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Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Mon Jul 6 2020, 1:05 PM
Thanks Larry! I've always greatly appreciated your contributions over the years.
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Larry Gray
Senior Mortgage Banker, Guarantee Mortgage
on Thu Jul 2 2020, 5:10 PM
I have always included your perspective, Matt, on what is going on in the market and how it is affecting our mortgage industry in the present and the future in my ongoing education. I remember when you were, I think, primarily a loan officer and a contributing author to Mortgage News Daily. Sometimes, as in the comment made by you here in response to...
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Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Wed Jul 1 2020, 5:03 PM
Yes, and it was 3.27% at the beginning of April, and 1.81% in 2019 (at its highs) before coronavirus was a thing. As such, 1.92 is very close to being officially back to the previous reality whereas 3.27 was nowhere close. When it was 3.27, we could at least hope if not outright expect the spread tightening to help mortgage rates outperform. Now, though...
Greg Blasic
on Tue Jun 30 2020, 5:56 PM
I do not understand the statement "That gap has largely been closed now." The current gap between a 15 yr FRM (from your data) and the Treasury 10 yr is 1.92 and exceeds historical averages. The gap in mid-January was l.22. What gives?
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Thu Jun 25 2020, 6:03 PM
Closing costs in FL are among the highest in the nation. Refinancing an 80K loan typically isn't prudent, better use of funds is a lump sum principal payment.
WN
on Thu Jun 25 2020, 9:49 AM
Mr Sman, yes, you are right. Lenders do not really want $80k loans on condos in Florida. Too much risk in Florida for condos. Also Mr Parish, that is the same reason as above. RISK. Non-owner homes and condos are usually the first to go belly up and have too much risk vs reward.
david parish
on Thu Jun 25 2020, 8:23 AM
Yep. Have an investment conforming SFR with 50% ltv. Fico >780. Started a refi appl in Jan and all looked ok. Then covid hit. Lender now not doing investment homes. Several other lenders say the same or quote a good rate like 3.5 then say sorry underwriting says no investment properties at the moment. Others (including existing lender) quote 4.5...
Jack Sman
on Thu Jun 25 2020, 7:20 AM
I'm at the 'other end' of this scenario. Own a condo (two story bldg.), 40% equity, small payoff ~80k, credit score consistently well above 800, property is in South Florida - primary residence. Have ran scenarios as a clean refinance and also considered doing a 'cash out' just to raise the numbers where a lender might be more interested...
Greg Blasic
on Wed Jun 24 2020, 4:47 PM
Your article hits the nail on the head for me. I have a jumbo loan of about $1.1M, a loan rate of 3.625%, and a credit score of about 800 in San Diego, CA. I also have a 2nd mortgage for home improvements. The lender of the 2nd agrees to execute a subordination agreement, but refinance lenders will not even discuss this. It is difficult finding a lender...
Troy McNeely
on Wed Jun 24 2020, 4:16 PM
Thank you!!!
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Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Wed Jun 24 2020, 4:01 PM
There are definitely lenders out there who are funding no-hit conventional 30yr fixed deals at 2.875 with no origination/discount (and a few at 2.75). There are also definitely lenders out there who are at 3.25% on the exact same scenario. I've never seen things so stratified for so long without some ebb and flow.
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Larry Gray
Senior Mortgage Banker, Guarantee Mortgage
on Wed Jun 24 2020, 3:44 PM
If you read Matt's explanation at how he derives at the best rates each day he explains that costs are representative of the many brokers locking loans at that rate...and do not include additional points. Depending on what each Broker's charges are for Processing and U W, you would just add in appraisal, escrow fees, title insurance, and government...
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Larry Gray
Senior Mortgage Banker, Guarantee Mortgage
on Wed Jun 24 2020, 3:26 PM
I get what you are telling us Matt, about how mortgage rates are just itching to rise... slowly. There was this one day, a Thrusday, couple of weeks when pricing dropped significantly and we all had used up our ability to lock rates by 10 to 10:30 in the morning. I remember at 3.0%, conforming 30 year fixed, all this rebate! Then Friday cost jumped...
Troy McNeely
on Wed Jun 24 2020, 2:42 PM
Good afternoon Matthew, Quick question: When you stated "With the very best scenarios seeing 30yr fixed rate quotes of 3.0% or below." - is that with Origination and 1 discount point? Thank you in advance. Sincerely, Troy
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Mon Jun 15 2020, 11:40 AM
HI Silvia, If you keep the HELOC open (whether you pay it off through the refinance or not), it will have to be subordinated, which means the HELOC lender agrees to stay in second lien position. Fannie Mae has pricing adjustments for both cash out loans and for subordinate financing. Be sure the quotes you get reflect those (if applicable) or you may...
