Mortgage rates coming down pretty low...

[Alex Franke]

I just refinanced a month or so ago, but I might end up doing it again! I got a call last night from one of the brokers I was working with a month ago -- rates went below 5% for a bit on Tuesday. This article is talks about plans for 4.5%. That's cheap money!

And if you don't own yet -- imaging a $22,000 tax credit for buying one

http://www.google.com/hostednews/ap/...FR9cQD94RI8AG0

[jackellis]

We've just drawn down a home equity line to finance construction of our retirement home. I'm crossing my fingers that rates stay low for about another 12 months until we can put a mortgage on the place. Otherwise we're going to be eating a lot of beans.

The good news is that it's costing us about 1/3rd less now than it would have cost a year ago. The really good news is that I'll have a real shop to make sawdust in.

[Uncle Cracker]

The rates are low, but required down payments for the top rates are way up, and any flat spots on your credit report will likely get you rejected (which, in itself, puts another flat spot on your credit report). Also, loan valuations are very conservative with the unstable market, made worse by the fact that you must use an appraiser designated by the bank. The time is right if you know you got the chops, but you'll waste a lot of $$$ in application fees if you are anywhere close to marginal. It's back to where the only folks who can get loans are the ones who don't need them.

[crokett]

Cracker, I guess houses are different than cars? I had no problems getting the loan for the van. Also, I think a refi may be easier to get than a new home purchase.

[atgcpaul]

I just refinanced a month or so ago, but I might end up doing it again! I got a call last night from one of the brokers I was working with a month ago -- rates went below 5% for a bit on Tuesday. This article is talks about plans for 4.5%. That's cheap money!

And if you don't own yet -- imaging a $22,000 tax credit for buying one

http://www.google.com/hostednews/ap/...FR9cQD94RI8AG0

I'm crossing my fingers. I just started looking into a refi this week.

[cgallery]

The report I heard last night was that the lowest rates wouldn't be available for refinancing, just new purchases. Although one of the commentators did ask, "what is to prevent my selling my house to my brother, and him selling it back to me?"

Nobody knew the answer to that one. A few commentators said it would be pretty difficult to keep the refis out.

[Uncle Cracker]

Cracker, I guess houses are different than cars?

You betcha... especially now.

[jackellis]

It's back to where the only folks who can get loans are the ones who don't need them.

My take is that we're back to the place where only folks who can demonstrate an ability to repay loans will get them.

[jhart]

My take is that we're back to the place where only folks who can demonstrate an ability to repay loans will get them.

Probably the way it should be and should have been.

[Alex Franke]

The rates are low, but required down payments for the top rates are way up, and any flat spots on your credit report will likely get you rejected (which, in itself, puts another flat spot on your credit report). Also, loan valuations are very conservative with the unstable market, made worse by the fact that you must use an appraiser designated by the bank. The time is right if you know you got the chops, but you'll waste a lot of $$$ in application fees if you are anywhere close to marginal. It's back to where the only folks who can get loans are the ones who don't need them.

I guess a lot of this depends on the circumstances. We brought only closing costs to the table and didn't need an appraisal or new title insurance (they re-issued the last one from 5 years earlier.)

Anyway it's probably worth checking into if they do drop below 5 again.

[pecker]

And you'll be paying it back in worthless, inflated dollars.

[DaveS]

I have a friend whose home sale just fell through because an audit appraiser for the mortgage company re-appraised the house two days before the closing and added an additional 10% decline for the upcoming year, dropping the home value below the sale price. They did this without even looking at the house, and applied the 10% reduction based on national real estate trends, not the local market (which has been flat).

It seems the mortgage industry, in their haste to save themselves, will cause the housing prices to sink even faster.

[DUD]

My Brother just borrowed $450.00 at 5.3% to buy a few rental houses that He is

getting very cheap. We are thinking about refinancing Our home, but that is hard to do

when it is paid for. Bill

[Alex Franke]

My Brother just borrowed $450.00 at 5.3% to buy a few rental houses that He is getting very cheap.

$450 for 3 houses? Very cheap, indeed!

Congrats on post #3000!