All Encompassing Mortgage and Real Estate Thread

[South Austin 51681]

9 hours ago, Gatorubet said:

I’d put the system on trial. 

And strenuously object.

[Neonmoon 38126]

Let's go Pivot!!

[Wulaw Horn 18919]

3 minutes ago, Neonmoon said:

Let's go Pivot!!

Don't talk about it.  Ignore it.  Leave it alone.  

[UTPhil2006 3773]

10 minutes ago, Neonmoon said:

Let's go Pivot!!

[Neonmoon 38126]

55 minutes ago, UTPhil2006 said:

And it's gone

[UTPhil2006 3773]

10 year today..

[Wulaw Horn 18919]

30-YR. CONFORMING

7.122% +0.018

30-YR. JUMBO

6.701% +0.029

30-YR. FHA

6.936% +0.043

30-YR. VA

6.808% +0.045

30-YR. USDA

6.862% -0.124

15-YR. CONFORMING

6.016% -0.056

[Wulaw Horn 18919]

This is from Mortgage news daily. I guess the average guy that's a little higher in rates doesn't use my pricing software.  Which, intuitively, probably makes sense as people with pricing software are pretty typically brokers I guess, as if you work for a single source lender you are just using their pricing sheet:

10/24/22
Mortgage Rates	Rate	Points	Change
30 Yr. Fixed	7.29%	0.00	-0.03%
15 Yr. Fixed	6.63%	0.00	-0.03%
30 Yr. Jumbo	6.25%	0.00	+0.00%
5/1 ARM	6.75%	0.00	+0.00%
30 Yr. FHA	6.92%	0.00	-0.03%
30 Yr. VA	6.95%	0.00	-0.02%

[UTPhil2006 3773]

0.15 drop in the 10 year to 4.07 as of about 9:20.  150 basis points more and we're right back in this.

[Wulaw Horn 18919]

34 minutes ago, UTPhil2006 said:

0.15 drop in the 10 year to 4.07 as of about 9:20.  150 basis points more and we're right back in this.

MBS are up 58 right now.  I was looking the other day and messing around with it and I think we only need to get back like 1800 points to get back to where we are.  No problem- at this rate we will only need about 31 days!  It's like when some dude hits 2 HR's on opening day and people are like- oh- he's on pace to hit 324 HR's on the year.  

[UTPhil2006 3773]

Yordan is the MBS market?

[Neonmoon 38126]

What do you call it when you’re been working with a client for 4 weeks working scenarios and then after they agree to lock, they search the internet for a better offer?

 

[Wulaw Horn 18919]

4 minutes ago, Neonmoon said:

What do you call it when you’re been working with a client for 4 weeks working scenarios and then after they agree to lock, they search the internet for a better offer?

 

Hope they search the internet in a day the market is down 100 bips instead of up 100 bips. Tough break today. 

[Gil Bang 25682]

58 minutes ago, Neonmoon said:

What do you call it when you’re been working with a client for 4 weeks working scenarios and then after they agree to lock, they search the internet for a better offer?

 

the Real Estate business

[Dbeasy 14790]

1 hour ago, Neonmoon said:

What do you call it when you’re been working with a client for 4 weeks working scenarios and then after they agree to lock, they search the internet for a better offer?

 

They’re just keeping you honest. Don’t take it personally. They’ll come back…unless you’re not honest. 

[Cornpop 230]

1 hour ago, Neonmoon said:

What do you call it when you’re been working with a client for 4 weeks working scenarios and then after they agree to lock, they search the internet for a better offer?

 

You handle shit like a man. 

 

For serious I have no fucking clue. Are you their realtor or mortgage broker?

[Wulaw Horn 18919]

49 minutes ago, Cornpop said:

You handle shit like a man. 

 

For serious I have no fucking clue. Are you their realtor or mortgage broker?

He’s their mortgage guy. 

[Wulaw Horn 18919]

1 hour ago, Dbeasy said:

They’re just keeping you honest. Don’t take it personally. They’ll come back…unless you’re not honest. 

If you work for a direct lender you get one shot to lock a deal, and you do it when the customer asks. Today- the MBS went up about 80 points meaning rates probably fell about 2/10’s of a point, so, what was honest and a good lock at 9:00 AM would have been worse than what was available at 5:00 pm through no fault of Neon- and he can’t move that later in all likelihood bc he’s already locked. 

[Neonmoon 38126]

2 hours ago, Wulaw Horn said:

If you work for a direct lender you get one shot to lock a deal, and you do it when the customer asks. Today- the MBS went up about 80 points meaning rates probably fell about 2/10’s of a point, so, what was honest and a good lock at 9:00 AM would have been worse than what was available at 5:00 pm through no fault of Neon- and he can’t move that later in all likelihood bc he’s already locked. 

