All Encompassing Mortgage and Real Estate Thread

[UTPhil2006 3768]

51 minutes ago, KYHorn said:

What's the average rate y'all are seeing for ARMs and 30-year conventionals at this point? Hard for me to keep track of the rollercoaster over the last few months (years).

Not sure todays numbers have been priced in but based on 740 credit, 20% down, etc etc 

7/6 ARM 6.375 (rest aren’t good pricing)

30 year fixed 6.375 

I’ll update again when I assume they’ll reprice but that’s a good basic barometer 

[Beantown Express 2.0 6513]

1 hour ago, UTPhil2006 said:

I could argue for both sides of it. I’m guessing your listing at the higher end so it may be worth it. Tell the person you wanna shop their price just to gauge their reaction. Virtual staging is also a thing but l don’t think it adds much. 

The “stager” is the husband of the realtor that owns this agency that is selling my house.  I feel like she “double dips” the customer, me, to get the sale and then make a side business for her husband to stage houses which she also makes money on. 

[KYHorn 16711]

7 minutes ago, Beantown Express 2.0 said:

The “stager” is the husband of the realtor that owns this agency that is selling my house.  I feel like she “double dips” the customer, me, to get the sale and then make a side business for her husband to stage houses which she also makes money on. 

I used a realtor whose wife did the same thing. He was pretty upfront about it and allowed me the space to make my choice. He didn't encourage it or discourage it and I think he understood the awkwardness that is added to the dynamic with the spousal element. We were squarely in a mid-range price point and I felt it wouldn't have been worth it. Instead, high-quality photography made all the difference. 

[UTGrad98 2221]

2 hours ago, Beantown Express 2.0 said:

The “stager” is the husband of the realtor that owns this agency that is selling my house.  I feel like she “double dips” the customer, me, to get the sale and then make a side business for her husband to stage houses which she also makes money on. 

Do it but use another agency to stage your house and when your realtor asks why, tell them it's for putting you in an awkward position. Then fire her and report back to us. 

[Gil Bang 25651]

19 hours ago, Beantown Express 2.0 said:

I have a question for all the realtors out there.  I am about to put my home on the market and have already moved so it is empty except for a few odd pieces of furniture.  My realtor is suggesting I stage the home and that staging will get me a sale much quicker and will add 10-15K to the sales price.  Conveniently, her husband is in the “staging home business” and he quoted me $3500 to do the downstairs and $5500 to do the whole home.  So, is “staging” worth the price?  I definitely am not doing the whole home but wondering if I do the $3500 that would do the living room, kitchen, dining room and master bed room.  Thoughts?

Virtual staging is big out here.   I rarely stage vacant houses, but I often Vignette them.  It doesn't cost much (a couple hundred maybe) and it makes the house show better. 

[Gil Bang 25651]

7 hours ago, Beantown Express 2.0 said:

The “stager” is the husband of the realtor that owns this agency that is selling my house.  I feel like she “double dips” the customer, me, to get the sale and then make a side business for her husband to stage houses which she also makes money on. 

unless her husband is gay, I wouldn't do it. 

Only let the gays do the staging. 

[Gil Bang 25651]

Truthfully, unless the house is weird, don't worry about staging it.  If the house has a weird or problematic layout, a talented decorator can demonstrate to somebody with less imagination ways to make the home function. 

[Neonmoon 38126]

New LLPAs for refinances blow dick. FUCK

Also, I'm having to talk a buyer down from backing out of their contract because of the god damn banking crisis. Everyone's an economic expert now. 

[Wulaw Horn 18918]

59 minutes ago, Neonmoon said:

New LLPAs for refinances blow dick. FUCK

Also, I'm having to talk a buyer down from backing out of their contract because of the god damn banking crisis. Everyone's an economic expert now. 

So- get to a broker shop dude. Fannie just said they were going to delay- most of our lenders are negating that I’d think. I know some are already. You don’t get that all the time at retail. But yeah- they are horrific. 

[LebongJames 1770]

Does this Fannie Mae news hurt new mortgages? 

[Shaggy3.0 1694]

2 hours ago, Neonmoon said:

Everyone's an economic expert now. 

Well yeah.  Covid is over.  Us plebes moved on from faux Covid virologists to GFC v.2 economic gurus.  It helps us pass the day.

[Wulaw Horn 18918]

40 minutes ago, LebongJames said:

Does this Fannie Mae news hurt new mortgages? 

