What are people seeing in terms of loan rates, difficulty in getting loans?

User Forum Topic
Submitted by Coronita on June 23, 2020 - 1:21pm

Has anyone recently closed on a 30 year or 15 year refinancing or purchase loan?

I'm curious what people are actually seeing, how long it's taking and how difficult it is to get a loan these days.

ive been seeing folks saying they can get a sub-3% 30 year fixed with no cost. Is that true?

Tempting....just tempting.

Submitted by millennial on June 23, 2020 - 2:26pm.

Just closed on a 30 year fixed for investor. Requirement was 25% down and rate was 3.875%. Rates for my personal residence was quoted at 2.875% 30 year fixed.

Submitted by Coronita on June 23, 2020 - 4:08pm.

millennial wrote:
Just closed on a 30 year fixed for investor. Requirement was 25% down and rate was 3.875%. Rates for my personal residence was quoted at 2.875% 30 year fixed.

Wow.

Submitted by scaredyclassic on June 23, 2020 - 6:18pm.

Coronita wrote:
millennial wrote:
Just closed on a 30 year fixed for investor. Requirement was 25% down and rate was 3.875%. Rates for my personal residence was quoted at 2.875% 30 year fixed.

Wow.

Hmm. Im not seeing no cost loans in that ballpark. More like 15 y 3.125 no cost.

Even tho rates are at all time low, i did better w refi in 2013.

Why????

Submitted by zk on June 23, 2020 - 9:03pm.

Navy Federal CU is not doing HELOCs at all right now. Too busy or something.

Submitted by Coronita on June 23, 2020 - 10:33pm.

I think my HELOC might be ending soon, so I might need to get another one just for safety. Interesting that some places aren't doing it.

My HELOC is prime minus 0.25%

Submitted by millennial on June 24, 2020 - 7:39am.

scaredyclassic wrote:
Coronita wrote:
millennial wrote:
Just closed on a 30 year fixed for investor. Requirement was 25% down and rate was 3.875%. Rates for my personal residence was quoted at 2.875% 30 year fixed.

Wow.

Hmm. Im not seeing no cost loans in that ballpark. More like 15 y 3.125 no cost.

Even tho rates are at all time low, i did better w refi in 2013.

Why????

The rate on the investor property I locked in beginning of May not sure where they are at now. Regarding my home mortgage the rate was 3.125 but was offered a 25bps discount for bringing in $500k in liquidity. Since this was done through my advisor they are likely offsetting yield with investment returns.

Heard rates are not following the 10 year because of a couple reasons. High refinancing activity (which leads to less competition among providers) coupled with low interest in mortgage backed bonds. I expect medium term as the 10 year rises mortgage rates should remain static.

Submitted by Coronita on June 24, 2020 - 7:54am.

millennial wrote:
scaredyclassic wrote:
Coronita wrote:
millennial wrote:
Just closed on a 30 year fixed for investor. Requirement was 25% down and rate was 3.875%. Rates for my personal residence was quoted at 2.875% 30 year fixed.

Wow.

Hmm. Im not seeing no cost loans in that ballpark. More like 15 y 3.125 no cost.

Even tho rates are at all time low, i did better w refi in 2013.

Why????

The rate on the investor property I locked in beginning of May not sure where they are at now. Regarding my home mortgage the rate was 3.125 but was offered a 25bps discount for bringing in $500k in liquidity. Since this was done through my advisor they are likely offsetting yield with investment returns.

Heard rates are not following the 10 year because of a couple reasons. High refinancing activity (which leads to less competition among providers) coupled with low interest in mortgage backed bonds. I expect medium term as the 10 year rises mortgage rates should remain static.

Wait. So you got a loan through your advisor, who offered you a discount? Oh do tell. Very curious how this works.

Submitted by sdrealtor on June 24, 2020 - 8:15am.

