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With this arguably being a rather strong sellers market with houses going under contract quickly/multiple offer situations, has there been any issue with appraisals coming in significantly low? As in, more so than usual?

Don’t you know stonks only go up and appraisals always pencil out?

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18 hours ago, BradInATX said:
21 hours ago, Storm the Field said:
With this arguably being a rather strong sellers market with houses going under contract quickly/multiple offer situations, has there been any issue with appraisals coming in significantly low? As in, more so than usual?

Appraisals came in right at what we expected on houses we bought and sold about a month ago. Nothing abnormal.

Yep all of our purchases came in where we needed them to, we get pretty much where we need on cash out refinances (we had one wonky one that was rebuked), and then on straight  refinances a very high amount are getting appraisal waivers 

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As posted on this thread, we bought our house back in late May.  We got a jumbo loan at 3.625%, but now that our other house has sold, I'm thinking it would be a good idea to put a little more down and get it to a conventional loan.  That said, our original lender is saying we need six months to refinance.  Wondering if that is actually the case and what my options are.  Also whether rates are low enough that it would be a good idea.

 

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5 hours ago, HookEm said:

As posted on this thread, we bought our house back in late May.  We got a jumbo loan at 3.625%, but now that our other house has sold, I'm thinking it would be a good idea to put a little more down and get it to a conventional loan.  That said, our original lender is saying we need six months to refinance.  Wondering if that is actually the case and what my options are.  Also whether rates are low enough that it would be a good idea.

 

I’ve ReFid in under 6 months (I think with Phil). 6 months is only for cash out as far as I’ve read

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Austin market still red hot. Another neighbor just listed his house and is under contract in just 1 day. $565 a sqft!!


Sent from my iPhone using Tapatalk

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Fingers crossed this keeps for another couple months. If a job comes through, we will be listing a central Austin home before end of year. BRRRRRRRT

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that sucker across the street sold. price on zillow never changed 🤔 i'd reeeaaally like to know what they got for it...

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19 hours ago, HookEm said:

As posted on this thread, we bought our house back in late May.  We got a jumbo loan at 3.625%, but now that our other house has sold, I'm thinking it would be a good idea to put a little more down and get it to a conventional loan.  That said, our original lender is saying we need six months to refinance.  Wondering if that is actually the case and what my options are.  Also whether rates are low enough that it would be a good idea.

 

He's saying six months because he/his bank may have to give up their profit on the loan if you refinance out of it within 6 months (though he likely doesn't want to make that explicit). 

It just has to close six months after the previous loan was consummated so you should be able to get started on it now. 

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He's saying six months because he/his bank may have to give up their profit on the loan if you refinance out of it within 6 months (though he likely doesn't want to make that explicit). 
It just has to close six months after the previous loan was consummated so you should be able to get started on it now. 
Or, you know, use another bank and do it now.

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Just learned that the guy who bought our house is doing a six-week flip on it. Our house sold for $110k less than a house down the block about 400 sqft less than ours, that had a pool and had done a bunch of renovations that we hadn't. 

I'm terrified to pull Zillow up in a month and see what he gets for it and how fast it sells.

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2 minutes ago, Chewbacca said:
5 minutes ago, LCHorn said:
He's saying six months because he/his bank may have to give up their profit on the loan if you refinance out of it within 6 months (though he likely doesn't want to make that explicit). 
It just has to close six months after the previous loan was consummated so you should be able to get started on it now. 

Or, you know, use another bank and do it now.

That's buddy-fucking.  Do you also defend the assholes that uses an appliance the better part of a decade and then returns it to Costco?

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For the record, no lender I know of is closing most refinances in less than 45 days, anyway--his old lender should be able to make the deal happen for him and no one gets punished.

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32 minutes ago, LCHorn said:

That's buddy-fucking.  Do you also defend the assholes that uses an appliance the better part of a decade and then returns it to Costco?

So he should risk having rates go up on him to preserve the profits of the bank he used previously?    

His circumstances have changed and you're telling him he should wait until Thanksgiving to refi?  Lulz.  Lemme guess, you're a mortgage banker?

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1 hour ago, Chewbacca said:

So he should risk having rates go up on him to preserve the profits of the bank he used previously?    