No. No change for any current mortgage. Helps people buying right now (the postponement of them implementing). 
The actual pricing is a rough fucking to most. 

Edited March 16, 2023 by Wulaw Horn

[Neonmoon 38126]

1 hour ago, Wulaw Horn said:

So- get to a broker shop dude. Fannie just said they were going to delay- most of our lenders are negating that I’d think. I know some are already. You don’t get that all the time at retail. But yeah- they are horrific. 

I work for a retail lender. I don't meet state requirements yet for a broker. 

[Chewbacca 7620]

Any of you fuckers do construction loans in CO and understand small business owners?  I'm about to punt my current bank across the state.

[Neonmoon 38126]

27 minutes ago, Chewbacca said:

Any of you fuckers do construction loans in CO and understand small business owners?  I'm about to punt my current bank across the state.

@UTPhil2006 has a CO license I believe. Or did I make that up?

[UTPhil2006 3768]

1 hour ago, Neonmoon said:

@UTPhil2006 has a CO license I believe. Or did I make that up?

A team member on our company does yes. 

[Chewbacca 7620]

A team member on our company does yes. 

You work with a lot of self employed people?

[LCHorn 2560]

4 minutes ago, Chewbacca said:

58 minutes ago, UTPhil2006 said:

A team member on our company does yes. 

You work with a lot of self employed people?

Haha, bear in mind when this is translated into lender it reads as “I exploit every deduction and tax loophole I possibly can and now I don’t have enough on-paper income to support the sales price of my project.”  

[UTPhil2006 3768]

1 hour ago, Chewbacca said:

2 hours ago, UTPhil2006 said:

A team member on our company does yes. 

You work with a lot of self employed people?

The other Colorado guy were doing is self employed. We have experience yes. Shoot me a DM with your email and such and we’ll reach out in the AM

[Neonmoon 38126]

16 hours ago, LCHorn said:

Haha, bear in mind when this is translated into lender it reads as “I exploit every deduction and tax loophole I possibly can and now I don’t have enough on-paper income to support the sales price of my project.”  

This exact thing happened twice to me last week. 
 

[Chewbacca 7620]

17 hours ago, LCHorn said:

Haha, bear in mind when this is translated into lender it reads as “I exploit every deduction and tax loophole I possibly can and now I don’t have enough on-paper income to support the sales price of my project.”  

Not entirely.  But we certainly don't pay taxes when we don't have to.  Cash comp is just fine, but the return doesn't look as pretty as some want.  It's more a deal of finding someone who understands how taxes (and deferrals) work.

Edited March 17, 2023 by Chewbacca

[Mack Tripper 691]

Does Austin have an equivalent of HAR.com, which is basically a public version of Houston’s MLS database? If not, which appears to be the case, what are the best sites to look for properties?

[Dbeasy 14783]

17 minutes ago, Mack Tripper said:

Does Austin have an equivalent of HAR.com, which is basically a public version of Houston’s MLS database? If not, which appears to be the case, what are the best sites to look for properties?

HAR was pretty good. Austin has AboR but the user interface isn’t great. 

[UT_OB1 2197]

On 3/17/2023 at 2:06 PM, Chewbacca said:

Not entirely.  But we certainly don't pay taxes when we don't have to.  Cash comp is just fine, but the return doesn't look as pretty as some want.  It's more a deal of finding someone who understands how taxes (and deferrals) work.

Can you teach me how to not pay taxes?

[Chewbacca 7620]

13 hours ago, UT_OB1 said:

Can you teach me how to not pay taxes?

Don't pay tax on money you have not received yet.  So for us, we back out our accounts receivable balance at EOY from our tax return (you also have to add back the prior year's AR).  It's just a deferral as you'll have to pay the following year, but I'd always rather pay next year than this year.  As long as you're growing, this will save you $$.  If your company starts shrinking, you will pay more as prior year's AR will be less than current year.

[UTPhil2006 3768]

10 year trying to sneak back in the 3.3xx’s again. Is the 5th time the charm?

[Neonmoon 38126]

3 hours ago, UTPhil2006 said:

10 year trying to sneak back in the 3.3xx’s again. Is the 5th time the charm?

[LTtxfan 48722]

What the banking crisis means for mortgage rates

Story by Anna Bahney • Yesterday 

Quote

Mortgage rates have taken would-be buyers on a ride this year — and it’s only March.

