Best spot to do a mortgage these days?

Water Cooler
#1

Any tips?

#2

Aren’t mortgages for the peanut gallery and other beta-like specimen?

#3

Gonna have to revoke your CFA for that comment. With interest at 2% you realize how dumb it is to actually pay cash for anything right?

#4

Only if you’re very sure that you can earn 2%+ on that excess cash. Looking at the current valuations, I wouldn’t bet the farm on it.

#5

You need to get several quotes and shop around bro. Anecdotally, WF tends to be more competitive than other large banks for regular size loans, and their high market share probably comes from that (they have 2x as much issuance as JPM, BofA, etc.). However, I’ve also seen some people get like 0.20% discount from some small firms, compared to competitors’ quotes, in return for putting some assets in their wealth account or other stuff like that. Coworker seduction and 100k salary is going well I take it?

#6

if you want to go traditional route, the best mortgage i’ve seen consistently in terms of apr is penfed credit union. it has high upfront fees though. you can have them roll it in and apr will be lower still.

i hear mortgage broker is the best, but i never tried. they will basically take ur application and search for the best deal for you for a fee.

https://www.bankrate.com/mortgage.aspx?pointsChanged=false&searchChanged=true&mortgageType=Refinance&zipCode=90040&partnerId=br3&ttcid&userCreditScore=740&userVeteranStatus=NoMilitaryService&userHadPriorVaLoan=false&userHasVaDisabilities=false&userFirstTimeHomebuyer=false&userQuickClosing=false&userFha=false&userLowUpfrontCosts=false&userLowPayment=false&purchasePrice=396000&purchaseDownPayment=79200&purchasePropertyType=SingleFamily&purchasePropertyUse=PrimaryResidence&purchaseLoanTerms=30yr&purchasePoints=All&refinancePropertyValue=362500&refinanceLoanAmount=290000&refinancePropertyType=SingleFamily&refinancePropertyUse=PrimaryResidence&refinanceCashOutAmount=0&refinancePoints=All&refinanceLoanTerms=30yr,15yr

#7

Bro bro bro bro bro… Consider a house priced at $550,000.00. Now let’s consider I also have that much wompum just sitting my in my checking account. At 3% my monthly payment would come to $2,318.82 for a 30 yr loan. Which means, I would only have to generate 5.06% a year if I had $550K I could invest to get a totally free house.

Now, to tell you the absolute truth, I could go find a high-yield or muni manager right now and just tell them to clip the coupons for the next 30 years, totally disregard my duration risk, and get a free house.

That way, at the end of the 30 years, I keep my $550K, AND the house. Did I mention yet that you get the house for free basically doing this?

Now consider you don’t need to live in the house, and can rent it out in a super boojey neighborhood in Denver for more than the mortgage payment. Ya knahm’sayin’?

Thank you. I’m actually going to contact WF about this now. And well, I wouldn’t say I’m getting ahead of myself. But, just planning for when I get my super cushy new HF job.

#8

May need to brush up on those analysis skills in anticipation of the new job. Do you not pay taxes?

Also not sure how it’s free. Sounds like some mental accounting or something

#9

You will need better analysis skills that this for your hedge fund interview! If you use the investment proceeds from your $550k to pay house costs, that is not free. You are consuming the possible alternative uses of those proceeds. After 30 years, you could have, for example, a $550k house or $550k in capital gains of other assets.

Now, if you invested that money, could you generate more than the after tax mortgage interest over a long period of time? Very likely yes. The interest cost relative to expected return could justify a mortgage, but it’s not “free” by any means!

#10

Sorry guys. You’re right, it’s a terrible application of the word “free”.

I’m 15 years old and don’t know anything though. Give me a pass on this one please.

#11

Hey quick question though. How long will it take the drop in yield curve to play out into mortgage rates. I read somewhere that mortgage rates were falling something like 90bps…? Anyone else hear this?

I’m curious because I am actually going to be buying property sooner than later (meaning this year for sure).

#12

lol rates are way too low. i’ve been saying it since 2012 and have been very wrong. but right now my credit unions have rates at 3.4% APR for a 30 year. vs a few months ago it was at 4%. so thats pretty big drop already.

#13

Those rates are assuming top tier credit scores right?

ps: headed to huntington beach in a few hours nerdy.

#14

their advertised rates are always for top tier. brooo how long you in the area for. i might be going out with my buddies on saturday night if you want to roll up. at huntington you can go to the bar area at the beach, imo its pretty whack. cuz huntington is pretty close to a couple solid clubs. mansion in costa mesa and time at newport.

#15

That’s really what my best judgement had me believe. I thought I knew everything about interest rates and banks, etc… but I’m learning that in reality the nuances of taking out a mortgage are insane.

Let’s try and grab a beer Saturday?

#16

Ay mijos!!! You hermanos take it easy with the cervezas!!! :beers:

#17

Turd maricon