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Mortgage Rates

Discussion in 'Real Estate & Other Investments' started by louky, Nov 11, 2016.



  1. louky

    louky Silver Member Silver Miner

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    Mortgage rates in general.....not sure how to change the title

    I would assume everyone here is savy enough to have already locked in a historically low rate, but if not here's something you might want to monitor. See the last two days since Mr. T. has been announced predsident:

    [​IMG]
     
    Last edited: Nov 11, 2016
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  2. nickndfl

    nickndfl Midas Member Midas Member Site Supporter ++

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    Too late for a variable. If one must go into debt look at a 15 or 30-yr. fixed. There are some deals on 7/1 ARMs, but if you are retired and plan on staying then forget it.

    I tried to get a 7/1 or 10/1 for my new home, but it was not available. I locked in a 30-yr fixed @ 3.875 on Monday before the election. Rates popped on Trump's win.
     
  3. andial

    andial Sir Midas Member Site Supporter ++

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    Yes I'm locked in at these low rates a good way to play these rise in yields is TBT. I was just thinking if the ten year goes another half point higher would President Trump lean on the fed Truman style.
     
  4. louky

    louky Silver Member Silver Miner

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    Yeah, exactly. The point I was trying to make was get a rate locked in NOW. Whether buying or off a variable rate if on one.. I'm not sure everyone realizes what's going on with rates in the two days Mr. T. has been announced president.
     
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  5. louky

    louky Silver Member Silver Miner

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    Day three for Mr. Teeeee

    [​IMG]
     
  6. edsl48

    edsl48 Silver Member Silver Miner

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    In many ways it makes a lot of common sense that mortgage rates will be rising. On the other hand I said that 5 years ago.
     
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  7. nickndfl

    nickndfl Midas Member Midas Member Site Supporter ++

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    Trump victory was the catalyst. Economy will move away from high tax low growth to low tax and high growth. Light my fire.
     
  8. Someone_else

    Someone_else Gold Member Gold Chaser

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    I would never borrow at a variable rate. Never! I know it sucks for a lender to commit to a fixed rate for X years, but that's his problem.
     
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  9. edsl48

    edsl48 Silver Member Silver Miner

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    I buy my rentals on a 1% over prime floating rate. I do this so that if my projections go astray or some financial calamity occurs I don't have to run to the bank in need of money. If things go right I pay them off in one year so it pays to grab the more or less variable rate offered me. There are no points, closing costs,appraisal fees, inspection fees etc. Variable rates can work but one has to be able to cough up the dough if things dramatically change. A good example is someone getting a lower variable rate and instead of putting the interest savings towards the mortgage principal balance they buy an new SUV instead. Then they are in trouble when rates rise. Once again we see the financial mistakes being made by people that can't manage their own budget.
     
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  10. louky

    louky Silver Member Silver Miner

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    Scorching earth

    [​IMG]
     
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  11. Goldhedge

    Goldhedge Modal Operator/Moderator Site Mgr Site Supporter

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    Changed title 4 louky.
     
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  12. louky

    louky Silver Member Silver Miner

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    Thanks Goldhedge

    Out of college I worked in the mortgage industry. That was the time period that led up to the housing crisis. If the broker needed a loan to go through. All they had to do was call up their "in house" appraiser. He would stretch the value to anything you needed. Lots of people would take variable rates then. I realize nowadays, with rates having been so low for years, most have already moved off them. That's why I mistakenly put "variable rates" in the title. It was on my mind.

    I would only do loans that benefit people, which made it difficult to thrive in that environment. I was making 40-50 k, everyone else 100+ k. Finally, at one point the manager pulled me into the conference room. "I don't understand why you aren't closing these loans. I hear you on the phone and you're great. Then you go meet and come back without a signature". That's the only job I ever walked off of or quit in my life. Not because I wasn't good at it, but because I wasn't willing to screw everyone over.

    Shortly after, as I stated, the housing crisis occurred. Now they have strict regulations, one being that you don't get to pick the appraiser. It goes through an assigning system, I believe.
     
    Last edited: Nov 19, 2016
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  13. ErrosionOfAccord

    ErrosionOfAccord #1 Global Warmer Gold Chaser Site Supporter ++

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    I have a lot of respect for a guy who actually looks out for his customer. It isn't in my blood to sell things to people they neither need nor want. A mortgage is a whole different animal though. If you can't afford a 15 year note then you have no business buying a 30 year note.
     
    Last edited: Nov 19, 2016
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  14. Eyebone

    Eyebone Midas Member Midas Member

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    Death to mortgage inflater's, death to home price inflater's, death to the banks and generally anybody that inflates prices.

    The house 'flippers', the banks that won't mark to market their unsalable property.

    Burn them.,
     
  15. nickndfl

    nickndfl Midas Member Midas Member Site Supporter ++

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    I did the same thing and often left money on the table. I would never put anybody into something they couldn't afford. My Spidey sense tells me we are on the way up again. Buy now or pay more later.
     
