EDU Mortgage EDU

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saabguy

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
22,467
Loserville. Population: 1
I haven't been paying attention, have rates gone down again in the last few months? I checked earlier in the year and thought I missed the boat.
Yes, for a couple of reasons.

Mortgage rates tend to follow what happens with Mortgage Backed Securities, which are traded on wall st. So whatever buyers & sellers are doing, based on economic data, reports, fed meetings, inflation, etc...those drive MBS, which in turn drives rates. It's not an exact correlation, because banks still have control over their rate sheets. If companies are understaffed and having trouble keeping up with current volume, then they may use rate sheets to help control the volume coming in. If they're already buried, chances are they won't all of the sudden be slashing rates 0.25%, even though the MBS may show that's where rates "should" be.

This chart shows MBS since May. Each tick mark is a trading day, and green tick marks are positive days, red are negative. The higher on the chart we go, the better it is for rates. You can see we were in a pretty narrow trading range from May until about mid June. But we have been steadily improving since then. We're at levels now we haven't seen since about the beginning of February:
1628175111523.png


The other major factor is that about a year ago is when the FHFA (Federal Housing Finance Agency) came out with the announcement with zero warning that they were charging a 0.50basis point fee on all conventional refinances over $125k. This was straight up money grab. They saw a lot of refinance activity was happening and wanted to cash in on it. That fee can be charged 1 of 2 ways. On a $200,000 loan at 3.00% interest rate (for example), it would be $1,000 extra added to closing costs (0.50% of the loan amount). Or, instead of charging it at closing, the rate would need to go up to probably 3.125-3.25% to absorb that fee.

About 2 1/2 weeks ago, FHFA has rescinded that fee. It's no longer being charged on refinances. So in addition to the market gradually getting better, there's also a 50basis point hit no longer in effect for refinancing.
 
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saabguy

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
22,467
Loserville. Population: 1
I'm too stupid to figure out how to link an image, but the closing disclosure (prior to rate lock) is showing:
A. Origination: $0
B. Services Can't Shop for: $614
C. Services Can Shop for: $726
D. Total A, B, C: $1340

E. Taxes and other shit: $862
F. Prepaids: $328
G. Escrow: $1948
H. Other: $0

J. Total Closing Costs: $3590
"Prior to rate lock" makes it not binding. I can send you a CD that shows 1.5% interest rate with no fees if it's not locked. Then once you get a file in process and it's time to lock..."oops, you're actually 3.25% with 1 point. Sorry bout that."

Box C "services you can shop for" are the fees a title company would charge. $726 seems low for title services, title insurance, etc. That's another place where it's easy up front to make the numbers look low, but at the end of the day, when the "actual" figures are determined, you could find that they are higher than initially disclosed.
 

pookrat

OT Supporter
Dec 6, 2002
4,610
The Woodlands
Been browsing the page. Lots of good info. I'll throw my basics down to see if it's worth me looking into a refi.

Bought current house in April-May of 2020. Sold for $320,000. Currently owe $273,000. Currently worth approximately $450,000-500,000. Still paying PMI. 4.00% APR. Had great credit when purchased. Had to go on the Covid Forbearance Plan for a few months last year because of a change in jobs but have since paid off all and am back to current. Score now is in 700-720 range. Wife wants to remodel Kitchen and Bathroom so refi with some extra cash would be helpful but not a must by no means. Paying $1950/mo with P&I and Escrow payment.

Would it be worth looking into a Refi? Would the forbearance hurt my chances at a low rate (even though it was a government program)? If I give it a shot, would trying to get an extra $40,000 rolled into it be suggested or frowned upon. If I could get the money for the remodel and keep payments the same, or refi just the current owed and bring payments down a good chunk it would be worth it.
 
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saabguy

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
22,467
Loserville. Population: 1
Been browsing the page. Lots of good info. I'll throw my basics down to see if it's worth me looking into a refi.

Bought current house in April-May of 2020. Sold for $320,000. Currently owe $273,000. Currently worth approximately $450,000-500,000. Still paying PMI. 4.00% APR. Had great credit when purchased. Had to go on the Covid Forbearance Plan for a few months last year because of a change in jobs but have since paid off all and am back to current. Score now is in 700-720 range. Wife wants to remodel Kitchen and Bathroom so refi with some extra cash would be helpful but not a must by no means. Paying $1950/mo with P&I and Escrow payment.

Would it be worth looking into a Refi? Would the forbearance hurt my chances at a low rate (even though it was a government program)? If I give it a shot, would trying to get an extra $40,000 rolled into it be suggested or frowned upon. If I could get the money for the remodel and keep payments the same, or refi just the current owed and bring payments down a good chunk it would be worth it.
Once you've made 3 payments post-forbearance, you're eligible again.

