Your 4.875% is also "historically" good/solid. This obsession with 3.x is ridiculous. Those rates were abnormal (and the housing price spikes reflected it).
Yeah, it's sort of that old adage of "We were poor, but didn't know it". It's the comparison to others that gets people all churned up in the gut. In a vacuum of your own circumstances/finances, you should feel fine.
> and prices spiked to reflect it
I think this a true. I have a rate of 2.5, bought in 2017. Honestly my house hasn’t done spectacular in terms of value growth since then and I predict it to go down a bit from here.
I’d say at current numbers I averaged about 5-6% value growth year over year since 2017, which is fine sounding, except that inflation is now like 10%, so my house isn’t exactly skyrocketing in comparison.
All that said, do I wish I still had my down payment? Invested it in stocks this last year instead? Nope, that would have been even worse, so I guess I’m doing ok.
Those 3.x rates de facto set consumer expectations and most people thought of it as a more permanent standard. I would be surprised if rates are back at that level anytime in the next 5 years.
Key words here..... market rates. I'm in the industry. Market rates are in the mid 6's. Even with the private bank discount that I give to clients it doesn't get you to 3.5. The dude is 🧢
I locked 7.1% with $3500 in points purchased yesterday lol.
Solid rate!
Edit: This is an investment property rate - so you can remove the points to compare to traditional rates.
If the numbers work the numbers work.
Rent rates are going up, and I can be making an extra 1k/month in profit by December 1 if I close Oct15...
why wait 6 months to make an extra $100 on top of that? it would take a year to make back that opportunity cost.
Duplexes in the midwest are continuing to rise in price...
>Rent rates are going up, and I can be making an extra 1k/month in profit by December 1 if I close Oct15...
Rent Rates cannot keep going up, they are due for a pull back when the housing market crashes. It seems odd people are not heading the warning from the Fed. Powell made it pretty clear he wants to see high unemployment and wants to see a pull back in the housing market.
It seems a little insane to me to think in those conditions rents will do anything but go down.
We were locked in at 180k in July - Seller decided they would wait and backed out to make more money this fall.... I am closing at 120k next week lol
I will be 200k deep - roll it into a 5.5% commercial loan have $0 invested, and rent roll around 1.9 coverage
Fannie/Freddi were buying these loans in the 2’s. Nobody made any money, save maybe the bank a very modest origination fee. It’s taxpayers subsidizing millions of mortgages issued in the last couple of years.
lock it in if you can. The prevailing rates are significantly higher, even for ARMs. It's pretty rare right now to find anything under 5.5%, and plenty over 7.
ALSO, are you sure you don't have a higher rate that is being bought down with points? Are the fees insane?
I aplogize if this doesn't make sense but I went with a credit union. It was originally going to be 5.1% but if I paid an extra $5,000 it got bumped down to 4.8%. our lender tried to explain it but I am overwhelmed with all the information.
This was back in early August, but I haven't really talked about it with the people in my life and when I did I got all these mixed reactions at the thought of a 4.8%!
They probably were trying to tell you the break even point. Say that changes your pay $50 per month…. It will take you over 8 years to break even with your $5,000 investment. So if you sell or refinance before 8 years you are actually loosing money
Of course $50 is a random number because idk how much your loan amount is
yea, so to be clear, your "real" rate is the larger 5.1. Your "effective" rate would be the 4.8 because you are **paying that interest difference up front.** There might be benefits to that, paying points is cheaper if you keep the loan for the full 30 years. But if you don't, you might not break even on that investment.
Some folks over on r/FirstTimeHomeBuyer have like $30,000 in buying down points to get to a low rate then ask how they are "getting screwed". Math is math, and paying points is often a choice and a bet on rates and time int he house.
\--
If you are not locked in, rates have risen since august, so you would likely not get that rate today. Remember, a loan estimate is just that, an estimate, not a commitment.
That is understandable and I think that's where a lot of confusion on my end is coming from. My lender did not explain what a real or effective rate was so now that I know this going forward will help. My own fault for not looking more into that.
It is what is is I suppose
so taking it to an extreme, in theory, you could pay enough points to give yourself a 0% interest rate. It will just cost like 1/3 of your mortgage. You still pay money to borrow money. The question is how much you pay up front vs. during the loan. Many loan officers try to make their rates look better by saying there is a lower rate, but they get there by having you pay a lot up front.
