I was recently reading the mortgage thread which I thought had some really good perspectives on investing. One thing I thought was really interesting was that the poster had a 2.8% interest rate. I'm currently looking at homes in WDM and I was curious if anyone would like to share interest rates they've been quoted recently in the Des Moines area. I haven't seen much below 4.5% (talking mainly on a fixed rate 30 year for my purposes), although I've seen a few online options go as low as 4.375%.
Mortgage Rate Question
- Thread starter ISU_Cyclones
- Start date
They have gone up. We were at 2.875% on our last mortgage, however, we're in the market again and I'm seeing same rates as you. I'll probably just pay cash. ;-
4.5% for a conventional 30 year fix sounds right in this current rate environment. Most companies show their interest rates online. Dont focus only on rate make sure you know what the closing cost are as that will very.
One thing to always consider is if its an inhouse loan or if its an outsourced (like Fannie Mae) one. You can get some good differences in these. If its a shorter term, compare the rate and fees. Some will do an inhouse appraisal and do quick title searches themselves depending on the amount of loan to value. Other fees and documentation can be waived or reduced to save money.
Some banks will do a ten year or shorter for a reasonable rate if they are sitting on funds that would be tied up in treasuries.
Some banks will do a ten year or shorter for a reasonable rate if they are sitting on funds that would be tied up in treasuries.
Bankrate.com is a good resource to look at current rates. I agree thought that people get far too wrapped up in the exact interest rates when there are other important factors like term and closing costs, etc. Although it appears they removed the graphing function of recent moves and rates. 
Found another good one here. https://ycharts.com/indicators/30_year_mortgage_rate
From there it looks like he had to have a 15-year rate probably during the summer of 2016.
Found another good one here. https://ycharts.com/indicators/30_year_mortgage_rate
From there it looks like he had to have a 15-year rate probably during the summer of 2016.
Yeah, interest rates have been on the rise, so those 2.something rates aren't going to be found any more.
When we bought our first home in 1997, our rate was 6.5%. I said to Mrs. ruxCYtable,"We'll never see rates this low again." LOL.
30 year fixed with no points is around 4.5% with good credit: 15 year fixed with no points is around 4.0% with good credit.
If you are doing a conventional loan you might call 5 different lenders only to find out that everyone is within an 1/8th of a percent with how highly regulated everyone is now. You might find a small credit union or portfolio lender offering rates slightly better but be prepared for your loan to continue to be sold to multiple servicers for profit; if you are a strictly numbers guy and that doesn't bother you that's the best route.
If you are doing a conventional loan you might call 5 different lenders only to find out that everyone is within an 1/8th of a percent with how highly regulated everyone is now. You might find a small credit union or portfolio lender offering rates slightly better but be prepared for your loan to continue to be sold to multiple servicers for profit; if you are a strictly numbers guy and that doesn't bother you that's the best route.
I just closed on a home earlier this summer. Veridian had and still has a 4.375% rate on a 30yr mortgage with the highest bracket credit (above 750) and paid no points. I'd STRONGLY recommend using a them or any other credit union. US Bank and Wells Fargo both quoted about 4.5% on rate while also trying to sell me on a checking and savings account. Terrible experience...
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Our house was at 4.125 last summer. I worked with a guy named Deric Kidd out of Ankeny for the financing and he was incredible to deal with.
We had to back out of another house in a different town last minute. We found a different house that same day and ended up closing in 28 days since we had already notified our landlord months prior when we’d be out. He was available anytime I had a question and just said they’d get it done. He has since moved on to another lender but I definitely recommend him.
http://www.cmgfi.com/agents/deric-kidd
We had to back out of another house in a different town last minute. We found a different house that same day and ended up closing in 28 days since we had already notified our landlord months prior when we’d be out. He was available anytime I had a question and just said they’d get it done. He has since moved on to another lender but I definitely recommend him.
http://www.cmgfi.com/agents/deric-kidd
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Rates are still really reasonable. Sounds like they are back to about the level or slightly higher than when I bought my last house in 2009.
