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Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,858,670 times
Reputation: 958
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Quote:
Originally Posted by michael11747
4.875 with no points is excellent. has this helped sales in clark county?
Over the last 5 months or so Clark County sales have been phenomenal. We are averaging about 3000 units a month, and October was one of if not the best month ever with over 3700 units moved. It has more to do with the pricing of homes (2 out of every 3 units sold is bank owned) than rates though. You would not believe some of the deals that my clients have gotten over the last couple of months, reminiscent of the 2001-2002 market ($80-$90 a sq ft). Believe it we are back in line with historical norms as the median home price out here now is around $180K-$190K and median household incomes are just over $60,000.
Also keep in mind that the rate I quoted is a few days old and it is based on an extremely vanilla scenario, which are few and far between particularly out here.
I suppose that would depend on the borrower's intent and goals. Based on a $200,000 loan amount the buydown would be $4078 based on the 15 day lock (noone in their right mind would lock at 7 days). The interest savings between 4.875% and 4.25% on a $200,000 loan amount is $74.54 a month, which would put the break even point at 55 months or 5 years and 7 months. For some borrowers the buydown would make the most financial sense, and for some it would not (no cost loans, no cash to close, no seller concessions, etc.). 4.25% with points is better for SOME, not everyone.
Last edited by Daddys///M3; 12-30-2008 at 03:39 PM..
I suppose that would depend on the borrower's intent and goals. Based on a $200,000 loan amount the buydown would be $4078 based on the 15 day lock (noone in their right mind would lock at 7 days). The interest savings between 4.875% and 4.25% on a $200,000 loan amount is $74.54 a month, which would put the break even point at 55 months or 5 years and 7 months. For some borrowers the buydown would make the most financial sense, and for some it would not (no cost loans, no cash to close, no seller concessions, etc.). 4.25% with points is better for SOME, not everyone.
Im shocked you were able to pull intent from that post. All I saw was a copy/paste job from a rate sheet with some bolded information. No adjustments or qualifications mentioned.
Also, zero advice on how to interpret that mess of numbers if you are a consumer. I should take that approach... when clients ask me what rates are, just hand them a stack of sheets and send them off
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,858,670 times
Reputation: 958
Quote:
Originally Posted by rcarrillo
Im shocked you were able to pull intent from that post. All I saw was a copy/paste job from a rate sheet with some bolded information. No adjustments or qualifications mentioned.
Also, zero advice on how to interpret that mess of numbers if you are a consumer. I should take that approach... when clients ask me what rates are, just hand them a stack of sheets and send them off
LOL. I wasn't able to pull intent or anything else of any value out of that post. Perhaps that's why some of us are still able to make money originating mortgages and some of us have had to move on to mods (and whatever the next big thing is or will be).
Over the last 5 months or so Clark County sales have been phenomenal. We are averaging about 3000 units a month, and October was one of if not the best month ever with over 3700 units moved. It has more to do with the pricing of homes (2 out of every 3 units sold is bank owned) than rates though. You would not believe some of the deals that my clients have gotten over the last couple of months, reminiscent of the 2001-2002 market ($80-$90 a sq ft). Believe it we are back in line with historical norms as the median home price out here now is around $180K-$190K and median household incomes are just over $60,000.
Also keep in mind that the rate I quoted is a few days old and it is based on an extremely vanilla scenario, which are few and far between particularly out here.
interesting, after a bit of research on clark county, i realize the area is not for me, but that's great. i actually have a friend whose brother has a house there. last i heard his house depreciated over 25%, and he was stuck trying to get a refinanced loan to replace his ARM. from what i heard he might lose his house. but wherever there is loss, there is always gain... hopefully we can all learn from this, and hope things start moving again all over the country. i have been doing constant research in similar areas, i admit, and i think from my perspective as an investor, things will get better quicker than they would get worse.
we are ready to make moves right now, but we are stuck trying to liquidate, and the banks are not helping. if we could unfreeze more of this credit, then i could sell, then i could buy more, and more, and more. so take heed bankers out there... i can't tell you what to do, since i have a pretty limited idea of what it is you guys do behind closed doors, but start givin out them loans, get your appraisers in there for a fair assessment, and lend, so we can all move along.
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,858,670 times
Reputation: 958
Quote:
Originally Posted by michael11747
interesting, after a bit of research on clark county, i realize the area is not for me, but that's great. i actually have a friend whose brother has a house there. last i heard his house depreciated over 25%, and he was stuck trying to get a refinanced loan to replace his ARM. from what i heard he might lose his house. but wherever there is loss, there is always gain... hopefully we can all learn from this, and hope things start moving again all over the country. i have been doing constant research in similar areas, i admit, and i think from my perspective as an investor, things will get better quicker than they would get worse.
we are ready to make moves right now, but we are stuck trying to liquidate, and the banks are not helping. if we could unfreeze more of this credit, then i could sell, then i could buy more, and more, and more. so take heed bankers out there... i can't tell you what to do, since i have a pretty limited idea of what it is you guys do behind closed doors, but start givin out them loans, get your appraisers in there for a fair assessment, and lend, so we can all move along.
I think you have the right idea. Although it is unfortunate that many folks are losing their homes out here, such is the cycle of real estate and business in general I suppose. It is actually a perfect storm for investors due to the ridiculously low prices and the large uptick in renters (rents are on the rise just a bit as well).
I think you have the right idea. Although it is unfortunate that many folks are losing their homes out here, such is the cycle of real estate and business in general I suppose. It is actually a perfect storm for investors due to the ridiculously low prices and the large uptick in renters (rents are on the rise just a bit as well).
yea we need that money flowing for the first timers though... it would really save everyone's butts. my market is doing very well compared to the US average, but it does not bely the fact that no one can afford anything right now.
it is still so hard for first timers to buy. i have friends who graduated from top schools, who have good jobs, but cannot afford a place nicer than their college dorms because of high prices and debt/income ratios. i on the other hand got into the business right after high school, and just finished my degree after a decade of course by course, have no debt, own multiple properties and have a nice house.... makes me question the american way of doing things. go to school, get married, buy a house, have kids will change very soon. i think everyone is just about to give up on that model of life.
but i heard FHA is increasing limits on debt/income in Feb. any bankers wanna verify? that would be a tremendous boost to our economy.
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,858,670 times
Reputation: 958
Quote:
Originally Posted by michael11747
yea we need that money flowing for the first timers though... it would really save everyone's butts. my market is doing very well compared to the US average, but it does not bely the fact that no one can afford anything right now.
it is still so hard for first timers to buy. i have friends who graduated from top schools, who have good jobs, but cannot afford a place nicer than their college dorms because of high prices and debt/income ratios. i on the other hand got into the business right after high school, and just finished my degree after a decade of course by course, have no debt, own multiple properties and have a nice house.... makes me question the american way of doing things. go to school, get married, buy a house, have kids will change very soon. i think everyone is just about to give up on that model of life.
but i heard FHA is increasing limits on debt/income in Feb. any bankers wanna verify? that would be a tremendous boost to our economy.
FHA debt to income limits are pretty liberal as it is if you have sufficient compensating factors. I don't know that it would be a good idea to increase them, considering I have seen FHA deals go through at over 50% back end DTI ratio and we don't have a state tax out here. 50% of debt to gross income ratio with a sizable state tax could make things very tight for a borrower.
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but wherever there is loss, there is always gain... hopefully we can all learn from this, and hope things start moving again all over the country. i have been doing constant research in similar areas, i admit, and i think from my perspective as an investor, things will get better quicker than they would get worse.
