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On 2/5/2021 at 6:49 PM, Forge said:

Reached out to my LO that I bought my house with 3 years ago. "Hi, I want to refinance. Give me numbers on 20 and 30 years please, 750+ credit. I estimate that I am under 80% ltv. Please get income docs from the work number. I do not want to have an appraisal, please get a waiver. Fannie should be fine with it"

2 days later, I'm basically done lol with no docs provided and just have to go in and sign. 

I thought about pushing back to 30 years. It would have lowered my monthly payment about $500, added 3 years back on but still saved about 55K in the long run. Was really tempted to go this route to open some cash flow to perhaps buy a second home. But cutting 7 years off my loan and my payment stayed the same and all told I would save over 170K was just too tempting. 

Welcome to the club bro! 

We refinanced last year...TWICE :) 

We ended up landing on a 15, but a 20 would have been great with either of us as well.

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2 minutes ago, MWil23 said:

Welcome to the club bro! 

We refinanced last year...TWICE :) 

We ended up landing on a 15, but a 20 would have been great with either of us as well.

I think if I had been five/ six years in rather than 3, I would have went 15. My payment is the same just cutting off the 7 years, which is just insane.

Was really tempted to push back to 30 to go the second home route though

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Just now, Forge said:

I think if I had been five/ six years in rather than 3, I would have went 15. My payment is the same just cutting off the 7 years, which is just insane

Oh, no doubt! We went from a 5-1 ARM 30 year construction loan to a 15 year (we knew we wanted to refinance a year ago, but since it was a construction loan and we were carrying the interest plus the rent/mortgage on our other place, blah blah blah we saved money).

A buddy of mine just refinanced to a 20 year from a 30 year and literally saved $400 a month on his mortgage. Yes, you read that right.

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16 hours ago, titansNvolsR#1 said:

Friend is in King County Washington trying to buy a house. They've now been outbid on two houses by nearly $300,000 over asking price. Housing in Western Washington is bananas. 

That's insanity. IT's tough to get financing at that much over asking unless the appraisal values are just nuts.

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I'm a mortgage broker licensed in 9 states and can attest the lack of inventory is crazy right now.

I have a client I picked up today making their 9th offer tomorrow in Colorado.

And agent in Salt Lake told me they are in a panic at the lack of stuff to sell. That there is only 2 weeks of moving inventory currently.

Some advice.....ask your LO to run a big over ask calculation for you if want to get aggressive. Find an LO who knows how to sell you as a client. 

I reach out to the selling agent for every client before the get our offer. Let them the offers coming, how I qualified it and maybe something personal because nice to have a little story of the new owners.

Most LOs are lazy. Find one that is an advisor to you, not just a salesman order taking. 

Happy hunting. 

 

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1 hour ago, big_palooka said:

I'm a mortgage broker licensed in 9 states and can attest the lack of inventory is crazy right now.

I have a client I picked up today making their 9th offer tomorrow in Colorado.

And agent in Salt Lake told me they are in a panic at the lack of stuff to sell. That there is only 2 weeks of moving inventory currently.

Some advice.....ask your LO to run a big over ask calculation for you if want to get aggressive. Find an LO who knows how to sell you as a client. 

I reach out to the selling agent for every client before the get our offer. Let them the offers coming, how I qualified it and maybe something personal because nice to have a little story of the new owners.

Most LOs are lazy. Find one that is an advisor to you, not just a salesman order taking. 

Happy hunting. 

 

Colorado has been insane for about 4 years now. Washington too. Some markets are just silly stupid. 

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  • 2 months later...
  • 2 weeks later...

This market has too cool off at some point, right? I've been following it closely for the last 2 years, as my girlfriend and I want to buy a house in the nearish term, but it's hard to stomach some of these prices right now. People I know are getting significantly outbid, even after offering much higher than the listing prices.

Cost to build is sky high because of lumber prices, people are locking into low rate refinances so they aren't anxious to sell, foreclosure mortarium is for another month or so, etc. Guess I'm just nervous I'm going to get priced out entirely. 

Thinking the move is continue to save, invest money elsewhere, and let the market play out. 

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  • 2 weeks later...
Posted (edited)
On 5/21/2021 at 4:46 AM, 1ForTheThumb said:

This market has too cool off at some point, right? I've been following it closely for the last 2 years, as my girlfriend and I want to buy a house in the nearish term, but it's hard to stomach some of these prices right now. People I know are getting significantly outbid, even after offering much higher than the listing prices.

Cost to build is sky high because of lumber prices, people are locking into low rate refinances so they aren't anxious to sell, foreclosure mortarium is for another month or so, etc. Guess I'm just nervous I'm going to get priced out entirely. 

Thinking the move is continue to save, invest money elsewhere, and let the market play out. 