His circumstances have changed and you're telling him he should wait until Thanksgiving to refi?  Lulz.  Lemme guess, you're a mortgage banker?

Indeed I am; in case I wasn't clear, if he refinances in that six month period (closes before six months have elapsed) the loan originator is likely going to have his commission on the previous loan recaptured.  It's not just screwing over the faceless bank, it's taking that dude's money that he earned. 

The only reason this is allowable is because of the weird incentives at play in terms of how we are compensated.  Otherwise, it's normal to expect to be paid for your labor, don't you agree?

Either way, Hookem and the old lender can still both win here; it's probably unreasonable to expect his refinance to close before six months have elapsed, anyway. 

Edited by LCHorn

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Banks don't eat it, we do (at least in our case).  But it sounds like both win in this scenario.  Also its usually six payments not 6 months.  Also, if you want us to take a look at rates for you @HookEm, let me know.  Also, the conventional loan limit is 510,400 if they didn't tell you that (or for others to know).

@mchookem email/PM me the address and I'll look up the sold number.

Also, that Conquest program that we've done about 50 of you on so far started with Conventional, then they started doing VA conquest loans, and as of this morning they rolled out Cash Out Refinance Conquest loans.  Same stipulations as before (not in last 18 months with UWM, Primary or secondary only) if any of you want me to run scenarios PM or email - pdubord@prodigymbo.com

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2 hours ago, LCHorn said:

For the record, no lender I know of is closing most refinances in less than 45 days, anyway--his old lender should be able to make the deal happen for him and no one gets punished.

We have closed some of these refinances (esp ones with appraisal waivers) in 15 days or so.

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Need some advice from the experts on building my financial/real estate empire...I've done some research and understand enough to be dangerous, but you might have to explain it to me like I'm five. And please, be brutally honest.

I'm six years into a conventional 30-yr @ 4.25% on my townhouse, market value increase has me at ~$190k equity. We have a baby on the way and will need to upgrade soon; the market we're looking at is ~$600k turnkey, or a reno candidate would probably be in the $400s (fuck you, Property Brothers). However, I don't have the cash for a 20% down payment and I'd like to hold onto the townhouse as a rental/investment (very desirable property/location, can easily get $2500/mo)...my assumption would be a cash out refi to facilitate said down payment, and hopefully the bank can overlook my wife's stupid car note for DTI considerations on the second mortgage. Other option I guess would be a straight refi on the remaining principal, then go in with <20% on the new house and pay PMI for a year.

Counterpoint: I have a full-time job and no landlord experience/infrastructure. Is it possible to learn on the fly without getting sued to Bolivia?..Are property management companies worth looking into (maybe as a near-term solution)?..Would it be smarter to just sell the townhouse and invest the profit?

And for a bonus question (since there's a fair chance I get strong-armed into it), how does one go about financing/contracting a fixer-upper? Execute the home loan as-is and pay cash for the reno work, bring the GC into the appraisal and roll the reno estimate into a bigger home loan, or...?

TIA

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44 minutes ago, SuperSport said:

Need some advice from the experts on building my financial/real estate empire...I've done some research and understand enough to be dangerous, but you might have to explain it to me like I'm five. And please, be brutally honest.

I'm six years into a conventional 30-yr @ 4.25% on my townhouse, market value increase has me at ~$190k equity. We have a baby on the way and will need to upgrade soon; the market we're looking at is ~$600k turnkey, or a reno candidate would probably be in the $400s (fuck you, Property Brothers). However, I don't have the cash for a 20% down payment and I'd like to hold onto the townhouse as a rental/investment (very desirable property/location, can easily get $2500/mo)...my assumption would be a cash out refi to facilitate said down payment, and hopefully the bank can overlook my wife's stupid car note for DTI considerations on the second mortgage. Other option I guess would be a straight refi on the remaining principal, then go in with <20% on the new house and pay PMI for a year.

Counterpoint: I have a full-time job and no landlord experience/infrastructure. Is it possible to learn on the fly without getting sued to Bolivia?..Are property management companies worth looking into (maybe as a near-term solution)?..Would it be smarter to just sell the townhouse and invest the profit?

And for a bonus question (since there's a fair chance I get strong-armed into it), how does one go about financing/contracting a fixer-upper? Execute the home loan as-is and pay cash for the reno work, bring the GC into the appraisal and roll the reno estimate into a bigger home loan, or...?

