fed rate cuts....

[boatnam2]

to me it seems by the time this gets rolled out the regular loan is going to be what the jumbo was a month ago so it wont matter.At almost 6% right now up from 5.2 a few weeks ago...jumbo awas at 6.4 almost 7% now.

 

[essexjet]

to me it seems by the time this gets rolled out the regular loan is going to be what the jumbo was a month ago so it wont matter.At almost 6% right now up from 5.2 a few weeks ago...jumbo awas at 6.4 almost 7% now.

absolutly, what a roller coster these last few weeks been. Last week 5.75 today 6.5

 

[ChumpChange]

absolutly, what a roller coster these last few weeks been. Last week 5.75 today 6.5

Well that's no good. :swear:swear:swear

 

[essexjet]

Well that's no good. :swear:swear:swear

Dont worry Matt, we are doing better today. Hope to get better price with bad employment news tomorrow (hopefully)

 

[Cole Trickle]

seems like these fed cuts aren't really doing much.....

Shoot car loans are still close to 6% and the lowest CC offer I have gotten lately was a 8.75% variable.

The days of the 4.75% (non GM..lol) car and 7.75 CC % offers are done:swear

 

[PolarBearKing]

Well that's no good. :swear:swear:swear

Myself, I'm looking forward to higher interest rates. I feel it is only a matter of time and it's inevitable. I'm gonna sit a while longer before I jump back into the market. I figure bottom line is the monthly payments for most folks and that translates into, lower home prices. Some added benifites;

1, Higher ineterest rates mean better tax returns every year.
2, You can refinance the rate when it goes down, but if you're upside down on the price you're stuck.
3, Lower home prices also means lower property taxes.

 

[Cole Trickle]

500K new limit for Riversiade counties

729K for OC,LA

Alot of the nicer homes in Corona are gonna be screwed. Our home prices in S.Corona are not that far below OC prices.

Good news is I owe less than 500K:skull

 

[djunkie]

500K new limit for Riversiade counties

729K for OC,LA

Alot of the nicer homes in Corona are gonna be screwed. Our home prices in S.Corona are not that far below OC prices.

Good news is I owe less than 500K:skull

$499k isn't much less that $500k you know?
________
Buy silver surfer

 

[essexjet]

500K new limit for Riversiade counties

729K for OC,LA

Alot of the nicer homes in Corona are gonna be screwed. Our home prices in S.Corona are not that far below OC prices.

Good news is I owe less than 500K:skull

Should be in effect by March 17th

 

[Cole Trickle]

$499k isn't much less that $500k you know?

As long as I made it:beer

Now I just need a "strong" appraisal and I will be set...lol:skull:hmm

 

[djunkie]

As long as I made it:beer

Now I just need a "stron" appraisal and I will be set...lol:skull:hmm

Ya same here. Hopefully the rates will drop below 6% again soon. :smackhead
________
Herbalaire Vaporizers

 

[Cole Trickle]

Ya same here. Hopefully the rates will drop below 6% again soon. :smackhead

I'm waiting for 5.5 before I even start going that route.:beer

 

[essexjet]

Ya same here. Hopefully the rates will drop below 6% again soon. :smackhead

Tomorrow will be a big day, look out for the unemployment number and if they come in higher then expected then we should be rates improve.

 

[djunkie]

Tomorrow will be a big day, look out for the unemployment number and if they come in higher then expected then we should be rates improve.

I can almost guarantee the unemployment numbers are going up.
________
Mercedes-benz m110 engine specifications

 

[boatnam2]

500K new limit for Riversiade counties

729K for OC,LA

Alot of the nicer homes in Corona are gonna be screwed. Our home prices in S.Corona are not that far below OC prices.

Good news is I owe less than 500K:skull

yea we are have ours at 669 so the mew deal is not going to help.

 

[essexjet]

Today's news was OK, didnt stimulate a big drop in mortgage rates but they did drop a little:

"The Labor Department said early this morning that the U.S. unemployment rate slipped to 4.8% last month when it was expected to rise to 5.0%. However, the drop is being attributed to a smaller workforce that is available to work rather than fewer people filing claims for benefits. The average earnings reading matched forecasts at up 0.3%, therefore, did not heavily influence trading.

