All Encompassing Mortgage and Real Estate Thread

[LTtxfan 49238]

20 minutes ago, Wulaw Horn said:

Down 44 basis points this morning. Basically back to the worst of 2022 after a pretty good January. Fuck you February and March so far. 

Sorry, not a mortgage guy... thx for info !!!

What's down 44 basis pts ??

[Wulaw Horn 19077]

3 minutes ago, LTtxfan said:

Sorry, not a mortgage guy... thx for info !!!

What's down 44 basis pts ??

Down 44 MBS points means interest rates went up 1/8 of a percent to borrowers. It’s bad news. 

[BTW 370]

19 hours ago, RMac5 said:

Where in Co. If you don’t mind, just curious, wanted to buy something there but the COVID real estate price increase kicked me out. Sucks to be poor!

Crested Butte, I picked it up in late 2020 right before the COVID effect on real estate pricing up there really kicked in.  I'd like to say I knew what I was doing, but it was dumb luck.

[UTPhil2006 3807]

1 hour ago, LTtxfan said:

Sorry, not a mortgage guy... thx for info !!!

What's down 44 basis pts ??

We went through the 4.0% 10 year treasury. Little less than a month ago it was 3.35. Bad news 

[Incredulity 11675]

6 minutes ago, UTPhil2006 said:

We went through the 4.0% 10 year treasury. Little less than a month ago it was 3.35. Bad news 

[LTtxfan 49238]

2 hours ago, Wulaw Horn said:

Down 44 MBS points means interest rates went up 1/8 of a percent to borrowers. It’s bad news. 

 

39 minutes ago, UTPhil2006 said:

We went through the 4.0% 10 year treasury. Little less than a month ago it was 3.35. Bad news 

Thanks... I'll try to keep up better.  

Just moved 1 parent to assisted living, and the other just had a heart valve procedure and currently in hospital with left side weakness.  🙏

So my mental state is frazzled right now.

[RMac5 1551]

2 hours ago, BTW said:

Crested Butte, I picked it up in late 2020 right before the COVID effect on real estate pricing up there really kicked in.  I'd like to say I knew what I was doing, but it was dumb luck.

You dog! Love CB, we go there every year, actually we go to Lake City every year and make day trips to CB. Lake City is where we were wanting to buy something but the market priced us out during COVID. I’m envious for sure.

[Incredulity 11675]

I did something similar with a vacation place in OCT of 2020.  Not in CB or Colorado

It has nearly doubled according to Zillow( I know, I know).  Point being I could hypothetically sell it for a significant gain.

 

Paper gain has been nice, but I don't want to sell it, I want to use it.  

 

I would guess that gain is going to evaporate in the not to distant future.  Can't put a price on family time, right?....RIGHT???

[Wulaw Horn 19077]

51 minutes ago, Incredulity said:

I did something similar with a vacation place in OCT of 2020.  Not in CB or Colorado

It has nearly doubled according to Zillow( I know, I know).  Point being I could hypothetically sell it for a significant gain.

 

Paper gain has been nice, but I don't want to sell it, I want to use it.  

 

I would guess that gain is going to evaporate in the not to distant future.  Can't put a price on family time, right?....RIGHT???

If you doubled your money sell and use that to pay for kick ass VRBO’s for the rest of your life. 

[Incredulity 11675]

22 minutes ago, Wulaw Horn said:

If you doubled your money sell and use that to pay for kick ass VRBO’s for the rest of your life. 

No cap gains exemption = BEND THE FUCK OVER

[Neonmoon 38129]

8 hours ago, Wulaw Horn said:

Down 44 basis points this morning. Basically back to the worst of 2022 after a pretty good January. Fuck you February and March so far. 

Does anyone need a ZJ? 

[B00M 6416]

7 hours ago, Neonmoon said:

Does anyone need a ZJ? 

[Captainant 27680]

22 hours ago, BTW said:

Crested Butte, I picked it up in late 2020 right before the COVID effect on real estate pricing up there really kicked in.  I'd like to say I knew what I was doing, but it was dumb luck.

Wow congrats! My grandad and aunt lived in CB for most of my childhood, it's such a beautiful and magical place - like the little town inside of a snowglobe

[UTPhil2006 3807]

23 hours ago, UTPhil2006 said:

We went through the 4.0% 10 year treasury. Little less than a month ago it was 3.35. Bad news 

Got to 4.07 yesterday. Trying to get back below 4.0 now this morning going down. Someone needs to get Thujone to do a MS paint of the last 9 months of this similar to the Aggy rollercoaster 

[ChickenSandwich 9843]

Did we hit 7% rates today?