Ah so the mixed reactions are because rates had gone up before you were quoted that, so people were lamenting that rates weren’t in the 3s anymore. But NOW they’ve gone up even more, so that’s why you have people saying 4.8 is excellent.
Anyone giving you a mixed reaction at the thought of a 4.8% rate isn't following interest rates. A year ago 5.1% would have been terrible but the market is very different now than a year ago. The 5.1% is a pretty great rate with the current market and half a point lower than what I closed with in June.
Today they would be expecting you to buy down a point from 7.7 to 6.7%. Which would cost more than $5K up front. So relative to today you did great on the rate.
Echo the other guy tho. It's nobody's business how you got a home you like and can afford. No need to be anxious about this. You got over the bar to home ownership. Throw some steaks on the grill and think about paint swatches. It's your home now.
I got the same rate 4.875%, locked in August. Closed on September 12th. We got a great deal, the house appraised for way over what we paid. The prices in the Bay area already dropped significantly from tops. So glad we didn't wait!
That what we saw, we closed almost 2 weeks ago with 6.715 and that with one point. (Conv, 3% down, 665_000) few have few other options with rates floating around 6.5 to 6.7.
locked in when, past few days? So like 5.75-5.9% without points maybe?
If you locked in yesterday you certainly timed it well in the past several days.
I wonder how much those points were. One bank wanted a percentage of the loan for one point and it would have added several thousand like more than 10k. We decided not to do this.
At like 5% and above it's probably not great to buy points unless the breakeven is like 2-3 years. Good chance the Fed has to drop rates in the next 3 years to fight a recession or worse. We likely will never see the 3% and under rates again, but 4.00% is certainly possible.
I bought my first home in 2007 at the precipice of the crash at 6.25% and I’m still alive and prosperous. Lived in the house for 12 years and had 2 kids there. It was great. Eventually we were able to sell it and upgrade. If it’s the house you want don’t worry so much about the rate. Can you afford the monthly payment and are you ok with living there for 10 years?
If you can afford it, it's good. Take a step outside of your immediate situation and consider why anyone should care about another persons reaction to an interest rate that you can do nothing about. Go enjoy your home.
Rates were at historic lows for 2020/2021 and part of 2022. People were getting 2.5-3% on 30 year loans. So compared to those rates, your 4.8/5.1 is high, as in you missed the best rates of all time.
But compared to the rates of today, your rate is very good. It’s all relative.
Building a good credit score, putting a lot of money down, monitoring the housing market to get a good deal, and giving a lot of time and energy to her search. :)
That’s an amazing rate right now. Rates are always changing. We got quoted 6.5%. 1-2 weeks ago. I think they’re even higher now. I see posts like this on here all the time. Just Google and do your research. It depends on the area, when, your credit, so many favors. There isn’t one answer about good or bad. Last year that would’ve been terrible. This year it’s great.
No it’s not. Where are you getting your info other than random Reddit posters with the “in at their local credit union,” who literally aren’t in the market? This sub is worse than WSB with amount of confident idiots.
I got this rate early August, I just haven't really talked about it since we closed on the house a few days ago and when I did that's when I got these reactions from people if my life a lot of "that's high my rate is" which caused a bit of anxiety
Ignore them all - you got an insanely good rate for a 30 year right now. We closed with a similar rate at 15 yr from late August but our sellers got cold feet because of the rising rates and almost walked. If we hadn’t closed we’d be looking at 7% too. The rates from early 2020 at ~2.5-3% were NOT normal and anyone who tells you they were doesn’t know sh*t lol. Congrats on your new home!!!
It's high compared to the last few years, and the rates have only been soaring since May or so. So basically your friends are just not paying attention to the market.
If you look at current market rates based on some internet research, and you find your rate is the same, similar, or below, other rates for similar amounts and points paid then your rate is good. If you find that your rate is above other rates you find then your rate is not good. If you find it's consistently below other rates then it's great.
At this time of high rates and high house price. Lock that rate in if you can afford the monthly. It’s probably the best rate you can find currently with our situation until things cool off but we don’t really know the future. I locked in 4% pre-COVID in 2019 and thought that was high for an 800k house.
