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pmccumber
06-01-2012, 09:04 AM
Is below 1.5%. It has dipped below 2% a couple times in this financial crisis that is now 4 years old. When it was 1.8% we saw the lows over the last few years in mortgage rates. With this latest round of fresh hell in Europe, rates are already down to 2.75% on 15 years with no cost. In the next month the rates will, already are, the lowest in history.

So, even if you refi just last year you're gonna beat that significantly.

Take the opportunity to increase that cash flow at no cost and hoard that cash!

subzali
06-01-2012, 09:10 AM
Good, should have our down payment ready today so it sounds like it's the perfect time to look for a house! :D

Red_Chili
06-01-2012, 09:11 AM
All the more reason for me to hurry up on that kitchen remodel... can probably refi and roll in a second to the first as well, or part of it at least.

pmccumber
06-01-2012, 10:46 AM
I just refi 14 months ago and my broker offered me a rate with no cost and no additional principal that will bring another $125/month. She thinks it will be significantly better next month week too. I am downright giddy at the thought of another $150/month in cash flow for free.

corsair23
06-01-2012, 11:36 AM
I just refi 14 months ago and my broker offered me a rate with no cost and no additional principal that will bring another $125/month. She thinks it will be significantly better next month week too. I am downright giddy at the thought of another $150/month in cash flow for free.

Who is your broker? Sounds like I might need to give her a call :D

Romer
06-01-2012, 12:05 PM
Im not seeing that anywhere, when I asked my broker, they said no way

I'd also like to know who your broker is

Caribou Sandstorm
06-01-2012, 12:14 PM
We are locking today and have been watching the rates for weeks..

Our scores are mid 700s, we are getting 3.79 on a 30 year fixed. we were at 4.87. We have a large heloc that we are moving to a second and our broker says that is why we can't get a better rate.

The jobs report is due out today or yesterday? And our broker thinks the rates are not going to last as low as they are. We have been using the same broker for 5 years.

corsair23
06-01-2012, 01:14 PM
The jobs report is due out today or yesterday? And our broker thinks the rates are not going to last as low as they are. We have been using the same broker for 5 years.

Jobs report came out today and was dismal...Unemployment rate ROSE to 8.2% and as I recall they had to revise April's numbers as well. Dow is down $260+ right now

Red_Chili
06-01-2012, 02:40 PM
Good discussion about job numbers in general (conservative economics professor turned investment advisor shop):
http://oldprof.typepad.com/

Another good discussion of numbers behind the numbers and the political gamesmanship behind it as well:
http://www.thedailybeast.com/articles/2012/06/01/jobs-numbers-get-used-to-bad-employment-data.html

Anecdotally, I know in our field it is getting very hard to find qualified IT professionals (development, application support analyst, production support) worth hiring. This is Denver specific, but not isolated to Denver. I've also started getting headhunter contacts, which runs counter to prevailing expectations.

Unemployment goes up sometimes just from people re-entering the job market who were not seeking jobs prior. May be happening now.

Caribou Sandstorm
06-01-2012, 03:28 PM
hmm yep also heard the market went down today, maybe it is back up?

I think we are going to lock, because it will take 30 days to close and I think if the rates go down we get that benefit if it happens before we close.

corsair23
06-01-2012, 03:52 PM
hmm yep also heard the market went down today, maybe it is back up?

Nope...

Dow closed down $275
Nasdaq closed down $80
S&P closed down $32

All represent between 2-3% drops...

The Dow is down over $1000 from where it was a month ago :(

Caribou Sandstorm
06-01-2012, 04:31 PM
well we are locking at 3.79.

If the rates go to 2.8, I will do it again. But I can't see that happening.

3.79 for a 30 year is flippin whacko low.. We also do the equity builder where we pay by monthly vs. once a month.

I fought like crazy when the wife first signed us up, but it has been one of the smartest things we ever did. I highly recommend looking into doing something like this.

pmccumber
06-01-2012, 06:52 PM
Who is your broker? Sounds like I might need to give her a call :D


ktoof@aol.com

She is awesome. I put her up with my favorite vendors. I have some friends who have multiple rentals and I've know her for a decade, she's the best. She makes everything extremely easy and is a pro.

I was offered a 3.25% 7/1 at no cost and a 3.00% 15 year at no cost before the last two big drops. She told me today she would significantly beat that next week.

I'll bet I get 3.0% 7/1 no cost and at least 2.875% 15 year no cost next week.

calphi27
06-01-2012, 07:51 PM
Now is a great time to buy and sell. Our inventory is so low that in some areas it has become a sellers market. My buyers that closed last week got 3.5%! I am about to put my rental on the market that I picked up two years ago. Then I am going to look for a house to flip. Turn key properties are moving and receiving multiple offers.

The thing about a "no cost" loan is that there is a cost, you are just amortizing the loan origination fee over your term. It is like the broker telling you you can get 3.5, but in reality, he got you 3.25 and added the .25 as his fee. This is called the yield spread premium. I would rather pay up front than pay 3x the fee over the term, but it depends on how long you hold the property.

I run my clients through Christopher Raichart for loans. He can be reached at 303-332-74 two zero or raichartcATmsnDOTcom. His rates are around 3.5-3.75 right now.

Caribou Sandstorm
06-01-2012, 09:33 PM
hmm yep also heard the market went down today, maybe it is back up?

I think we are going to lock, because it will take 30 days to close and I think if the rates go down we get that benefit if it happens before we close.

Wrong on my thought of a lower rate option once we lock.

If we did not have the helioc, we might have been able to get 3.5?

pmccumber
06-01-2012, 10:06 PM
The thing about a "no cost" loan is that there is a cost, you are just amortizing the loan origination fee over your term. It is like the broker telling you you can get 3.5, but in reality, he got you 3.25 and added the .25 as his fee. This is called the yield spread premium. I would rather pay up front than pay 3x the fee over the term, but it depends on how long you hold the property.

Of course. In fact, the options may not be infinite but for all intents and purposes they are. This is my 6th house and I've had several rentals. I know you're trying to help but in this market I think adding to principal or forking over cash are both tougher than ever. By a lot.

My original point is rates are dropping dramatically even from the beginning of the week. The 10-year at 1.47% today is nearly .25 lower than anything we've seen in our lifetime. So what you heard even Wednesday is out of date. And I expect rates to drop next week too. This crapstorm in Europe is real.

My case, paying the fees for an extra 0.25% on a 15 year loan does not make sense. I owe $180k (on a $500k house). 0.0025*180000 = $450. I'm looking at the most at a 15 year and more likely a 7/1. So yeah, I don't want to add appraisal, title, doc fee, loan orig, etc. to the tune of a couple G. If I pay it off in 10 years there is a pretty good chance I'd never break even. The first year I'd get $450 and that would diminish pretty quickly.

Instead I have absolutely no downside to dropping my payment $100/month with no cost.

Red_Chili
06-01-2012, 11:50 PM
Nope...

Dow closed down $275
Nasdaq closed down $80
S&P closed down $32

All represent between 2-3% drops...

The Dow is down over $1000 from where it was a month ago :(
Everybody wants in and is excited when the market is expensive.
Everybody wants out and is bummed when it's cheap.
Opposite of the Buffett rule.
P/Es are down to the historic mean, if not better than. Nice place to be.