[Wulaw Horn 19077]

1 minute ago, ChickenSandwich said:

Did we hit 7% rates today?

Nope. Yesterday. 

[Nice Guy Eddie 13515]

Social media has been pushing stories to me about how real estate is f-ed right now. Too many homeowners are sitting on <3% mortgages so they basically can’t (won’t) sell. Trading up to a larger house or more desired location creates too large of a jump in the monthly payment. This is me to some extent.

Anecdotal but in looking at a Zillow map I’ve noticed a drop in houses for sale in my area recently when it’s usually a healthy market.

Is this occurring in most areas now?

Edited March 6, 2023 by Nice Guy Eddie

[Wulaw Horn 19077]

7 minutes ago, Nice Guy Eddie said:

Social media has been pushing stories to me about how real estate is f-ed right bow. Too many homeowners are sitting on <3% mortgages so they basically can’t (won’t) sell. Trading up to a larger house or more desired location creates too large of a jump in the monthly payment. This is me to some extent.

Anecdotal but in looking at a Zillow map I’ve noticed a drop in houses for sale in my area recently when it’s usually a healthy market.

Is this occurring in most areas now?

Yes. 

[Dbeasy 15067]

20 minutes ago, Nice Guy Eddie said:

Social media has been pushing stories to me about how real estate is f-ed right now. Too many homeowners are sitting on <3% mortgages so they basically can’t (won’t) sell. Trading up to a larger house or more desired location creates too large of a jump in the monthly payment. This is me to some extent.

Anecdotal but in looking at a Zillow map I’ve noticed a drop in houses for sale in my area recently when it’s usually a healthy market.

Is this occurring in most areas now?

The other issue for savvy homeowners is that property tax caps reset when you sell and buy another house. So let’s say you have a $500k house with $10k property taxes. Every year they can only go up 10% in Texas. But house prices have almost doubled in the last few years. If you go buy the same size house it’s now $900k. Your property taxes reset and are now $18k, almost double. Ouch. 

[Nice Guy Eddie 13515]

46 minutes ago, Dbeasy said:

The other issue for savvy homeowners is that property tax caps reset when you sell and buy another house. So let’s say you have a $500k house with $10k property taxes. Every year they can only go up 10% in Texas. But house prices have almost doubled in the last few years. If you go buy the same size house it’s now $900k. Your property taxes reset and are now $18k, almost double. Ouch. 

You also hit on another problem that a house may have easily been sold for $900k 2 years ago but given the current market perhaps it can really only move today for 700 or 800. As homeowners, we reset our anchored sell price with the market highs.  Not only do current homeowners not want to lose their 3% or less mortgage, they can’t accept their value has dramatically dropped in some markets.

I feel for someone that has little choice but to sell or move. Kick in the pants.

[Neonmoon 38129]

 

[closetohumping 17444]

Good time to buy?  Good time to sell?   Wait

[Wulaw Horn 19077]

53 minutes ago, closetohumping said:

Good time to buy?  Good time to sell?   Wait

Funny you ask. My mortgage update just said good time to buy and had the numbers laid out.  It made sense to me.  

[UTPhil2006 3807]

Q for the realtors (Austin, but maybe other areas).. have you gotten an offer from a company called Gypsy Endeavors? We’ve gotten one on each of our listings and another couple of realtors we know have as well. It’s not on a TREC contract form, the email is always the same body, and the offer is usually well below <60% of list. Just wondering if this dude is spamming the whole gammet or what. 

[Incredulity 11675]

51 minutes ago, UTPhil2006 said:

Gypsy Endeavors

[Neonmoon 38129]

58 minutes ago, UTPhil2006 said:

Q for the realtors (Austin, but maybe other areas).. have you gotten an offer from a company called Gypsy Endeavors? 

[Nice Guy Eddie 13515]

3 hours ago, Neonmoon said:

 

 

2 hours ago, closetohumping said:

Good time to buy?  Good time to sell?   Wait

I was curious about how the sudden rate increase could impact mortgages.  Set it at 500,000 as the loan amount and compared 30 year notes at 3% ($2100) and 7% ($3325) That's not an insignificant difference especially for people that are prone to borrow too much in the first place.

For the 7% to get down to the same payment, the borrowed amount has to drop to 316K. While the seller isn't going to drop their selling price by that amount to help the buyer, there has to be pressure on the sellers who are somewhat motivated to sell.  And while the seller isn't required to do anything, effectively there are much fewer buyers today at every price point.

I feel for those in the real estate business. I assume the phone has stopped ringing (as much) for the average worker.

