

Obviously its like Tropheus said. The calls I am on for work are all over the place but the demand in Texas is so high and the supply is short I don’t think you will see that. Texas once again is lagging majorly on the unemployment numbers coming in.  I can’t find the exact figures but Austin is still only reporting around a 4% unemployment number. It was in the Business journal this morning.
 

Austin has 1.2 months of supply and the greater Austin area only has 1.6 months of supply.

[Chewbacca 7780]

And that was with ski areas open.  I doubt they open this year.  That’s 18 months of no rental/air bnb/vrbo rental for owners up there.  She didn’t want to stay here another summer, but I’m digging in.

You can rent. Summer in the mountains is glorious. Just wait to buy.

[Chewbacca 7780]

Obviously its like Tropheus said. The calls I am on for work are all over the place but the demand in Texas is so high and the supply is short I don’t think you will see that. Texas once again is lagging majorly on the unemployment numbers coming in.  I can’t find the exact figures but Austin is still only reporting around a 4% unemployment number. It was in the Business journal this morning.
 
Austin has 1.2 months of supply and the greater Austin area only has 1.6 months of supply.

Give those numbers a month. All of them.

[LebongJames 1813]

2 minutes ago, Chewbacca said:

48 minutes ago, LebongJames said:

Obviously its like Tropheus said. The calls I am on for work are all over the place but the demand in Texas is so high and the supply is short I don’t think you will see that. Texas once again is lagging majorly on the unemployment numbers coming in.  I can’t find the exact figures but Austin is still only reporting around a 4% unemployment number. It was in the Business journal this morning.
 
Austin has 1.2 months of supply and the greater Austin area only has 1.6 months of supply.

Give those numbers a month. All of them.

You’re right but existing inventory will be even lower. Unemployment will undoubtedly be higher. All in all Texas as a whole will fare better than a lot of places. Houston/Midland will be a different story because of oil.

[Chewbacca 7780]

You’re right but existing inventory will be even lower. Unemployment will undoubtedly be higher. All in all Texas as a whole will fare better than a lot of places. Houston/Midland will be a different story because of oil.

More than 10 percent of the country has filed unemployment in the past month. Some areas will be hit harder than others, but there is nowhere safe. And oil taking a shit will be a double whammy for much of Texas.

[LebongJames 1813]

4 minutes ago, Chewbacca said:

9 minutes ago, LebongJames said:

You’re right but existing inventory will be even lower. Unemployment will undoubtedly be higher. All in all Texas as a whole will fare better than a lot of places. Houston/Midland will be a different story because of oil.

More than 10 percent of the country has filed unemployment in the past month. Some areas will be hit harder than others, but there is nowhere safe. And oil taking a shit will be a double whammy for much of Texas.

We see things differently so let’s just agree to disagree.

[Chewbacca 7780]

We see things differently so let’s just agree to disagree.

So you think things are gonna keep humming along? Care to wager on that?

[LebongJames 1813]

No not humming along but I don’t think we will see a major decline of home prices in Texas. Interest rates will keep going lower. We will some decline in some neighborhoods but it won’t be anywhere near 20% on an overall number. I also think this is more of a U shaped recession than the L from 2009. Sure I’d wager

Edited April 18, 2020 by LebongJames

[Chewbacca 7780]

No not humming along but I don’t think we will see a major decline of home prices in Texas. Interest rates will keep going lower. We will some decline in some neighborhoods but it won’t be anywhere near 20% on an overall number. I also think this is more of a U shaped recession than the L from 2009. Sure I’d wager

Rates are damn near as low as they will go, and the buyer pool is rapidly shrinking.

The 20 percent comment is for the harder hit areas, but nowhere is immune. Everywhere is going to feel it, like 10 years ago.

What do you want to bet and how do we quantify it?

[LebongJames 1813]

11 minutes ago, Chewbacca said:

 

 

Rates are damn near as low as they will go, and the buyer pool is rapidly shrinking.

The 20 percent comment is for the harder hit areas, but nowhere is immune. Everywhere is going to feel it, like 10 years ago.

What do you want to bet and how do we quantify it?

 

Not sure how to quantify. But let’s do this. The Austin median home price is $415,000 according to the ABOR today. I will bet $200 it is not be lower than $332,00 at any time over the next year. I’d even go $352,750 

Edited April 18, 2020 by LebongJames

[Chewbacca 7780]

Not sure how to quantify. But let’s do this. The Austin median home price is $415,000 according to the ABOR today. I will bet $200 it is not lower 332,000 at any time over the next year

I just said the 20%is not for everywhere. That's probably on the high end.

I would bet it is lower than 394k at some point in the next year. That's a 5% drop.

You don't think Austin will take a hit, right?

[LebongJames 1813]

2 minutes ago, Chewbacca said:

I just said the 20%is not for everywhere. That's probably on the high end.

I would bet it is lower than 394k at some point in the next year. That's a 5% drop.

You don't think Austin will take a hit, right?

I don’t think it will be long term but there could a 5% drop over the next year. If there is a drop there would be 1-3% increase the following year. I don’t see 5% drop as major as I said earlier. Maybe a slight correction of 12 years of straight growth.