r/Mortgages

Question! We just put in our first offer for a house that’ll be a potential bidding war. It’s the first day it’s on the market and listed for $635k. Our realtor suggested to offer $640k and we crunched numbers with our mortgage broker. We’re putting $19,200 down and closing costs/attorney etc is $16,800. Rate we were given is 6.5%. It sucks bc when we got our pre approval letter we were given a 5.8% rate. Just wanted to get others thoughts on the numbers lol we were told not to do sellers concession since it’s a bidding war.

I’m a first time home buyer in South Florida and want to move forward with a condo I fell in love with. However I’m worried I will be denied based on my DTI ratio. It’s at 54%. I will be purchasing the home with my boyfriend but we aren’t putting him on the loan due to credit issues. So his income won’t be included which is obviously what’s hurting me. I’ll be doing an FHA loan and we obviously haven’t started the negotiation process or anything. Just literally started looking. Has anyone in here been approved for an FHA loan with a 54% DTI ratio?

Buyer backed out on the last day of financial contingency after passing due diligence date. They had initially asked for $5,000 more in closing costs. My realtor said the lender offered $1,500 more, and they wanted $3,500 from us. We said no. Then, they claimed they weren't happy with the loan and were paying too much for the house. Now, they're saying they aren't sure about their job security as a teacher and don't want to use that much money. The buyer also repeatedly tried to back out over small concessions like smart locks and appliances, so I spent money on repairs per the home inspection, had electricians verify everything was good, repaired vent hoods, and addressed all safety issues. It feels like she got cold feet and is trying to pull out and keep the earnest money, which also ruined the sale of my other home. Can a lender issue a loan denial on the last day, claiming job uncertainty, after initially approving everything?

Hi,

I'm looking for referrals for a 2nd home loan or DSCR for a SFH in Pennsylvania. Looking for qualified lenders/brokers.

TIA

This is a very important weekend for mortgage rates with talks taking place regarding the ME situation.

My thinking is rates face more risk to move higher than they do lower.

One because they already came down about 0.25% from recent highs, despite any real (or convincing) improvement on geopolitics.

Two because seasonally they tend to be highest in spring/summer. So the historical trend simply works against them here.

And three because they were at 3.5-lows before this all transpired. It would perhaps be different if they were "high" going into this situation.

So there's not a super compelling reason for them to revisit those lows. Being about a half-point above the lowest levels since 2022 actually seems decent given all that's going on.

Hi,

Hope you’re doing great.

I own my home in South Bay (SF Bay Area). It’s a beginner home. Bought it as a fixer upper 7 years ago, put in a lot of time & effort in remodeling it over the years and have all the bells & whistles on it now (Best roof on market with warranty, battery backup, radiant heated flooring, mini split ACs, remodeled kitchen + bathroom, new appliances, brand new concrete all around the house including steps, etc)

Some work is still on the books (landscaping, garage door, exterior paint, 1 bathroom to be remodeled but functionally I use it everyday)

The best deal I have is the 2.5% rate on a 30yr fixed, 25 years to go. Confirmed it with my lender that it is Assumable/Transferrable to the new buyer.

I am thinking of selling the house and moving to a different place with 9-10 rating schools as elder kid is approaching elementary levels soon.

What I wanted to understand is if buyers would be interested in assuming this loan and how much premium would they pay?

I calculated some rough numbers:

*Current value: 1.26 Mill as per Redfin.

Loan @2.5% for 25 years ~620k

Monthly mortgage + taxes = 3900-4000 per month

Pge - 0 as I’m on NEM2, except for January when it’s whatever usage that 1 month.

Gas - 20$ as only water heater uses gas, rest all appliances are on electricity.

Water - 80-90 per month

I have 1 EV that I charge at home (Nissan Ariya) so no need to pay for it either as all excess production is good enough to cover for charging the EV + some years I get 200$ checks from pge.

All the numbers for utilities stay the same for the most part for the buyer unless his usage is crazy high.