Yes you should (probably) do it. You would get a lower rate if you didn't take money out. But even if you did take out $40k, assuming your valuation is correct, you could probably keep the rate at/near the same, drop the PMI, and get your $40k out for the remodel. You could get a lower rate not taking cash out, but then you'd have to finance that $40k elsewhere which would be a whole lot higher interest rate on a personal loan or home equity than what it would be as a cash-out refinance rate.
 
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MiseryIndex

open your eyes child, your sea is changing.
Nov 9, 2000
164,743
heaven's fence.
@saabguy hey quick question

debating rates & rate lock times.

i can lock 2.875 for free, or pay $380 to lock 2.75 for 75 days.

i could lock less but it'd cost a lot.

i'm not sure a 60 day lock would be enough.
 

MiseryIndex

open your eyes child, your sea is changing.
Nov 9, 2000
164,743
heaven's fence.
Why isn’t 60 days enough?

the people i'm buying from can only now that we are in contract (as of yesterday) go and try and get an offer accepted on a new house for themselves. so i'm just not sure it will be enough. they would have till october 10 to close without any time is of the essence between the lawyers on it. and if they find a house they want to do any kind of renovation on before moving in idk. also they have 3 kids and are trying to stay in the same school district, so their options for houses currently on the market any any given time is limited.
 

stevezissou

OT Supporter
Jul 15, 2009
39,376
US
the people i'm buying from can only now that we are in contract (as of yesterday) go and try and get an offer accepted on a new house for themselves. so i'm just not sure it will be enough. they would have till october 10 to close without any time is of the essence between the lawyers on it. and if they find a house they want to do any kind of renovation on before moving in idk. also they have 3 kids and are trying to stay in the same school district, so their options for houses currently on the market any any given time is limited.
lmao just don't do a "sale and leaseback" with covid eviction protections here for eternity you could get stuck owning a home and not being able to "evict" those sellers on a house you own outright :rofl: :rofl:
 
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kwhitelaw

OT Supporter
Sep 1, 2004
38,896
virginia
75 days for free. but paying $380 for the 2.75 seems worth it since it pays for itself in 14 months vs 2.875

or wait a week, gamble that rates stay the same, and lock 2.75 for free 60 day
Wait a week cause it already sounds like it's gonna be an nightmare to get the owners of your new place 100% removed since they have to find a house in a specific school district and hopefully get their offer accepted , never mind that New York contract timeframe nonsense lol
 

MiseryIndex

open your eyes child, your sea is changing.
Nov 9, 2000
164,743
heaven's fence.
Wait a week cause it already sounds like it's gonna be an nightmare to get the owners of your new place 100% removed since they have to find a house in a specific school district and hopefully get their offer accepted , never mind that New York contract timeframe nonsense lol


i was able to get an appraisal wavier. so thay more than pays for the $380 i'd pay to lock 2.75 for 75 days.

but also i have to pay for a property survey thats probably what an appraisal would cost too lol.
 

kwhitelaw

OT Supporter
Sep 1, 2004
38,896
virginia
i was able to get an appraisal wavier. so thay more than pays for the $380 i'd pay to lock 2.75 for 75 days.

but also i have to pay for a property survey thats probably what an appraisal would cost too lol.
Around here the smallest type lot without them even stepping foot on the property (so no stakes/metal pipe buried at corners, just a drawing based off county records) starts around $350, so yeah it'll likely be a wash 👍
 
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saabguy

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
22,467
Loserville. Population: 1
Whats the best way to go for a first-time buyer loan in Ca ~800k house %5 Down. Been told to go to loandepot
It's hard to recommend just a company, because there are some good people in a company, and some who are not good. I think I do a good job. But I can look in my office alone and see 3 asshats that really are pretty average to below average. So if you get told to go to Loan Depot, and you just go online and fill out some stuff, it's a roll of the dice if you're going to get someone who's any good, or some moron who you can't even get in touch with because they're always out at Widespread Panic concerts (for example).
 