Not mortgage but just refinance a car loan yesterday from 3.875 to 2.875 on a 60 month loan. I’ll keep paying what I was paying if not a little bit more but that should cut 4 to 6 months off the original term and save me about two grand. Did it locally at my point credit union which is the old Rebranded point Loma credit Union

Submitted by millennial on June 24, 2020 - 8:18am.

Coronita wrote:
millennial wrote:
scaredyclassic wrote:
Coronita wrote:
millennial wrote:
Just closed on a 30 year fixed for investor. Requirement was 25% down and rate was 3.875%. Rates for my personal residence was quoted at 2.875% 30 year fixed.

Wow.

Hmm. Im not seeing no cost loans in that ballpark. More like 15 y 3.125 no cost.

Even tho rates are at all time low, i did better w refi in 2013.

Why????

The rate on the investor property I locked in beginning of May not sure where they are at now. Regarding my home mortgage the rate was 3.125 but was offered a 25bps discount for bringing in $500k in liquidity. Since this was done through my advisor they are likely offsetting yield with investment returns.

Heard rates are not following the 10 year because of a couple reasons. High refinancing activity (which leads to less competition among providers) coupled with low interest in mortgage backed bonds. I expect medium term as the 10 year rises mortgage rates should remain static.

Wait. So you got a loan through your advisor, who offered you a discount? Oh do tell. Very curious how this works.

My advisor had me work with the in-house mortgage lender who offered a better rate if I brought in more money. If you have one you should see if they have a program comparable; if not I would contact places like First Republic and Merrill Lynch who have a mortgage arm that can assist you. I imagine they can leverage pricing based on relationship rather than just the transaction.

Submitted by Coronita on June 24, 2020 - 8:27am.

millennial wrote:
Coronita wrote:
millennial wrote:
scaredyclassic wrote:
Coronita wrote:
millennial wrote:
Just closed on a 30 year fixed for investor. Requirement was 25% down and rate was 3.875%. Rates for my personal residence was quoted at 2.875% 30 year fixed.

Wow.

Hmm. Im not seeing no cost loans in that ballpark. More like 15 y 3.125 no cost.

Even tho rates are at all time low, i did better w refi in 2013.

Why????

The rate on the investor property I locked in beginning of May not sure where they are at now. Regarding my home mortgage the rate was 3.125 but was offered a 25bps discount for bringing in $500k in liquidity. Since this was done through my advisor they are likely offsetting yield with investment returns.

Heard rates are not following the 10 year because of a couple reasons. High refinancing activity (which leads to less competition among providers) coupled with low interest in mortgage backed bonds. I expect medium term as the 10 year rises mortgage rates should remain static.

Wait. So you got a loan through your advisor, who offered you a discount? Oh do tell. Very curious how this works.

My advisor had me work with the in-house mortgage lender who offered a better rate if I brought in more money. If you have one you should see if they have a program comparable; if not I would contact places like First Republic and Merrill Lynch who have a mortgage arm that can assist you. I imagine they can leverage pricing based on relationship rather than just the transaction.

Gotcha. Thanks for the tips. will check with the forms.ibdo business with.

Submitted by gzz on June 24, 2020 - 3:15pm.

Here's the national average rate:

"The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.35 percent from 3.33 percent, with points decreasing to 0.22 from 0.23 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 2.81 percent from 2.80 percent, with points increasing to 0.30 from 0.28 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week."

I have found 760+ credit + 30%+ down + online lender gets you about .3 lower than the national average rate with 0 points.

Submitted by pinkflamingo on June 25, 2020 - 2:36pm.

We just refi-ed. 3 week close 30yr/2.875. Details on this thread. https://www.piggington.com/mortgage_rate...

Submitted by gzz on June 25, 2020 - 4:52pm.

Fees?

Sebonic via Zillow, which is what I used for my last purchase, has a refi rate of 2.99 0 fees right now and 2.818 with 1 point. This is for 480k on 1+ mil property.

