Mortgage Rates Question

who cares about rates. you cant get a mortgage without putting 30% down and show 2 years in reserves. no one's lending.

brokersSTINK, I was wondering the same thing. Seems to me they're been pretty steady or have gone up a little. Anyone see anything good on a conforming 30-yr fixed?

rates will probably go up frorecent lows but not by much.
I would say that we will be back in the 6% range.

As people rush back in to buy stocks, money will come out of bonds and drive up the yields (directly tied to mortgage rates).

Anf for Mr. Chow, while yes, lending is tighter - you can still easily get a mortgage with 20% down and 2 MONTHS of reserves - not 2 years.

there are still a few banks willing to do 10% but I agree that is becoming less common every day.

Lobo, you are either delusional or clearly not referring to NYC co-op purchases. The exceeding majority of NYC co-ops require at the minimum 12-18months of liquidity. Many require 24 months liquidity (and this does not include any 401K or pension assets in their calculations). Many co-ops are also raising the maximum financing levels to 70-75% from the previous 80% level. Lending is extremely challenging right now. Friends of mine with ample liquidity (in excess of 24 months) and excellent credit (FICOs of 780 and 760) are having difficulty getting financing. Unfortunately they are both in the financial services industry and I think both co-op boards and lenders are viewing their employment negatively.

Mr Chow, thats simply not true.

"Lobo, you are either delusional or clearly not referring to NYC co-op purchases."

What kind of statement is that? Did he say he was referring to nyc co-op's? He clearly stated he was referring to mortgages not the requirements of co-ops.

mr. chow here. tell me what banks!!!!!!!!! i'm talking for a jumbo tho. need to borrow @2.5m. i can put 25% down and even after my aggregious closing costs (estimated at 200k!), i still am told i need to show 2 years in reserves. any advice is SO appreciated.

condo. not co-op, fyi.

ccdevi, you really think there is a disconnect between lending requirements and co-op boards requirements. It's all intertwined, although condo purchase lending requirements are more lax. Lobo, stated that 2 MONTHS reserves are sufficient, which is absolutely delusional. Good luck when you try to get credit.

Mr. chow, try using a smaller lender. I had success with Banoc Popular several years ago. Slightly higher rate, but they were willing to work with me.

thanks nycnative. any other advice out there? would love to put down 20% and show 1 year in liquid reserves. but still need a big loan @ 2.7 m and both of us are in financial services. very scary.

Are you in contract already?

call Apple or First National Bank of Long Island. My banker at FNBLI, who I'm closing a loan of close to 2 mil with in 10 days, emailed me yesterday to specifically say that they are still looking to lend and I should tell my brother (who's a RE broker). That said, I'm not sure they'll go to 2.5-2.7, also I'm putting about 30% down.

in contract since june 2007! developer has 15% deposit and we have no mtge contingency.

ccdevi- worth a shot, but the loan amount is i think whats making it so tough to get much interest. again, i can put 25% down, but 30%........would be VERY tough. that said, its a great property and the area is really holding its value.

what building? I'm in same position 15% down for quite a while.

when do u expect to close? do you know? new development on reade st in tribeca.

was supposed to close last week but got delayed for no tco, now scheduled for about 10 days from now

gotcha. its the most mind boggling thing to me that theres a good chance i cant get mortgage, even though i can thrown down 1mm and have perfect credit. who ever would have thought

Mr. Chow.

I did research 2 months ago for a $1.5MM - $2.0MM loan. Not as much as yours, but still reasonably big. I was told that under 20% down is a non-starter, 20% may, maybe, be possible, but I'd really pay for it (higher interest), 25% was very doable, and 30% was my best bet to get the most banks and the best rates.

Not sure how much things have changed in 2 months.

I spoke to 3 mortgage brokers and they were very helpful. You could try:

Mark Maimon - mark@universalmortgageinc.com
Bruce Maasbach - bmaasbach@manhattanmortgage.com
Eric C. Appelbaum - ea@applemortgagecorp.com

Good luck.

Yes, I understand that co-op boards set their own rules. Thanks - I'm not delusional. We are talking about getting financing - not getting past board approval. You choose your building and you should be aware of the rules before you sign a contract.

As far as getting a loan, if you have good credit 760 , and the proper income, and 20% down then you will not have a problem getting a loan (currently - no one knows what will happen months down the road)

You can buy any condo in NY right now with 20% down and 2 months of reserves.