The good news for bonds and mortgage shoppers came in the new payrolls number. The report revealed that the economy lost 63,000 compared to the gain of 25,000 that was forecasted. This was the worst monthly move in payrolls since March 2003 and signals that the employment sector may be in for some difficulty in the near future. This is very good news for mortgage rates because it further eases concerns about economic growth. We still have concerns about inflation to deal with, but today’s news can actually be considered very good for mortgage rates."

 

[essexjet]

April 1st is when it goes into effect for the new jumbo-conforming products.



Statement by Brian Faith Managing Director, Communications on the Conforming Loan Limit Increase

March 6, 2008

With HUD's designation of high-cost areas as directed by the economic stimulus package passed into law earlier this year, Fannie Mae will begin temporarily purchasing loans beyond the company's prevailing conventional loan limit in the designated areas. The company may purchase loans with a maximum original principal obligation of up to 125 percent of the area median home price in high-cost areas, not to exceed $729,750 except in Alaska, Hawaii, Guam and the U.S. Virgin Islands where higher limits may apply.

The company will only purchase jumbo-conforming mortgages that are originated from July 1, 2007 through December 31, 2008, and that are secured by one-unit properties. We will assist our lender customers with implementation by providing reference materials including an online loan limit reference tool and guidance on our loan limits based on a property's geography, both of which are expected to be available on April 1, 2008.

The company is working closely with its regulators, OFHEO and HUD, in implementing procedures to address the temporary increase in the prevailing conventional loan limit. We continue to support the increase as a constructive effort to help address the ongoing credit crunch and believe it is in keeping with our core mission to provide liquidity, stability and affordability to the mortgage markets.

 

[Ivan Dan]

April 1st is when it goes into effect for the new jumbo-conforming products.



Statement by Brian Faith Managing Director, Communications on the Conforming Loan Limit Increase

March 6, 2008

With HUD's designation of high-cost areas as directed by the economic stimulus package passed into law earlier this year, Fannie Mae will begin temporarily purchasing loans beyond the company's prevailing conventional loan limit in the designated areas. The company may purchase loans with a maximum original principal obligation of up to 125 percent of the area median home price in high-cost areas, not to exceed $729,750 except in Alaska, Hawaii, Guam and the U.S. Virgin Islands where higher limits may apply.

The company will only purchase jumbo-conforming mortgages that are originated from July 1, 2007 through December 31, 2008, and that are secured by one-unit properties. We will assist our lender customers with implementation by providing reference materials including an online loan limit reference tool and guidance on our loan limits based on a property's geography, both of which are expected to be available on April 1, 2008.

The company is working closely with its regulators, OFHEO and HUD, in implementing procedures to address the temporary increase in the prevailing conventional loan limit. We continue to support the increase as a constructive effort to help address the ongoing credit crunch and believe it is in keeping with our core mission to provide liquidity, stability and affordability to the mortgage markets.

Good news!

 

[Cole Trickle]

Good news!

Great news for new purchases.

I don't think it's gonna help a whole lot with the people stuck with increasing loans looking to re-fi.

Shall see

 

[Ivan Dan]

Great news for new purchases.

I don't think it's gonna help a whole lot with the people stuck with increasing loans looking to re-fi.

Shall see

Ya true....hopefully it stimulates the market and buyers start to "pull the trigger" so to speak. I'm noticing things are starting to move a little more in the last few weeks though so that is good news as well.

 

[essexjet]

OK, got some more understanding of whats going on with the new jumbo-conforming product:

Purchases: Up to 90% loan to value with a 700 fico
<or= 80% loan to value 660 fico

Limited or No Cash Out Refinance: 75% loan to value
(1% of loan or $2K which is lower)

Cash Out Refinance: Not permitted

You can not combined your first and second into one loan. The second must be subordinated.

Remember that this is only for loan above the $417,000, you can still cash out refi and combined your 1st & 2nd into one loan.