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saabguy

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
22,467
Loserville. Population: 1
I tell my team all the time, this is a great career because you don't to punch a clock and have someone watching over you. It gives you the freedom to come and go, you don't have to miss any kid's games or school events, you can travel (and work remotely), you can pretty much do whatever you want...as long as you get your shit done. The hard part is that it's easy to take advantage of that freedom. You're given a long rope...but you can easily hang yourself with it. I was out of town last week and I'm sure I worked more on my "vacation" that the other people in my office. There's 3 other loan officers in my office. 1 hasn't been in all week. 1 I saw roll in for about 4 minutes in a t-shirt and yoga pants to use the copier, then she left and hasn't been back. The last one comes around 9:30/10am most days and then leaves around noon. And he's always coming in wearing shorts and a t-shirt. People who do well treat it like a job and a career. Those who don't do well treat it like a hobby.
 

nadroj

OT Supporter
Sep 2, 2004
9,590
Houston
I tell my team all the time, this is a great career because you don't to punch a clock and have someone watching over you. It gives you the freedom to come and go, you don't have to miss any kid's games or school events, you can travel (and work remotely), you can pretty much do whatever you want...as long as you get your shit done. The hard part is that it's easy to take advantage of that freedom. You're given a long rope...but you can easily hang yourself with it. I was out of town last week and I'm sure I worked more on my "vacation" that the other people in my office. There's 3 other loan officers in my office. 1 hasn't been in all week. 1 I saw roll in for about 4 minutes in a t-shirt and yoga pants to use the copier, then she left and hasn't been back. The last one comes around 9:30/10am most days and then leaves around noon. And he's always coming in wearing shorts and a t-shirt. People who do well treat it like a job and a career. Those who don't do well treat it like a hobby.

What is salary range / avg and what is the typical career path
 

NiggaPHX420

OT Supporter
Jan 17, 2002
50,529
Phoenix, AZ
I tell my team all the time, this is a great career because you don't to punch a clock and have someone watching over you. It gives you the freedom to come and go, you don't have to miss any kid's games or school events, you can travel (and work remotely), you can pretty much do whatever you want...as long as you get your shit done. The hard part is that it's easy to take advantage of that freedom. You're given a long rope...but you can easily hang yourself with it. I was out of town last week and I'm sure I worked more on my "vacation" that the other people in my office. There's 3 other loan officers in my office. 1 hasn't been in all week. 1 I saw roll in for about 4 minutes in a t-shirt and yoga pants to use the copier, then she left and hasn't been back. The last one comes around 9:30/10am most days and then leaves around noon. And he's always coming in wearing shorts and a t-shirt. People who do well treat it like a job and a career. Those who don't do well treat it like a hobby.

Realtors and Loan Officers smh
 
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saabguy

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
22,467
Loserville. Population: 1
What is salary range / avg and what is the typical career path
Some struggle to close anything. I had a guy work for a year and he maybe closed 3 deals. He was collecting his draw which was like $1500/mo probably, and got a job at chili’s on nights and weekends before he quit and went back to selling cars. I also talked to a guy earlier this year in Pennsylvania that made like $2.5m last year. I was just picking his brain about how his operation is set up to manage closing like 80-90 loans a month. What his role is, what tasks are delegates, who does what things, etc.

I make more than 1,500/mo but less than $2.5m.
 
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saabguy

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
22,467
Loserville. Population: 1
To my surprise, the widespread panic girl I work with actually showed up this morning:eek:

she had to fill out an expense report. She didn’t have one so had to bug me to send her one. She scanned a bunch of receipts and took her about an hour to finish and submit it. Then she left to go get her kid.

“HAVE A GOOD WEEKEND!”





*she will not make $2.5m this year
 

NiggaPHX420

OT Supporter
Jan 17, 2002
50,529
Phoenix, AZ
Some struggle to close anything. I had a guy work for a year and he maybe closed 3 deals. He was collecting his draw which was like $1500/mo probably, and got a job at chili’s on nights and weekends before he quit and went back to selling cars. I also talked to a guy earlier this year in Pennsylvania that made like $2.5m last year. I was just picking his brain about how his operation is set up to manage closing like 80-90 loans a month. What his role is, what tasks are delegates, who does what things, etc.

I make more than 1,500/mo but less than $2.5m.
Congrats on hitting $2k my man :h5:
 
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NiggaPHX420

OT Supporter
Jan 17, 2002
50,529
Phoenix, AZ
Don’t jinx me, I’m on pace to do it again in august :love:
Thank God someone's on a good pace

My August lookin like I might have to get a HELOC on the Raptor

giphy.gif
 

intro_vert13

fuck them kids
OT Supporter
Feb 26, 2005
31,006
an offshore haven somewhere
To my surprise, the widespread panic girl I work with actually showed up this morning:eek:

she had to fill out an expense report. She didn’t have one so had to bug me to send her one. She scanned a bunch of receipts and took her about an hour to finish and submit it. Then she left to go get her kid.

“HAVE A GOOD WEEKEND!”





*she will not make $2.5m this year
:rofl:
I remember this thread
 

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