topic Rates in Mortgage Loans

Rates

SandyRN — Mon, 26 Sep 2022 23:13:19 GMT

Just curious what people are seeing for rates in the last few days. I am in shock to say the least at what I am being quoted.

Re: Rates

merc64 — Tue, 27 Sep 2022 01:06:43 GMT

So last week locked in at 5.875 with .6 points on a VA 30 year, zero down. After looking at rates today I would be nearer to 6.2 with paying over a point. Don't see how rates are going to go down near future. Hold on for the ride. As a side note, appraisal just came back too low so trying to decide yes/no of just letting this ride out and wait until next year. Good luck!!

Re: Rates

ShanetheMortgageMan — Wed, 28 Sep 2022 01:46:56 GMT

@merc64 wrote:
As a side note, appraisal just came back too low so trying to decide yes/no of just letting this ride out and wait until next year. Good luck!!

If you are leaning towards continuing with the purchase I'd press the seller to reduce the price to match the appraised value. Home values are declining in most markets, so if you back out then odds are they'll get a new buyer under contract for the same price you are under contract for are diminishing day by day.

Today was a better day for mortgage rates, but between last week and yesterday the same interest rate that cost 0 points on 9/16/2022 would cost about 2.5 to 3 points at the end of yesterday, 9/26/2022. There are some lenders who you can't even get a 0 point mortgage from right now. This is very similar to what happened in March 2020 after lockdowns went into effect and there was a lot of uncertainty. In a month or two, even if we don't see improvements in mortgage backed securities (MBS) and treasuries, we'll probably see rates gradually get better.

Re: Rates

IamWesty12 — Wed, 28 Sep 2022 01:55:00 GMT

@ShanetheMortgageMan wrote:
@merc64 wrote:
As a side note, appraisal just came back too low so trying to decide yes/no of just letting this ride out and wait until next year. Good luck!!
If you are leaning towards continuing with the purchase I'd press the seller to reduce the price to match the appraised value. Home values are declining in most markets, so if you back out then odds are they'll get a new buyer under contract for the same price you are under contract for are diminishing day by day.

Today was a better day for mortgage rates, but between last week and yesterday the same interest rate that cost 0 points on 9/16/2022 would cost about 2.5 to 3 points at the end of yesterday, 9/26/2022. There are some lenders who you can't even get a 0 point mortgage from right now. This is very similar to what happened in March 2020 after lockdowns went into effect and there was a lot of uncertainty. In a month or two, even if we don't see improvements in mortgage backed securities (MBS) and treasuries, we'll probably see rates gradually get better.

@ShanetheMortgageMan this makes me extremely grateful and appreciative of my recent COE of a USDA 502 Direct Loan. My rate will be 3.5% w/ zero down payment. Now, my fingers are so tightly crossed I may lose feeling, I just hope I can finally find a house to buy!!!

Re: Rates

1t2b — Thu, 29 Sep 2022 03:12:17 GMT

what's a COE?

Re: Rates

pizzadude — Thu, 29 Sep 2022 19:46:45 GMT

@1t2b wrote:
what's a COE?

Certificate of Eligibility - it basically states terms / amounts you're qualified for under VA, USDA, etc..

Re: Rates

1t2b — Thu, 29 Sep 2022 21:54:54 GMT

And they honor that interest rate? It's a lock of sorts?

Re: Rates

IamWesty12 — Sat, 01 Oct 2022 18:20:05 GMT

@1t2b wrote:
And they honor that interest rate? It's a lock of sorts?

@1t2b Hi and yes, I *believe* it is 90 days from day granted and then an additional 2 extensions. If anyone has a better or more confirmed answer feel free. On the bottom of my COE it states this. I really hope I don't have to find out what happens if I can't find a home in that time frame but what is really great about all of this and there is a ton of great benefits of this program is when I applied and they ran the credit portion, it was only a hard inquiry, name Equifax Mortgage. So I gather if time ran out before one could find and buy a house, at leat if it had to be rerun, it is only 1 hard inquiry. Gosh, when I was prequaled for a conventional during the first year of C-19 I think I had 7 or 8 hard inquiries to shop rate. I know it only scored as one but it is still nice to see. Wishing you all the best!

Re: Rates

1t2b — Sat, 01 Oct 2022 21:38:24 GMT

That's phenomenal! I wish USDA covered our area. Best of luck on your search, hope to see an update from you!