Question for bankers/mortgage brokers...

[SECplayer]

I've seen a lot of detailed responses to lending questions in the past so know some of the posters here are in that industry. I got a mortgage back in 2012 when rates were really low (30 yr fixed @ 3.5%).

About to finalize an offer on a new home so asked for a quick quote from my lender and it came back at 4.125%. I was a little surprised and was hoping for 3.875 or so. With prime at 3.75%, am I being unrealistic for a 30 yr fixed rate?

For someone with really good credit, is there a standard "prime plus X percent" that most lenders use?

 

[Ricboff]

rates are heading up.

ain't my industry, can't really comment on your query.



http://www.constructiondive.com/news/rising-mortgage-rates-to-shape-housing-activity-in-2017/436042/

• The widening affordability gap in the wake of rising mortgage rates is set to be the overriding factor in the U.S. housing market this year, followed by low inventory levels and the evolving housing needs of baby boomers, according to Zillow's quarterly Home Price Expectations Survey, which polled 100 housing market experts.
• The impact of rising mortgage rates is minimal so far, Zillow noted, with an increase from 4% to 4.25% upping the monthly mortgage payment on a median U.S. home, which is valued at $193,800, by $23 per month.
• A significant slowdown in housing activity related to mortgage rates is not likely until those rates reach 5.5%, according to the survey. The conventional 30-year fixed mortgage rate is expected to be around 4.75% by the end of this year.

 

[GoBlue34]

Rates are currently just a tad over 4% so that's pretty close, might be able to get 4.0875 range. If you can swing a 15 year you would be in the 3's...

 

[KingEleven]

4.13 when I looked a couple days ago....I'm about to pay 4.25 to 4.5

 

[Willie99]

we just closed on a mortgage at 3.875

 

[NorthernStar]

I've seen a lot of detailed responses to lending questions in the past so know some of the posters here are in that industry. I got a mortgage back in 2012 when rates were really low (30 yr fixed @ 3.5%).

About to finalize an offer on a new home so asked for a quick quote from my lender and it came back at 4.125%. I was a little surprised and was hoping for 3.875 or so. With prime at 3.75%, am I being unrealistic for a 30 yr fixed rate?

For someone with really good credit, is there a standard "prime plus X percent" that most lenders use?

Prime is not the factor for mortgages. The 30 year mortgage most closely follows the 10 year treasury.....even though it is a 30 year note. You might see a second mortgage that is variable tied to prime. I have a line of credit on my home that is Prime minus 0.5%.

 

[seldomseen]

4.125% seems pretty reasonable right now. I'm pretty sure Northern Star follows them more than I do.

 

[teamogf]

I'm in the business and do this for a living. If you are doing or getting a government loan (fha, va, usda) rates are around 3.875. Conventional loans are low 4's depending on credit score. Rate have moved about .5% since election.

 

[Ricboff]

Yup. And they will continue to rise . Lock mortgage rates , the bottom of cheap money has sailed - this president will be inflationary , sorry .

Janet , ....see ya in march ....hun....

 

[KingEleven]

Yup. And they will continue to rise . Lock mortgage rates , the bottom of cheap money has sailed - this president will be inflationary , sorry .

Janet , ....see ya in march ....hun....

:think2:

 

[Ricboff]

what is it that is confusing? no disrespect intended