 

[ChumpChange]

What will a six month rate lock cost me?

 

[essexjet]

What will a six month rate lock cost me?

Nothing, doesn't go that far :fsakes

 

[EmpirE231]

so say you have a 399k total loan (1st and 2nd) and the house is probably worth just that. you can't roll them into a 1st without paying down the difference right?

I guess I'll hang out again to get something around a 5.5 and just refi the 1st :hmm

 

[essexjet]

so say you have a 399k total loan (1st and 2nd) and the house is probably worth just that. you can't roll them into a 1st without paying down the difference right?

I guess I'll hang out again to get something around a 5.5 and just refi the 1st :hmm

You can because its under the existing conforming limits (417,000). Those numbers for the new jumbo-conforming program. You just need to be at 95% Loan to Value.

 

[PolarBearKing]

OK, got some more understanding of whats going on with the new jumbo-conforming product:

Purchases: Up to 90% loan to value with a 700 fico
<or= 80% loan to value 660 fico

Limited or No Cash Out Refinance: 75% loan to value
(1% of loan or $2K which is lower)

Cash Out Refinance: Not permitted

You can not combined your first and second into one loan. The second must be subordinated.

Remember that this is only for loan above the $417,000, you can still cash out refi and combined your 1st & 2nd into one loan.

What about VA loans?

 

[essexjet]

What about VA loans?

I was just reading this a few minutes ago before your post:


Lawmakers forgot VA when raising loan limits
Kenneth Harney

Sunday, March 9, 2008

04:00 PDT Washington -- Oops! When Congress and the White House put together the recent bipartisan $150 billion economic stimulus package, they raised the maximum mortgage limits in high-cost areas for Fannie Mae, Freddie Mac and the Federal Housing Administration.

But lawmakers neglected to include a similar increase for the government's primary home-purchase program for veterans - VA-backed loans. While the limits of the other three programs now extend to $729,500 in the highest-cost areas - at least through Dec. 31 - VA loans remain capped at $417,000.

For home buyers such as Greg Rasnake, a lawyer and disabled veteran who works for the federal government, the $417,000 VA limit is a deal-killer. He, his wife and children moved to the Washington area a year ago from Oklahoma. They've been searching for a single-family detached house in the Virginia suburbs, but have been unable to use the VA loan guarantee program because of the $417,000 ceiling.

"There's just no way you can find anything here where that limit comes even close," he said in an interview. "You'd think that in a time of war, when you're doing a stimulus bill and raising all the other loan limits, you might remember the vets," he said. "But that didn't happen."

As a result of the omission, areas of the country with some of the highest concentrations of veterans and high housing costs - California, Maryland, Virginia, the District of Columbia and Florida, among others - are effectively cut out of the stimulus package's benefits when it comes to VA loans. Mortgages backed by the VA are especially attractive because they allow qualified veterans to buy houses without a down payment.

Without a legislative fix, the situation won't change.

You might ask: How could this happen? How could a wartime president, a speaker of the House who represents high-cost San Francisco with its extensive military installations, an entire Cabinet-level agency, plus veterans affairs committees in the House and Senate all fail to include the VA program along with generous loan limit increases for Fannie, Freddie and FHA?

Asked for comment, the Department of Veterans Affairs declined to discuss the matter, saying in an e-mail that the "VA cannot comment on why Congress crafted the (stimulus) in the manner in which they did."

But House Veterans Affairs Committee Chairman Bob Filner, D-San Diego, was blunt: "I think it was out of ignorance," he said in a telephone interview. "I don't think (the plan drafters) understood the situation" - specifically that the VA limits would not automatically increase along with the higher Fannie-Freddie limits. "Nobody thought about it, so this just slipped through."

The VA program guarantees 25 percent of the Fannie-Freddie conforming loan limit. Because private lenders generally are willing to make a no-down-payment loan for four times the guarantee level, the program has an effective mortgage limit of $417,000 nationwide. The stimulus plan, however, temporarily raised the Fannie, Freddie and FHA limits to 125 percent of metropolitan area median home prices, creating dozens of different limits around the country, without referencing the VA guarantee formula.

