Mortgage rates drop to record low

[disneysteve]

https://www.marketwatch.com/story/will-mortgage-rates-drop-below-3-11594845518

The average rate for a 30-year fixed rate mortgage dropped to 2.98%, the lowest it has ever been and the first time it has dropped below 3%.

We don't have a mortgage and aren't looking to get one anytime soon but what a great situation for those who are.

[corn18]

We are in the process of building a new house. We have enough cash to pay for it. We did get a 30 year 2.75% fixed rate mortgage locked in as well. We are scheduled to close on 6 Aug. As it sits right now, I am going to take the mortgage. The builder is paying the closing costs for the mortgage, so it is the same as paying cash. And 2.75% money for 30 years is very cheap. Great inflation hedge.

If we change our minds after we retire, we can just pay it off.

[scfr]

The builder is paying the closing costs for the mortgage, so it is the same as paying cash.

Unless they would give you something else of value to you if you actually did pay cash. Examples? House or landscaping upgrades, appliances, blinds, neighborhood club membership.

[corn18]

Unless they would give you something else of value to you if you actually did pay cash. Examples? House or landscaping upgrades, appliances, blinds, neighborhood club membership.

I misspoke, it was a lender credit, not a builder credit. If I pay cash, the credit goes away.

[kork13]

We are in the process of building a new house. We have enough cash to pay for it. We did get a 30 year 2.75% fixed rate mortgage locked in as well. We are scheduled to close on 6 Aug. As it sits right now, I am going to take the mortgage. The builder is paying the closing costs for the mortgage, so it is the same as paying cash. And 2.75% money for 30 years is very cheap. Great inflation hedge.

If we change our minds after we retire, we can just pay it off.

It was definitely enticing to use a super-low-rate mortgage to purchase our new home (I'm actually gonna go pick up the keys in just a few minutes & finally see the house in person!)... But the idea of no mortgage, no debt whatsoever, was too enthralling for us... So we bought it in cash.

As I see it, the extra cash flow of no mortgage going into investments, plus no interest payments, plus normal appreciation, still gives a pretty good inflation hedge, in addition to having a far lower risk component.

[MonkeyMama]

Unless they would give you something else of value to you if you actually did pay cash. Examples? House or landscaping upgrades, appliances, blinds, neighborhood club membership.

Excellent advice to negotiate a cash offer. But... this is thinking way too small. A cash buyer is invaluable in the current economic environment.

I work for a home builder. Personally, I'd ask for 5% off the top and would refinance after the sale was final. YMMV. There's probably infinite factors that go into a seller's willingness to negotiate. Unfortunately, I think corn probably has lost a lot of negotiating power if he has already revealed his mega income (for a loan). But... I will still throw it out in the "it never hurts to ask" category. I'd start with something ridiculous and see what they come back with.

We've been getting so many cash offers with the pandemic, I told my husband the other day, "Remind me to buy our next home with cash." You save a boatload and you skip a lot of red tape.

[bjl584]

https://www.marketwatch.com/story/wi...-3-11594845518

The average rate for a 30-year fixed rate mortgage dropped to 2.98%, the lowest it has ever been and the first time it has dropped below 3%.

We don't have a mortgage and aren't looking to get one anytime soon but what a great situation for those who are.

I've been watching this, but the loan I have is pretty low, and doing a refi right now doesn't make sense.

[scfr]

Excellent advice to negotiate a cash offer. But... this is thinking way too small. A cash buyer is invaluable in the current economic environment.

I work for a home builder. Personally, I'd ask for 5% off the top and would refinance after the sale was final. YMMV. There's probably infinite factors that go into a seller's willingness to negotiate. Unfortunately, I think corn probably has lost a lot of negotiating power if he has already revealed his mega income (for a loan). But... I will still throw it out in the "it never hurts to ask" category. I'd start with something ridiculous and see what they come back with.

We've been getting so many cash offers with the pandemic, I told my husband the other day, "Remind me to buy our next home with cash." You save a boatload and you skip a lot of red tape.

Very true. Our experience buying with cash has varied by location and time. The last time we purchased a house, we were able to get a significant price reduction paying cash. We were also buying at a time when borrowers where having a very hard time getting mortgage approval, so that made cash buyers even more appealing. But not so much this time. I suspect it has something to do with the transparency of real estate transactions where we live now vs last time. The last time we bought, information on sales prices was darn near impossible to root out. Where we live now, anyone can look up what everyone paid immediately. Builders here would rather offer "goodies" than lower the price by much. I think they want to maintain the higher "recorded price" so that they can sell at a higher price to the next buyer. Future buyers won't know that a buyer in the same neighborhood paid cash, only the amount they paid.

[LivingAlmostLarge]

I saw online mortgage purchase 30 year fixed a 2.375%. OMG. What a deal. I can't beat my 7/1 arm at 3% so I'm just waiting.

[MollyClarkson]

Yeah, this news surprised me because I was just about to get a mortgage soon. I think the coronavirus has had a very strong impact on the real estate market. I was going to get a mortgage a couple of months ago but to be honest I'm not sure whether to do it because the situation in the real estate market is extremely unstable. I'm even thinking of contacting a Mortgage Broker London because they will help me every step of the way with my mortgage application. I don't want to waste a lot of time and energy on this. so I hope their specialists will help me.

[LivingAlmostLarge]

I got 27 year fixed for 2.75% on a jumbo mortgage.