PSA: Good Day to call Lender about Rate Lock if you have mortgage in process?

mshan242700

If you are in process for mortgage right now, might be a good day to call and see what interest rate you can get if you rate lock today.

Reason is yield on 10 year Treasury is down to 3.16% and historically 30 year fixed for best qualified buyers tends to run 1.5 - 1.75 % above yield on 10 year Treasury.

Fed intervention in bond market via quantitative easing has been distorting the historic relationship, but talking on CNBC previously estimated it was artificially keeping rates about 0.4% below where they should be.

My guess (I don't have access to real rates) is that rates have dropped from 4.75% down to 4.5%, possibly heading back to 4.25%, for best qualified buyers with good downpayment.

Good Luck!





Excellent Books on How to Shop for a Mortgage:
http://www.amazon.com/Mortgage-Ripof...4625595&sr=8-3
http://www.amazon.com/Homebuyers-Bew...4625525&sr=8-1

RuSsMaN

You're almost spam.

sda2mike

all that's missing is the tin can

mshan242700

I am not in mortgage business and have no relation to Carolyn Warren (I just bought her books and thought they were excellent).

For someone who is already in process of applying for mortgage, but did not formally rate lock previously, I am guessing best rates were much closer to 4.75 - 5 % a few weeks ago, so rate drop to 4.5 or even 4.25% can save mortgage borrower some money and make cost of ownership of home they have already under contract cheaper.

I do have a link for my sister's condo for sale in sig, but you really can't rate lock a mortgage when you don't even have property under contract. People looking for home are probably at pre-approval stage of whole mortgage process, so are many steps away from even being able to rate lock any mortgage with the lender they already have.

Plus people who didn't refi when rates this low were available much earlier this year may have second chance now.

slk55amg

Economic data, shows weakness, oil had its biggest% loss today ever!!

RuSsMaN

Is this making sense to anyone?

mshan242700

I believe a lot of speculative money in global stock markets is being margin called and there is a rush out of risk assets back into bonds (price of bonds goes up and yield goes down).

Like slk55amg is saying, there may be some evidence that global growth might be slower than expected and already priced into stock market.

Could also start hearing talking heads talking about double dip recession too, though I personally don't think situation may be that severe.

Jstas

mshan242700 wrote: »

I am not in mortgage business and have no relation to Carolyn Warren (I just bought her books and thought they were excellent).

For someone who is already in process of applying for mortgage, but did not formally rate lock previously, I am guessing best rates were much closer to 4.75 - 5 % a few weeks ago, so rate drop to 4.5 or even 4.25% can save mortgage borrower some money and make cost of ownership of home they have already under contract cheaper.

I do have a link for my sister's condo for sale in sig, but you really can't rate lock a mortgage when you don't even have property under contract. People looking for home are probably at pre-approval stage of whole mortgage process, so are many steps away from even being able to rate lock any mortgage with the lender they already have.

Plus people who didn't refi when rates this low were available much earlier this year may have second chance now.

Your posts remind me of this guy:

<iframe width="640" height="390" src="http://www.youtube.com/embed/rkB9OT2XVvA&quot; frameborder="0" allowfullscreen></iframe>

<iframe width="640" height="390" src="http://www.youtube.com/embed/-vHT6b7u1_Y&quot; frameborder="0" allowfullscreen></iframe>

Opulence, do you has it? Don't get me wrong, I alsos like savings the money! So when you tell me I can lock financings rates in at such low price, I jumps in it!



And dude, yeah, spam, for sure. Mortgage rates, condos for sale, books for sale. Next thing you know you'll be telling us you're "Peggy".

<iframe width="480" height="390" src="http://www.youtube.com/embed/GRLwKw9up3s&quot; frameborder="0" allowfullscreen></iframe>

<iframe width="640" height="390" src="http://www.youtube.com/embed/pV5-LcEmXls&quot; frameborder="0" allowfullscreen></iframe>

But hey, likes I said, I loves savings the moneys! Happy Time!

<iframe width="640" height="390" src="http://www.youtube.com/embed/Md43_fjlY-M&quot; frameborder="0" allowfullscreen></iframe>

But you! Ohh...You! You are tenacious...like BULL! I like!

<iframe width="480" height="390" src="http://www.youtube.com/embed/rZnH1MwdJRE&quot; frameborder="0" allowfullscreen></iframe>

And this one's just hilarious.

<iframe width="640" height="390" src="http://www.youtube.com/embed/yZXZAlfykpo&quot; frameborder="0" allowfullscreen></iframe>

RuSsMaN

Really John? Care to link ALL of youtube?

Jstas

RuSsMaN wrote: »

Really John? Care to link ALL of youtube?

Not ALL of it. I left the one from the Stanley Cup Playoffs out. Wasn't quite as funny.

mrbigbluelight

IMO, after carefully reviewing Jstas' DIRECT TV ads, I'd like to thank him.

RE: the Direct TV ad.
At the 0:25 mark, as the Russian gangsta walks in, look screen left.
What do you see ?

Dogs playing poker.

DOGS PLAYING POKER !!!!

Dogs ..... playing ....... freakin' ......... poker !!!!
(never noticed that before)

May not have been all that helpful regarding refinancing, but .... dogs playing poker. That can't be bad !

Jstas

mrbigbluelight wrote: »

IMO, after carefully reviewing Jstas' DIRECT TV ads, I'd like to thank him.

RE: the Direct TV ad.
At the 0:25 mark, as the Russian gangsta walks in, look screen left.
What do you see ?

Dogs playing poker.

DOGS PLAYING POKER !!!!

Dogs ..... playing ....... freakin' ......... poker !!!!
(never noticed that before)

May not have been all that helpful regarding refinancing, but .... dogs playing poker. That can't be bad !