TIA

I'm happy to respond to this in some detail, but quite honestly, I'm a few beers in tonight.   I'll give you my opinion tomorrow.  If tradition holds, several knowledgeable folks here will likely disagree with me. 

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3 hours ago, Incredulity said:

Appraisal waivers... looks like we will have to learn that lesson again.

Nah. Those are for 20+ Equity. Those places (at least in Texas) aren’t getting repo’d. 

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On 9/8/2020 at 3:28 PM, HookEm said:

As posted on this thread, we bought our house back in late May.  We got a jumbo loan at 3.625%, but now that our other house has sold, I'm thinking it would be a good idea to put a little more down and get it to a conventional loan.  That said, our original lender is saying we need six months to refinance.  Wondering if that is actually the case and what my options are.  Also whether rates are low enough that it would be a good idea.

 

So, the 6 months is probably 6 payments- like Phil said. First payment July 1, yes?  If you wait until December 1, you are going to get hit with a 50 basis point hit. So if you pay down to $510k to avoid jumbo you are looking at $2500 extra on your loan (more likely though the lender will “absorb” the cost and pass along an extra 1/8 or 1/4 on the interest rate).  NO big deal- that 1/4 will only cost you like, what, $25k or so over course of your loan if you keep it the entire 30 years (hint- you won’t). 
If it’s chase or someone like that- fuck em. If it’s a local guy that you like talk to him and see if he will cover your 50 bip tax without putting it into the rate for you if you wait on him. You are still at market risk though. 

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12 hours ago, Wulaw Horn said:

So, the 6 months is probably 6 payments- like Phil said. First payment July 1, yes?  If you wait until December 1, you are going to get hit with a 50 basis point hit. So if you pay down to $510k to avoid jumbo you are looking at $2500 extra on your loan (more likely though the lender will “absorb” the cost and pass along an extra 1/8 or 1/4 on the interest rate).  NO big deal- that 1/4 will only cost you like, what, $25k or so over course of your loan if you keep it the entire 30 years (hint- you won’t). 
If it’s chase or someone like that- fuck em. If it’s a local guy that you like talk to him and see if he will cover your 50 bip tax without putting it into the rate for you if you wait on him. You are still at market risk though. 

To explain the 50 basis point thing he's talking about - the "Refi tax" they implemented last month and then repealed like 2 weeks later is set to begin Dec 1st officially.  However, some lenders (Caliber) are going to start passing it on relatively soon.

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I've seen 2.15% 15-yr on an ad yesterday.  Is that right?  And what is the market for a 10yr?  I'm about 4 years into a 15 yr 2.75% that I thought I'd never touch.  I don't really want to reset the clock back to 15 yrs though.

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13 hours ago, SuperSport said:

Need some advice from the experts on building my financial/real estate empire...I've done some research and understand enough to be dangerous, but you might have to explain it to me like I'm five. And please, be brutally honest.

I'm six years into a conventional 30-yr @ 4.25% on my townhouse, market value increase has me at ~$190k equity. We have a baby on the way and will need to upgrade soon; the market we're looking at is ~$600k turnkey, or a reno candidate would probably be in the $400s (fuck you, Property Brothers). However, I don't have the cash for a 20% down payment and I'd like to hold onto the townhouse as a rental/investment (very desirable property/location, can easily get $2500/mo)...my assumption would be a cash out refi to facilitate said down payment, and hopefully the bank can overlook my wife's stupid car note for DTI considerations on the second mortgage. Other option I guess would be a straight refi on the remaining principal, then go in with <20% on the new house and pay PMI for a year.

Counterpoint: I have a full-time job and no landlord experience/infrastructure. Is it possible to learn on the fly without getting sued to Bolivia?..Are property management companies worth looking into (maybe as a near-term solution)?..Would it be smarter to just sell the townhouse and invest the profit?

And for a bonus question (since there's a fair chance I get strong-armed into it), how does one go about financing/contracting a fixer-upper? Execute the home loan as-is and pay cash for the reno work, bring the GC into the appraisal and roll the reno estimate into a bigger home loan, or...?