I'm inclined to 0 points or less likely go negative points.

Submitted by brg654 on June 25, 2020 - 9:31pm.

i closed on a 30 year fixed refinance on june 15th at 2.625% with 0.4 points. loan amount was 488k. i also was able to negotiate the rate lower when they fell around memorial day despite already being locked at 2.875%. my credit score is 810, LTV is only 44%, and i have enough in savings to not need the mortgage. but at an after-tax interest rate of 1.4%, why not?

Submitted by sdrealtor on June 26, 2020 - 8:20am.

Lender?

Submitted by brg654 on June 26, 2020 - 9:41am.

first mortgage solutions. found them through zillow.

Submitted by gzz on June 26, 2020 - 10:49am.

brg, I believe cheap mortgages, subsidized by Fannie and the mortgage interest deduction, are the Constitutional right of every American.

How did you negotiate it lower? Did you just politely ask, or threaten to pull out?

Submitted by sdrealtor on June 26, 2020 - 11:09am.

Thx I've not seen that low but will follow then. I'm seven years in on a 30 yr at 3.125% with balance around 340k with LTV below 30% and 800+ Fico. Trying to find a bottom on a 15 or 20 yr rate. If I could get your rate on the 20 I’d be thrilled

Submitted by brg654 on June 27, 2020 - 7:30am.

@gzz - sent you a direct message.

Submitted by brg654 on June 27, 2020 - 7:34am.

piece of advice for those following rates on zillow: my experience in april/may was that pricing is set on the east coast, and as lenders originate loans at the lowest rate, they essentially "sell out of product" and the rate will increase during the day.

translation: i checked zillow multiple times per day, and i consistently found the best rates at between 6 and 7 am.

Submitted by brg654 on June 27, 2020 - 7:44am.

scaredyclassic wrote:

Even tho rates are at all time low, i did better w refi in 2013.

Why????

there are 2 components to mortgage rates: the benchmark rate (10 year treasury) and the spread over treasuries.

when treasury rates first fell in february/march, spreads between treasuries and MBS widened, so mortgage rates didn't fall as much. spreads have since shortened, but are still a bit wider than they were in 2013. the spread was compressed in 2013 by the fed buying MBS, and when mortgage rates went down in may, the fed was once again buying MBS.

MBS exhibit negative convexity, so you would expect that as interest rates fall, bond prices would rise at a lower rate than for products with positive convexity, like treasuries.

Submitted by pinkflamingo on June 27, 2020 - 11:45am.

@gzz - sent you a direct
Submitted by brg654 on June 27, 2020 - 7:30am.

@brg654 curious as well, pertaining to how one negotiate rates once locked.

Submitted by pinkflamingo on June 27, 2020 - 11:58am.

Fees?

Sebonic via Zillow, which is what I used for my last purchase, has a refi rate of 2.99 0 fees right now and 2.818 with 1 point. This is for 480k on 1+ mil property.

I'm inclined to 0 points or less likely go negative points.

Our fees were about 5K. The main reason being we had a high balance loan.

IMO the conquest program by UWM was the best. We looked at sebonics and first mortgage and we almost went with FM. Then I found the article that UWM came up with their conquest program. FM couldn't beat their rates. They are offering rates between 2.5 - 3.0.

Initially I was concerned with the short close required but they managed to close in 3 weeks. I'm glad I took the leap.

Submitted by brg654 on June 28, 2020 - 7:19am.

as far as negotiating rates while locked, just continue to shop for rates. if you find a better rate, let the original lender know. the worst thing that can happen is that they say no, and you decide to not refinance with them (may be a small sunk cost with credit check fee).

multiple inquiries in the same 60 day period do not impact your credit score.

Submitted by Coronita on June 28, 2020 - 8:54am.

I know I really shouldn't do this after years of paying off my properties. But its really tempting to do cash out refi on some of them and buy more, or at least put the money off to the sideline until better deals come.

