Self Employed, Wells Fargo, Michael Oher discussed on Home Solutions with Win 3 Realty
A home purchased back in 2007. If you bought that same exact house today, the payment would be more than 20% lower than it was back in. 07 and now jury. Most people have gotten a raise since then write several raises since 2007. So what's your What are you seeing out there? What's what's the rates? What do we know what you are? They are they dropping further, so racer there slowly grinding down Believe it or not 15 year fixed rates are sitting in the low two's so now that's with AH, more likely. The lenders, not ableto pay, closing costs 2.25% on a 15 year fixed. I mean, that's just unbelievable. Um, 30 year fixed or sitting at, you know, 2.75 again. It all depends upon equity in the House Credit score, so force so there's lots of variables. But 2.6 to 5 to 2.875 for a 30 year fixed mortgage. So everything's basically clearly in the twos Now it wasn't like summer above three and and you know, you could say 3% and below. But most I would say 90% of most loans are under 3%. So these air unprecedented times to save money and, ah Again. I just I I'll quote something from someone I could find myself doing this every day. And my jaw just dropped to the floor like, can't really believe that I'm saying that your rates 2.6 to 5 and You know when I laugh, and it's like, Wow. Well, then the question is, you know, do you think rates will go lower and Of course, I'm my responses. You know, they could. But does it make sense that 2.6 to 5? Take it right. You know anything is is I mean, when you start getting that low and rate, you know, another quarter point move might save you. $10 a month per $100,000 borrowed. So if you wait around, I'll tell you the thing that's that I would recommend people to do is get in and get re fied or bought now, because money is tightening its definitely type. It is that is we're seeing that all over banks. Where are the ancillary programs that were out there the equity lines, the construction loans, the remodel loans. Two out of three housing loans. Yeah, we're still doing manufactured housing. But Ah Ah ah, lot of the ancillary mortgage products are are going away, right? And you know, we read an article on the show about three weeks ago that Chase bankers is not doing residential lending to anybody with lower than a 700 credit score. So what what's happened in the industry is So when this pandemic first happened, the bank's kind of reacted and overreact. Hey, let's do for parents. If don't if you can't make your payment. We'll just pay us back later, and they encouraged people that what have otherwise paid not to pay them. So then you have a company like Wells Fargo, which we announced last week. Their year over year profit was four billion with a B less in 1/4. You know that's on track to be $16 billion lower. What do you think that looks like for their company stock when they make $16 billion less? And why is that? Well, they make their money from servicing loans, and they're the one of the largest servicers in the world, and they actually own own less than 10% of the loans they serviced. But they had just encouraged whole bunch people not to pay them. They had seven million people take them up on that, and and so their earnings off they had paid When they collect money. They didn't collect the money. Right s o. I mean, just be careful what you ask for. But just I would not be waiting around. If you're waiting and say, Well, you know the rates Mica lower than Michael Oher. Yes, OK, so you have a $200,000 loan on your home, and if it dropped another quarter, you might save $20 a month on that payment, but What if they freeze the credit? And now you can't get a loan anymore. And also if you got it now, and you start saving, you know, like $100 a month from the payment you currently have. And you write it for six months. I mean, you've already got $600 at $20 a month. You know it's going to take you 30 months to recover the money you've already gotten, I would say, Get in. Get that low rate now and lock it in before it goes away. Agree? Well, I have a last last week and I had Ah met with Ah radio show listener at the at the office. And and, and she was very adamant that she wanted to know club closing costs alone, and I said, Okay, and I always want to know why. Of course everyone wants save money on fees for you know, that's becomes a rate calculation. You know, As far as what we're doing is we're raising the interest rate to absorb the cost of those fees and it's why do you want to know costs alone? Because I believe rates are going to in the inn below 2% in the next six months, and I said Okay, and I love to know what people's Why. Why do you think that tell me your your mythology. And she just thinks that you know this. One particular person's opinion felt that the market's going to continue to, you know, Ah, be affected and the economy is going to slow due to the virus and that rates are going to come down. So we have a bet. Where in six months you know, it's like, well, we have a bet for Coca Cola that six months because I'll be back in six months. We're gonna do this again, so we'll see what we'll see what happens, But So you know who knows if rates are going to go lower, But it's there so crazy. Good right now take advantage of it. And if like this other person is right, we'll do it again in six months, right? And you know, I did that I refinanced my home last year had had alone since 2003. On my on my primary residence, and I I refinanced in November. And I thought I was doing really, really good. I got three and 1/4 percent rate. And, you know, I said, you know what I would rather have the higher interest rate and so I got a 3.5 with with you paying all the closing costs and Then this hit and now you can get that same loan for 2.5 instead of 3.5 on DH. It's like, Wow, This is our even if you say 2.5 and then push it up to 2.75 But that changed it was worthwhile to me even Six months later. Take me $140 a month and by having you pay the closing concert front All it cost me was that extra $21 a month. You know, for the four months that I paid for the loan in the fifth month? Yeah, I refinanced the six month there wasn't a payment because he always skip a payment when you go forward, so it caused me $84 tohave that loan, you know, it's just like why Why don't you jump in now You can always re fi later. Yeah, It's kind of a pain, you know, pulling up mortgage statements and pay stubs and stuff like that. But you know what? If you look at the grand total time it takes to do all that. It's probably two hours. So in the savings is clearly worth it. I will say, you know, probably one of most complicated things, Onda. Lot of I think a lot of people who listen to our show. Ah, our self employed and Fannie and Freddie did enact a rule that is Has made it a bit comp more complicated for self employed borrowers to refinance and that is you have to provide bank statements for the last two months. And you have to provide a P in L..