Mortgage Report: August 20th - 24th
The Federal Reserve moved in last Friday to calm the financial markets and cut the discount rate by 50 basis points to 5.75%. This is the rate at which the Fed lens money directly to commercial banks, credit unions, and large savings and loans institutions. The Fed's move to cut the discount rate has no impact on mortgage rates or consumer rates like home equities.
As the press continues to sensationalize the mortgage meltdown nationwide, we need to
remember that our NY Metro Marketplace is in much better shape than most of the rest of
the country. Yes there are clearly many changes being made by banks on a daily basis and
more banks will fold - and some types of loans are harder to get today than they were even
just a week ago - but the mortgage market is not broken - it is correcting and we cannot lose
sight of the many lenders, especially our portfolio lenders, that continue to offer COMPETITIVE
rates and mortgages to all sectors of the marketplace.
You CAN still get a No-Income Verification loan
You CAN still borrow 90% on a mortgage – in fact there are still lenders allowing 100%
You CAN get a fixed rate at 6.75% with 0 points up to $1 million
Banks ARE still lending on super jumbo loans – no loan size too large
You CAN still get a home equity loan
You CAN still get financing for an investment property
YOU CAN STILL GET A GOOD MORTGAGE.
Yes, the playing field has changed and many of the banks that we have done business with
over the years are going through a period of correction and they will be back but, in the meantime, we have a large number of portfolio lenders that are ready to lend money and they have not increased their rates. We are simply going back to doing business the old fashioned way – and this is a good thing for the future of the Real Estate Market.
Best,
Steven
Comments (14)
"You CAN still get a No-Income Verification loan "
For a non-coop..Are you saying I could get a 1 million dollar 0 down IO loan and not prove my income?
Please tell me which company is still doing these so I an short their stock.
Posted by uwsider | August 20, 2007 5:54 PM
6.75%. where??
Posted by Anonymous | August 20, 2007 6:44 PM
"We are simply going back to doing business the old fashioned way – and this is a good thing for the future of the Real Estate Market"
It is douchebag? Without a healthy functioning secondary market do you think prices would be as high as they are today?
Posted by Anonymous | August 20, 2007 6:56 PM
I have to be skeptical of this claim myself Steve!
Is this update real time, as I did get a mass email blast about this from your company about 4 days ago.
Noah
Posted by Noah | August 20, 2007 7:06 PM
I definately dont think it is so easy to get a NO INCOME VERIFICATION LOAN!
Even if it is, sellers would be hard pressed to jump in to accept a deal from a buyer who cant verify income. I certainly wouldnt in this environment.
I think alot of what you claim here is already outdated, especially getting 100% financing!
I agree with commenters above! In a world where mortgages are much harder to get, prospective buyers affordability goes down and buyer psychology changes towards conservatism. Healthy for a near term correction and longer term sustainable growth maybe!
Posted by Noah | August 20, 2007 7:21 PM
This guy can't be serious??
Posted by Son-God | August 21, 2007 2:59 AM
I had to pay pts on a 6.75 30-year fixed! Couldn't find a way around it.
Posted by Anonymous | August 21, 2007 8:03 AM
Thanks for the cheerleading Steve. Hope it all works out for you.
How about some valuable information?
Posted by them | August 21, 2007 8:16 AM
Agreed. This sounds way too much like an advertisement for business or damage control for the lending industry or Steves company in particular.
I think the was just passing on what he gets from his company's exec's to soothe buyers concerns given all the headlines.
On this site however, I think it has an opposite effect as readers are way too educated and savvy to believe the hype! I think the effect is ngative.
Anyone try calling to see if its real for a good faith rate quote?
Posted by Noah | August 21, 2007 9:04 AM
Steve,
Please clarify your original post, most readers are very in-tune with the market and your post appears very dated
Posted by anon4this | August 21, 2007 9:31 AM
Does it really matter what Steve says anyway? Manhattan is NOT SUBPRIME people(see below).
(1) I am an investor in Manhattan condos, I CANNOT repeat CANNOT buy anything without putting 20% cash down. I am not allowed to invest in co-ops
(2) In most primary residence condo purchases buyers must put at least 10% cash down.
(3) and we all know the rules for co-ops.
Manhattan is NOT SUBPRIME due to the nature of the beast. We are not the outback. The other mortgage market is correcting which is not us because we have nothing to correct.
To the guy above who has to use derogatory comments, let's stick with a higher level of discussion since I think this blog deserves it.
Posted by Anonymous | August 21, 2007 9:44 AM
To Anon Above - Many of the things you state are 100% correct and is what separates Manhattan from the pack.
HOWEVER, and that's a big part of what Im about to say, what is going on as a result of subprime and repricing of risk, Manhattan buyers have:
1. Less loan options
2. Tighter lending/underwriting standards
3. Higher Rates
4. Change in Psychology/sentiment in buyers
Manhattan, while maybe immune to loq quality buyers, is NOT immune to the AFTER EFFECTS of what is going on. That is what some commenters are referring to. manhattan buyers/sellers will have to deal with this new world and any ill effects that come as a result.
After all, if a recession hits US economy because of what is going on, wont Manhattan be affected in jobs, salary, and therefore affordability?
Its all connected. As always, Thanks for comment!
Posted by Noah | August 21, 2007 10:48 AM
Amazing how much the bitter buyers rationalize. 2 months ago, it was Wall Street bonuses that were going to save them and prop the NYC market up as the country tanked.
Now, Wall Street is taking, layoffs are imminent, and the bonus pool has a huge leak. Not to mention a ton of funds will close and lay everyone off, and investors have seen losses from 30-100%
Now, all of a sudden Wall Street doesn't have anything to do with the picture?
Talk about major rationization.
Posted by Eddie Wilson | August 21, 2007 3:54 PM
These are my responses to the various posts:
1) You CAN still get a No-Income Verification loan- No income verification is different than no asset verification. If you have great credit scores, it will not be an issue if you choose to not verify your income.
2) You CAN still borrow 90% on a mortgage- I am doing three loans right now at 90% financing.
3) There are still lenders allowing 100%- this is accurate if your loan is conforming(under $417,000).
You CAN get a fixed rate at 6.75% with 0 points up to $1 million- Rates have increased to 7% since this post(max loan is $750)
4) Banks ARE still lending on super jumbo loans no loan size too large- still lots of banks out there that are willing to loan at attractive rates.
5) You CAN still get a home equity loan- not a problem if you have decent credit.
6) You CAN still get financing for an investment property- probably 65% financing.
If you're in the real estate lending business you'll realize my post is factual . If you're not in the business, where are you getting your misleading and inaccurate information from?
Best,
Steven
Posted by Steven Maasbach | August 22, 2007 2:53 PM