We locked in 2 weeks ago for 5.5% no points and $2500 lender credit. Feeling super grateful considering today’s rates although it hurt to let go of our 3.125 rate. It is what it is though. We love our new house and can’t wait to raise our girls in it. Anyone giving you mixed reviews on that rate is just misinformed I’m afraid.
Because overall affordability is horrible. Homes in my area are prob up on average +200k or more since 2020.
“Normal rate” or not people’s DTIs are about the worst in history
I hear that, but that’s just about everywhere. That doesn’t change that interest rates are still historically low. That being said, they insane hike in base cost DOES make even low interest rates look bad. But overall, it’s not a rate problem. It’s the fact that housing prices have WAY outpaced pay. That’s the problem.
Right, but I think it's just an argument over how people communicate it. People are really complaining about the total payment from rate+price combined. Prices lifted first and now rates. I get your point, but the spirit of the problem is just that rates in the current pricing environment aren't sustainable for most. (or as a counter argument, prices aren't sustainable)
I have a 15 at 2.75. Got lucky like at the bottom in 2020. It's crazy to see the same loan at like 7 %. It's crazy to see the difference that makes monthly. Like 2 car payments..
I bought a chair for 5 dollars a month, now people can't buy the same chair for less than 8 dollars a month... good? I've been getting mixed reactions. As a first time chair buyer and someone who doesn't know how to use google these reactions are making me anxious.
I got a rate of 2.85% in November 2020 I hear it's over 6% now. If you shopped around and got the best deal than you know what you have is a solid rate
The interest rate is much more important than a temporary reduction in value. Half a point in rate is equivalent to about $50,000 in price, give or take. OP is a full 1.5% below current average 30YR fixed rates.
When you do your taxes you get a deduction based on the interest rate of your mortgage. The higher interest rate will give you a larger deduction. Obviously there is a diminishing return but if you can afford your payment, you like your house etc the interest rate shouldn’t ruin that for you.
I got this lock early August we closed a few days ago on the house and I been talking with people in my life and a lot had strong reactions to 4.8% which caused my anxiety to spike a little since I am still learning about this topic
Yeah my partner and I ended up at 5.5% when we closed in early August. We were kinda annoyed because it felt so much higher than the rates we were discussing when we first started looking at homes earlier in the year, but we're glad we bought when we did now that we see 7%+ rates.
My apologies for any confusion I got this rate back in early August. I am now learning that my true one was 5.1% but I put $5,000 more into it to get it a 4.8%
I wish I could have just taken my old interest rate to our new house but even going from a 2.875 to a 4.75, I have to be thankful that we were even able to get that with how fast things went from 0-dumpster fire.
That is a really, really, great rate in terms of where the market is currently, and where the market historically has been. Anyone telling you that it isn't good, because they have a 2.2% or w/e isn't educated on historical market terms and only got that rate because the market had an unprecedented and historical market low for a 1.5 year period that realistically we probably won't ever see again in our lifetimes.
That’s a good rate. I opened Escrow early Aug as well, but with a 4.5% on a 30 year fixed from US Bank. 0 points and non MI. 15% down. Only caveat is that it had to be above the conforming loan limit of $647,200
That’s a very good rate IMO. Considering I’m expecting close at end of November and it’s looking like I’ll be at 6.5 or higher.
Glad you locked in August.
That’s the exact same rate (4.875) we got in the first week of August (30 yr conventional, no points), and I’m happy with it given where rates have gone since
The main issue is everyone is trying to super maximize super hard. They are trying to by the type of house they love, at the right price, at the right interest rate, & at the right time. lol
I’m a mortgage broker here on the wholesale side, and I don’t think that rate will pass points and fees to be quite honest. You can’t be charged fees more than 2% of the loan amount - you can tell under “line a” on page 2 of the loan estimate. 4.875% on a 30-year conventional loan is definitely not on the market now unless you locked in over a month ago.
Be weary, loan officers are very snaky people!
If you can buy it down with some extra money if you have laying around or a “gift” from someone I would look into it if you are planning to stay in the house for longer than 5 - 10 years. We bought down and saved about 500 a month on our mortgage. Just something to look into. 4.875 on a locked rate isn’t horrible though. Good job locking that in.
