Mortgage transfers helping homebuyers get lower rates

Record-high mortgage rates have made buying a new home unaffordable for many people. But some real estate agents are trying to lock in lower rates with mortgage transfers. Daryl Fairweather, chief economist for Redfin real estate brokerage, joins CBS News to discuss.

#news #mortgage #finance

[holyland]

It's not accurate to say that higher interest rates make mortgages unaffordable. The cost of mortgage is a combination of the cost of the property and the interests. In fact years of extremely low interest rates had inflated the cost of properties. It takes time for adjustments but the cost of properties need to come down.

[goodjoke]

The VA Assumption is good in theory, but not really practical. Lets say you buy a house for $400, 000 on a VA assumption. The remaining mortgage amount for the seller is $300, 000. The buyer has to put a down payment of $100, 000 to bridge the gap. In a normal VA loan your down payment is $0. So thank you for helping virtually no one with this news story!

[calineswafford]

It’s not the mortgage rate, it’s the price of the homes. Mortgage rate is not that high compared to the 90s. When it’s 10%. The prices are ridiculous that no one can afford it.
It’s not wise to get a lot of diff. Loans.

[NeilFoxSelfProclaimedGenius]

So this is news that VA loans are assumeable? Weak.

[noaht]

At 33 seconds in... Did she drop the f-bomb or is that just me?! 😅

[raymondcaylor]

3:34 adjustable rate mortgages used to get a payment you can afford is just plain dumb.

[kimo]

A real estate agent told my Mom about this back in the 70's. She assumed many loans in the 80s when interest rates were double digits.

[ericinla]

Thank God - My 1st house was paid off 10 years ago & my 2nd home will be paid off in 3 years with a very low interest rate. I feel sorry for people in the process of buying a hone now

[Jadot]

The problem is the inflated property prices. Rates you can refinance anytime but the property price never.

[reflectionsofservice]

The words "lock in" at :30 sounded like something else... Took me a minute, lol

[lesliewheeler]

This isn't good advice, whatsoever... Unless you're a rich guy that can purchase a house cash. These wealthy talking heads are basically saying - you have to have a lot of cash to get the better deal. This is in no way helping the lower wage buyer.
Also, getting an ARM would be IDIOTIC. Just refresh your memory with the housing crash of 2008, 2009. 😓

[Dohair]

More FOMO just to get into an overpriced home.

[LouisBackover]

Dollars to donuts a mortgage transfer will have an added clause stating that if the new transferee ever defaults, the debt falls back onto the original mortgage loan holder.

[kyoung]

Other things to deeply consider when buying a home, property tax is a very big one, property insurance can be costly too when some big insurance names like State Farm and Allstate don't sell property insurance to homeowners in CA.

[BillSias-opxw]

LMAO, THESE ARE NOT RECORD HIGH MORTGAGE RATES. VA loans are few and far between, old assumable FHA loans have matured but some may have been extended. No note holder in their right mind will allow a new buyer to assume an old lower rate, it is their "repricing opportunity", after all it is a business. Those with limited earning potential in the future (teachers, tech, government employees, etc.) should not use an adjustable rate loans to the max, lenders will qualify you at 2% over the entry rate, you should consider at least half the life cap that it can be raised (generally caps are at 6%), so use 3/4% or higher to qualify yourself for the debt. The best index for an ARM is the T-Bill, 11th district cost of funds, a fed funds rate. Otherwise take a fixed rate!

[sparta]

ITS NOT CALLED A TRANSFER .. KNOW WHAT YOU ARE TALKING ABOUT BEFORE YOU SPEAK.., , ITS CALLED AN ASSUMPTION