Huntsville Home Sales Drop 40% along with moderate price decline - Huntsville-Madison-Decatur area - Alabama (AL) - Page 2 - City-Data Forum

Toymeister · 12-04-2008, 06:46 PM

The target audience for the 4.5% rate is purchases, not refis. Isellhuntsville isn't misleading anyone but this point needs to be brought up. Also there are always good rates available (relative to the given market) for an educated consumer with good credit and a good agent can make some good suggestions, however all buyers should confirm this for themselves as your interest -a good rate- may not be the agent's interest, such as a closing or an approval.

Elizabeth_G · 12-04-2008, 08:02 PM

Quote:

Originally Posted by Toymeister

The target audience for the 4.5% rate is purchases, not refis. Isellhuntsville isn't misleading anyone but this point needs to be brought up. Also there are always good rates available (relative to the given market) for an educated consumer with good credit and a good agent can make some good suggestions, however all buyers should confirm this for themselves as your interest -a good rate- may not be the agent's interest, such as a closing or an approval.

You are correct Toymeister. The higher your FICO, the better the rate. However, FHA is at 5 today and they still deal with FICO scores in the high 500's...580 or 590, I'm not quite sure which. They aren't nearly as forgiving as they were last year, rightfully so. Still forgiving of credit hiccups, however. If my memory serves me, 680 is where you need to be for a top rate. Open to corrections if I'm off on these numbers

I just read an article saying they are pushing for the 4.5 rate for refi's as well, but I don't know if that will fly or not. Thoughts on that is, more disposable income to help re-stimulate the economy. Still, refi's are typically only 1/4 higher.

Hey, if everyone can refinance at 4.5, then they can all buy a car from GM so we don't have to loan them billions to bail them out, lol. (Not funny, really...just had to add that)

financelife · 12-04-2008, 08:04 PM

Quote:

Originally Posted by isellhuntsville

I knew this was going to be brought up. My business has exploded in the past 2 weeks. The constant fear from the media finally got to Huntsville, plus we had the election. Listings are getting shown more, buyers are coming out of the woodwork, from local to transferee's all of a sudden. My bet is that the article will be quite different in February! My Realtor friends in Nashville have been crying the blues for a couple of years. Didn't hurt us to cry the blues for a couple of months.

Today, I saw 4.875 for a 30 year fixed conventional and 5% for VA and FHA. Grapevine tells me they will go to 4.5% soon. There is NO better time to buy than now. Sellers are scared to death, thanks to the media. Inventory is up, which means sellers are typically motivated. I think buyers are figuring it is time....Just my opinion

Get that commission! I can't wait for for sale by owner to take off, which it will eventually. And the only reason you should get a buyer's agent is if you are out of state or short on time. Otherwise, why are you contracting with someone whose income depends on you buying a house for a high price? hmmm? Oh, but there are ethics and perhaps some Realtor Code of Honor. Yes.

Marc45002 · 12-04-2008, 08:04 PM

If it gets to 4.5; it won't stay there very long. The government will never be able to sell them in the secondary market.

Marc

anderted · 12-04-2008, 08:38 PM

The predictor is that the interest rate will go down next year even further. The treasury is looking into backing more Freddie and Fannie loans which will give the appearance of safety and bring down the mortgage to where it should be, 4.5%. There is speculation that the treasury will seek some funds from the next $350 billion bailout to do this; which is to be released next year. But as we have seen, they like to change what the money will be used for within a week.

I was told in order to get the top rate, you have to have a top score of 720. And some lenders won't give you a top rate even if you have a score of 780 unless you put 20% down.

As for the slight decline in home prices in Huntsville, I'm not surprised. Yep, inventory is up and it will get worse before it gets better. From what I've seen on my house hunting trips, new home inventory is quite high. Developers can't just stop a new development on a dime; they have there own obligations to make to the banks and in order to meet those obligations they have to sell some houses.

HB2HSV · 12-04-2008, 09:01 PM

Quote:

Originally Posted by anderted

I was told in order to get the top rate, you have to have a top score of 720. And some lenders won't give you a top rate even if you have a score of 780 unless you put 20% down.

Not for a FHA loan.

I was able to get a FHA loan with only 3% down payment, or even a 0% down if you buy in a certain designated area by the State (something about wanting to promote "growth", in one case where I found out about this, the part of Huntsville just north of City of Madison).

I just hope the rate comes further down before I close on my house!

Elizabeth_G · 12-04-2008, 09:09 PM

HB2HSV FHA rates were at 5 today, if that helps! You close in 2 weeks? Call your lender tomorrow to make sure you aren't already locked in...if you are, ask what your options are. Best of luck with it!

To get the conventional rates, typically they require 20% down. FHA, as you stated, 3% down. New FHA loans will require 3.5% down after January, 09. Should not affect you, however, since you have already applied.

HB2HSV · 12-05-2008, 02:25 PM

Talked to my lender today. She said that rate is expected to drop even further next week. I've already had it locked at 5.375%, but she can "re-locked" if the rate gets lower.

I was really suprised when they first offerred me FHA loan. Typically in California nobody uses FHA loans, mainly because the cap is soooo low like $300K. Most of time we'd go jumbo, but now conventional conformal loan cap is $729K .. ha ha ha......

Another thing, I was amazed when they say that Huntsville/ Madison houses sells for 98% of asking price, on average. In California, my starting offerring price is 10% below the listing price. Today, I'd go as low as 20% below listing price as my starting point, then I'd negotiate for closing cost and cash back at end of closing

boilrmkr · 12-05-2008, 03:23 PM

I don't know what the press is talking about. I just sold my house in Savannah and the buyer is getting 100% financing and they had no cash for closing so I had to give that. They were given pre-qualification in a day based on proof of income and a credit check.

There are plenty of banks that didn't get into these dishonest loans who have money to lend.

Toymeister · 12-05-2008, 10:33 PM

Quote:

Originally Posted by boilrmkr

I don't know what the press is talking about. I just sold my house in Savannah and the buyer is getting 100% financing and they had no cash for closing so I had to give that. They were given pre-qualification in a day based on proof of income and a credit check.

There are plenty of banks that didn't get into these dishonest loans who have money to lend.

Very true. Several larger credit unions are in good shape. The one which is based in the National Capital Region (business names are dicouraged in this forum) has had some great rates with virtually no closing costs. Given a choice this CU is always my first choice and it always beats the large CU based in Huntsville. They key is the NCR CU does not serve low FICO scorers. As a bonus this CU kicks back a portion of the commision if you use their co-branded realestate agency. Also they have superior GAP insurance and new car extended warranty contract