Yup. Imagine if you were a realtor and a client was able to switch realtors after you got a house under contract. Maybe a realtor willing to take 1% commission that day instead of 3%. But they didn’t show them any houses? Well this lender didn’t answer countless emails, calls, and texts to advise and scenario multiple different houses offered. Same same 

Edited October 26, 2022 by Neonmoon

[UTPhil2006 3773]

If you haven’t locked him go back to him this morning. Down another .08. Don’t go down without a fight. 

[Dbeasy 14790]

12 hours ago, Neonmoon said:

Yup. Imagine if you were a realtor and a client was able to switch realtors after you got a house under contract. Maybe a realtor willing to take 1% commission that day instead of 3%. But they didn’t show them any houses? Well this lender didn’t answer countless emails, calls, and texts to advise and scenario multiple different houses offered. Same same 

Ah, so if I understand you right you and the customer decided to lock, and then the customer went looking for a better rate later in the day when rates improved? Isn’t there a payment required to lock? I thought that’s how you make sure that doesn’t happen?

[Pato del Muerto 52114]

13 hours ago, Neonmoon said:

Yup. Imagine if you were a realtor and a client was able to switch realtors after you got a house under contract. Maybe a realtor willing to take 1% commission that day instead of 3%. But they didn’t show them any houses? Well this lender didn’t answer countless emails, calls, and texts to advise and scenario multiple different houses offered. Same same 

They would all day long if it weren’t for the contract preventing it. Why realtors can get away with contracts but lenders and LOs can’t is a mystery. 

[Catpfish 618]

I'm assuming that people are betting on the Fed being less aggressive with rate hikes.  Other than home sales slowing, aren't prices still running hot?  Seems like a lot of people are fighting the Fed in the opposite direction of the early Brrrrrrrrttttt days and we know how that ended up.

[Neonmoon 38126]

15 minutes ago, Dbeasy said:

Ah, so if I understand you right you and the customer decided to lock, and then the customer went looking for a better rate later in the day when rates improved? Isn’t there a payment required to lock? I thought that’s how you make sure that doesn’t happen?

We don’t require a payment to lock. (All costs are baked into lender fee which is collected at closing). Most don’t require one upfront as a separate charge. If you lock a loan, you can continue shopping for better rates at a different lender. There is no law against it. You may run the risk of the loan not closing or on time, but if you’re far enough out, it shouldn’t be a problem. Shopping is part of the business. Its fine. But shopping after you handicap a lender into a locked rate is not my favorite thing in the world. 

[Wulaw Horn 18919]

7 minutes ago, Neonmoon said:

We don’t require a payment to lock. (All costs are baked into lender fee which is collected at closing). Most don’t require one upfront as a separate charge. If you lock a loan, you can continue shopping for better rates at a different lender. There is no law against it. You may run the risk of the loan not closing or on time, but if you’re far enough out, it shouldn’t be a problem. Shopping is part of the business. Its fine. But shopping after you handicap a lender into a locked rate is not my favorite thing in the world. 

Yep. The only out on that is to be a broker. And work with enough different lenders that the occasional busted lock doesn’t get you in trouble. 

[UTPhil2006 3773]

1 hour ago, Wulaw Horn said:

Yep. The only out on that is to be a broker. And work with enough different lenders that the occasional busted lock doesn’t get you in trouble. 

This. We have the option of moving to a different lender. But enough of those at a certain lender and they start tweaking your pricing for the worse if you keep busting locks 

[bluto 4819]

Can confirm good product that’s semi reasonably priced is still moving fast in housing side in dfw. Maybe not dozen offers first day but waiting a couple days means you’re sol

[jimmyjazz 45206]

46 minutes ago, bluto said:

Can confirm good product that’s semi reasonably priced is still moving fast in housing side in dfw. Maybe not dozen offers first day but waiting a couple days means you’re sol

It seems to me, at least in Austin, the "price declines" aren't so much year over year (yet) as they are coming of a way overheated spring 2022.

[YGIFS 19445]

I don't fucking know.  I'm tempted again, half logic, half bullshit...to sell our home and rent for a couple years and buy back into the area.  Or find some Qatari strawman to buy it and leaseback to me for awhile.  What the fuck is going on right now?  We're cash-flow crunched at work, insanely high equity in the house even by lowball objective numbers, interest rates beating the shit outta everything else in our life, no mortgage (small HELOC-about 10% of the home's FMV).  Every week is fucking different.  I have no idea what the hells going on, thanks for letting me vent.

[Dbeasy 14790]

I would not exit real estate right now. While the market could come down a fair amount over the next 1-3 years, the financial impact of being wrong on the bet would be a doozy. If inflation keeps climbing, the real estate prices will start climbing again and potentially price you out of your desired home, potentially forever. 