Silvia Miranda
on Sat Jun 13 2020, 3:49 PM
Hi I have a question. My current home value is $689,000. The current loan balance is $297,000 and the second helix loan amount is $35,000. My current interest rate is 3.75 Fo you recommend I refinance to payoff the heloc and keep it open and refinance the first as a cash out 30 year fixed? Currently I getting rate between 2.89-3.25. Lowest rate paying...
Silvia Miranda
on Sat Jun 13 2020, 3:47 PM
Hi I have a question. My current home value is $689,000. The current loan balance is $297,000 and the second helix loan amount is $35,000. My current interest rate is 3.75 Fo you recommend I refinance to payoff the heloc and keep it open and refinance the first as a cash out 30 year fixed? Currently I getting rate between 2.89-3.25. Lowest rate paying...
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Fri Jun 5 2020, 2:16 PM
I think the reason more folks don't do subordinate financing, Larry, is the Fannie/Freddie hit for properties with 2nd liens. As you know, those impact the pricing on first mortgage, just as going from a conforming loan size to high balance loan size does.
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Fri Jun 5 2020, 2:14 PM
Hi Rate Watcher. The thing to remember about investment property and cash out refinance loans is that they have substantial pricing adjustments compared with owner occupied/non-cash out loans. It's highly doubtful that you could obtain 3.6% on JUST an investment property loan now without paying points, and adding the cash out adjustment could mean...
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Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Fri Jun 5 2020, 1:54 PM
Thanks for the thoughtful reply, Dean. Crazy to see how things ultimately turned out today!
Dean Chaney
on Thu Jun 4 2020, 7:56 PM
You do a great job of simplifying things that separately have an influence on mortgage rates, and you do a good job of highlighting the upcoming things that will have an impact, too. Your article a few days ago saying the market would have no events to react to noted the advice was good only until it wasn't. We have seen that play out with the last...
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Rate Watcher
uspeed
on Thu Jun 4 2020, 7:23 PM
I am looking to cash out and payoff primary mortgage, see below my scenario. Does lender this days allow to do so? I have Primary Residence (value $1.1M ) with mortgage left approx $330k, with 15 years to go. Current rate 3% for 20yr fixed, monthly paying $2750. I also have a rental property (value 900k) with mortgage left approx 184k, with 20 years...
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Larry Gray
Senior Mortgage Banker, Guarantee Mortgage
on Thu Jun 4 2020, 4:26 PM
It seems someone could have used the answer..."you can do a conforming loan a lower rate and do a small equity line of credit instead of a high balance loan" Our credit union here in California will do an equity line of credit up to 90% cltv (combined loan amounts) at the same time as we refinance the first mortgage. I always try to take a...
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Mon Jun 1 2020, 1:56 PM
As stated, Ted, if your loan size is under the conforming limit ($510,400), and your property is owner occupied, current rate should be considerably lower than 3.625%. Even if it's a conforming high balance loan (available in certain high cost areas) rate should be lower. Jumbo pricing is now HIGHLY variable, a whole different situation altogether...
WN
on Sun May 31 2020, 8:30 AM
Mr Simpson, you need to shop around. With that scenario you should be getting quoted 2.875%-3.25% max as long as your loan amount is $510k or less.
Derick Yoder
on Sat May 30 2020, 10:36 AM
I am getting rates much lower than yours. Have you tried going to nerdwallet.com and going through Mortage Pre-Approval page? I assume you are quoting Jumbo loan, new purchase, 30 years, but that still sounds high.
Ted Simpson
on Sat May 30 2020, 5:29 AM
How come this number never matches what the rates actually are in the real world? I have 800 plus credit rating. 40% down. Best I can get is 3.625 when you say close to 3. Why?? Thank you
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Vogol
Vogol
on Thu May 28 2020, 11:23 PM
Thank you Mr. Rood, I'll will email you next per your last instructions, thank you, Sir.
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Wed May 27 2020, 8:13 PM
Hi Vogol. Can you please reach out to me at email listed on my profile? I'll connect you with a loan officer I know who does business in DC. Just click on my name to see email. Thanks!
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Wed May 27 2020, 7:11 PM
Hi Vogol, Yes, loans can be split into firsts/seconds, but there are substantial pricing adjustments for the first, so it's not a slam dunk decision. Let me run your question past a few folks, will advise when I have a good option for you!
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Vogol
Vogol
on Tue May 26 2020, 5:37 PM
Mr. Rood, Can I pls get a reference for high balance refi in DC area, in Northern Virginia to be exact. By the way, what is the limit of conforming loan, my high balance is now at 570K; can I not split that into conforming and a second loan to get better conforming rate, as we used to do 80/ 20 or so in the past? Thank you.
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Fri May 22 2020, 9:43 PM
It's a fine line. Set debt ratio and credit requirements too stringently, and you're "keeping lower income families out of homes." Set them too loose, and you're "setting up housing failure." In general, I think the pendulum is about right now, compared with too liberal in late 2000's and too tight in early 2010's...
