Wow... rates dropped big time (home loan, fixed rates, interest rate, real estate)

[NJ987654]

as a results of the Fed's action

WASHINGTON (AP) "The Federal Reserve said Tuesday it will buy up to $600 billion in mortgage-backed assets in another attempt to deal with the financial crisis.

The Fed said it will purchase up to $100 billion in direct obligations from mortgage giants Fannie Mae and Freddie Mac as well as the Federal Home Loan Banks. It also will purchase another $500 billion in mortgage-backed securities, pools of mortgages that are bundled together and sold to investors."

[texdav]

The problem is theyt can not set a price on what the budles are worth. Until they can that is not going to happen.That's been the problem all along. Even then many will not be quailfied for a refinance thru even fannie ame and mac with teh new oleanding requirements.

[homesweetazhome]

My broker told me that 30 yr. fixed rates are at 5.5 with .5 pt. origination fee. Not bad. That's this afternoon. Who knows about tomorrow.

[DanBev]

Originally Posted by homesweetazhome

My broker told me that 30 yr. fixed rates are at 5.5 with .5 pt. origination fee. Not bad. That's this afternoon. Who knows about tomorrow.

Our buyer will be submitting his paperwork tomorrow for closing 12/05,hope he qualifies!!He is qualified for mortgage already.

[wankel7]

Good thing I locked last week....

Ever heard of a broker letting you slide to a lower rate?

[ShanetheMortgageMan]

Lenders may have a "float down" feature. I know quite a few lenders were allowing more flexibility on it due to the decrease in rates, they knew that there would be some fallout so they are allowing loans to be relocked at lower rates - a 1-time thing.

[wankel7]

No float down with my broker. But she is offering 3/4 of a discount point to bring the rate down .375% (5.875 to 5.5)

I guess that isn't to bad of a deal the break even point is 2.75 years.

[ivymw2002]

I locked today at 5.50% and can float down if rates decrease more than .25%

[MusicCityMom]

Hi all,

I locked on Friday for 5.75. I have excellent credit. I'm thinking that I will call a mortgage broker recommended to me by my real estate agent tomorrow to see if I can get a better deal.

I'm currently locked with my bank--I like them, have had a mortgage with them before. But if I can get a better interest rate with the same closing date (Dec. 12) I think I will.

Is there any possibility I can go to my bank and ask them if they will give me some leeway (even paying points at the new rate) to keep my business? I asked today, just if there was any float option, and was told no (which confirmed what I knew).

[VictorBurek]

Originally Posted by MusicCityMom

Hi all,

I locked on Friday for 5.75. I have excellent credit. I'm thinking that I will call a mortgage broker recommended to me by my real estate agent tomorrow to see if I can get a better deal.

I'm currently locked with my bank--I like them, have had a mortgage with them before. But if I can get a better interest rate with the same closing date (Dec. 12) I think I will.

Is there any possibility I can go to my bank and ask them if they will give me some leeway (even paying points at the new rate) to keep my business? I asked today, just if there was any float option, and was told no (which confirmed what I knew).

Did you ask your loan officer to lock you in at 5.75%? Sure, you can tell your lender you wish to pay discount to buy a lower rate. Each point you pay should buy the rate lower by .25 to maybe .375%. But if you asked your lender to lock your rate in, dont you feel obligated to follow through on the commitment? Not trying to beat you up and maybe you didnt say to lock the rate, but would like to hear a consumers response to that.

Your bank may not have a float down option like other banks, and here is a good reason why working with a broker can benefit you. Brokers have flexibilty, they deal with many lenders each with their own rules, you bank only has their rules and thus cant be flexible.