Submitted by pinkflamingo on June 28, 2020 - 10:30am.

as far as negotiating rates while locked, just continue to shop for rates. if you find a better rate, let the original lender know. the worst thing that can happen is that they say no, and you decide to not refinance with them (may be a small sunk cost with credit check fee).

Thanks brg654.

I did follow zillow rates during the refi mostly in fear it wouldn't close in time. Unfortunately and fortunately the rates were never lower. But it's good to know for the future.

Submitted by pinkflamingo on June 28, 2020 - 10:39am.

I know I really shouldn't do this after years of paying off my properties. But its really tempting to do cash out refi on some of them and buy more, or at least put the money off to the sideline until better deals come.

I am wondering if anyone is considering getting a heloc as oppose to a cashout refi. I don't know if the heloc payments are much higher ...

Submitted by Coronita on June 28, 2020 - 2:32pm.

pinkflamingo wrote:

I know I really shouldn't do this after years of paying off my properties. But its really tempting to do cash out refi on some of them and buy more, or at least put the money off to the sideline until better deals come.

I am wondering if anyone is considering getting a heloc as oppose to a cashout refi. I don't know if the heloc payments are much higher ...

I have a HELOC for emergencies but it currently sits at prime minus 0.25%

Submitted by gzz on June 28, 2020 - 6:20pm.

yields on the 3-year and 5-year Treasury notes at record lows of 0.17% and 0.29%.

Submitted by HLS on July 1, 2020 - 1:34am.

There is absolutely no difficulty in getting a loan if you qualify, and it only takes a couple of weeks if your situation is clean

There is no single mortgage rate that applies to everyone.
There's a difference between a refinance with no cash out and taking cash out.
Having a HELOC or other 2nd can mean that you wont get the best pricing, even if you have a zero balance.
There is a lien against the property for the full amount of the line.
Paying off a HELOC balance when you refinance is cash out pricing unless the HELOC was used to purchase the property.

No cost loans for rental properties are not low, but if you understand that you are going to pay one way or the other, you can buy the rate down and save a lot in the long run.

Loan underwriting guidelines are idiotic. There are people with 800 credit scores who cannot qualify for a 50% loan yet others with a 680 score and 3% down payment will qualify.

Covid19 has created some temporary guidelines that can make qualifying extremely difficult for self employed borrowers.
Anyone who has had their income cut or on furlough may have difficulty.
Unemployed without other income don't qualify at all, regardless of equity, credit score, net worth or size of their ego.

For those who do qualify, rates have never been better.
No cost loans are available, but you'll never get the lowest rate.
Many people are fooled thinking they have no cost, but they really are paying fees.
For salaried W2 wage earners with good credit and stable income, loans can be closed & funded in 2-3 weeks.
HELOCS & Solar liens can complicate refinancing.
Having rental property can complicate refinancing.

30yr rates are available at 3.00% or less. The higher your loan amount the easier it is to get a true no cost loan.
Saving just .25% can mean a savings of $30,000-$40,000 over the life of a loan. Depending on your balance.
Most people are paying way too much in interest. Many don't qualify to refinance but those that do qualify will waste a ridiculous amount of money over the life of their loan, without realizing what they are doing.
The key is not starting over at 30 years with the lowest payment. The amazing savings is making the same payment that you are making now at a lower interest rate. Possibly at zero cost.

The difference between 4.00% and 3.00% on a $400,000 loan is $120,000 of wasted interest
On a $500,000 loan the difference between 3.50% and 3.00% is $76,000 of wasted interest.
If you want a free analysis and explanation, just send me a message.
Some people are refinancing their primary residence and paying off much higher rate rental properties. There are various strategies to save a lot in interest.
I'm still seeing lots of people still at 4.00% or higher

If you currently have a VA loan, refinancing is very easy and rates are AMAZING. Free advice.
Have helped lots of Piggington posters & lurkers :-) HLS

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.