"It makes the VA program irrelevant in a lot of places," Filner said. He is sponsoring legislation that would raise the VA's effective limits to 150 percent of the Fannie-Freddie maximums. He also is seeking a "technical correction" amendment to the stimulus law but is not optimistic that it can be rushed through quickly given Congress' other priorities and tight schedule.

When Rasnake learned that the VA limits were overlooked, "I was devastated," he said. Rasnake's mortgage loan officer told him he is hardly alone. The lender said there are many vets looking to buy homes that he had lined up for VA financing in anticipation of the higher limits expected from the stimulus bill.

Although the VA program is smaller than Fannie Mae, Freddie Mac or FHA, it is substantial in size and relatively low risk to the government. The program guarantees 2.2 million home loans totaling $243 billion, and the VA backs about 11,000 new loans per month, more than half of which go to first-time buyers, according to Todd Bowers, director of government affairs for the Iraq and Afghanistan Veterans of America.

Many VA-backed mortgages involve no equity investment - which typically raises default rates and foreclosures - yet the program performs well. During the third quarter of 2007, the VA 30-day delinquency rate was 6.58 percent compared with 12.92 percent for FHA and 16.3 percent for private, subprime loans, according to the Mortgage Bankers Association. The foreclosure rate for VA loans during the same period was 1.03 percent versus 2.2 percent for FHA and 6.89 percent for subprime.

That's pretty hard to miss. But they did.

 

[PolarBearKing]

Thanks Essexjet for keeping me/us posted.

That really sucks as it just cost me a second home in Havasu...

I'm gonna go fire off some emails to our illustrious leaders. I'm sure it will fall on deaf ears. The only benifit that was worth anything for serving the country is still worthless. Very frustrating.

 

[PolarBearKing]

Does anybody actually think that this economic stimulus program will actually end on Dec 31st?

The more I think about it, this probably will save me money because I will continue to ride out the market until next year when I can use my VA benefit and save my savings for a down payment on a second home at the River. I've just been patient for so damn long I am getting ancy and I need to make some changes for the famn damily.... but that's another story.

 

[essexjet]

Does anybody actually think that this economic stimulus program will actually end on Dec 31st?

The more I think about it, this probably will save me money because I will continue to ride out the market until next year when I can use my VA benefit and save my savings for a down payment on a second home at the River. I've just been patient for so damn long I am getting ancy and I need to make some changes for the famn damily.... but that's another story.

Try this:

http://thomas.loc.gov/cgi-bin/query/D?c110:5:./temp/~c110aylOOC::
Click on title II

Its HR 5140

 

[TOBTEK]

OK, got some more understanding of whats going on with the new jumbo-conforming product:

Purchases: Up to 90% loan to value with a 700 fico
<or= 80% loan to value 660 fico

Limited or No Cash Out Refinance: 75% loan to value
(1% of loan or $2K which is lower)

Cash Out Refinance: Not permitted

You can not combined your first and second into one loan. The second must be subordinated.

Remember that this is only for loan above the $417,000, you can still cash out refi and combined your 1st & 2nd into one loan.

CW will go 95% LTV purchase, Conf, Full Doc......

 

[essexjet]

CW will go 95% LTV purchase, Conf, Full Doc......

This is on the new Fannie Mae Jumbo-Conforming program.

 

[essexjet]

Fed's cut interest rates by .75% today


http://www.msnbc.msn.com/id/23680394/

 

[Cole Trickle]

Fed's cut interest rates by .75% today


http://www.msnbc.msn.com/id/23680394/

It's not doing anything.....

Car loans and credit card companies don't seem to be jumping on the band wagon. Rates are still way higher for short term loans today than they were 3 years ago.

Housing market is gonna do nothing but get worse. they can lower the rate all they want but if no one will loan you $$ it dosen't really matter.

Are they trying to help the stock market with that move or the housing market?

 

[essexjet]

It's not doing anything.....

Car loans and credit card companies don't seem to be jumping on the band wagon. Rates are still way higher for short term loans today than they were 3 years ago.

