Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Anyone concerned about their values not hitting 80% or less, should STOP RIGHT NOW. DU Refi Plus has a feature that will allow for prior loans w/out MI to be able to refinance up to 105%, WITHOUT MI on the new loan. Part of this program allows for Property Inspecion Waivers (PIW), which is an automated appraisal. This is not saying we are going to be plugging false estimated values in the system, but what it's saying is if the underwriting system thinks a "realistic" value was entered, you could be getting a free pass on the LTV w/ MI.
APPRAISALS ALREADY RECEIVED WILL NOT BE ABLE TO BE DISREGARDED.
The pricing for the higher LTV refi loans is quite reasonable.
If you have a great rate and have zero concerns on value, move ahead (and quickly, because the DU Refi Plus will increase rates most likely due to volume). But if you are in doubt, don't get the appraisal yet. Wait a couple of weeks.
Isn't that only if your loan is held by Fannie mae?
it is a volatile market as is, the rates have been steady too long, most economists predict a gradual rise within 3-6 months and than a steady period again..
If you have 5% or lower now LOCK IN!
Not buying till late summer or early fall ... won't be in position to until then
When you get a chance, would you explain this a bit more? (The how's and why's, to a 5th grader...) Thanks
It's complicated to explain how mortgage rates work.
Here's a dumb down version on yahoo.com
The direct link is here:
Fed to buy up to $300B long-term Treasury bonds: Financial News - Yahoo! Finance (http://biz.yahoo.com/ap/090318/fed_interest_rates.html - broken link)
"Fed also said it will buy more mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac to help that battered market. The central bank will buy an additional $750 billion, bringing its total purchases of these securities to $1.25 trillion. It also will boost its purchase of Fannie and Freddie debt to $200 billion.
"This is not only going to keep mortgage rates low for a long period of time," said Greg McBride, a senior financial analyst at Bankrate.com. "The mere announcement may produce a honeymoon effect and bring mortgage rates down to even lower levels in the coming days"
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,845,674 times
Reputation: 958
Quote:
Originally Posted by jctx
When you get a chance, would you explain this a bit more? (The how's and why's, to a 5th grader...) Thanks
Watching Treasury yields is not necessarily a good way to judge rates anymore. Unfortunately there is a large disconnect between mortgage backed securities and other fixed income along with equities markets. As an example, yesterday the stock market was strong creating weakness in the Treasurys market. However, mortgage bonds stayed strong and even improved in price a couple of basis points.
Because of this the only true way to track mortgage rates (and it's still a crapshoot) is to watch the mortgage bond markets. Due to the Feds announcement today that they will purchase another $750 billion in MBS (on top of the $300 billion that they have yet to spend of the original $500 billion they committed to the MBS markets) down in coupon has been the trend, meaning that bond traders are buying up the lower rate coupons at a discount and driving the prices up on the coupon stack (3.5, 4.0, 4.5, 5.0, 5.5 all directly corresponding to rates) as opposed to buying the premium priced, higher rate bonds. Historically there is about a 50 basis point (or bps) spread between coupon pricing and street level rate pricing. What this means is that if the FNMA 4.5 30 year coupon is priced at 100-50, you would see par rate (no YSP and no discount points) at 4.5%. What we have been seeing over the last 6 months or so is spreads more in the area of 150-25- bps, depending on the lender. So as an example, as of right now the FNMA 4.5 30 year is pricing at 102-01. If that holds then we may see par pricing at 4.5% within the next couple of days. Keep in mind that I am not including Agency loan level pricing adjustments (even the most credit worthy borrowers are being hit with FNMA LLPA's nowadays) and that lenders are quicker to take away then they are to give.
Also keep in mind that I am not a bond trader. I am a self educated loan officer that tries his best to stay up on how the business works. There may be some discrepancies in how the bond trading actually works per my description, but I assure you the gist of how the bond market works as it pertains to mortgage rates is correct..
Watching Treasury yields is not necessarily a good way to judge rates anymore. Unfortunately there is a large disconnect between mortgage backed securities and other fixed income along with equities markets. As an example, yesterday the stock market was strong creating weakness in the Treasurys market. However, mortgage bonds stayed strong and even improved in price a couple of basis points.
I agree that T-yield is not a 100% indicator for mortgage rate. But didn't the mortgage bond price decrease (= mortgage rate increase) yesterday? What's your source? Can you show us the historical price data?
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,845,674 times
Reputation: 958
Quote:
Originally Posted by acegolfer
I agree that T-yield is not a 100% indicator for mortgage rate. But didn't the mortgage bond price decrease (= mortgage rate increase) yesterday? What's your source? Can you show us the historical price data?
What's unfortunate is that because the correlation used to be so strong, there are many industry professionals as well as consumers and laymen that still use Treasurys as the measuring stick. However, I can tell you for certain that the entire FNMA and GNMA coupon stack price increased by anywhere from 2 bps to 4 bps at close yesterday. In fact as TSY's grew stronger yesterday, MBS weakened and when the TSY sell off occured the MBS gained strength. Unfortunately my source is an industry tool that I pay for so even if I did give it to you, you wouldn't be able to access it.
Does anyone know the allowed debt ratio on mortgage loans on Chase bank loans.
We are applying for borrowers assistance program & need to complete monthly expenses
form which is critical to qualifying for a reduction in interest rate on loans.
Jim
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