My thoughts Ed Zachary.

It's...how do you says it...epic win!

TECHNOKID

RuSsMaN wrote: »

Really John? Care to link ALL of youtube?

Make sure to link them all together and make a movie out of it!

TECHNOKID

mrbigbluelight wrote: »

IMO, after carefully reviewing Jstas' DIRECT TV ads, I'd like to thank him.

RE: the Direct TV ad.
At the 0:25 mark, as the Russian gangsta walks in, look screen left.
What do you see ?

Dogs playing poker.

DOGS PLAYING POKER !!!!

Dogs ..... playing ....... freakin' ......... poker !!!!
(never noticed that before)

May not have been all that helpful regarding refinancing, but .... dogs playing poker. That can't be bad !

Did not notice the first time since I was focussing on him but I went back and yes, pretty funny.

Reminded me of this poster (just a poster of the top card) which is in our office bathroom.

txcoastal1

slk55amg wrote: »

Economic data, shows weakness, oil had its biggest% loss today ever!!

BAH HAHAHA...sorry...but last weekend I told my Aunt who has managed to hoard and inherit most of the family oil and gas interest and was not sharing....to each there own...but anyway told her it was time to peel a chunk off the top and regroup she denied told me to look at what gold has done and the unrest in mid-east:biggrin:

RuSsMaN

mshan242700 wrote: »

Could also start hearing talking heads talking about double dip recession too, though I personally don't think situation may be that severe.

You're not fooling anyone bro, knock it off. How much do you get paid on the redirects in your links? Is it per click, or per purchase? That's not what this board is about.

mshan242700

zero, nada, zilch. (I don't even know how to do that referral link thing you are talking about)

If I was somehow profiting from links, shouldn't that show up in links I provided above? (I copied and pasted directly from Amazon.com after searching for Carolyn Warren). And where is link to mortgage broker or lender I am trying to direct people to?

I started learning about mortgages in 2007 when my sister was buying a condo (knew absolutely nothing about mortgages at that point).

Just wanted to share what I learned over last several years and hopefully save some people some money (again if they initially applied for mortgage with their mortgage lender several weeks ago, rates they got quoted may have been 0.25 - 0.5% higher than what is probably available today).

Formal, official rate lock I think requires 1% fee which is credited against final closing costs, which only assumes you complete mortage (I am already assuming anyone has already done due diligence and is comfortable with honesty and ethics of whoever they already have mortgage application submitted because you will lose that rate lock free, plus all miscellaneous fees they ding you for early in process if you ultimately walk away from mortgage for a reason that is not spelled out as contingency of home buying contract you signed).

Mortgage rates fluctuate from day to day and even intraday, so whatever a lender originally quoted is not what you get at closing because situation can change in month or so it takes to process paperwork and actually close. Formal rate lock allows to to capture and lock in a particularly good rate, but you have to know who your lender is, otherwise you will get a ton of junk fees tossed in at closing that were not disclosed on Good Faith Estimate (which is basically a selling tool, as there are no legal penalities for basically lying on that form); all that matter is what is on HUD-1 form you sign at closing.

if you don't know what you are doing (that is why I recommended those books), even basically ethical brokers, banks, and lenders will be tempted to rip you off, especially if they think you will never figure out how badly you just got ripped off.

cnh

What's the point of all this BS? Do you think members here need a heads up to finance their next mortgage. Make me laugh, why don't you.

I plan to purchase my second home outright. Gee, I guess that means I don't need you and..who the heck is C Warren. And who even cares who she is?

Open up a cold one and chill out!

cnh

mshan242700

It was a Public Service Announcement for people who already have mortgage application submitted with the lender they already chose that they could possibly lock in a really low mortgage rate if they called their lender today and see what rates they can offer, with formal written rate lock, because of transient stock market volatility.

I am not the one who is claiming I am spamming here; I am just trying to explain why I posted what I did.

CNBC Fast Money (http://video.cnbc.com/gallery/?video=3000020436) and Mad Money opening segment both seem to be thinking this is a transitory event, which means mortgage rates may pop up to where they were before after this global margin call / correction has run it's course.

Saving an extra 0.25% - 0.5% in 30 year fixed mortgage rate can add up to a lot of money over life of the loan, especially if you have a large mortgage in an expensive real estate market.

madmax

Where I look at the rate it is showing 4.5% today for a 30yr fixed.

mshan242700

(hi madmax; I thought you wrote where do I find 4.5% mortgage rate. Will just leave what I already wrote below since I typed it out).

You need to do your own due diligence and ideally find a local mortgage broker or lender who you got from personal recommendations from friends and who seems to be honest and ethical (whatever anyone says on phone or even in good faith estimate is not legally binding, only what you sign at closing on HUD-1 counts).

I have been told that banks tend to have a lot of overhead so they need to make 3% from loan (1% original fee, 0.5% yield spread premium, bonus junk fees as extra profit icing on the cake) and even the rate sheets loan officer may show you, claiming to be cost, may already have 0.5% yield spread premium built into them.

(paragraph deleted)

Remember, rates I was guesstimating are for best qualified buyers with good down payment. But for perspective, anything below 6.5% is supposed to be considered a low rate over extended periods of time, and you usually need at least 1% rate reduction (some would argue 2%) to make refi worth it.

If you are many years into mortgage and a lot of monthly payment is going to principal paydown, you may not want to refi because it resets your amortization table and first years of payments will be almost all interest again.

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mrbigbluelight

I want some more GD dogs playing poker links in this thread.

Sure, it's nice saving money and all but ... dogs playing poker. C'mon !!!

.... or talking dog links (Shack level links, though).

Save money, the goverment's just going to take it anyhow, but they can't talking your talking/poker dogs links !!!