dmarc117 Posted August 3, 2007 Share Posted August 3, 2007 (edited) hearing that wells fargo just took their 30y rate on jumbos from 6.75 to 8. reason is to price in risk. Edited August 3, 2007 by dmarc117 Quote Link to comment Share on other sites More sharing options...
wiegie Posted August 3, 2007 Share Posted August 3, 2007 wow--holy crap Quote Link to comment Share on other sites More sharing options...
TimC Posted August 3, 2007 Share Posted August 3, 2007 That's one hugh jump. Hadn't heard that. Quote Link to comment Share on other sites More sharing options...
cre8tiff Posted August 3, 2007 Share Posted August 3, 2007 wow--holy crap OK, that is a scary reaction from an economist. Glad I like my house, and have a 30 year fixed. Quote Link to comment Share on other sites More sharing options...
wiegie Posted August 3, 2007 Share Posted August 3, 2007 OK, that is a scary reaction from an economist. Glad I like my house, and have a 30 year fixed. I didn't mean to be alarmist--that is just a really big discontinuous jump in interest rates. Quote Link to comment Share on other sites More sharing options...
MrTed46 Posted August 3, 2007 Share Posted August 3, 2007 (edited) Everything I read is that mortgage rates are falling (national avg). http://biz.yahoo.com/ap/070802/mortgage_rates.html?.v=4 Edited August 3, 2007 by MrTed46 Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted August 3, 2007 Author Share Posted August 3, 2007 Wells Fargo to stop making Alt-A loans through brokers- Bloomberg (34.17 -0.25) mortgage guys.....whats an Alt-A loan? Quote Link to comment Share on other sites More sharing options...
Codwagon Posted August 3, 2007 Share Posted August 3, 2007 mortgage guys.....whats an Alt-A loan? Then there are alt-A loans--the ones you get when you don't submit all the documentation that would be required to qualify for a straight loan. Those are usually chosen by people who have unsteady sources of income--or simply have too little documented income to qualify for a straight loan for the house they want to buy. Quote Link to comment Share on other sites More sharing options...
CaP'N GRuNGe Posted August 3, 2007 Share Posted August 3, 2007 We were thinking about purchasing our first home but after examining the market, our finances, etc decided to hold off another year. I'm hoping they are right about prices continuing to slide and also hope rates remain reasonable for a year from now... Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted August 3, 2007 Author Share Posted August 3, 2007 We were thinking about purchasing our first home but after examining the market, our finances, etc decided to hold off another year. I'm hoping they are right about prices continuing to slide and also hope rates remain reasonable for a year from now... i was thinking the same thing.....now it looks like any savings you get in the depressed housing market might be washed out by higher rates due to risk. Quote Link to comment Share on other sites More sharing options...
MrTed46 Posted August 3, 2007 Share Posted August 3, 2007 i was thinking the same thing.....now it looks like any savings you get in the depressed housing market might be washed out by higher rates due to risk. I really wouldnt worry about rates skyrocketing right now. The housing market is a blood bath and they wouldnt help it by raising their rates. Quote Link to comment Share on other sites More sharing options...
CaP'N GRuNGe Posted August 3, 2007 Share Posted August 3, 2007 i was thinking the same thing.....now it looks like any savings you get in the depressed housing market might be washed out by higher rates due to risk. I read something a while back that made alot of sense: it's better to overpay on interest rates than it is on the price of the home. You can always re-fi when the rates go lower, but you can't lower the purchase price of the home. Of course, the rates do play into cash flow and whatever you can afford for a monthly payment. Quote Link to comment Share on other sites More sharing options...
Codwagon Posted August 3, 2007 Share Posted August 3, 2007 I read something a while back that made alot of sense: it's better to overpay on interest rates than it is on the price of the home. You can always re-fi when the rates go lower, but you can't lower the purchase price of the home. Of course, the rates do play into cash flow and whatever you can afford for a monthly payment. True. But it only works for your first home. After that, you are buying and selling in the same market. Quote Link to comment Share on other sites More sharing options...
muck Posted August 3, 2007 Share Posted August 3, 2007 True. But it only works for your first home. After that, you are buying and selling in the same market. Unless you don't mind owning a rental property for a while (in a rising market) or sitting in a rental house (or apartment/condo) for a while in a falling market. Quote Link to comment Share on other sites More sharing options...
muck Posted August 3, 2007 Share Posted August 3, 2007 Note that Alt-A loans are also used by quite a few self-employed types as it may be difficult to prove up your actual income. Quote Link to comment Share on other sites More sharing options...
Big Dogs Posted August 3, 2007 Share Posted August 3, 2007 (edited) OK, that is a scary reaction from an economist. Glad I like my house, and have a 30 year fixed. Amen on a 30 year fixed brother!!! A buddy of mine got an ARM at 3.5% about 4-5 years ago, and then he went and got his credit screwed up. Now he's one of those millions who the bank won't refinance, and his rate is almost at 7% now from what he told me last. He's looking for another job just to start brining in enough to make his mortgage payment. I feel bad for the guy. Edited August 3, 2007 by Big Dogs Quote Link to comment Share on other sites More sharing options...
Missoula Griz Posted August 3, 2007 Share Posted August 3, 2007 hearing that wells fargo just took their 30y rate on jumbos from 6.75 to 8. reason is to price in risk. Link please? Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted August 3, 2007 Author Share Posted August 3, 2007 Link please? was on cnbc...no link Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted August 3, 2007 Author Share Posted August 3, 2007 Wachovia also says has stopped making Alt-A home loans through brokers - Reuters (46.17 -0.70) -Update- Quote Link to comment Share on other sites More sharing options...
MrTed46 Posted August 3, 2007 Share Posted August 3, 2007 Agree with overpaying in interest is better than overpaying for house. Interest is also tax deductable (esp on primary residence) Quote Link to comment Share on other sites More sharing options...
geeteebee Posted August 3, 2007 Share Posted August 3, 2007 Amen on a 30 year fixed brother!!! A buddy of mine got an ARM at 3.5% about 4-5 years ago, and then he went and got his credit screwed up. Now he's one of those millions who the bank won't refinance, and his rate is almost at 7% now from what he told me last. He's looking for another job just to start brining in enough to make his mortgage payment. I feel bad for the guy. BD, not to pick on your buddy, but I have very little sympathy for anybody in this situation. A 7% loan is still very good from a historical perspective and if somebody bought all the house they could afford based on a 3.5% rate, they need to take a personal finance class or two. Quote Link to comment Share on other sites More sharing options...
boat_hacked Posted August 3, 2007 Share Posted August 3, 2007 (edited) Wells Fargo Rates Link please? here's a link to WF homepage of the mortgage rates as of 8/03/07. so think someone was misquoted or total BS on the huge jump on interest rates. Edited August 3, 2007 by boat_hacked Quote Link to comment Share on other sites More sharing options...
muck Posted August 3, 2007 Share Posted August 3, 2007 current bond market problems > problems created by the internet bubble ???? Quote Link to comment Share on other sites More sharing options...
sundaynfl Posted August 3, 2007 Share Posted August 3, 2007 Bloomberg article on rates Quote Link to comment Share on other sites More sharing options...
Beaumont Posted August 4, 2007 Share Posted August 4, 2007 BD, not to pick on your buddy, but I have very little sympathy for anybody in this situation. A 7% loan is still very good from a historical perspective and if somebody bought all the house they could afford based on a 3.5% rate, they need to take a personal finance class or two. Amen. People have no idea how cheap rates have been ... That worm is either turning or will turn. if you are not fixed you are going to be paying a lot more ... Quote Link to comment Share on other sites More sharing options...
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