Mr. Chow, with 15% down, you may not get the best rate but you will most likely be able to close your mortgage.

very different if you need a construction or remodeling loan -- most lenders are either not interested or sticking it to you

p.s. - go direct to banks ... I have yet to find a mortgage broker that can beat the deals that i've found when I shop around at a few banks.

mr. chow, I'm confused -- the two years of reserves are required for the mortgage, or by the sponsor-controlled condo? I've never heard of reserves being required for mortgages (but then I know less than nothing about jumbo loans).

i have 15% down with the developer, as per the contract. i intend to put down a t total of 25% down, when i go for the mortgage (the 15% that the developer is holding, plus and additional 10%). becasue we're asking for a 2.7m loan, the mortgage underwriters we have spoken with have suggested that we will likely need to show an additional 2 years in reserves. 3 have 3 brokers on the case. we each have credit independently of 850, or whatever the highest mark is. but with 200k in closing costs and 25% down, we just dont have 2 years of mortgage payments sitting in reserves, unless we can count our full 401k and some other rather illiquid assets, i.e. restricted stock options. freaked out.

Mr. Chow wrote: "we each have credit independently of 850, or whatever the highest mark is."

This is almost inconceivable. I think Fair Issac has said that it's not actually possible to get an 850 with their model (you can just asymptotically approach it), and if it exists the score is so rare that TrueCredit conducted a nationwide hunt for people with the score and offered to pay them $1000 each:

http://www.truecredit.com/popup/febNewsletter.jsp

(Note: I can find no evidence they actually found anyone.)

For two people to both have 850s is so statistically unlikely that I'll go ahead and call it impossible.

(By the way, I think a lot of banks allow you to count a reasonable fraction of retirement accounts as reserves, since that money is generally accessible if you really need it.)

i already got reemed out for the 850 score. clearly i misspoke. we have high fico scores. perfect credit. we've talked to hsbc, citi, and a smaller non/bank mtge broker. all were pretty consistent. either 30% down and a year in reserves, or 25% down, 2 yrs in reserves. i think 401k would be 50% counted. just plain scary is all. everyone who was knowcking down our door to offer us a mtge a year ago, is now running the other direction b/c we're both in finance. very very different times. i have to imagine the developer is praying people can close and that they can deliver their first unit by dec 31, as per the contract. game of chicken?

Mr. Chow, everything you say is completely consistent with what I heard from 3 different mortgage brokers 2 months ago for a loan of $1.5-$2MM. And we don't both work in finance.

With no mortgage contingency, I think you have a right to be freaked. I think you have several options, though (note, I am not an expert, nor do I play one one TV).

1) Try to renegotiate with the seller. You're not in a great position, but neither are they - prospect of trying to re-market and resell apartments now has to be scary.

2) Broaden your search for lenders. If you're close to what you need (i.e. you have 1 year of reserves instead of 2 or something like that), I bet someone will stretch a bit to get you there. It might cost you in the way of higher interest rates, of course.

3) Pass the hat. If you're buying a $3MM+ apartment, I would guess you have some friends and/or family with money. Short-term-borrow some from them to make your reserves look higher, come up with some story for banks.

Good luck, keep this forum posted.

75% $3,000,000 loan is still available with 12 months reserves assuming all else is fine.

80% up to 1.5M and 75% up to 3M both with 12 month reserves. sunny_hong@countrywide.com

countrywide is still lending? HELP please. do you count 401ks or any less liquid assets in your assesment?

We count 401k at 70%. 212-508-2205

expect to here from me within a week for sure. thank you. where are 5 year arms on a ~2.6 m loan?

we're so using countrywide

30 year fixed is the best priced for your particular LTV scenario. Mid 6% range.

i didnt even know there was a mkt for 30 yr fixed for loans of 2.6m anymore. better than interest only or 5/7 yr arm?

Best option today for your scenario.

Anyone taking an ARM right now is crazy! --- unless you have the money to pay down your mortgage, and it doesn't sound like that's the case.

CW- Whats the 30yr rate no points?

Depends on the scenario. LTV, Credit, Loan Amount, etc. For a traditional jumbo, the best available would be 6.375% today.

wow. thats really much better than it was a few months ago. good stuff.

Im asking what the rate for Mr. Chows deal would be, 3mil purchase price @ 75ltv, 740 credit. Is that a 30 yr fixed or ARM?

3.5m purchase price. 75 LTV, 740 creidt.