LotusTalk - The Lotus Cars Community - View Single Post - Anyone trying to buy a Home in Socal...Banks are Lame!!!

plastique999 · 08-01-2009, 08:22 PM

Update: 5th bid on a house, and we are in escrow!

So here is the situation with the banks and housing scenario.
As some of you know, June had one of the highest new home sales at 17% - this may be falsely inflated, but good news nevertheless.

Some may question whether now is a good time to buy a home - the housing market may drop another 5% or so, but on the other hand, the interest rates are very low. So if you end up waiting a year or so, although the housing prices may drop a little, the interest rates may be higher at that time....who knows.

Regarding loans, the banks are loosening up a Little. I have been working with Wells Fargo, and there are a couple of options. They will do a first now up to about $500 K at the current 30 yr. fixed rate (around 5.25%). They will do a Trust deed for the remainder of the loan at around 5.5% - however, that loan is adjustable. Even if the interest rate went up to around 7 or 8% in a few years, the combined interest rate on the total would still be cheaper than a jumbo rate which, for me, would have been over 6%. The key to this type of loan is to have a smaller amount on the trust deed, so that you could pay this off as soon as you can before it adjusts higher.

Hope this helps some of you out there looking to buy....

08-01-2009, 08:22 PM	#16 (permalink)
plastique999 Form and Function Join Date: May 2008 Location: Alta Loma, CA Posts: 3,046	Update: 5th bid on a house, and we are in escrow! So here is the situation with the banks and housing scenario. As some of you know, June had one of the highest new home sales at 17% - this may be falsely inflated, but good news nevertheless. Some may question whether now is a good time to buy a home - the housing market may drop another 5% or so, but on the other hand, the interest rates are very low. So if you end up waiting a year or so, although the housing prices may drop a little, the interest rates may be higher at that time....who knows. Regarding loans, the banks are loosening up a Little. I have been working with Wells Fargo, and there are a couple of options. They will do a first now up to about $500 K at the current 30 yr. fixed rate (around 5.25%). They will do a Trust deed for the remainder of the loan at around 5.5% - however, that loan is adjustable. Even if the interest rate went up to around 7 or 8% in a few years, the combined interest rate on the total would still be cheaper than a jumbo rate which, for me, would have been over 6%. The key to this type of loan is to have a smaller amount on the trust deed, so that you could pay this off as soon as you can before it adjusts higher. Hope this helps some of you out there looking to buy.... __________________ www.FaceNBody.com 2005 Lotus Elise: 2bular decat\GT3 exhaust,HID's,turn signal&rear fins delete, CFside scoops, CFbinnacle,CFcenter console,Zoom CF mirror,APR Aero kit,CF 5-elem. diffuser,Exige mesh,Ohlins DA,RTD brace,RAC 'lites,Toyo R888's,HawkHT10's,CO painted calipers,SS lines,Reverie XC CF seat,Reverie CF steering wheel,Schroth Profi II 6 pt harness,shifter re-Enforcer,Manly mounts, Accusump,Moroso pan,BWR key to BWR S/C! Spec Racer Ford #237 Last edited by plastique999 : 08-01-2009 at 10:05 PM.