I'm personally waiting. I live in the cheapest part of California and the average home being sold in this specific area is about $460,000. With 5% down conventional, that's nearly $2800 a month if you include the Current Low Interest Rates, PMI, California's Property Tax Rate, and Home Owner Insurance. Unless someone and their spouse are making very, very good money, you will have to budget quite a bit. 

All things that go up, must come down. Let me be clear, I'm not reigning on anyone's parade who owns a house. I commend everyone who owns a house and what matters is you bought the house at a price you can afford, not the current market. If I owned a house, I wouldn't even care about the market. 

With that said, the housing market has crashed every 11-18 years since its inception. Which means by the end of 2025 at the absolute latest, technically, there should be one, unless history is finally broken. That's a longgggg time to wait, but definitely cannot afford to buy at these insane prices. I will wait it out, especially because I have to lol. I refuse to be anywhere close to house poor. A mortgage payment should never be more than 33% of you and your spouse's overall net income. And personally, I wouldn't do above 25% which is more of the standard. 

Edited by BayRaider
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@big_palooka

Any chance I could get your personal thoughts on a Reddit post, The EVERYTHING Short - Mortgage Edition, that someone wrote up. I've talked to a former investment banker who still regularly talks to people in the industry about this and other posts. But it'd be interesting to hear the perspective of a mortgage broker. I'm not looking for advice or anything, just your personal thoughts on it.

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  • 2 weeks later...
On 5/30/2021 at 6:53 PM, kingseanjohn said:

@big_palooka

Any chance I could get your personal thoughts on a Reddit post, The EVERYTHING Short - Mortgage Edition, that someone wrote up. I've talked to a former investment banker who still regularly talks to people in the industry about this and other posts. But it'd be interesting to hear the perspective of a mortgage broker. I'm not looking for advice or anything, just your personal thoughts on it.

I skimmed this and there are a lot of holes in his arguments. 

You can't talk about '07-'08 and use comparisons to "The Big Short" without context of the mortgage loans written at that time. I'm talking about SISA (stated income, stated assets) and NINA (no income, no asset). The author brings up scenes from The Big Short without mentioning the NINJA (no income no job) dialogue which is a massive piece of context missed. 

Prior to the '07-'08 crash, you could buy a home, with zero down stating your income and assets with credit as low as 500 with subprime companies. 

He mentions Quicken/Rocket's 3.5% down 580 score program. and manual underwrites That isn't exclusive to them btw, that is an FHA program. What he doesn't mention is the standards on that program. You have to have a 43% debt to income ratio and 2 months payment in reserves to qualify for a manual underwrite. 

Second, the alarmists shouting about foreclosures need to consider the fact we currently have low inventory and these people have equity. They can easily sell their homes vs. foreclosure, that's already happening in some markets. 

That low inventory is also another reason you cannot compare to '07-'08. Housing starts run on a 30 year cycle. Most people will buy their first home in their 30's and they speculate based on birthrates from 30 years ago. The early to mid 2000's, there was to much inventory. To much speculation and not enough people to fill it. Birthrates were lower in the 70's (Roe v Wade), meaning there were less people coming into the market in the 2000's. 

'07-'08 was a perfect storm of too much inventory and loose lending standards.

Today, there is low inventory and stricter lending standards. I agree as rates go up, the market will cool and housing prices will cool. But we're not going to see a massive collapse. The next 3 years alone, the amount of millennial buyers is staggering. There are 4.8 million turning 30 in 2021 alone. 

In other words, there are going to be enough buyers in this low inventory environment to offset foreclosures. 

In relation to Quicken/Rocket. This reddit poster is using words like "predatory lending" and that simply is not what is happening. Q/R only deal in QM (qualified mortgage) products... google if you need to know more.

We are starting to see more non-QM products hit the markets. Things like bank statement loans, etc. But the standards on these currently you have to have a lot of verifiable assets. 

Lastly.... don't use Quicken/Rocket. They are a rip off. They overcharge on fees and their people are order takers. Use a local broker, they have all the same products and better advice.

 

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Fascinating read, @big_palooka

16 minutes ago, big_palooka said:

Lastly.... don't use Quicken/Rocket.

I'm currently with them, had nothing but positive experiences. My original mortgage was with them, and refinanced during (just before, actually) the pandemic.

Should I shop around? I had a situation where I had a six month foreberance when I got laid off in 2016, should that factor into any decisions?

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56 minutes ago, ET80 said:

Fascinating read, @big_palooka

I'm currently with them, had nothing but positive experiences. My original mortgage was with them, and refinanced during (just before, actually) the pandemic.

Should I shop around? I had a situation where I had a six month foreberance when I got laid off in 2016, should that factor into any decisions?

I bought my first house a few years ago through Rocket/Quicken and also have had nothing but positive experiences with them. They got me an insanely awesome rate a few months ago with a refinance during the pandemic as well.

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