Potential scenarios:

Scenario 1:

If a buyer were to say pay the fair market value or 1.25mill with standard 80/20, say he gets a 30 yr at 5% (even though it’s more of a ARM rate and 30 yr fixed is trending more like 6% for jumbo loans)

Downpayment - 250k

Loan - 1 million @5%

Monthly mortgage - 5368

Taxes - Separate but possibly around 1350 per month

For me, if I cut agent fees and stuff 6% from 1.25 -

I walk away with ~550k after deducting everything. The buyer still gets it at market rate.

Scenario 2:

Buyer assumes my mortgage but I charge 1.35mill instead of 1.25, downpayment and everything still stays relative at 80/20

Downpayment: 270k

Loan 1: 620k @2.5% for 25 years

Loan 2: 460k@5%

Total still comes to 5250 but higher amount loan ends 5 years earlier.

Taxes - 1480

After cutting 6% for agent fees and all from 1.35 and deducting everything, I walk away with ~645k

Buyer saves 5 years on primary loan + 100$ less per month but has to pay more in taxes so mortgage stays pretty much the same.

I’m trying to put myself in buyer’s shoes and checking if this math makes sense or if I’m asking too much as over the period of next 20-30 years, the buyer saves a lot on total interest paid, I get some premium for locking in a loan at a pretty good rate and the buyer always has the options to pay down the higher interest loan first to save more I.e multiple options to save atleast another 200+k on interest over the total timeframe of the loan.

Even if the rates go down soon, it’s hard to see 30 yr fixed rate at 2.5% anytime soon.

What do you think?

Note: I’m not trying to sell my house here, this is purely for discussion and getting guidance.

I’m kind of asking for a Hail Mary, miracle, but hoping it’s possible.

We had our mortgage sold to Shellpoint/New Rez, and it’s been nothing but a nightmare. I’ve filed a complaint with the AG’s office. They have put our house into foreclosure but are literally refusing any sort of payment from me. Our “single point of contact” has changed multiple times. Their list of what’s necessary to be provided to them is constantly changing.

Recently this week, I had an issue with sexism from one of their staff members. So I went to google if anyone else has had this issue - this turned open Pandora’s box on how many people have had issues with them. Issues similar to ours.

My miracle that I’m trying to find and see if possible is: would another company potentially refinance with us given the circumstance or am I at a total loss here ?

Hi everyone. We are a 30 & 37 yo couple. We’ve owned our home since early 2022. It’s a nice home, 4 bedrooms and 2.5bathrooms, a huge backyard that is fenced in, with a dog run fenced in separately, there’s garden beds all over around the outside of the property, it has 2 huge decks and then a screened in porch as well.

We wanted to have my parents assume the mortgage originally, because when we moved it was kind of in a hurry. Now, we’re a bit better off than we were and would love to sell it and make part of our equity back to put as a down payment for something in our new home state.

Our problem is, is that the basement is gutted (so there are only 3 bedrooms and 2 full baths ready to go), my parents have made the entire home a hoarders mess and they ripped the flooring up in the living room upstairs. In other words, our homes value went from 293k to 225k (with a 193k remaining on the mortgage) so we would walk away with literally nothing.

We’ve wanted to talk to a loan agent to see if we could qualify for using some equity to get the home fixed and ready to sell, but by the time I found all of this out it was after hours so I decided to try the online version of trying to receive the heloc and was rejected due to some past negative marks on our credit. (We struggled with we first moved so all debts (cc and otherwise) were put a bit to the side so we could worry about surviving) Every debt we have accumulated is either paid off or on a payment plan, being paid off. But, because of those we were denied the online version, which gives me little hope for when I actually get to speak to someone.

My question is, what are our best options here? We know if we fix it ourselves it would be worth the full 293k-295k. But we don’t know the best way of going about any of this. Thanks in advance.

I currently have multiple interested buyers on a non warrantable condo in Michigan. This non warrantable status just recently happened due to new insurance policy on the condominium. The buyers are aware of all of this and are still interested. Curious if anyone has had luck finding a lender with similar issues? The issues we currently have with getting a conventional loan is due to the following remarks on the insurance policy:

• The roof being classified as “non-warrantable” under the new insurer despite the November 2024 replacement

• The inflation adjustment being set at a fixed rate with no guard provision

• The water damage being capped at $100,000 per building

We are obviously actively looking for a lender that would do a specialized portfolio loan on this but now that it’s the weekend I’m just looking for feedback/opinions.

