got quoted for 4.625 percent 30 year fixed loan today (high conforming LTV of 85)

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's still lower than our original mortgage rate!

+1

I’m so old that I still think 4-5% is “low”.

My first mortgage was a 5 year ARM at 5%, and I was thrilled to get it. And at year 5, it adjusted to 3.375.

[Anonymous]

Anyone consider selling their home as an assumable mortgage, given low rates? We have a 2.5% home and are in the process of building our new home and wonder what the appetite of some buyers is to get creative with a deal - i.e. pay us market value and assume the existing mortgage (while change names on title/note). Is this even possible?.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You’re not the only one OP and prices should start to reflect this.

Prices don’t have anything to do with rates

This is one of those things you see economics types claim that may have some validity, but you always suspect whatever validity it has is far less than asserted. I guess we’ll find out soon enough.

The reason they don't have much to do with rates is because prices are set by demand. Whatever impact rising rates have on reducing demand is typically offset by rising incomes (because during inflationary times, incomes rise too) or innovation in mortgage products (40-year amortizations, more ARMs, etc).

[Anonymous]

Anonymous wrote:Anyone consider selling their home as an assumable mortgage, given low rates? We have a 2.5% home and are in the process of building our new home and wonder what the appetite of some buyers is to get creative with a deal - i.e. pay us market value and assume the existing mortgage (while change names on title/note). Is this even possible?.

Can you still do assumables these days?

[Anonymous]

Anonymous wrote:I saw an article today saying that the percentage of new loans that are ARMs is increasing. Here we go again. I do not want housing to crash but warning signs are all over the place.

Huh? You aren't making sense. Were you under the impression adjustable rate mortgages caused the 2008 crash? They didn't.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Anyone consider selling their home as an assumable mortgage, given low rates? We have a 2.5% home and are in the process of building our new home and wonder what the appetite of some buyers is to get creative with a deal - i.e. pay us market value and assume the existing mortgage (while change names on title/note). Is this even possible?.

Can you still do assumables these days?

Can someone unpack this. A family friend is willing to sell us their home but has 200k left on the mortgage. Purchas price his 400k more so does the loan adjust upward to the sells price will takin on the sellers rate?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Anyone consider selling their home as an assumable mortgage, given low rates? We have a 2.5% home and are in the process of building our new home and wonder what the appetite of some buyers is to get creative with a deal - i.e. pay us market value and assume the existing mortgage (while change names on title/note). Is this even possible?.

Can you still do assumables these days?

Can someone unpack this. A family friend is willing to sell us their home but has 200k left on the mortgage. Purchas price his 400k more so does the loan adjust upward to the sells price will takin on the sellers rate?

Assumable loans were popular in the 80's when interest rates were 18%. I remember my parents house hunting and getting really excited when they saw homes advertised with assumable loans. I know you assume the sellers rate, but no idea of the mechanics of it.

[Anonymous]

Anonymous wrote:Anyone consider selling their home as an assumable mortgage, given low rates? We have a 2.5% home and are in the process of building our new home and wonder what the appetite of some buyers is to get creative with a deal - i.e. pay us market value and assume the existing mortgage (while change names on title/note). Is this even possible?.

FHA and VA loans are assumable while conventional loans are usually not, but you can check with your lender.

[Anonymous]

4.625 is still a really, really good rate. My first rate was over 6%. Anything sub-5% is a great deal historically. If you can’t manage a mortgage at that rate then you are looking outside your price range. Adjust your expectations and you will be fine.

[Anonymous]

Anonymous wrote:4.625 is still a really, really good rate. My first rate was over 6%. Anything sub-5% is a great deal historically. If you can’t manage a mortgage at that rate then you are looking outside your price range. Adjust your expectations and you will be fine.

a little piece of me dies everytime someone says this. you are ignoring the PRICE OF THE HOUSE. When your first rate was over 6 percent, houses were significantly cheaper than they are now. the issue right now is the inflated home prices ALONG with the moderately high interest rates.

[Anonymous]

Anonymous wrote:

Anonymous wrote:4.625 is still a really, really good rate. My first rate was over 6%. Anything sub-5% is a great deal historically. If you can’t manage a mortgage at that rate then you are looking outside your price range. Adjust your expectations and you will be fine.

a little piece of me dies everytime someone says this. you are ignoring the PRICE OF THE HOUSE. When your first rate was over 6 percent, houses were significantly cheaper than they are now. the issue right now is the inflated home prices ALONG with the moderately high interest rates.

And they were significantly MORE expensive than when our parents bought homes with double digit rates.

[Anonymous]

Anonymous wrote:4.625 is still a really, really good rate. My first rate was over 6%. Anything sub-5% is a great deal historically. If you can’t manage a mortgage at that rate then you are looking outside your price range. Adjust your expectations and you will be fine.

Great advice. Just invent a time machine and go back to when SFHs in good school districts were priced affordably for working class families--then you won't care about paying 5% interest!

[Anonymous]

Anonymous wrote:

Anonymous wrote:4.625 is still a really, really good rate. My first rate was over 6%. Anything sub-5% is a great deal historically. If you can’t manage a mortgage at that rate then you are looking outside your price range. Adjust your expectations and you will be fine.

Great advice. Just invent a time machine and go back to when SFHs in good school districts were priced affordably for working class families--then you won't care about paying 5% interest!

I think your approach of complaining on a message board about not being able to afford what you want is a much more effective approach, don’t you?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I saw a headline today: “The housing market is in the early stages of a substantial downshift; Home sales may drop 25% by the end of Summer, according to this analyst”

It feels like 2007 all over with housing and stocks. Buckle up folks.

And this area will still see home prices rise. You just won’t be seeing anymore old shacks for nearly 2 million anymore. Quite frankly, we need a correction like this.

This is what people said last time and we bought our house in 2010 at a 30%ish discount. But keep kidding yourself.

Where was this?

Arlington and since 2010 it has doubled. It’s absurd and frankly not worth what we could sell it for.

Which neighborhood saw a 30% drop? It is a SFH?

Very unusual for desirable neighborhoods.

Yes SFH - people were very desperate. We paid 10% below list and around 30 percent below peak. There were tons of foreclosures and short sales. People have short memories or didn’t live through it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I saw a headline today: “The housing market is in the early stages of a substantial downshift; Home sales may drop 25% by the end of Summer, according to this analyst”

It feels like 2007 all over with housing and stocks. Buckle up folks.

And this area will still see home prices rise. You just won’t be seeing anymore old shacks for nearly 2 million anymore. Quite frankly, we need a correction like this.

This is what people said last time and we bought our house in 2010 at a 30%ish discount. But keep kidding yourself.

Where was this?

Arlington and since 2010 it has doubled. It’s absurd and frankly not worth what we could sell it for.

Which neighborhood saw a 30% drop? It is a SFH?

Very unusual for desirable neighborhoods.

Only explanations I can think of is PP is lying or forgot to mention the house burned to the ground in 2009.

You can think I’m lying but the data doesn’t lie: https://fred.stlouisfed.org/series/WDXRSA