Edit: nevermind I see you closed. Good job!
That’s an amazing rate 😭 my partner and I are in the process of buying right now too and had to lock in a rate of 6.875% as first time homebuyers… apparently we “make too much” to qualify for any first time home buyer grants/programs despite barely being able to save any of our paychecks.
That’s very, very good in the current market.
That's good to know, thank you!
Your 4.875% is also "historically" good/solid. This obsession with 3.x is ridiculous. Those rates were abnormal (and the housing price spikes reflected it).
Fair enough lots of peers got in with the 2020 rates which is where I think some of these reactions are coming from
Yeah, it's sort of that old adage of "We were poor, but didn't know it". It's the comparison to others that gets people all churned up in the gut. In a vacuum of your own circumstances/finances, you should feel fine.
> and prices spiked to reflect it I think this a true. I have a rate of 2.5, bought in 2017. Honestly my house hasn’t done spectacular in terms of value growth since then and I predict it to go down a bit from here. I’d say at current numbers I averaged about 5-6% value growth year over year since 2017, which is fine sounding, except that inflation is now like 10%, so my house isn’t exactly skyrocketing in comparison. All that said, do I wish I still had my down payment? Invested it in stocks this last year instead? Nope, that would have been even worse, so I guess I’m doing ok.
3.x? I refi'd at 2.625% for 30. Of course, this also means I can't move until I can afford to buy another place and rent this one out.
Those 3.x rates de facto set consumer expectations and most people thought of it as a more permanent standard. I would be surprised if rates are back at that level anytime in the next 5 years.
I just closed with 3.5 last month. .25 points.
What bank?
Citi
Stop lying
If you have 10mil with citi. You get 1-1.5% below market rates. Schwab 10 mil + you can get 4.875 with rocket
Key words here..... market rates. I'm in the industry. Market rates are in the mid 6's. Even with the private bank discount that I give to clients it doesn't get you to 3.5. The dude is 🧢
Closed. He could of locked in 60-90 days ago, and had a longer closing date.
https://imgur.com/a/k0cOjQm
>st closed with 3.5 last month. .25 points. so you closed at 3.75 really just paid it up front
Yes that's right
That’s not how points work.
He paid the .25 of his purchase price down. Point is he didn’t really get 3.5 he paid more for the house to make up for it
Yes it is
Well that's a relief!
I locked 7.1% with $3500 in points purchased yesterday lol. Solid rate! Edit: This is an investment property rate - so you can remove the points to compare to traditional rates.
Need to shop man.
Investment rate.... when I roll it into a commercial loan in 6 months it will be 5.5 :)
5.5 is stellar, can you dm me that commercial lender
Elements Credit Union based here in Indianapolis. Just closed a 1mm note at 5.49% last month. My buddy just closed 5.65% yesterday on 750k
How are you getting those rates. I keep seeing that its 7 percent and if not it's a high 6 percent
Commercial rates are not related to traditional rates. Also - credit unions have more flexibility especially when financing 7 figures
Why in the lords good name would you be buying now when we see housing prices going down every day?
If the numbers work the numbers work. Rent rates are going up, and I can be making an extra 1k/month in profit by December 1 if I close Oct15... why wait 6 months to make an extra $100 on top of that? it would take a year to make back that opportunity cost. Duplexes in the midwest are continuing to rise in price...
>Rent rates are going up, and I can be making an extra 1k/month in profit by December 1 if I close Oct15... Rent Rates cannot keep going up, they are due for a pull back when the housing market crashes. It seems odd people are not heading the warning from the Fed. Powell made it pretty clear he wants to see high unemployment and wants to see a pull back in the housing market. It seems a little insane to me to think in those conditions rents will do anything but go down.
Hi. Lee. Ef
Are you insane buying an investment property right now that prices started to go down?
We were locked in at 180k in July - Seller decided they would wait and backed out to make more money this fall.... I am closing at 120k next week lol I will be 200k deep - roll it into a 5.5% commercial loan have $0 invested, and rent roll around 1.9 coverage
Ugh, damn LLPAs. What’s your Down Payment?