[UTPhil2006 3807]

31 minutes ago, Nice Guy Eddie said:

I feel for those in the real estate business. I assume the phone has stopped ringing (as much) for the average worker.

Well I’m not offering ZJ’s for my health. 
 

It’s been better since the start of the year however. It was the last 6 months of 2022 that was brutal 

[Bozo_Casanova 26477]

37 minutes ago, UTPhil2006 said:

Well I’m not offering ZJ’s for my health

hey man, twenty bucks is twenty bucks

[Neonmoon 38129]

1 hour ago, Nice Guy Eddie said:

 

I was curious about how the sudden rate increase could impact mortgages.  Set it at 500,000 as the loan amount and compared 30 year notes at 3% ($2100) and 7% ($3325) That's not an insignificant difference especially for people that are prone to borrow too much in the first place.

For the 7% to get down to the same payment, the borrowed amount has to drop to 316K. While the seller isn't going to drop their selling price by that amount to help the buyer, there has to be pressure on the sellers who are somewhat motivated to sell.  And while the seller isn't required to do anything, effectively there are much fewer buyers today at every price point.

I feel for those in the real estate business. I assume the phone has stopped ringing (as much) for the average worker.

There is still business out there but you have to work a shit ton harder for it.

[victory88 5668]

I need a bit of advice.  We are in the Dallas area.  Wife and I bought a little townhouse 2+ years ago in old east dallas and now need to upgrade to a house as kids are in the picture.  I would like to keep the townhouse as it's been gaining value and we can easily rent it out.  Our neighbors are renting their unit and we can probably get 1k above our monthly mortgage.  We have it 2.85% rate locked in and only had to put down 5% no PMI.    Now rates are ridiculous.  We're not in a rush to buy, but I want to ask the experts here.  The houses were looking at 2 years ago were around 1-1.2 mil near lovefield off the tollway in dallas.  Now they are 1.5-1.8.  I'm looking at the same neighborhood.  Basically they tearing down a bunch of old homes and building new ones.  I have noticed, they have all been on the market 6 months+.  Most of them have cut their zillow pricing 80-150kish and still sitting on the market.  What would you guys do and what do you expect? 

1.  Will we have issues getting a 2nd mortgage as I do not want to sell our townhouse?  I would love to rent it out and keep gaining equity.  In your expert opinions, is it best to wait as we are not in a rush?

2.  I imagine no one is touching these homes with the jacked up price and current mortgage rates.  My buddy build his new home a year ago in the same neighborhood 500k less than what these other homes are being listed at.  Generally speaking, if the price has been cut 100k in the last 6 months and let say it is listed at 1.5 million, would an offer for 1.2-1.3 get laughed at?
 

3.  I know I spoke with UTPhil a few years ago but they weren't doing physician loans at the time or something like that.  What can I realistically expect as far as rates go in the next year and are companies still doing physician loans?  My BiL was telling me to do a 7 year arm and refinance later but this stuff can go over my head.

Thanks for the feedback in advance.  Just trying to educate myself before we do something stupid.

Edited March 6, 2023 by victory88

[UT_OB1 2224]

You can probably pull some equity out of your current home (heloc) for your downpayment on your new home if you need to. Do it now though because I’m Texas you cant get a heloc on it after you move out. You’d have to ReFi and then get a higher rate. 
 

If you’re clearing $1k a month I’d do everything I could to hold on to it. 

[Wulaw Horn 19077]

25 minutes ago, victory88 said:

I need a bit of advice.  We are in the Dallas area.  Wife and I bought a little townhouse 2+ years ago in old east dallas and now need to upgrade to a house as kids are in the picture.  I would like to keep the townhouse as it's been gaining value and we can easily rent it out.  Our neighbors are renting their unit and we can probably get 1k above our monthly mortgage.  We have it 2.85% rate locked in and only had to put down 5% no PMI.    Now rates are ridiculous.  We're not in a rush to buy, but I want to ask the experts here.  The houses were looking at 2 years ago were around 1-1.2 mil near lovefield off the tollway in dallas.  Now they are 1.5-1.8.  I'm looking at the same neighborhood.  Basically they tearing down a bunch of old homes and building new ones.  I have noticed, they have all been on the market 6 months+.  Most of them have cut their zillow pricing 80-150kish and still sitting on the market.  What would you guys do and what do you expect? 

1.  Will we have issues getting a 2nd mortgage as I do not want to sell our townhouse?  I would love to rent it out and keep gaining equity.  In your expert opinions, is it best to wait as we are not in a rush?

2.  I imagine no one is touching these homes with the jacked up price and current mortgage rates.  My buddy build his new home a year ago in the same neighborhood 500k less than what these other homes are being listed at.  Generally speaking, if the price has been cut 100k in the last 6 months and let say it is listed at 1.5 million, would an offer for 1.2-1.3 get laughed at?
 