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Fri May 22 2020, 8:59 PM
There's some decent high balance lenders out there, I referred a client to a NY broker today for a high bal refi, and rate was at/below conforming levels. If you want a CA reference, let me know.
JRopp
on Thu May 21 2020, 8:34 PM
Thanks for your reply Matthew. Might as well focus on reducing the principal and then look to refi. I had not realized this was such a significant factor given that I’m not much above the confirming limit.
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Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Thu May 21 2020, 4:19 PM
It's not so much a question of finding different rates as you're more likely to pay for being above the conforming limit by paying extra closing costs. Being above the conforming limit hurts a lot right now--almost 2% of the loan amount in terms of upfront costs. In other words, roughly $10k in cash for you to get the same rate as someone with...
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Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Thu May 21 2020, 4:11 PM
Miller, that's a hot topic in certain circles right now. There are some conspiracy theories, but also some potentially altruistic motives. The truth is probably somewhere in between.
molly werner
on Thu May 21 2020, 4:01 PM
The Gov't set american's to fail anyway you can look it at. the mortgage loans approval requires 43% of the household or applicants gross income, fed and lenders don't or care or count the groceries, the utilities, cell phones,car insurance, day care or school expenses, clothes, lunch, fuel, house maintenance, hair cuts, pet care, and the...
Chris Vollman
on Thu May 21 2020, 8:59 AM
The bigger servicers and financial institutions don't care if they've given forbearances, they still get the interest from those months at some point. On average it's a $50-$60K (Collections, county fees, attorney fees, court costs,etc.) hit every time a bank has to foreclose, so they don't want to take the chance that it's not a...
JRopp
on Thu May 21 2020, 4:27 AM
Currently owe 530k with 23 years left on a 30 fixed at 3.5% Appraisal around 1.2M in Los Angeles county. Credit scores probably 780-800. Looking to refi to either a 20 year term or 30. What rates should I realistically expect to find? How much does being above the confirming loan hurt us? Thanks fir the thoughts. Stay safe everyone!
alexgolbas
on Thu May 21 2020, 12:38 AM
These articles online are all bullshit, I'm a real estate agent myself and I personally know several clients who are struggling. Our gov't is doing every single thing possible to avoid a real estate market crash. No job, no income, no income, no payments, no food, no life, how long can you go on forbearance for? Borrowers are just going deeper...
rreimiller
on Wed May 20 2020, 6:40 PM
Antonio, The guidance that came out yesterday in commentary seemde to lead towards making 3 on time payments after coming out of the forbearance. If no payments were missed, but the loan was reported as a forbearance on the credit report, there should be no issues. The missing of the payment seems to be the acceptance trigger for the forbearance to...
rreimiller
on Wed May 20 2020, 6:37 PM
So what is the purpose of servicer calling borrowers and offering free forbearances? What does the servicer gain if they are still making the payments to the investor?
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Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Mon May 18 2020, 2:00 PM
Antonio, the ability to qualify after forbearance seems to be a moving target right now. I haven't heard any of my loan officer clients say they were successful in helping their clients refi with an open forbearance. Sharon, with just the information given, it looks like you're in the right ballpark rate range. Obviously, the lower end of that...
sharoninvancouver
on Sun May 17 2020, 1:06 PM
Can I do a cash out refi? Below are the stats: Appraised value: $1,400,000 on March 27, 2020 Loan balance: $575,000 Credit score: 742 (middle number) DTI: 39-40% Property: single family owner occupied in San Mateo county, CA Looking to cash out on a 30 year fixed with a loan amount of $765,600. Was given quote 2.75-3.45% with various costs. Any advice...
antonio leal
on Sun May 17 2020, 10:54 AM
if you took forbearance can you still refinance?
WN
on Sun May 17 2020, 6:53 AM
And as far a the appraisal fees. You can thank Andrew Cuomo for that!! He started HVCC when the State of NY sued WAMU over appraisal fraud. So now, as the consumer you pay!! all in the name of protecting you!
WN
on Sun May 17 2020, 6:51 AM
Here is the reality Jennifer. The Market for Cash out loans is very bad right now. Think of it this way. Would you buy a loan that might go right into forbearance? That is why Cash outs are so high right now. Regardless of your credit or equity who wants that risk?
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Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Fri May 15 2020, 1:31 PM
This chart is for conventional conforming. FHA rates are better. 2.75% is common (assuming strong qualifications and a conforming loan amount), and 2.5% is being quoted in a few cases. Much more dependent on the scenario and the lender in that case though. In any event, widespread availability of 2.5% is easy to imagine. This isn't a prediction...
Kent Hong
on Fri May 15 2020, 12:58 PM
It looks like from your first chart that we still have 30 bps to go lower for the 30 yr to get back to normal trading range. That would put a FHA 30 at 2.4 range? Do we think that is possible? I guess I would have to see it first to believe it, but man, that would be incredible.
Jennifer Byrd
on Tue May 12 2020, 11:18 PM
Thank you Ted! Such good news!
 

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