John Paunan's Discussions

We still have good ol' inflation to account for.  So long as everything else continues to increase in price, so will housing.  The reason why we had the bubble is because housing so far outpaced inflation, that those values could not be sustained.  So though we're seeing valuations slow down or drop, they're not going drop that much.  Maybe 2001-2002 levels. 

From a technical/legal standpoint, your friend almost assuredly in default.  Pretty much all lenders structure their notes that way.  However, from a practical standpoint, your friend probably doesn't have too much to worry about as long as he stays current.  Lenders don't go after paying borrowers; they tend to focus on the non-paying ones.

it would also be nice to be able to easily revise old quotes.  Right now it seems like you have to delete the old quote, drill back down to the quote request and go through the whole quote process again.  As we all know, the mortgage market is very fluid these days. 

OnePaw,This is a very interesting discussion and I'm with Jennifer all the way.  The thing that people don't understand is that most broker/lenders have access to the same exact market rates.  The only real variables are what third parties are charging and more importantly, what the loan officer is charging either in the form of origination or yield.  Yes, we are all professionals and need to make a living, but so much of our practice has been traditionally based on deception (i.e., not disclosing to our clients what we actually make on deals).  As long as people have an understanding that originating loans is not free, then they can ask the next question which is what is a fair amount to pay for an LOs services?  The Zillow marketplace (not that I'm complaining), unfortunately, only reifies the "hide your fees" game, or who can post the lowest to solicit the follow-up.  Most people think "Rate, rate, rate" when really they should be saying "Fees, fees, fees!" I noticed that many LOs are claiming that they are given "preferred" status and pricing by their investors.  That may be true to an extend, but such a difference really doesn't make too much of an impact in terms of what the LO is trying to make on the loan.  The mortgage industry has spent too much time marketing itself as a product sales industry (rate, program and so forth), rather than as a true service industry where people would be willing to pay more for good service and worthwhile advice.  Unfortunately, most people get better advice from free discussion boards rather than the person they are actually compensating and who has a fiduciary obligation to them, their LO.  Well, anyway, that's my two cents.

With the volatility of this present market, it would be nice if Zillow put a giant banner telling poster to make note of the date and time of their request because rates and programs may change very frequently.  I know some people have legitimate gripes about "bait and switch" quotes, but when someone calls you about a quote made ten days ago, it's difficult to talk them down and remind them of the disclaimer you placed in the quote.

I see a lot quotes for jumbos that don't seem possible, at least with my crop of lenders, and I've got 60 of them, but they are awfully close.  Would anyone like to share who they use and what kind of rates are available?  This is for pure jumbo fixed rates, not conforming jumbos either because they're not available in most states.  I see 5/3 at 7 paying 1 and they're the best I've seen so far.

Sorry about the confusion everyone.  Thanks for the information.  So far I haven't seen a 6.375% with no fees, which is what some of my competitors are advertising.  Just wanted to see if that was even possible.

Jonathan, I tried to find the 6.875% paying 1 on my Wells Fargo ratesheet, but I don't see it.  On the conventional non-conforming stuff, to get paid 1 you have to go to 7.75%.  Obviously, that's not what you're seeing.

anything over $417k on a single family.  Oh, hey, take a look at this: http://www.zillow.com/mortgage/LenderQuoteDetail.htm?qid=X1-ZQz1higyz7pds5_4g4tn Is that even possible on a single jumbo loan? 

Thanks for the clarification Geoff.  I thought I mentioned that in an earlier entry.  Yeah, conforming jumbos are not available in Illinois, so if anyone knows of an actual non-conforming jumbo lender that's offering in the low 6's, please let me know.  There are a couple of lenders who have a dubious reputation, and I just want to see if they're doing what I think they're doing.  Thanks,