3.  I know I spoke with UTPhil a few years ago but they weren't doing physician loans at the time or something like that.  What can I realistically expect as far as rates go in the next year and are companies still doing physician loans?  My BiL was telling me to do a 7 year arm and refinance later but this stuff can go over my head.

Thanks for the feedback in advance.  Just trying to educate myself before we do something stupid.

No problem getting a 2nd loan. You will probably need a rental contract for the townhome to be able to offset the payment but that shouldn't be a big deal at all. 

NO- an offer of 1.2-1.3 will not get laughed at, might not get accepted but they should still be willing to at least counter you with something other than "Go fuck yourself"

Physician loans are a niche within a niche- a couple people are probably still doing them but it will be a bit on the unusual side in all likelihood.

As far as what you can expect rate wise- 

For our best qualified people on a jumbo (750-2M) you can expect somewhere around 5.75-6.0 depending upon the length of the term of your arm (5, 7 or 10 years)  That would come with 20-30% down depending upon if you are more like 1M, more like 1.5M or more like 2M.  This is a HARD program to qualify for. No points, no lender fees even, but you need credit, assets and income all to be pretty top notch.  

If you can't get qualified on that program your ARM rate is probably going to be somewhere around 6.75-7 and you are going to be paying points.  This option sucks b/c...

On a fixed rate you should probably be able to get somewhere around 6.75 and that would be without paying any points.  And the rate can never change. So that's a no brainer compared to those other arms.

 

Here is a primer to physican loan space along with everyone who currently offers one (click below)

https://wrennefinancial.com/physician-mortgage-loans/

 

 

 

 

 

[Gil Bang 25966]

7 hours ago, Dbeasy said:

The other issue for savvy homeowners is that property tax caps reset when you sell and buy another house. So let’s say you have a $500k house with $10k property taxes. Every year they can only go up 10% in Texas. But house prices have almost doubled in the last few years. If you go buy the same size house it’s now $900k. Your property taxes reset and are now $18k, almost double. Ouch. 

Here in CA, if you're over 55, you can take your tax bill with you.  

Say you bought 20 years ago for $250,000, and thanks to Prop 13, you're tax bill is based on that price.  You sell for 1 million.  You can buy for 1 million, and still pay the old tax rate. 

[woohorn 1131]

Why do real estate agents claim to keep "hip pocket" /unlisted "listings" off MLS?

[Hefeweizen 5327]

4 minutes ago, Gil Bang said:

Here in CA, if you're over 55, you can take your tax bill with you.  

Say you bought 20 years ago for $250,000, and thanks to Prop 13, you're tax bill is based on that price.  You sell for 1 million.  You can buy for 1 million, and still pay the old tax rate. 

How hard is it to fake being 55?  Asking for a friend.

[Gil Bang 25966]

12 minutes ago, woohorn said:

Why do real estate agents claim to keep "hip pocket" /unlistedu' "listings" off MLS?

To get you to believe that they have properties that other agents cannot show you.

My MLS doesn't tolerate that horseshit.   Every listing has to be registered with the MLS within 24 hours of the contract being signed. 

 

[Dbeasy 15067]

13 minutes ago, Gil Bang said:

Here in CA, if you're over 55, you can take your tax bill with you.  

Say you bought 20 years ago for $250,000, and thanks to Prop 13, your tax bill is based on that price.  You sell for 1 million.  You can buy for 1 million, and still pay the old tax rate. 

In Texas, your taxes quit going up at 65. However, as it was explained to me by the tax office, If you move after 65 to a house that is much more expensive, you don’t keep paying your current tax dollars. You get the same percentage discount on the new home as you currently have on your current home.

So if your $500k house appreciates to $900k, and then you went and bought a $900k house then you’d pay roughly the same. But buy higher, you’ll pay higher. So the key is to move into something in the same price range and be over 65.  

[UTPhil2006 3807]

51 minutes ago, Wulaw Horn said:

No problem getting a 2nd loan. You will probably need a rental contract for the townhome to be able to offset the payment but that shouldn't be a big deal at all. 

NO- an offer of 1.2-1.3 will not get laughed at, might not get accepted but they should still be willing to at least counter you with something other than "Go fuck yourself"

Physician loans are a niche within a niche- a couple people are probably still doing them but it will be a bit on the unusual side in all likelihood.

