What a crazy market…

[El_flasko]

In this crazy residential mortgage market, unlike anything I’ve seen in my 25yrs doing this, please work with a lender you know and you trust. I’ve seen it all over the years, and I will always give it to you straight. Honesty and integrity always rise to the top in this mortgage industry, as it should in all. I also have a network of fantastic realtors I’ve worked with over the years all over the mid-atlantic and down through the Carolinas through to Florida where I’m licensed. They are cut from the same stone, and at your disposal should you have a need for great service and honesty.

Be well everyone, and keep moving forward. I’m here if you need me.

 

[slsc98]

Advice well-heeded; I thought of you / this market when I received and read this article from WBS, earlier this am (my thoughts were on how DemLeftist policymakers in states such as CA, NY, MD, NJ, MA, etc. will use any thing they can to slow the hemorrhaging and literal flood of tax paying citizens, out of those states):

How Households Are Locked In by Rising Mortgage Rates​

A new paper co-authored by Wharton’s Lu Liu looks at why homeowners become caught in a so-called “mortgage lock-in” and how that impacts their ability to move.

How Households Are Locked In by Rising Mortgage Rates

A new paper co-authored by Wharton’s Lu Liu looks at why homeowners become caught in a so-called “mortgage lock-in” and how that impacts their ability to move. …Read More

knowledge.wharton.upenn.edu

 

[Inigoes]

I was talking with a family member recently, and somehow we got on the subject of interest rates.

If a person is going to borrow any kind of money, the interest rates are insane (some are double digit interest rates) compared to interest banks are willing to pay on savings.

 

[Mark75H]

I was talking with a family member recently, and somehow we got on the subject of interest rates.

If a person is going to borrow any kind of money, the interest rates are insane (some are double digit interest rates) compared to interest banks are willing to pay on savings.

That means they don’t need your money to make the loans. Current bank laws allow them to create a tremendous amount of fake money.

 

[El_flasko]

It’s insane the fluctuation in rates over the last year or so. Mind you, years of essentially free money with rates at absurdly low levels for so long created expectations in some they'd last forever LOL. But in all my time doing this I've never seen such violent ups and downs. It's crazy. In the last 6-12 months I've seen rates in the 5's and as high as the low 8's and everywhere in between. They've settled back down a bit, but just a few years ago seeing .5-1.0% swings in days was pretty unheard of. It's a new world in this industry and transparency between lenders and clients is critical IMHO. Lots of turds out there are quoting rates way under what's live for that day just to get the client on board, then dealing in reality once a contract is more likely. This makes me sick. Lenders SHOULD be showing what's real or worst case to be conservative, but that's me, I don't want to judge how folks operate too much. Being comfortable with the cash needed for closing and the monthly payment is where the rubber meets the road.

Thanks for chiming in all. Good to be active again after a rough year

 

[jrumann59]

Throw in the new lending rule that could impact high credit score buyers because of low credit score buyers. I have read that is either nothing people have to worry about to additional 50-60 added to a monthly mortgage for high credit score buyers.

 

[El_flasko]

Throw in the new lending rule that could impact high credit score buyers because of low credit score buyers. I have read that is either nothing people have to worry about to additional 50-60 added to a monthly mortgage for high credit score buyers.

Agreed, sadly. IMHO this is taxing the responsible to reward the irresponsible. Essentially redistribution through 100% BS fees that have no place. I will concede that interest rates are supposed to be affected by assessed risk, and lower credit scores or high debt vs income ratios SHOULD be contributing factors, but that risk is again factored into the rate NOT as straight up fees to hurt/reward folks. Business decisions have to be made, set the rates, compete in an open market based on cost and service. To simply charge those particular fees in complete nonsense.

 

[jrumann59]

Agreed, sadly. IMHO this is taxing the responsible to reward the irresponsible. Essentially redistribution through 100% BS fees that have no place. I will concede that interest rates are supposed to be affected by assessed risk, and lower credit scores or high debt vs income ratios SHOULD be contributing factors, but that risk is again factored into the rate NOT as straight up fees to hurt/reward folks. Business decisions have to be made, set the rates, compete in an open market based on cost and service. To simply charge those particular fees in complete nonsense.

I am scared that this will be filtered down to other credit based lending "unofficially" as profit grab by lenders.

 

[mpollan1]

I am scared that this will be filtered down to other credit based lending "unofficially" as profit grab by lenders.