TIA

Cash out refi on the townhome now while you still live in it.  Rates are better for owner occupied properties.  You don't have to stay in it forever, you just need to live in it when you do the refi.  Put cash in a money market or CD (you don't want to risk it in the market because you'll need it soon).  Take that cash, plus the cash you have elsewhere and use it to get to your 20%.  

 

The biggest caveat to this is that you need to make sure the townhome will cash flow with the new mortgage.  And you'll likely need to be able to qualify for the new mortgage without considering the rental income since you have no history renting it out currently.  Bank will likely not overlook your wife's stupid car note for DTI purposes.  Can you sell it without taking a bath?  Used car market is very strong right now.

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8 minutes ago, Chewbacca said:

The biggest caveat to this is that you need to make sure the townhome will cash flow with the new mortgage.  And you'll likely need to be able to qualify for the new mortgage without considering the rental income since you have no history renting it out currently.  Bank will likely not overlook your wife's stupid car note for DTI purposes.  Can you sell it without taking a bath?  Used car market is very strong right now.

Bolded for emphasis

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51 minutes ago, UTPhil2006 said:

Bolded for emphasis

Granted it is more hoops for @SuperSport to jump through, but could he, sometime after doing the cash out refi, move to an apartment (or better yet friends/family) and get a signed long term lease on his rental that counts 50% (75%?) towards his dti?  

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Her car isn't going away, unfortunately.

Dumb question amnesty...would the DTI calculation be inclusive of the second loan? We're currently at 25% (17% if they include annual bonuses), the second mortgage would put us in the 43%/30% range.

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9 minutes ago, SuperSport said:

Her car isn't going away, unfortunately.

Dumb question amnesty...would the DTI calculation be inclusive of the second loan? We're currently at 25% (17% if they include annual bonuses), the second mortgage would put us in the 43%/30% range.

Correct it would include the second.  It would also count your bonus/12

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I'm just here because I want @SuperSport to give us the down low on his wife's stupid car loan. Or maybe it belongs on the "Wives and the stupid shit they say and do" thread. 

Spill it!

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Oh it's already documented there, she decided that a historic economic downturn was the perfect time to upgrade from a TL to a Range Rover. She makes as much as I do so I couldn't really say no, but I embrace every opportunity to point out that her car payment is more than our mortgage.

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9 hours ago, SuperSport said:

Her car isn't going away, unfortunately.

Dumb question amnesty...would the DTI calculation be inclusive of the second loan? We're currently at 25% (17% if they include annual bonuses), the second mortgage would put us in the 43%/30% range.

With good credit you should be fine at a 43% back end ratio. Get it DU’d first obviously, but I’d be shocked if you didn’t get a thumbs up. 
Go with someone local that knows what they are doing before you make that decision though, don’t take an order taker from quickens or chase or Wells Fargo’s word for it. 

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13 hours ago, SuperSport said:

Oh it's already documented there, she decided that a historic economic downturn was the perfect time to upgrade from a TL to a Range Rover. She makes as much as I do so I couldn't really say no, but I embrace every opportunity to point out that her car payment is more than our mortgage.

That’s wife 101.

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We have closed some of these refinances (esp ones with appraisal waivers) in 15 days or so.

They have indeed. As of yesterday we refi’d 25yr at 2.875%. It seemed like 10 days.

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7 hours ago, Wulaw Horn said:

With good credit you should be fine at a 43% back end ratio. Get it DU’d first obviously, but I’d be shocked if you didn’t get a thumbs up. 
Go with someone local that knows what they are doing before you make that decision though, don’t take an order taker from quickens or chase or Wells Fargo’s word for it. 

Quoted for truth. 

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1 hour ago, GottaB said:


They have indeed. As of yesterday we refi’d 25yr at 2.875%. It seemed like 10 days.

Quoted for love. Thanks man! Glad we could assist again! 

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On 8/26/2020 at 4:30 PM, UTPhil2006 said:

The .5 "Refi tax" has been delayed until Dec 1st now.  Most lender's have priced this back in as of this morning.

So as of today, most lenders have priced this back in (about .125 rate wise higher) except a couple.  UWM is holding off until October until they pass it on, not sure when Quicken intends to pass it back on but I'm guessing around the same time since those 2 compete head to head.  Irritating that the thing doesn't start until Dec 1st, but they're pricing it back in Sept 15/Oct 1st.

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