[Wulaw Horn 18919]

50 minutes ago, Dbeasy said:

I would not exit real estate right now. While the market could come down a fair amount over the next 1-3 years, the financial impact of being wrong on the bet would be a doozy. If inflation keeps climbing, the real estate prices will start climbing again and potentially price you out of your desired home, potentially forever. 

This. 
tell me where the supply is going to come from to make a big move down in price possible. I don’t see it. 
I could be wrong, but man, if I’m not wrong and there is no correction as you rightly point out you could get turbofucked. 

[Incredulity 11197]

So…. buy now… avoid future regret!

 

[Wulaw Horn 18919]

1 hour ago, Incredulity said:

So…. buy now… avoid future regret!

 

My contention is you are always best off buying when you can afford a house and you want to buy, trying to time the housing market or the interest rate market is as much of a fools errand as trying to time the stock market. YMMV. 

[YGIFS 19445]

Yeah, I know.  i just need to spout off.  Supply side is what worries me.  I'm not worried as much about interest rates and valuations.  We got that covered with the equity in the home and a few bps are gonna suck but if the kids are happy, I can live with it with high liquidity.  I guess we're gonna wait 6 months and get another HELOC to take advantage because moving twice in two years would suck ass.  But fuck me...leverage is so damn tempting.  Maybe we'll do an above-ground pool in the interim to satiate dad...

[Hefeweizen 5226]

My thoughts: right now is a shitty time to buy because sellers are still feeling their value is high.  Buyers are paying way more to borrow, but it doesn’t look like rates will come down for at least a year.  
 

I think aggressive negotiation is the best you can do and be flexible on location.  If you’re not, you’re handicapped because there may not be much you can do other than hope someone has to sell.  Specifically in Austin there is still catching up to do on demand and too little inventory that is market priced.

 

I sold right at the peak, so I got incredibly lucky, but I bought almost as fast as I could because a) rates were climbing fast and b) the market I’m in (California coast) has no new inventory, ever.  I suspect it will be three years out longer  before I see rates below 5 percent again.

[UTPhil2006 3773]

On 10/26/2022 at 9:32 AM, UTPhil2006 said:

If you haven’t locked him go back to him this morning. Down another .08. Don’t go down without a fight. 

Well looky there, a 3 as the first number in the 10 year.  Down another .07 as of 10am to 3.93

[gmr548 16315]

This. 
tell me where the supply is going to come from to make a big move down in price possible. I don’t see it. 
I could be wrong, but man, if I’m not wrong and there is no correction as you rightly point out you could get turbofucked. 

This. It’s not necessarily surprising that a rapid increase in interest rates has made the market volatile and suppressed short term demand.

The fundamentals still point toward a generally upward trajectory over the medium to long term.

[smokebomb 357]

Has anyone had any experience with using a service like Flyhomes? I’m more interested in using them as a bridge loan service. They seem to have a good reputation but wanted any input from this group.

Thoughts? Are they Good? Bad? Should I look at using a standard bridge loan instead?

[UTPhil2006 3773]

2 hours ago, smokebomb said:

Has anyone had any experience with using a service like Flyhomes? I’m more interested in using them as a bridge loan service. They seem to have a good reputation but wanted any input from this group.

Thoughts? Are they Good? Bad? Should I look at using a standard bridge loan instead?

Don’t know anything about Flyhomes but am curious as to what scenario you’re looking at a bridge loan for. May be better options 

[Neonmoon 38126]

We've partnered with Ribbon before. 

It's a good solution for certain rich buyers that need to sell a home before can afford buying new one, but don't want to do that and don't want a bridge loan.  Downside is it costs 2% fee

1. Get Pre-Approved First

2. Cash Offer on Home you want to buy. No appraisal. Close fast. 

3. Rent New Home from Ribbon until you sell old home

4. Buy Home Back from Ribbon at same price after you sell the home. 

 

[smokebomb 357]

8 hours ago, UTPhil2006 said:

Don’t know anything about Flyhomes but am curious as to what scenario you’re looking at a bridge loan for. May be better options 

The scenario that Neonmoon describes what we are looking for. I would like to move quickly on buying a new home if we see something we really like instead of waiting for ours to hit the market & sell. I also like the idea of moving into the new home before putting the old on the market & not have to deal with the hassle of showing the house & the rush to get out of it when it does close. 

7 hours ago, Neonmoon said:

We've partnered with Ribbon before. 

It's a good solution for certain rich buyers that need to sell a home before can afford buying new one, but don't want to do that and don't want a bridge loan.  Downside is it costs 2% fee

1. Get Pre-Approved First

2. Cash Offer on Home you want to buy. No appraisal. Close fast. 

3. Rent New Home from Ribbon until you sell old home

4. Buy Home Back from Ribbon at same price after you sell the home. 

 

Thanks - that’s exactly what I was seeing with Fly but I didn’t realize the steep fee. Outside of costs, are there any gotaches? The reviews for Fly seem overwhelming good but you know how those can be manipulated. My understanding is that you typically use your own mortgage company - is that also correct?