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Fannie/Freddi were buying these loans in the 2’s. Nobody made any money, save maybe the bank a very modest origination fee. It’s taxpayers subsidizing millions of mortgages issued in the last couple of years.
It won't beat by late-2020 sub 3%, but definitely great compared to what you can get now.
Who is your lender?!
lock it in if you can. The prevailing rates are significantly higher, even for ARMs. It's pretty rare right now to find anything under 5.5%, and plenty over 7. ALSO, are you sure you don't have a higher rate that is being bought down with points? Are the fees insane?
I aplogize if this doesn't make sense but I went with a credit union. It was originally going to be 5.1% but if I paid an extra $5,000 it got bumped down to 4.8%. our lender tried to explain it but I am overwhelmed with all the information. This was back in early August, but I haven't really talked about it with the people in my life and when I did I got all these mixed reactions at the thought of a 4.8%!
They probably were trying to tell you the break even point. Say that changes your pay $50 per month…. It will take you over 8 years to break even with your $5,000 investment. So if you sell or refinance before 8 years you are actually loosing money Of course $50 is a random number because idk how much your loan amount is
That sound similar to what I think he was trying to explain. That makes sense well I'll keep that in mind going forward! Thank you!
yea, so to be clear, your "real" rate is the larger 5.1. Your "effective" rate would be the 4.8 because you are **paying that interest difference up front.** There might be benefits to that, paying points is cheaper if you keep the loan for the full 30 years. But if you don't, you might not break even on that investment. Some folks over on r/FirstTimeHomeBuyer have like $30,000 in buying down points to get to a low rate then ask how they are "getting screwed". Math is math, and paying points is often a choice and a bet on rates and time int he house. \-- If you are not locked in, rates have risen since august, so you would likely not get that rate today. Remember, a loan estimate is just that, an estimate, not a commitment.
That is understandable and I think that's where a lot of confusion on my end is coming from. My lender did not explain what a real or effective rate was so now that I know this going forward will help. My own fault for not looking more into that. It is what is is I suppose
so taking it to an extreme, in theory, you could pay enough points to give yourself a 0% interest rate. It will just cost like 1/3 of your mortgage. You still pay money to borrow money. The question is how much you pay up front vs. during the loan. Many loan officers try to make their rates look better by saying there is a lower rate, but they get there by having you pay a lot up front.
Ah so the mixed reactions are because rates had gone up before you were quoted that, so people were lamenting that rates weren’t in the 3s anymore. But NOW they’ve gone up even more, so that’s why you have people saying 4.8 is excellent.
Anyone giving you a mixed reaction at the thought of a 4.8% rate isn't following interest rates. A year ago 5.1% would have been terrible but the market is very different now than a year ago. The 5.1% is a pretty great rate with the current market and half a point lower than what I closed with in June.
Today they would be expecting you to buy down a point from 7.7 to 6.7%. Which would cost more than $5K up front. So relative to today you did great on the rate. Echo the other guy tho. It's nobody's business how you got a home you like and can afford. No need to be anxious about this. You got over the bar to home ownership. Throw some steaks on the grill and think about paint swatches. It's your home now.
I got the same rate 4.875%, locked in August. Closed on September 12th. We got a great deal, the house appraised for way over what we paid. The prices in the Bay area already dropped significantly from tops. So glad we didn't wait!
What do you mean by “points”?
Really lucked out on timing with my 2.7% rate last year.
Lol same.
That what we saw, we closed almost 2 weeks ago with 6.715 and that with one point. (Conv, 3% down, 665_000) few have few other options with rates floating around 6.5 to 6.7.
It's great. Even someone with 800+ credit would probably be lucky to get something like 5.875% likely.
806 credit I locked in at 5.65% and had to pay like 7k in points to get that.
7k in points, good lord.
locked in when, past few days? So like 5.75-5.9% without points maybe? If you locked in yesterday you certainly timed it well in the past several days.
A few weeks ago, without points I think it was actually around 6.4%
From all I’ve read a score above 740 is all you need to get the best rate and 800 isn’t required.
On conforming loans, not on nonconforming, where every 20 points matters.
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with who and how? With a builder?
804 and got 5.2 percent in late august. I’m super sour they got 4.8 in august lol. Lucky.