As far as what you can expect rate wise- 

For our best qualified people on a jumbo (750-2M) you can expect somewhere around 5.75-6.0 depending upon the length of the term of your arm (5, 7 or 10 years)  That would come with 20-30% down depending upon if you are more like 1M, more like 1.5M or more like 2M.  This is a HARD program to qualify for. No points, no lender fees even, but you need credit, assets and income all to be pretty top notch.  

If you can't get qualified on that program your ARM rate is probably going to be somewhere around 6.75-7 and you are going to be paying points.  This option sucks b/c...

On a fixed rate you should probably be able to get somewhere around 6.75 and that would be without paying any points.  And the rate can never change. So that's a no brainer compared to those other arms.

 

Here is a primer to physican loan space along with everyone who currently offers one (click below)

https://wrennefinancial.com/physician-mortgage-loans/

 

 

 

 

 

This pretty much covers it especially on the physician niche stuff. Not getting a lot of traction asking around just now. 
 

As far as the lower bid, definitely throw it out there just depends on the seller (builder vs solo vs other) and how much they need to get out from under it. But definitely wouldn’t get laughed at currently 

[Catpfish 618]

45 minutes ago, Dbeasy said:

In Texas, your taxes quit going up at 65. However, as it was explained to me by the tax office, If you move after 65 to a house that is much more expensive, you don’t keep paying your current tax dollars. You get the same percentage discount on the new home as you currently have on your current home.

So if your $500k house appreciates to $900k, and then you went and bought a $900k house then you’d pay roughly the same. But buy higher, you’ll pay higher. So the key is to move into something in the same price range and be over 65.  

Also, not all taxes freeze at 65.  The school district does and that is the biggest part of the bill.  I do think the exemption amounts will increase when you file for the over 65 exemption, though.

Edited March 6, 2023 by Catpfish
Clarification

[Wulaw Horn 19077]

23 minutes ago, Catpfish said:

Also, not all taxes freeze at 65.  The school district does and that is the biggest part of the bill.  I do think the exemption amounts will increase when you file for the over 65 exemption, though.

Also- every county runs a different giveaway scheme as well it seems like.

[We’reTexas 1473]

1 hour ago, Gil Bang said:

Here in CA, if you're over 55, you can take your tax bill with you.  

Say you bought 20 years ago for $250,000, and thanks to Prop 13, you're tax bill is based on that price.  You sell for 1 million.  You can buy for 1 million, and still pay the old tax rate. 

And even more incredibly, until Prop 19 you could inherit that tax rate. These shots are always wild:

 

[Firemans4Horn 18094]

3 hours ago, victory88 said:

The houses were looking at 2 years ago were around 1-1.2 mil near lovefield off the tollway in dallas.  Now they are 1.5-1.8.  I'm looking at the same neighborhood.  Basically they tearing down a bunch of old homes and building new ones.  I have noticed, they have all been on the market 6 months+.  Most of them have cut their zillow pricing 80-150kish and still sitting on the market.  What would you guys do and what do you expect? 

I know the area you are talking about, lots of nice new builds in a quickly gentrifying neighborhood all sitting on the market. I’d lowball every single one you’re interested in. Chances are they all at least counter and then probably even accept something below their counter.
 

You need to have your finance plan lined up before you play this game though. 

[bluto 4932]

4 hours ago, We’reTexas said:

And even more incredibly, until Prop 19 you could inherit that tax rate. These shots are always wild:

 

This is what the fucknuts in the Tx house have proposed. 5% annual caps on ALL real property. Asinine

[ChickenSandwich 9843]

Prop 13 

Section 1. (a) The maximum amount of any ad valorem tax on real property shall not exceed one percent (1%) of the full cash value of such property. The one percent (1%) tax to be collected by the counties and apportioned according to law to the districts within the counties.

 

so not the same at all

[We’reTexas 1473]

19 minutes ago, ChickenSandwich said:

Prop 13 

Section 1. (a) The maximum amount of any ad valorem tax on real property shall not exceed one percent (1%) of the full cash value of such property. The one percent (1%) tax to be collected by the counties and apportioned according to law to the districts within the counties.

 

so not the same at all

I think he was referring to Prop 13’s 2% cap on assessment increases and applicability to all real estate, so similar and equally stupid.  

[Neonmoon 38129]

Is there a reason MBS is down? Ugh I better not get an alert 

[Incredulity 11675]

Powell testifying 

[Wulaw Horn 19077]

26 minutes ago, Neonmoon said:

Is there a reason MBS is down? Ugh I better not get an alert 

I didn’t get a lock alert but I did get 8 we are repricing for the worse if that makes you feel better. 
All while i was on a 15 or 20 minute walk. 

[UTPhil2006 3807]

30 minutes ago, Incredulity said:

Powell testifying 

This