Housing market is gonna do nothing but get worse. they can lower the rate all they want but if no one will loan you $$ it dosen't really matter.

Are they trying to help the stock market with that move or the housing market?

IMO, the stock market. The Feds can't do much with the housing market do to the fact that values are not there for people to do much.

 

[TOBTEK]

Fed's cut interest rates by .75% today


http://www.msnbc.msn.com/id/23680394/

AND the bond spikes! Cant they see the problem isn't credit card, and car loans. We need mortgage relief.



And after working with Countrywide all this last week, on a investors loans... its NO WONDER they are in the shape they are in! Their underwriters are IDIOTS! Have a client with tax returns showing over a million a year.... and they say they have to go Stated. All I can do is shake my head on this one.

 

[essexjet]

AND the bond spikes! Cant they see the problem isn't credit card, and car loans. We need mortgage relief.



And after working with Countrywide all this last week, on a investors loans... its NO WONDER they are in the shape they are in! Their underwriters are IDIOTS! Have a client with tax returns showing over a million a year.... and they say they have to go Stated. All I can do is shake my head on this one.

Toby, I do not like Countrywide at all never had. Try Chase they are pretty easy to work with.

 

[EmpirE231]

bump for the mortgage gurus. anything new with the rates? are they going to be lower come summer? or closer to election time?

 

[Cole Trickle]

bump for the mortgage gurus. anything new with the rates? are they going to be lower come summer? or closer to election time?

Yeah...It's been pretty quiet on the mmortgage front

Good news is the rate cuts have dropped my variable rate quite a bit on my HELOC. It's about $70.00 cheaper this month.:thumbsup

 

[essexjet]

Yeah...It's been pretty quiet on the mmortgage front

Good news is the rate cuts have dropped my variable rate quite a bit on my HELOC. It's about $70.00 cheaper this month.:thumbsup

Yeah thats the only good news and might see a little more cutting in the near future. As for fixed & adjustable agency loans we are finding out that all of the banks will be hitting the conforming jumbo product 2.0-3.0 bases points meaning that anything above $417,000 your interest rate will be roughly 1-1.5% higher then one at or below the $417K loan amount.

Did find out that Freddie Mac will do cash out refi's up to the $729,750 in LA and Orange counties including combining your first and second mortgage into one.

 

[Cole Trickle]

Yeah thats the only good news and might see a little more cutting in the near future. As for fixed & adjustable agency loans we are finding out that all of the banks will be hitting the conforming jumbo product 2.0-3.0 bases points meaning that anything above $417,000 your interest rate will be roughly 1-1.5% higher then one at or below the $417K loan amount.

Did find out that Freddie Mac will do cash out refi's up to the $729,750 in LA and Orange counties including combining your first and second mortgage into one.

So the increase of the jumbo limit is pretty much doing nothing......

Question....Does my HELOC play into the appraisal of my home?

Can I pay my 432K first down to be under the 417K loan amount and lock into a lower fixed first and keep my HELOC the way it is?

 

[angiebaby]

IMO one thing that would help the housing market is for the government to create a Super GI Bill. Give the vets coming home from Afganistan and Iraq/Kuwait either money for the down if they purchase a home (10-15 grand?) and/or super low rates (maybe 1.5-2 percent less than the regular market) to be able to afford them. That would get young families buying homes again, and make the vets and vet supporting public happy as well. Just a thought we've discussed in our household.

 

[Cole Trickle]

IMO one thing that would help the housing market is for the government to create a Super GI Bill. Give the vets coming home from Afganistan and Iraq/Kuwait either money for the down if they purchase a home (10-15 grand?) and/or super low rates (maybe 1.5-2 percent less than the regular market) to be able to afford them. That would get young families buying homes again, and make the vets and vet supporting public happy as well. Just a thought we've discussed in our household.

