2.99-3.5 percent rate!

**BSS2T** · 01-17-2009, 08:27 AM

So I am hearing from the powers that be, including one of the former major players from HUD, that the new administration will be instituting a new rate for ALL NEW PURCHASES AND REFIS. This rate will be between 2.99 and 3.5 depending on who is correct (I am hearing conflicting rates from different people). The rate will be on a graduated scale but won't top 4.5 on a 30 year fixed rate, for less creditworthy individuals.

I would like to know everyone's thoughts on this, and your perception on how this would affect your market.

Best,

Brad.

**Codythebest** · 01-17-2009, 01:13 PM

It doesn't matter. When I see my last buyer (credit score:720 - Yearly salary: 6 digits - Down payment: 35% - purchase price: $115,000) got denied after checking with 8 lenders/mortgage brokers, it doesn't matter if it's 0% or 20%...

**jamesww** · 01-17-2009, 03:35 PM

Originally Posted by Codythebest

It doesn't matter. When I see my last buyer (credit score:720 - Yearly salary: 6 digits - Down payment: 35% - purchase price: $115,000) got denied after checking with 8 lenders/mortgage brokers, it doesn't matter if it's 0% or 20%...

Where the heck are you that the buyer you describe got turned down. If I had that buyer here in Houston they would have had now problem getting a loan.

**First Time Home Buyers** · 01-26-2009, 09:12 AM

Why did they get denied??? Too many Fannie loans or something??? Were they an investor or own occ?

Lower interest rates have already increased buyer activity and inquiries here in MN this new year. Great 2009 people!!

**Greg** · 01-27-2009, 05:03 AM

No problem getting loans here either. Personally, I would like to see the rates go up a little and then all the powers that be will have to shut up and stop screwing up the market.

As long as the public thinks rates will go lower they will wait for those lower rates. The rates are already low. If the powers that be would shut up and mind their own business we could get back to the business of selling real estate.

**adrianpete** · 01-27-2009, 05:44 AM

There's no problem getting a loan in the midwest with that type of down payment and income... where are you and what else is causing the denial?

**Codythebest** · 01-27-2009, 07:39 AM

I'm in TN. Not sure why they all denied him. But I know for the last application. The property is in wood, true log cabin like this one for example. And BTW, these cabins bring $37K gross / year.
He did buy a condo instead, for cash this time....
He's an investor and buy a unit every month with me. That's why his credit score went down from 760 to 720... He's buying investment properties.

**BSS2T** · 01-27-2009, 12:46 PM

Cody, are those cabins good investments? I have no idea what rental rate is over there? What about property tax?

I agree that the government is really creating a dam in consumer real estate demand. If someone thinks there is opportunity cost with buying now, they are going to wait until later. But when the dam breaks, we will have a flood

Brad.

**Codythebest** · 01-27-2009, 02:36 PM

I agree. It seems that they just can get a fair middle: or they gave everything to everybody, with the consequences that we experience today, or they give nothing!

The overnight rental biz here is huge. 1bed/1 bath cabin goes for $125/night up to $160 (holidays) and average 200 night/year.
Taxes for this cabin as an example is around $450/year
We are at the foot of the Great Smoky Mountains National Park, which is why 11 millions people come here and rent cabins every year...

**AugustaREGroup** · 01-27-2009, 03:35 PM

Originally Posted by Codythebest

It doesn't matter. When I see my last buyer (credit score:720 - Yearly salary: 6 digits - Down payment: 35% - purchase price: $115,000) got denied after checking with 8 lenders/mortgage brokers, it doesn't matter if it's 0% or 20%...

There is more to that story.