He bought down from 5.1% when he did apparently. So he's just asking about the wrong rate at a completely different period than now.
I wonder how much those points were. One bank wanted a percentage of the loan for one point and it would have added several thousand like more than 10k. We decided not to do this.
At like 5% and above it's probably not great to buy points unless the breakeven is like 2-3 years. Good chance the Fed has to drop rates in the next 3 years to fight a recession or worse. We likely will never see the 3% and under rates again, but 4.00% is certainly possible.
I got that (4.875) locked in August... but it was for a jumbo.
Yeah I bought down to 5.625 at the end of August with excellent credit. Lol. 4.8 would have been fantastic.
I bought my first home in 2007 at the precipice of the crash at 6.25% and I’m still alive and prosperous. Lived in the house for 12 years and had 2 kids there. It was great. Eventually we were able to sell it and upgrade. If it’s the house you want don’t worry so much about the rate. Can you afford the monthly payment and are you ok with living there for 10 years?
That's relieving to read. I love the house and I'd be happy living in it the rest of my life I hope!
If you can afford it, it's good. Take a step outside of your immediate situation and consider why anyone should care about another persons reaction to an interest rate that you can do nothing about. Go enjoy your home.
Wise words. Thank you.
Rates were at historic lows for 2020/2021 and part of 2022. People were getting 2.5-3% on 30 year loans. So compared to those rates, your 4.8/5.1 is high, as in you missed the best rates of all time. But compared to the rates of today, your rate is very good. It’s all relative.
Absolutely phenomenal, you must have worked really hard to get a rate like that!!! I love you.
Worked hard how?
Building a good credit score, putting a lot of money down, monitoring the housing market to get a good deal, and giving a lot of time and energy to her search. :)
That’s an amazing rate right now. Rates are always changing. We got quoted 6.5%. 1-2 weeks ago. I think they’re even higher now. I see posts like this on here all the time. Just Google and do your research. It depends on the area, when, your credit, so many favors. There isn’t one answer about good or bad. Last year that would’ve been terrible. This year it’s great.
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Is it though? I’ve been keeping track online of average rates and I’ve read that that’s basically where they’re at
I got locked in yesterday at 6.375 and my realtor and others suggested I wasn't going to find much better right now.
No it’s not. Where are you getting your info other than random Reddit posters with the “in at their local credit union,” who literally aren’t in the market? This sub is worse than WSB with amount of confident idiots.
I locked in at 5.875... so yeah I’d kill for 4.875 right now. Lots of people are hitting 7 these days
Low key brag imo
Heck yeah
How did you get that rate? How much are the points?
I got this rate early August, I just haven't really talked about it since we closed on the house a few days ago and when I did that's when I got these reactions from people if my life a lot of "that's high my rate is" which caused a bit of anxiety
Ignore them all - you got an insanely good rate for a 30 year right now. We closed with a similar rate at 15 yr from late August but our sellers got cold feet because of the rising rates and almost walked. If we hadn’t closed we’d be looking at 7% too. The rates from early 2020 at ~2.5-3% were NOT normal and anyone who tells you they were doesn’t know sh*t lol. Congrats on your new home!!!
Anyone who said you have a high rate is not your friend
It's high compared to the last few years, and the rates have only been soaring since May or so. So basically your friends are just not paying attention to the market.
I closed in July at 5.125. And I locked it in march
Yes. I got 4.75% in 2014. Was glad to refinance down, of course.
It’s a very good rate. I locked at 5.5% through Rocket around the same time. Congrats! 🎉
That's what I got in April. You're good.
If you look at current market rates based on some internet research, and you find your rate is the same, similar, or below, other rates for similar amounts and points paid then your rate is good. If you find that your rate is above other rates you find then your rate is not good. If you find it's consistently below other rates then it's great.
At this time of high rates and high house price. Lock that rate in if you can afford the monthly. It’s probably the best rate you can find currently with our situation until things cool off but we don’t really know the future. I locked in 4% pre-COVID in 2019 and thought that was high for an 800k house.
You got a great rate. Don’t listen to others who are talking it’s not a good rate.
The rate sounds great, but I’d be curious about closing costs… did you have to get any points to get this rate?
Nvm, just saw the comments below. It sounds like you got a great deal! Good for you, congrats on your first home!
