All Forum Posts by: West Kite

Hi Doug, Thank you for taking the time to thoroughly provide information, and the website 'Mortgage News Daily' is very helpful. I have been monitoring FOMC meetings, and it seems the rate cut will be deferred (even though no one knows for certain). It makes sense that the lock premium will not be worth it if it's too far out for float the rate. Thank you again.

Jay, I am still waiting for information from the loan officer. I know no one can predict future rates, but what are your predictions from your standpoint?

Hello Jacopo, Thank you for your input. Could you suggest some reliable websites to keep an eye on current interest rate trends and forecasts? Where do you usually monitor this? Thanks

Jay, thank you for responding. I know it could be a silly question, predicting future interest rates. I have been monitoring the Fed's statements regarding the possibility of rate cuts this year, but it seems to have been deferred, or who knows. Would it be better to choose a floating rate, hoping rates will go down? What would you suggest to your family in this regard? :)

I have a question. If a buyer is offered a 2-1 buydown (starting at 5.25%, increasing to 6.25% and then to 7.25%) with all closing costs covered except for $3,000 (to be paid by the buyer) on new construction through the seller's preferred lender, and signs the purchase contract in April 2024, the house will be completed by the end of September 2024. The buyer was informed that the interest rate will be floating because the construction completion date is further away (5 months) according to the preferred lender. They mentioned that the rate will be higher if locked for 5-6 months. Is this normal in lending? Would you leave it as a floating rate, hoping the rate goes down? Of course, no one knows for sure, but it seems the FED deferred interest rate decreased.

The location of the new construction is so appealing due to being close to downtown (10 minutes).

What would you do?

Thank you for your input in advance.

I have a question. If a buyer is offered a 2-1 buydown (starting at 5.25%, increasing to 6.25% and then to 7.25%) with all closing costs covered except for $3,000 (to be paid by the buyer) on new construction through the seller's preferred lender, and signs the purchase contract in April 2024, the house will be completed by the end of September 2024. The buyer was informed that the interest rate will be floating because the construction completion date is further away (5 months) according to the preferred lender. They mentioned that the rate will be higher if locked for 5-6 months. Is this normal in lending? Would you leave it as a floating rate, hoping the rate goes down? Of course, no one knows for sure, but it seems the FED deferred interest rate decreased.

The location of the new construction is so appealing due to being close to downtown (10 minutes).

What would you do?

Thank you for your input in advance.

Chris, thank you for your input. While I'm interested in a property, however, I ultimately decided to pass it due to excessive fees including builder's fee, etc in the deal they were proposing. Is it normal to charge a builder's fee on a new build property? They're offering two financing options: a 5% down conventional loan at 6.375% with a $15,992 seller's builder credit or a 3.5% FHA loan with up to $18,000 seller's builder credit if I use their lender.

Mr. Smith, They're offering two financing options: a 5% down conventional loan at 6.375% with a $15,992 seller's builder credit or a 3.5% FHA loan with up to $18,000 seller's builder credit if I use their lender. While I'm interested in using their lender, I ultimately decided against it due to excessive fees in the deal they were proposing. Mr. Doug, are you saying that I don't have to use their lender and can use an outside lender instead? Also, can the builder still charge me a $1,304 builder's fee and a $1,103 title insurance lender's fee if I choose to use an outside lender? Thank you for your insight!

Hi Matthew, 

Thank you for your response. I agree with you that the upfront closing costs can be high, even if the builder is offering a credit.

I am having trouble finding properties that match my criteria in Tampa, FL.
I should remember 'Buying a property is a significant investment, and it's important not to rush the decision. It's crucial to make a well-informed decision that aligns with your long-term financial plans.'
Happy investing!

the post moved under Loans, Mortgage forums. thank you