[But all of that has changed in just a matter of months.] Lenders don't have people beating down their door for their loan, ... You're more in the captain seat than you were even a week ago. |
[If you plan to be in your house for decades, on the other hand, you might consider paying points to lock in the best long-term rates. Points, which cost one-half of a percent to 1 percent of the loan and are paid up front, let you buy a better interest rate. ] If you pay points up front, it's harder to get your money back, ... When rates are high, borrowers have to pay points to trim rates any way they can, but with rates so low there is really no need to pay those points. |
[The risk with an ARM is that when interest rates rise, you could end up paying much more than you bargained for.] You're subject to the vagaries of the market, ... You want to maximize the fixed-rate picture to match your time frame. |
A quarter point here, a quarter point there, and soon you start to feel the pain of significantly increased monthly payments, |
All mortgage money may eventually cost virtually the same. You're supposed to get a break (with ARMs). Where's the break? |
As rates creep higher, we're likely to see more [loan] prices being put out into the marketplace which feature points as part of the equation, ... points are coming back into the lending lexicon. |
Could there be some 50s? There could be some 50s. |
Does that mean (consumers will) stop borrowing because it costs them another $5 a month? Probably not. It may influence decisions. I don't think it halts decisions. |
Expanding your menu (as a lender) to include as many loan choices means you get a better opportunity to scour borrowers out of niche markets. |
Fannie Mae and Freddie Mac will even lend 103 percent of the homes value, ... You need to have very good credit to qualify for this kind of loan. |
Fannie Mae and Freddie Mac will even lend 103 percent of the homes value. You need to have very good credit to qualify for this kind of loan. |
For most home buyers, especially first-time buyers, taking a 15-year (or 20-year) mortgage is out of the question. |
For some people a home equity line of credit is a brand new shovel for digging themselves further into debt. |
I would definitely expect more of it. Buyers may not pay for it. The seller or builder may pay for it to get a house sold. |
If it costs them more, it'll cost you more. |