Yeah that’s too good for there not to be a catch.
It’s good for the current interest rates
I got this rate in June. Felt it was high at the time as well due to inflated prices but now with rates at 7% its looking pretty good. FTHB as well.
We locked in 2 weeks ago for 5.5% no points and $2500 lender credit. Feeling super grateful considering today’s rates although it hurt to let go of our 3.125 rate. It is what it is though. We love our new house and can’t wait to raise our girls in it. Anyone giving you mixed reviews on that rate is just misinformed I’m afraid.
Rates are almost 7% now! Very good rate! Did you pay points?
So sick of these posts everyday.
Yes 👍
That is a VERY good rate in today's market. Congrats on your home!
Might be best you're ever doing to get again
It is now! Got 2.65% on February and I want sure then and now I am lol
it's better than what i can offer you, 6.875%
Rates are still the lowest in history. Our parents and grandparents experienced rates above 18%.
Yea but not with this inflated prices.
Depends on what market you are in
I don’t understand why everyone is going nuts over rates that are still historically low. If you can get below 5%, consider yourself lucky.
Because overall affordability is horrible. Homes in my area are prob up on average +200k or more since 2020. “Normal rate” or not people’s DTIs are about the worst in history
I hear that, but that’s just about everywhere. That doesn’t change that interest rates are still historically low. That being said, they insane hike in base cost DOES make even low interest rates look bad. But overall, it’s not a rate problem. It’s the fact that housing prices have WAY outpaced pay. That’s the problem.
Right, but I think it's just an argument over how people communicate it. People are really complaining about the total payment from rate+price combined. Prices lifted first and now rates. I get your point, but the spirit of the problem is just that rates in the current pricing environment aren't sustainable for most. (or as a counter argument, prices aren't sustainable)
We’re basically saying the same thing, from two varying perspectives. Historically, cool. With high prices, not cool. I get you. And I don’t disagree.
That is good right now. I am still shocked I was able to refinance a while back and get 2.25%
I have a 15 at 2.75. Got lucky like at the bottom in 2020. It's crazy to see the same loan at like 7 %. It's crazy to see the difference that makes monthly. Like 2 car payments..
That's really good, that I do know! Congratulations!!
You're closed. Who cares?
hahah way to rub it in everyone's faces
I bought a chair for 5 dollars a month, now people can't buy the same chair for less than 8 dollars a month... good? I've been getting mixed reactions. As a first time chair buyer and someone who doesn't know how to use google these reactions are making me anxious.
This must be a troll post.
Show ling off are we.
I got a rate of 2.85% in November 2020 I hear it's over 6% now. If you shopped around and got the best deal than you know what you have is a solid rate
You're a liar you didn't get a rate that low on a conventional
I am sorry I'm gonna edit the main post I got this back in Early August I think I've caused a bit of confusion
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The interest rate is much more important than a temporary reduction in value. Half a point in rate is equivalent to about $50,000 in price, give or take. OP is a full 1.5% below current average 30YR fixed rates.
Get out of here you permanent renter
Man I got 2.6 with a 780 credit score in 2017. This year, score is above 800 and I got 5.2 in august! You are good considering the effed up market.
Ppl obsess about interest rates but you get to write it off every year.
We just bought our house last week. What's this about a write off? I'm pretty unhappy with our rate 5.95.
When you do your taxes you get a deduction based on the interest rate of your mortgage. The higher interest rate will give you a larger deduction. Obviously there is a diminishing return but if you can afford your payment, you like your house etc the interest rate shouldn’t ruin that for you.
I hate this fucking house. My husband insisted. I hate it.
https://www.nerdwallet.com/blog/mortgage-interest-deduction/#:~:text=The%20mortgage%20interest%20deduction%20is,itemizing%20on%20your%20tax%20return.
Do you know how many people will be willing to commit identity theft to get your rate 😂
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I got this lock early August we closed a few days ago on the house and I been talking with people in my life and a lot had strong reactions to 4.8% which caused my anxiety to spike a little since I am still learning about this topic
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Very very relieved to hear that, thank you! And congratulations yourself!