Generally, home buyers can anticipate mortgage rates to move down through the rest of this year as the banking crisis drags on, which could cool down inflation.

But there are bound to be some bumps along the way. Here’s why rates have been bouncing around and where they could end up.

What’s behind the roller coaster ride

After steadily rising last year as a result of the Federal Reserve’s historic campaign to rein in inflation, the average rate for a 30-year fixed-rate mortgage topped out at 7.08% in November, according to Freddie Mac. Then, with economic data suggesting inflation was retreating, the average rate drifted down through January.

But a raft of robust economic reports in February brought concerns that inflation was not cooling as quickly or as much as many had hoped. As a result, after falling to 6.09%, average mortgage rates climbed back up, rising half a percentage point over the month.

Then in March banks began collapsing. That sent rates falling again.

Neither the actions of the Federal Reserve nor the bank failures directly impact mortgage rates. But rates are indirectly impacted by actions that the Fed takes or is expected to take, as well as the health of the broader financial system and any uncertainty that may be percolating.

On Wednesday, the Federal Reserve announced it would raise interest rates by a quarter point as it attempts to fight stubbornly high inflation while taking into account recent risks to financial stability.

While the bank failures made the Fed’s work more complicated, analysts have said that, if contained, the banking meltdown may have actually done some work for the Fed, by bringing down prices without raising interest rates. To that point, the Fed suggested on Wednesday that it may be at the end of its rate hike cycle.

Tighter credit will keep rates higher

Mortgage rates tend to track the yield on 10-year US Treasury bonds, which move based on a combination of anticipation about the Fed’s actions, what the Fed actually does and investors’ reactions. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow.

Following the Fed’s announcement on Wednesday, bond yields — and the mortgage rates that usually follow them — fell.

But the relationship between mortgage rates and Treasurys has weakened slightly in recent weeks, said Orphe Divounguy, senior economist at Zillow.

“The secondary mortgage market may react to speculation that more financial entities may need to sell their long-term investments, like mortgage backed securities, to get more liquidity today,” he said.

Even as Treasurys decline, he said, tighter credit conditions as a result of bank failures will likely limit any dramatic plunging of mortgage rates.

“This could restrict mortgage lenders’ access to funding sources, resulting in higher rates than Treasuries would otherwise indicate,” Divounguy said. “For borrowers, lending standards were already quite strict, and tighter conditions may make it more difficult for some home shoppers to secure funding. In turn, for home sellers, the time it takes to sell could increase as buyers hesitate.”

Longer term, rates are expected to stabilize

Inflation is still quite high, but it is slowing and analysts are anticipating a much slower economy over the next few quarters — which should further bring down inflation. This is good for mortgage borrowers, who can expect to see rates retreating through this year, said Mike Fratantoni, Mortgage Bankers Association senior vice president and chief economist.

“Homebuyers in 2023 have shown themselves to be quite sensitive to any changes in mortgage rates,” Fratantoni said.

The MBA forecasts that mortgage rates are likely to trend down over the course of this year, with the 30-year fixed rate falling to around 5.3% by the end of the year.

“The housing market was the first sector to slow as the result of tighter monetary policy and should be the first to benefit as policymakers slow — and ultimately stop — hiking rates,” said Fratantoni.

In second half of the year, the inflation picture is expected to improve, leading to mortgage rates that are more stable.

“Expectations for slower economic growth or even a recession should bring inflation down and help mortgage rates decline,” said Divounguy.

That’s good news for home buyers since it improves affordability, bringing down the cost to finance a home. It also benefits sellers, since it reduces the intensity of an interest-rate lock-in.

Lower rates could also convince more homeowners to list their home for sale. With the inventory of homes for sale near historic lows, this would add badly needed inventory to an extremely limited pool.

“Mortgage rates are steering both supply and demand in today’s costly environment,” said Divounguy. “Home sales picked up in January when rates were relatively low, then slacked off as they ramped back up.”

But with cooling inflation comes a higher risk of job losses, which is typically bad for the housing market.

“Of course, much uncertainty surrounding the state of inflation and this still-evolving banking turmoil remains,” said Divounguy.

In his remarks on Wednesday, Fed Chair Jerome Powell said estimates of how much the recent banking developments could slow the economy amounted to “guesswork, almost, at this point.”

But regardless of the tack the economy and banking concerns take, their impact will quickly be seen in mortgage rates.

“Evidence — in either direction — of spillovers into the broader economy or accelerating inflation would likely cause another policy shift, which would materialize in mortgage rates,” said Divounguy.

