December jobs report: now with short term mortgage rate analysis from steve dave

[K-S-U-Wildcats!]

So last year I refi'd to a 15yr conventional at 2.8 apr with a lender credit that slightly exceeded my closing costs. How'd i do compared to now?

that's a great rate. I also got a 15 a couple years ago at rates that can't be found now. I should have just built a house then. COMING DOWN, THO! 

I think I could have actually gotten 2.625, but opted for 2.8 and a few grand in my pocket. I don't plan on owning the house for more than maybe 5 more years.

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

I heard the reason home prices declined was because baby boomers were moving into condos and retirement communities, leaving a glut on the market.

[puniraptor]

I heard the reason home prices declined was because baby boomers were moving into condos and retirement communities, leaving a glut on the market.

'Grats on the condo, FSD!

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

I heard the reason home prices declined was because baby boomers were moving into condos and retirement communities, leaving a glut on the market.

'Grats on the condo, FSD!

A dozen posts about basis points on a 15 yr mortgage and you come at me with this?

Get the eff out ta here

[puniraptor]

I heard the reason home prices declined was because baby boomers were moving into condos and retirement communities, leaving a glut on the market.

'Grats on the condo, FSD!

A dozen posts about basis points on a 15 yr mortgage and you come at me with this?

Get the eff out ta here

Still down today! What do you think will happen in the next two weeks?

[puniraptor]

still dropping!

i read some experts saying it may continue to dip down below 4% (30y)

anyone disagree?

[sys]

still dropping!

i read some experts saying it may continue to dip down below 4% (30y)

anyone disagree?

i don't disagree that it (the average) may, but i don't think it's probable.

[Emo EMAW]

It's pretty much guaranteed to continue dropping because I just refi'd.

[K-S-U-Wildcats!]

Another month, another horrible jobs report, another drop in the completely illogical "unemployment rate" as more people give up.

http://online.wsj.com/news/articles/SB10001424052702304680904579368562158283286?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304680904579368562158283286.html

[john "teach me how to" dougie]

This needs reposted.

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

Not a graph measuring percentage change in percentages, just straight evidence

[steve dave]

got our 30y today at 4%

[puniraptor]

got our 30y today at 4%

they will start building your house before you get your mortgage? how does that work? just suitcases full of cash until then? or an omaha handshake?

[steve dave]

got our 30y today at 4%

they will start building your house before you get your mortgage? how does that work? just suitcases full of cash until then? or an omaha handshake?

we just gave them 5%. then if we don't fork over they just keep that and sell the house they just built us I guess

[CNS]

It's pretty common, even w/o the 5% down.  Many builders only require a few grand earnest money, sign a contract, they finance the build through their own construction loan, you finance and close at the time of taking possession at the end if the build and the earnest money is just subtracted from the loan total and the builder keeps it.

[steve dave]

It's pretty common, even w/o the 5% down.  Many builders only require a few grand earnest money, sign a contract, they finance the build through their own construction loan, you finance and close at the time of taking possession at the end if the build and the earnest money is just subtracted from the loan total and the builder keeps it.

that's exactly what I said but in english

[Emo EMAW]

It's pretty common, even w/o the 5% down.  Many builders only require a few grand earnest money, sign a contract, they finance the build through their own construction loan, you finance and close at the time of taking possession at the end if the build and the earnest money is just subtracted from the loan total and the builder keeps it.

Is that different for homes >$1 million?

[CNS]

It's pretty common, even w/o the 5% down.  Many builders only require a few grand earnest money, sign a contract, they finance the build through their own construction loan, you finance and close at the time of taking possession at the end if the build and the earnest money is just subtracted from the loan total and the builder keeps it.

that's exactly what I said but in english

Assumed that your home value was higher so that 5% equates to more than a couple grand.  Also, was reaponding to puni's post.

[steve dave]

It's pretty common, even w/o the 5% down.  Many builders only require a few grand earnest money, sign a contract, they finance the build through their own construction loan, you finance and close at the time of taking possession at the end if the build and the earnest money is just subtracted from the loan total and the builder keeps it.

that's exactly what I said but in english

Assumed that your home value was higher so that 5% equates to more than a couple grand.  Also, was reaponding to puni's post.

I know, I was just messing with you

[CNS]

It's pretty common, even w/o the 5% down.  Many builders only require a few grand earnest money, sign a contract, they finance the build through their own construction loan, you finance and close at the time of taking possession at the end if the build and the earnest money is just subtracted from the loan total and the builder keeps it.

Is that different for homes >$1 million?

No clue.  I would imagine that most, if not all, of those are custom rather than spec, and that the earnest money would be higher.  Would guess that the construction loan/home loan sitch would be the same, though.


I thought you just bought a house.

Also, well done.

[john "teach me how to" dougie]

It's pretty common, even w/o the 5% down.  Many builders only require a few grand earnest money, sign a contract, they finance the build through their own construction loan, you finance and close at the time of taking possession at the end if the build and the earnest money is just subtracted from the loan total and the builder keeps it.

Is that different for homes >$1 million?

Not sure if this works the same way in all states, but in CA, you get a construction loan where the bank will release money to the construction company in smaller amounts as they reach milestones in the construction. Once done, the loan is converted into a mortgage.

[Emo EMAW]

It's pretty common, even w/o the 5% down.  Many builders only require a few grand earnest money, sign a contract, they finance the build through their own construction loan, you finance and close at the time of taking possession at the end if the build and the earnest money is just subtracted from the loan total and the builder keeps it.

Is that different for homes >$1 million?

No clue.  I would imagine that most, if not all, of those are custom rather than spec, and that the earnest money would be higher.  Would guess that the construction loan/home loan sitch would be the same, though.


I thought you just bought a house.

Also, well done.

I asked because my folks are building a custom home near Portland and they need to do the construction loan deal.  Wasn't sure if that was regional or because it was more money or what.

[Dugout DickStone]

It's pretty common, even w/o the 5% down.  Many builders only require a few grand earnest money, sign a contract, they finance the build through their own construction loan, you finance and close at the time of taking possession at the end if the build and the earnest money is just subtracted from the loan total and the builder keeps it.

Is that different for homes >$1 million?

Not sure if this works the same way in all states, but in CA, you get a construction loan where the bank will release money to the construction company in smaller amounts as they reach milestones in the construction. Once done, the loan is converted into a mortgage.

It can work that way.  If it is going up in a new development where the developer is throwing up houses at the same time, its not necessary.

[steve dave]

It's pretty common, even w/o the 5% down.  Many builders only require a few grand earnest money, sign a contract, they finance the build through their own construction loan, you finance and close at the time of taking possession at the end if the build and the earnest money is just subtracted from the loan total and the builder keeps it.

Is that different for homes >$1 million?

No clue.  I would imagine that most, if not all, of those are custom rather than spec, and that the earnest money would be higher.  Would guess that the construction loan/home loan sitch would be the same, though.


I thought you just bought a house.

Also, well done.

I asked because my folks are building a custom home near Portland and they need to do the construction loan deal.  Wasn't sure if that was regional or because it was more money or what.

they do it both ways here depending on what your builder will allow. ours gave us the option to do either.

[Panjandrum]

got our 30y today at 4%

Mine was 4.5% (APR) with 10% down, but I took a slightly higher rate (like an 1/8th percent) for no PMI.