[Poll] How low will they go?

How low do you think par rates on a 30 year fixed rate mortgage will go?

I have 22 people customers "floating" for that 4% rate...but I have 30 locked in my pipe that put everything in perspective..."Carl, why am I waiting to save $30 a month whe you can lock me in at 4.75% today?"

I've been using that line a lot lately

Some interesting results so far.  Over 57% of you feel that par rates won't go below 4.5% despite the political promises of 4% rates.

This begs the question to consumers, if you were able to get a 4.75% rate now with no discount points, would you take it?  Why or why not?

Even if the banks do become sufficiently staffed to take on such a drop in down-in-coupon momentum, I can't imagine the lenders would price anything below 4.5% as PAR, and that's just if and when the corresponding 4.5 coupon is trading at 103-00 or better.

Just my opinion.

Why was there no choice for anyhting over 5%? I would have chosen 5.5%

I agree for the most part with the previous post. Going below 4.50% is going to open up everyone who refinanced at 5-5.50% for early payoff.  And of course we all know what part that playing in the current spreads.

There are a lot of people that 5% no points (paying around 1% to the broker) makes sense and would act if it comes back around (lower loans <$250,000) because they missed out the first time around. FHA & VA especially. This alone would flood the banks and lenders again for 90 days.

Am I the only one concerned about some of the answers here?  We are already operating with par pricing between 4.75% - 5.25% with the vast majority of lenders and the current pricing hasnt broken out of that range for more than a few hours over the last month - month and a half.   Fed purchasing continues, and along with market events that spawn outside buying to maintain existing levels or even ( sucking in sound inserted here ) pick up volume, the "event to be named later" will fire back up and par pricing could reach the 4-4.25% mark pretty easily.  There was potential to be there if it weren't for the out of whack spread enigma, wrapped in a riddle surrounded by a conundrum phenomena that we are still wrestling.  My Friday ray of sunshine!

Jeff,

Welcome to MND and thank you for your service to our fine nation.

Click on the Directory Tab above, choose Mortgages, then Florida and look for any VA lenders there.  If you can't find any, feel free to repost here and we'll find someone to help you.

I think 4.5 will be the low end. Although I hope I am wrong

As a consumer, I would be very happy to get a 4.75% rate with no discount points!! That would be amazing. Our lastest quote from our LO is 5.5% and 5% with one discount point. I'm glad that a point drops the interest at least .5%. Our LO just emailed us a graph from an expert that thinks the trend is going lower. I'm trying to figure out if that was our LO trying to tell us to stay floating for a bit longer. Closing on Feb. 20th so I am eager to lock, but it would be nice to see what comes of the stimulus package first.

Amanda,

I've got several investors looking for rates to loosen after the 16th.  I wouldn't suggest playing it that close but I think floating makes sense at this point.  Your broker is doing a good job keeping your informed (or at least appears that way).  Getting more for your money using discounts is going to be a continuing trend in this market so always ask. Nothing more than a point in most cases will make sense so stay under 1%.

Good luck and thanks for reading the blogs.  Keeps us all on our toes.

..."Carl, why am I waiting to save $30 a month whe you can lock me in at 4.75% today?"  Thanks, I'll use it.

I don't think it will matter too much where in the 4's the rates may go (if they do go there).  Just being able to say 4 point something should be enough and most will get it while they can. The bailout could very well come from the same industry that most are saying created the problem.  I'm "all in".  What else am I going to do?  It's still a great business and provides incredible things for everyone.  This too shall pass and time will heal a lot of wounds. Now what are we going to do about the RBP on FM loans?  I guess FHA (subprime on steroids!).  Enjoy the ride.

It doesn't seem to matter to SillyRabbit. Just a homeowner with a 6.5 current mortgage - house built in 2000. Appraised in 2005 for 256,000.00. I tried to refi and my mort co said current market on home is 211,000.00 - Since we owe 183,000.00 and have a 20,000.00 equity - we are not able to refi - Unfortunately, we pay our bills and have no appreciable debt - but we did want to pay it off before retirement - our 401 is tanking and this may not be possible.

The really funny part is, I had a variable rate on the equity line and changed it to ensure we did not get caught with higher payments and to ensure we did not use it as a line of credit.

What a maroon...

Silly Rabbit:

It doesn't seem to matter to SillyRabbit. Just a homeowner with a 6.5 current mortgage - house built in 2000. Appraised in 2005 for 256,000.00. I tried to refi and my mort co said current market on home is 211,000.00 - Since we owe 183,000.00 and have a 20,000.00 equity - we are not able to refi - Unfortunately, we pay our bills and have no appreciable debt - but we did want to pay it off before retirement - our 401 is tanking and this may not be possible.

 

The really funny part is, I had a variable rate on the equity line and changed it to ensure we did not get caught with higher payments and to ensure we did not use it as a line of credit.

What a maroon...

Get in process with a good Broker.   Refinances to 105% of value are coming within the next two weeks or so....you look like you're at 86+%....adds should be minimal according to Fannie Mae's official realease. No MI needed if wasn't needed on original loan.

Silly Rabbit, you need to get a hold of a knowledgable broker to walk you through the new "DU Refi Plus program that is coming April 4th.  Allows for 95% ltv, 105% cltv, only catch is getting the 2nd mortgage to resubordinate, or move back into second lien position after the refinance of the 1st loan.  Good luck, you are not alone, there are literally hundreds of thousands of homeowners in the same position you are right now.  Hence the govt help!