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  16. Ensoniq

    Ensoniq Midas Member Midas Member Site Supporter ++

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    My buddy was refinancing his rental portfolio this past week and told his rate went up 3/8 from the prior week.
     
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  17. louky

    louky Silver Member Silver Miner

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    I posted this Nov 10th after I'd noticed TLT crashing:
    [​IMG]

    Huge red flag. Relating it to mortgage rates:

    Quote is from here (11/14/16) with more good info worth a read:

    https://www.equities.com/news/the-p...-bonds-increases-risk-for-the-crash-of-stocks


    When rates rise = debt pressure on companies (and consumers)

    Trump wants to spend, but bonds crash won't let him so he plans to offset by lowering taxes.

    Market is already raising rates itself. If the fed sticks to their plan to raise as well = stagflation


    What a molotov cocktail. It's going to be interesting to see how .gov and the new president navigate all this going forward.
     
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  18. louky

    louky Silver Member Silver Miner

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    [​IMG]

    Maybe GG will show back up and share his new jack in the box chart. Anyone remember the 1900 gold one he posted in 2008 or 09?

    ......9 k gold incoming
     
    Last edited: Nov 20, 2016
  19. edsl48

    edsl48 Silver Member Silver Miner

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    You are right the way I hear it. Appraisals have to be obtained on a more independent basis than before. However I purchased a simple 1200 sq ft ranch during the meltdown here for 51,000.00. A flipper bought a similar house right behind it for a similar price. He put on a new roof, new cabinets and windows. He then sold it for 129,000.00. Now how in the heck can adding 15,000.00 to a 50,000.00 house make it worth 79,000.00 more? None the less no doubt there was an appraiser that said it was worth the sales price when in clear view right out the back yard a perfect comparable sale was there? Once again I have my doubts on these appraisals. My thoughts are if you have great credit and can afford the payments the house you want will appraise out. Bad credit or can't make the payments then the house won't appraise and the lender will say you need a bigger down payment. I can not attest to that and it is just some tongue in cheek thoughts I have had over the years based upon things I have seen.
     
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  20. louky

    louky Silver Member Silver Miner

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  21. louky

    louky Silver Member Silver Miner

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    Taking a breather for now after 3x movement post election

    [​IMG]
     
  22. louky

    louky Silver Member Silver Miner

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  23. louky

    louky Silver Member Silver Miner

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    Last edited: Feb 1, 2017
  24. nickndfl

    nickndfl Midas Member Midas Member Site Supporter ++

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    Rates went up a half a point or more since November. Volume will increase in the spring.
     
  25. louky

    louky Silver Member Silver Miner

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    Stagflation, mmmmhmm

    http://www.zerohedge.com/news/2017-...n-manufacturing-sector-slumps-post-trump-lows
     
  26. edsl48

    edsl48 Silver Member Silver Miner

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    Houses are selling in my flyover area of St Louis as fast as they hit the market. Practically every house sells for more than asking price too. In my estimation these rates are actually too low at the moment. However, as I have experienced over the many decades of my life, this is just another part of the usual cycle where people are paying higher prices to where they will be in immediate underwater trouble at the start of the next downturn.
    For what this is worth I see a lot of landlords selling houses at the moment as well. I am not selling mine because in my situation I prefer to leave my places as a group to my heirs. I also have certain tax implications. To me though this all adds up to the start of another bubble.

    JMHO
     
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  27. louky

    louky Silver Member Silver Miner

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    Yes, my neighbor sold a month or so back. Hours on the market. He lived there 3 years maybe. I told him make sure you plan to stay in your next house because everyone buying now will be under water soon.

    I bought 2009/10 bottom.
     
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  28. Scorpio

    Scorpio Скорпион Founding Member Board Elder Site Mgr Site Supporter ++

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    yep, not a buyer in this market, trying to sell off as much as I can

    looking for new ideas in foreclosures, or new builds, etc. Not touching the standard issue markets.
     
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  29. Goldhedge

    Goldhedge Modal Operator/Moderator Site Mgr Site Supporter

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    Same here in Colorado. Too many buyers, not enough inventory.
     
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  30. mayhem

    mayhem Другая перспектива Silver Miner Site Supporter

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    I sure it holds up a while longer. Have a remodel contractor locked in and should start fixing up a lot of small stuff and put some lipstick on this pig starting on the 15th. We need to down size or start taking in boarders.:D Been retired 20 years now and this house is our last big asset. Will probably rent for a while next and see how things turn out. I have to face the reality that my expire date is approaching and I sure do not want to leave this place for the wife to deal with. Have to leave the area because it is getting way to expensive to live here. Love the weather and all, but the tax rate is $2,500 per 100k. Granted that isn't as high as some areas, but plenty high for a retired couple.
     
  31. Someone_else

    Someone_else Gold Member Gold Chaser

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    Convert failing shopping malls into condos.
     

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