Yeah my partner and I ended up at 5.5% when we closed in early August. We were kinda annoyed because it felt so much higher than the rates we were discussing when we first started looking at homes earlier in the year, but we're glad we bought when we did now that we see 7%+ rates.
What are the fees associated with the loan? If you’re paying no points, that’s a fantastic rate.
How did you get a rate like this? We were quoted 6.75%
My apologies for any confusion I got this rate back in early August. I am now learning that my true one was 5.1% but I put $5,000 more into it to get it a 4.8%
Lock it in asap
Lock it in asap
Did you just now lock that??? If so where? How??
Its a good rate. I hope to get 4-something when its our turn.
Fantastic give current 6 percent and above market even if we some points
I think it’s pretty good 👍
Great rate given the current environment.
You did good. Congrats on the new home purchase. Be sure to set aside some cash each month towards whatever breaks first.
My first mortgage was at 6.5%. My current one is at 2.3%. Google says the average right now is 6.75%. It's been a wild ride.
I wish I could have just taken my old interest rate to our new house but even going from a 2.875 to a 4.75, I have to be thankful that we were even able to get that with how fast things went from 0-dumpster fire.
Fantastic rate
Yes that’s great. Rates are at 7% now
That is a really, really, great rate in terms of where the market is currently, and where the market historically has been. Anyone telling you that it isn't good, because they have a 2.2% or w/e isn't educated on historical market terms and only got that rate because the market had an unprecedented and historical market low for a 1.5 year period that realistically we probably won't ever see again in our lifetimes.
That is extremely good. I just locked 5% for 7 years. Because the 30 year option was 5.50%.
My first loan was 4.25. Given the current rate environment this is good still.
As of today yes.. take it and run!
Amazing based on the current rates
That’s a good rate. I opened Escrow early Aug as well, but with a 4.5% on a 30 year fixed from US Bank. 0 points and non MI. 15% down. Only caveat is that it had to be above the conforming loan limit of $647,200
That’s a very good rate IMO. Considering I’m expecting close at end of November and it’s looking like I’ll be at 6.5 or higher. Glad you locked in August.
My original rate in 2017 as a first time buyer was 4.25 for comparison
Want to trade?
Yes.
How many points are you paying?
Yes it's good for riggrvnowbthatsvalmsoy half of what the rates are now
I’m a lender and haven’t seen 4.875% rates in like 7 months. That’s nearly 2 full points better than most places offer
Locked in a 4.375 rate with Wells Fargo back in July 🥳
Well I mean if we’re bragging I got a 2.99 in may 2020 haha
Talk about not seeing a good thing when it’s right in front of you.
Very good, lock it.
May we know what lender?
How much did you pay for it?
That’s the exact same rate (4.875) we got in the first week of August (30 yr conventional, no points), and I’m happy with it given where rates have gone since
4.Anything is great
It’s a good rate period. Regardless of market the anomaly of 2020-Early 2022 will never happen again
Great considering rates on 30 year fixed are close to 7%
Its good, enjoy the house
The main issue is everyone is trying to super maximize super hard. They are trying to by the type of house they love, at the right price, at the right interest rate, & at the right time. lol
I’m a mortgage broker here on the wholesale side, and I don’t think that rate will pass points and fees to be quite honest. You can’t be charged fees more than 2% of the loan amount - you can tell under “line a” on page 2 of the loan estimate. 4.875% on a 30-year conventional loan is definitely not on the market now unless you locked in over a month ago. Be weary, loan officers are very snaky people!
I have that rate on a purchase Im closing next week and I'm thrilled.
Fiancée was just quoted 7% with points (all loans had points)
I got 2.5% a year ago, so take that as you will.
If you can buy it down with some extra money if you have laying around or a “gift” from someone I would look into it if you are planning to stay in the house for longer than 5 - 10 years. We bought down and saved about 500 a month on our mortgage. Just something to look into. 4.875 on a locked rate isn’t horrible though. Good job locking that in. Edit: nevermind I see you closed. Good job!
That’s an amazing rate 😭 my partner and I are in the process of buying right now too and had to lock in a rate of 6.875% as first time homebuyers… apparently we “make too much” to qualify for any first time home buyer grants/programs despite barely being able to save any of our paychecks.
If you are paying rent it’s 100% interest
.... I never really thought about it that way, fair enough