L
LincolnWay187
Guest
With rising rates borrowers are getting a little weary and it's showing in mortgage applications I've seen in the news. We are going to see minimal home price increases to some decent decreases imo
What your hearing is correct right now for rates. national avg is around 4.5% and FHA/USDA/VA loans are going to have lower rates than Conventional options. Those loans also cost more but sometimes makes sense as your best option. Mortgages are not like car loans where the tell all end all is in the rate. Primary Mortgage Insurance (PMI) is often where costs vary the most between different credit scores and loan programs.
CF is a great place to get info so I want to make sure it stays as a "Safe Place" without worry of solicitation but i'd be a fool not to offer my services. I get a lot of business from doing second opinions and kicking the crap out of whatever offer you have. I'm happy to help if you need it.
CF is a great place to get info so I want to make sure it stays as a "Safe Place" without worry of solicitation but i'd be a fool not to offer my services. I get a lot of business from doing second opinions and kicking the crap out of whatever offer you have. I'm happy to help if you need it.
I had a question I wanted to float to the group. Since this is a mortgage thread, I thought this would be a good place to put it, even if not the OP's question.
My wife and I were starting to build up to buy a home. Yes, yes, I have argued on here a few times about renting versus buying and usually came down on the renting side, but a higher power intervened and it looks like I am going to buy something.
Yours truly along with my wife's husband were put on trial. I was going to lose either way.
As some of you might know, housing on the East Coast is in another universe than from Iowa or even the more expensive parts of the Midwest. Thing is, we can afford to save enough up to make a 20% down-payment (to avoid PMI) on even housing out here.
Which brings up two questions...
(1.) Should we do that? Is it worth avoiding the additional monthly payments and to burn off that much principle fast, or better to use the cash somehow else?
(2.) As I said, we would have to save it up first, which would not take all that long (not trying to brag here, but we are two high-income professionals in a high-income area with no debt or major expenses or kids yet, typical yuppie DINKs) to do. However, how should we store it in the meantime for 1-3 years? Cash? An index fund? Some other short-term security? I would have to lose out on any interest or return, but I am kind of worried about downside risk with equities when we are dedicating it to a specific purpose.
If it was long-term and earmarked for retirement or college someday, that is one thing, but I am not sure how to store a large amount in a semi-liquid fashion in the medium-term.
Thanks!
My wife and I were starting to build up to buy a home. Yes, yes, I have argued on here a few times about renting versus buying and usually came down on the renting side, but a higher power intervened and it looks like I am going to buy something.
Yours truly along with my wife's husband were put on trial. I was going to lose either way.
As some of you might know, housing on the East Coast is in another universe than from Iowa or even the more expensive parts of the Midwest. Thing is, we can afford to save enough up to make a 20% down-payment (to avoid PMI) on even housing out here.
Which brings up two questions...
(1.) Should we do that? Is it worth avoiding the additional monthly payments and to burn off that much principle fast, or better to use the cash somehow else?
(2.) As I said, we would have to save it up first, which would not take all that long (not trying to brag here, but we are two high-income professionals in a high-income area with no debt or major expenses or kids yet, typical yuppie DINKs) to do. However, how should we store it in the meantime for 1-3 years? Cash? An index fund? Some other short-term security? I would have to lose out on any interest or return, but I am kind of worried about downside risk with equities when we are dedicating it to a specific purpose.
If it was long-term and earmarked for retirement or college someday, that is one thing, but I am not sure how to store a large amount in a semi-liquid fashion in the medium-term.
Thanks!
Not try and give my two cents for your actual questions.
1.) Certainly save up as much cash as you can. I would aim for at least 20% down. More cash / principal = lower leverage / risk
2. Keep it simple and safe. Not worth the risk or headache to do otherwise. Thinking savings account or money market. The money market is probably the best answer, some even pay decent.
Heads she wins, tails I lose. I am getting used to this marriage thing.
(1.) I figured as much. Thank you. Working on it. Worth it to go beyond 20%, if you can? Should it be a goal in itself or just a minimum?
(2.) Okay. A MM roughly keeps you even with inflation, at least.