Thanks for the insight!

[Neonmoon 38126]

12 hours ago, smokebomb said:

The scenario that Neonmoon describes what we are looking for. I would like to move quickly on buying a new home if we see something we really like instead of waiting for ours to hit the market & sell. I also like the idea of moving into the new home before putting the old on the market & not have to deal with the hassle of showing the house & the rush to get out of it when it does close. 

Thanks - that’s exactly what I was seeing with Fly but I didn’t realize the steep fee. Outside of costs, are there any gotaches? The reviews for Fly seem overwhelming good but you know how those can be manipulated. My understanding is that you typically use your own mortgage company - is that also correct?

Thanks for the insight!

I’ve never worked worked with Flyhomes, but their website says they provide the mortgages. It says you can use your own lender, but I’m sure they will sweeten the pot to stop that from happening. The business model only works if they get all the pieces of the pie. I don’t know what Fly’s fees are either. But their website doesn’t really say. I would ask them specific questions about fees. Also, are you required to use their real estate agent? 
 

All reviews are manipulated to some extent. Companies aren’t posting bad reviews on their own website. They aren’t asking for google reviews if the client is crazy or had a bad experience. 

[KYHorn 16720]

So the hydrostatic test on my brothers house that we're trying to sell revealed a shower drain pipe leak due to tree roots. Estimate is $6.5k. I'm assuming we're just gonna have to bite the bullet on this one?

Edited November 4, 2022 by KYHorn

[NotActuallyALonghorn 4962]

Its a drain? If it's not completely busted maybe one of the pipe coating services can fix it? Of course you have to take care of the root of the problem as well.

[Neonmoon 38126]

1 hour ago, KYHorn said:

So the hydrostatic test on my brothers house that we're trying to sell revealed a shower drain pipe leak due to tree roots. Estimate is $6.5k. I'm assuming we're just gonna have to bite the bullet on this one?

You are required to disclose any known defects, including the plumbing system. As for biting the bullet, that is up to negotiations between you and the seller. They will ask you to pay for it in seller concessions or ask you to have it fixed before close. You don’t have to do it, but if you want to sell your house, you probably will. As for the lending side, if a conventional loan, as long as it doesn’t affect the structure, safety, or soundness of the home, it will be considered deferred maintenance and can be done after the sale. It lists minor plumbing leaks in this category. However, if the leak is determined to be an inadequate plumbing fixture by the appraiser, it will need to be fixed before close. 
 

 

[KYHorn 16720]

2 hours ago, NotActuallyALonghorn said:

Its a drain? If it's not completely busted maybe one of the pipe coating services can fix it? Of course you have to take care of the root of the problem as well.

Correct- the drain. Thanks for the suggestion.

1 hour ago, Neonmoon said:

You are required to disclose any known defects, including the plumbing system. As for biting the bullet, that is up to negotiations between you and the seller. They will ask you to pay for it in seller concessions or ask you to have it fixed before close. You don’t have to do it, but if you want to sell your house, you probably will. As for the lending side, if a conventional loan, as long as it doesn’t affect the structure, safety, or soundness of the home, it will be considered deferred maintenance and can be done after the sale. It lists minor plumbing leaks in this category. However, if the leak is determined to be an inadequate plumbing fixture by the appraiser, it will need to be fixed before close. 
 

 

Yeah, they know about it because it was part of the inspection. Unfortunately it's a VA loan and there's probably not much negotiating room, so it seems like it's probably either bite the bullet or see if some backup buyers might be interested. Even then, they'll probably still ask for it to be fixed, which is of course understandable. 

[TKthunder2 4959]

Shower drain isn’t a big deal. If it was a toilet drain it would be a bigger issue.

[KYHorn 16720]

48 minutes ago, TKthunder2 said:

Shower drain isn’t a big deal. If it was a toilet drain it would be a bigger issue.

I agree. If he was going to continue living in it, we'd probably leave it be for awhile. But when selling, I imagine most buyers would want it fixed.

Edited November 4, 2022 by KYHorn

[Wulaw Horn 18919]

MBS market up 104 points right now. Best morning in 2023. 
great inflation report today looks like we might have turned the corner. 

[Wulaw Horn 18919]

I’ve been saying that is what my guys are saying for 3 or 4 months now (we start comparing to really tough numbers in October of 21- which is reflected YOY in November 2022 levels) so it’s nice to see this finally come to fruition. 
If the rest of their stuff is right we are on a glide path down for lower rates for the rest of the year. 
Keep in mind we were national average of 7.2 yesterday so we’ve got a lot of room to go down.