[lvoc]

Originally Posted by VegasVicsezhowdy

Why is appraised value BELOW contract price?

Who says it is? I just did a VA on a newish house in Providence and came in right on.

Generally though appraisers shoot behind the duck. Particularly in a rising market. Nature of the process. It puts more weight on two months ago then on today. Certain forces on appraisers also cause them to interpret data toward the down rather than the up side.

Note that in a fast rising market Appraisers can appreciate their numbers...but seldom do.

[aardogfsu]

SW appreciated crazy fast but in running the comps (on redfin) I'm not seeing where the sale price matches up w the current listing prices...I'd like to add a 1650sq ft. 3-4 bedroom in the SW because I already have someone to fill it but not at these prices, the rent hasn't caught up.

[lvoc]

Originally Posted by aardogfsu

SW appreciated crazy fast but in running the comps (on redfin) I'm not seeing where the sale price matches up w the current listing prices...I'd like to add a 1650sq ft. 3-4 bedroom in the SW because I already have someone to fill it but not at these prices, the rent hasn't caught up.

Achieved price on 1650 +-100 in the SW is about 110 per SF. List price is not a whole lot higher. It appears you can still find stuff around $100 but getting hard below that. Wide spread from 70 to 170. But plentiful around $110

[gaash2]

Just a note on interest rates. I think they are going to go up eventually, but despite this being a consensus view, the asymmetry in interest rates is not nearly as skewed as people, particularly those not involved in financial markets, make it out to be. The 30yr is at 3.2% versus front end rates at basically 0% That is still a relatively steep curve which implies that the market is already pricing in future rates being significantly higher than they are today. For example, today the market is implying that in 5 years, the *10yr* will be at 3.14% and that front end rates will be as high as 2.4% for 1yr. It is not unprecedented (Japan, etc.) for rates to be significantly LOWER than they are today.

However, this does NOT mean wait to get a mortgage. Mortgage borrowers have the tremendous luxury of being able to refinance if rates go lower, so really, it's very hard to lose from interest rate moves getting a mortgage. This is a tremendous hidden value that homeowners need to appreciate and take advantage of.

[MSchu]

are interest rates EVER symmetrical...

[Clarkcty]

The thing with interest rates, institutions may advertise the lowest interest rate but it does not mean people trying to get a mortgage will get it, even the ones with good credit.

[von949]

Originally Posted by Clarkcty

The thing with interest rates, institutions may advertise the lowest interest rate but it does not mean people trying to get a mortgage will get it, even the ones with good credit.

That's why people should shop around for the best rate possible. No need to be loyal to one banking institution.


(╯°□°）╯ ︵ ┻━┻

[ScoopLV]

Originally Posted by von949

That's why people should shop around for the best rate possible. No need to be loyal to one banking institution.


(╯°□°）╯ ︵ ┻━┻

Disagree. We have a great relationship with our bank. A relationship that we've been building for many years. I know that if I need any sort of financing, they'll come within a point or two of what I could get elsewhere. But I also know they aren't going to sell my paper. I know I can pick up the phone and talk to someone who can actually DO something for me if I have any special needs that arise. In short, they will actually SERVICE my loan, not just give me lip service.

Hopping around from bank to bank does not generate that kind of business relationship. In fact, it leads us to the "less and less service" for "more and more fees." Kind of like airlines. When people are cost-conscious to the exclusion of all other things, service suffers.

[Clarkcty]

Originally Posted by von949

That's why people should shop around for the best rate possible. No need to be loyal to one banking institution.


(╯°□°）╯ ︵ ┻━┻

Just because it's advertised, it does not necessarily mean you will get it, regardless of shopping around. Banks are in it for the money.

[Clarkcty]

My mortgage is being serviced by Citibank, they don't own it. I have credit cards and checking with them as well. I like the convenience of doing business with Citibank and I can use the ATM machine at
7-11 around town, free of charge.