 

[KYHorn 16711]

How do y'all feel about this?

30 year conv was at 6.5%, but this 7/6 ARM is 6% or 5.875% with $1800 in points wrapped into the loan.

Quick math says monthly P&I is $3076 at 5.875 and $3117 without points at 6%

[Neonmoon 38126]

Not terrible. BOA rates has a 7/6 ARM at 5.875% with 0.736 points. So you’re beating them by $2,000

[HRSchenker 2223]

I was watching a house in Dallas that was on the market last summer for $680k. 50 days on the market with no bites. Listing was removed. They relisted it pretty recently at $580k. $100k price difference!

[Wulaw Horn 18918]

10 hours ago, KYHorn said:

How do y'all feel about this?

30 year conv was at 6.5%, but this 7/6 ARM is 6% or 5.875% with $1800 in points wrapped into the loan.

Quick math says monthly P&I is $3076 at 5.875 and $3117 without points at 6%

Where are you buying again?  I could do that deal (probably) as a fixed for pretty damn close to that arm rate. Although I’m fine with a 7 year arm right now for almost everyone of you can get fixed for the same price you should clearly do that. 

[UT_OB1 2197]

I bitched about Zeus Lending a few pages ago, and I’m back to bitch some more. They screwed up my rate (nearly doubled it) and withdrew way too much. Got a hold of accounting, they said oops, you will only be charged ~$60 since the two overpayments we took equal a months pay. So of course the next month I get charged my ”normal” bill. 

Then, I put in for a draw for completed repairs on 3/6. Supposed to be a 5-7 business day turnaround. Inspection is done on 3/8 and all was good. Following Tuesday after getting dodged for 2 days they finally respond and say sorry were backed up, should have it end of week. Same story this week after not getting my money. I finally get someone to respond and they say it’ll be deposited Friday, yesterday. Friday afternoon rolls around - “sorry mr Obiwan, payables (?) said they aren’t paying out anymore this month. But i did talk to my boss and we’re going to get you paid Monday”

Right. I’m wondering at this point if they are fucked with the recent other banking issues?  I just want my damn money 

[LCHorn 2560]

6 minutes ago, UT_OB1 said:

I bitched about Zeus Lending a few pages ago, and I’m back to bitch some more. They screwed up my rate (nearly doubled it) and withdrew way too much. Got a hold of accounting, they said oops, you will only be charged ~$60 since the two overpayments we took equal a months pay. So of course the next month I get charged my ”normal” bill. 

Then, I put in for a draw for completed repairs on 3/6. Supposed to be a 5-7 business day turnaround. Inspection is done on 3/8 and all was good. Following Tuesday after getting dodged for 2 days they finally respond and say sorry were backed up, should have it end of week. Same story this week after not getting my money. I finally get someone to respond and they say it’ll be deposited Friday, yesterday. Friday afternoon rolls around - “sorry mr Obiwan, payables (?) said they aren’t paying out anymore this month. But i did talk to my boss and we’re going to get you paid Monday”

Right. I’m wondering at this point if they are fucked with the recent other banking issues?  I just want my damn money 

Two thoughts; one, I'm looking at their website and there are red flags all over the place (in an effort to summarize I'll just state their leadership doesn't appear to have survived a down-market previously), two, lots of banks and lenders are surveying their existing sources of money and wondering whether they can push the "I'm going to have to eat this shit sandwich" down the road or if it's just better to eat it now. 

The fact they are willing to cut a check on 4/1 is at least something positive; even in good times, the Zeus Lendings of the world go through cycles where they are flush with cash (as project conclude or they have investors that want to put their money to work) and times when they are illiquid.  Right now everyone that isn't a depository institution is counting every penny.  If your project isn't going to be done in the next 30 days I'd definitely be interviewing hard money or community bank options as a back-up. 

[Fudge Nuggets 18978]

Which one of you slapdicks will float me a $500K reverse mortgage so I can put it all on the Texas money line for tomorrow's game?

[KYHorn 16711]

1 hour ago, Wulaw Horn said:

Where are you buying again?  I could do that deal (probably) as a fixed for pretty damn close to that arm rate. Although I’m fine with a 7 year arm right now for almost everyone of you can get fixed for the same price you should clearly do that. 

Lexington, KY area. It's through UWM. I got a rate from someone else for a 6.75 conventional but I'll probably get at least one other quote. 