Of this there is little doubt at least in my jaded mind.

 

[gamer_jim]

El_flasko: You helped us sell our home in MD in 2019 and made that a very easy process for us.

Buying the home in PA was a different story. Our realtor was awesome, the mortgage broker not so much. He was aggressive with trying to talk us into much more mortgage than we wanted. He also made some errors in what he told us costs would be. He was with a national brokers company I can't remember the name but his office was in the same office as our realtor.

Contrast that to our refinance in 2020 of 2.25%. We went through Peoples Bank, a local bank here in PA. Very nice polite and most of all accurate.

Since our realtor was so awesome we had no reason to second guess her recommendation for the mortgage broker. Looking back now she may have been forced by her employer to say that. If someone is in the market for a mortgage make sure you interview them and get recommendations. Going with a local bank for the refi I think made a difference too; they seemed like they cared rather than some kid who just pushes papers.

 

[TI-tick]

Glad I got (IIRC) <3.75 fixed 15 for a rental in Nov 2021.
Luck!

 

[Alea Jacta Est]

Work hard. Be honest. Obey the rules…. Get screwed.
Thanks ElFlasko

 

[El_flasko]

I don’t personally have any relationship with any realtor other than recommendations based off solid relationships and past performance with clients. There are legal compliant ways to have desk rentals, subsidized lead purchasing etc., but I believe once you start down the road of “paying for the business” expectations and lower service levels tend to surface. Many teams work well this way just not my cup of tea. Agents tend to like to keep things local and this makes sense. I’m licensed in most states on the east coast as that’s where my family, friends and referral partners tend to be.

As always, whether I am doing your loan or not I am happy to answer any questions you all have here or privately, and if you send me an estimate I’m happy to tell you straight up if you got a good deal, and if I or even another lender I know can do better on a particular product. Everyone is selling the same things mostly these days, it comes down to trust, transparency and pricing imho.

 

[Bertfish]

El_flasko: You helped us sell our home in MD in 2019 and made that a very easy process for us.

Buying the home in PA was a different story. Our realtor was awesome, the mortgage broker not so much. He was aggressive with trying to talk us into much more mortgage than we wanted. He also made some errors in what he told us costs would be. He was with a national brokers company I can't remember the name but his office was in the same office as our realtor.

Contrast that to our refinance in 2020 of 2.25%. We went through Peoples Bank, a local bank here in PA. Very nice polite and most of all accurate.

Since our realtor was so awesome we had no reason to second guess her recommendation for the mortgage broker. Looking back now she may have been forced by her employer to say that. If someone is in the market for a mortgage make sure you interview them and get recommendations. Going with a local bank for the refi I think made a difference too; they seemed like they cared rather than some kid who just pushes papers.

People's did my initial and refi. They were good people. They gave me a conventional loan on a home which required three years of my own work to move in to with a tailored arrangement which involved an escrow account and other guarantees. They did say they wouldn't likely do that today since they've grown but it worked our well for me.

I didn't know the OP back then or he'd have gotten a crack at it

 

[El_flasko]

People's did my initial and refi. They were good people. They gave me a conventional loan on a home which required three years of my own work to move in to with a tailored arrangement which involved an escrow account and other guarantees. They did say they wouldn't likely do that today since they've grown but it worked our well for me.

I didn't know the OP back then or he'd have gotten a crack at it

Thx man. escrow holdbacks for repairs and certain renovations were pretty popular at one point they still exist but not quite as common. Lenders push more for full Reno loans now for less risk in this market.

 

[XCheckR]

Flasko is good people. He gives you any crap ask him about the dreaded mcgriddler

 

[El_flasko]

Flasko is good people. He gives you any crap ask him about the dreaded mcgriddler

LOL

 

[Bertfish]

Thx man. escrow holdbacks for repairs and certain renovations were pretty popular at one point they still exist but not quite as common. Lenders push more for full Reno loans now for less risk in this market.

Yep. I didn't want to do a 203k because I'm handy. I rehabbed a whole 2000 square foot house down to studs inside and out for about $50k.

My father in law has been a full time realtor since the 90s. I try to listen.

 

[El_flasko]

Yep. I didn't want to do a 203k because I'm handy. I rehabbed a whole 2000 square foot house down to studs inside and out for about $50k.

My father in law has been a full time realtor since the 90s. I try to listen.

Damn skippy