How many 20 year old Military people have the finnancial stability or credit score to buy a house?:hmm

My neighbors daughter is engadged to a 24 y/o that just got back from his second tour. The day the plane landed he bought a new quad and put a big down on a shiny new truck. He had to have her co-sign for him as he has zero credit.(she had to have her dad co-sign for her new car)

I think that could help in the mid west where house are 100K but what about the west coast people that have to deal with high prices?(problem is no one wants to loan unsafe $$ right now)

 

[essexjet]

So the increase of the jumbo limit is pretty much doing nothing......

Question....Does my HELOC play into the appraisal of my home?

Can I pay my 432K first down to be under the 417K loan amount and lock into a lower fixed first and keep my HELOC the way it is?

Into the appraisal of the home NO, but it does come into effect on the overall Loan to Value ratio.

You can refi the first in the new program and just subordinate the second, that is allowed but will not get an interest rate as those at $417K and below. Or you can refi at $417K and pay down the difference at closing and still can subordinate the second.

 

[essexjet]

IMO one thing that would help the housing market is for the government to create a Super GI Bill. Give the vets coming home from Afganistan and Iraq/Kuwait either money for the down if they purchase a home (10-15 grand?) and/or super low rates (maybe 1.5-2 percent less than the regular market) to be able to afford them. That would get young families buying homes again, and make the vets and vet supporting public happy as well. Just a thought we've discussed in our household.

VA still does 100% loan for vets, but IMO the problem is that you get an early 20 year old with a load of money from his tour(s) coming home most do not have any plans on purchase a home.

 

[Outnumbered]

Into the appraisal of the home NO, but it does come into effect on the overall Loan to Value ratio.

You can refi the first in the new program and just subordinate the second, that is allowed but will not get an interest rate as those at $417K and below. Or you can refi at $417K and pay down the difference at closing and still can subordinate the second.

Good luck getting any lender to subordinate a second right now. Have you tried this in the last 90 days? I'm not doing loans right now but I have heard that it is just about impossible. In fact, some HELOC lenders are doing AVM's and re-calcing the credit lines to be in line with the current market value.

 

[angiebaby]

VA still does 100% loan for vets, but IMO the problem is that you get an early 20 year old with a load of money from his tour(s) coming home most do not have any plans on purchase a home.

I know that, but the problem is that they have a hard time buying resales because the seller doesn't want to get stuck with all of the closing costs. This way would either help that issue or give them instant equity, maybe not have to pay PMI. Perhaps if there was an incentive, they would. I think you underestimate them. Maybe 50% don't, but many probably do.

Oh, and they would only get the money if they purchased a home.

 

[Outnumbered]

I know that, but the problem is that they have a hard time buying resales because the seller doesn't want to get stuck with all of the closing costs. This way would either help that issue or give them instant equity, maybe not have to pay PMI. Perhaps if there was an incentive, they would. I think you underestimate them. Maybe 50% don't, but many probably do.

Oh, and they would only get the money if they purchased a home.

That is not really an issue right now as sellers are paying CC's for just about anyone anyway. Sellers are thankful just to get an offer and would not mind paying the CC's if the offer was reasonable. When the market was stupid a few years ago this was an issue but now I would say not. FHA is the same story--lots of sellers are putting up with the extra costs and property condition issues associated with govt-backed loans now just to sell their homes.

 

[angiebaby]

That is not really an issue right now as sellers are paying CC's for just about anyone anyway. Sellers are thankful just to get an offer and would not mind paying the CC's if the offer was reasonable. When the market was stupid a few years ago this was an issue but now I would say not. FHA is the same story--lots of sellers are putting up with the extra costs and property condition issues associated with govt-backed loans now just to sell their homes.

Sellers might be offering to pay the CCs, but no one is buying. I don't know that this would work, as I'm no economist, that's Jeff's bag. I hated econ courses and never really understood the mechanics of the whole thing.

 

[essexjet]

Good luck getting any lender to subordinate a second right now. Have you tried this in the last 90 days? I'm not doing loans right now but I have heard that it is just about impossible. In fact, some HELOC lenders are doing AVM's and re-calcing the credit lines to be in line with the current market value.

Just did two this week, one with Countrywide and the other with USAA. Pretty easy and very fast turn times by both. Surpised the shit out me