[Wulaw Horn 18918]

8 hours ago, KYHorn said:

Lexington, KY area. It's through UWM. I got a rate from someone else for a 6.75 conventional but I'll probably get at least one other quote. 

When did you get the quote?  

[KYHorn 16711]

2 hours ago, Wulaw Horn said:

When did you get the quote?  

The 6.75 was Thursday. The 5.875 Arm was yesterday

Edited March 26, 2023 by KYHorn

[Wulaw Horn 18918]

2 hours ago, KYHorn said:

The 6.75 was Thursday. The 5.875 Arm was yesterday

So that Thursday quote should have come down a bit. Arm shouldn’t have changed as that’s not as market sensitive. 

[Wulaw Horn 18918]

Got this in the mail yesterday, pretty cool. My brokerage has 1000 people in it and brokers are usually sharper than retail guys in the main (it’s not a knock on retail guys- a good retail guy is as good as a good broker- you just can’t get hired on to my shop without 25 closings under your belt so we don’t have any deadweight that retail shops do that will happily take on and train people new to the business). 
I know I’ve helped some people on here and thank you for letting me help and being a part of @Scipioand my success. 
when you are top 2.5% in your industry and not sure where the next deal is coming from at any particular time that’s not a good time for the industry. It’s tough out there. 

[Neonmoon 38126]

Congrats @Wulaw Horn

It’s harder than a motherfucker out there right now.

[Wulaw Horn 18918]

2 minutes ago, Neonmoon said:

Congrats @Wulaw Horn

It’s harder than a motherfucker out there right now.

Yeah it really is. I’ve been whipping myself (metaphorically) for the last 6 months and feel like I’m a failure and a worthless piece of shit. Then I get something like this in the mail- or see myself on a leaderboard as a top 100 guy in a texas for UWM and realize I don’t suck, it’s just this damn war and that lying Johnson. But man it’s hard to internalize. 
seriously, thoughts and prayers to everyone out there trying to grind away a living in this business right now. 

[Wulaw Horn 18918]

Anyone know why MBS market is down almost 50 bips this morning?  

[UTPhil2006 3768]

1 hour ago, Wulaw Horn said:

Anyone know why MBS market is down almost 50 bips this morning?  

Because I jinxed it. Maybe the 6th time is the charm. 

[Wulaw Horn 18918]

1 hour ago, UTPhil2006 said:

Because I jinxed it. Maybe the 6th time is the charm. 

My MBS guys didn't have any reason for it in their write up today.  There isn't anything that should have moved the market in a big way. 

[UTPhil2006 3768]

16 minutes ago, Wulaw Horn said:

My MBS guys didn't have any reason for it in their write up today.  There isn't anything that should have moved the market in a big way. 

My best guess is they knee jerked too far with the Credit Suisse stuff and and are now backtracking. 
 

Also basically no part of this rollercoaster the last 14 months has made sense 

[Wulaw Horn 18918]

1 minute ago, UTPhil2006 said:

 

Also basically no part of this rollercoaster the last 14 months has made sense 

Truer words man...

[TXSooner518 2419]

23 hours ago, Wulaw Horn said:

Yeah it really is. I’ve been whipping myself (metaphorically) for the last 6 months and feel like I’m a failure and a worthless piece of shit. Then I get something like this in the mail- or see myself on a leaderboard as a top 100 guy in a texas for UWM and realize I don’t suck, it’s just this damn war and that lying Johnson. But man it’s hard to internalize. 
seriously, thoughts and prayers to everyone out there trying to grind away a living in this business right now. 

Wanted to give a shoutout to Wulaw and his team. I had posted here bitching about a stupid position I had gotten myself into with an ARM and complacency. He reached out with some options, and made one happen that definitely will save me some money over where I was, and the process was super quick and easy and hassle-free. Do recommend!

[LCHorn 2560]

11 minutes ago, TXSooner518 said:

Wanted to give a shoutout to Wulaw and his team. I had posted here bitching about a stupid position I had gotten myself into with an ARM and complacency. He reached out with some options, and made one happen that definitely will save me some money over where I was, and the process was super quick and easy and hassle-free. Do recommend!

If he didn’t charge you a Sooner tax then he was really feeling generous.

[South Austin 51657]

@Wulaw Horn, that's pretty badass.  You all speak a foreign language when you all discuss the mortgage market as opposed to real estate in general, but I'm sure they don't hand out the recognition you got like candy.