With the limited information above does it seem likely that a credit union would touch this for a portfolio loan? Or is it looking like I am stuck only looking for a cash offer?

Does not require any income documents, closing cost is current mortgage payment, 0.5% lower interest rate, same loan length. Would save about $80 a month. We are only 8 payments into the mortgage. In an FHA so refi options are limited I assume. Worth taking?

Hi, I have kind of a unique situation. Me and my husband had a Chp. 7 bankruptcy that was discharged in Nov. 2025. Recently, my parents offered to give us a piece of land to get a manufactured home w/ permanent foundation on it. & to use the paid off land as a down payment if possible. I know we don't apply for a regular loan, & was researching non qm loans. Would this scenario be possible for a non qm loan, and is there any recommendations for a lender in California.

Our first time in this home buying process. Anxious, excited, nervous, all the things. Closing date was for end of this month. What’s the likelihood we will close on the set date… and are we like “approved” and good to go, from this point? Should we pack? 😅🤞

USDA loan

Right now we have $351000 left on our loan. Our rate is 6.49%, 30 year term, and monthly payment at $3300. We are trying to refinance to a 15 year term. We already pay additional $200 on the principle every month anyways so we are more than fine with paying more for a shorter term.

I received multiple loan estimates for refi, but I am trying to decide which lender to go with. Both are offering an interest rate of 6.25% for 15 years and giving a monthly payment of $3566.

Option A:

$3500 origination for broker compensation

$6200 total loan costs

$6300 total other costs

$8750 closing costs (including $3700 lender credit)

$7100 estimated cash to close

5.786% apr

48.3% TIP

Option B:

$0 origination

$4500 total loan costs

$6100 total other costs

$9800 closing costs (including $750 lender credit)

$8150 estimated cash to close

5.692% apr

48.5% TIP

Is option A better due to lower closing costs? I’m not sure if I’m overthinking things, but I just would like someone to explain to me which is the better option so I know I’m making the right decision.

Thank you!

Hi!

Got an offer to refinance our loan. We currently have a 30 conventional loan at 6.5% (only just bought the house in May 2025. We are currently making an additional principal payment of $576/month, which has us on track to pay the loan off 20 years from now.

If we were to take the 15 year 4% loan, our monthly payment would be the same as we pay now with our extra principal payment included. I calculate we’d save about $240k of interest over the life of the loan relative to our current plan. Only catch is the closing costs. $24k. But 24k is still a lot less than we’d save right?

Seems like a good idea to me but wondering what I might be missing.

Thanks in advance!!

I bought a 2nd house as an investment property. My mortgage is still not showing up on my credit report a year later, Has anyone experienced this? the weird thing is when I first got the mortgage it was on my credit report right way within a month, then my mortgage company sold it to another mortgage servicing company after my first payment so it shows paid off on my credit report, but the new mortgage company never added it back on my credit report it’s been a over year now!

before I put in an application I requested an appraisal to see where our value is. This will determine if we want to c/o refi or a rate/term.

lender stated they can't without running credit and full application.

Any lenders out there that don't need app first before ordering appraisal?

I'll try to keep this brief and simple..

We are buying/selling. Closing on ours falls after closing on new home, and we're sitting on a decent amount of equity.

We plan to put 100k of that equity into the new VA loan (300k) to bring the loan down to 200k and a lower payment via IRRRL after 6+ months of paying the full amount on the 300k loan.

Question: Would it benefit us to put that money down immediately instead of holding onto it until the time of the 'refinance'?

In my mind, the math works the same as if we had been paying on the loan for years and brought the balance down to 200k, and more is going towards principal instead of just 99% interest (which means more would immediately be going towards principal with the immediate down-payment). Am I right to think this way about it, or will it have no effect on principal/interest in those first 6 months?

So I was wondering if someone could help me out with my situation. I’m currently in the process of getting a pre approval done so I can know exactly where I should be looking for my price point. I’m a state employee in NY and have 457 plan, and can start making withdrawals upon separation. I told my broker that information and she said it doesn’t affect how much I’ll be approved for.

Is this accurate? I would’ve thought that since I can make withdrawals earlier that it would factor more into?

Looking for some current feedback. Lender requested transcripts when they gave me conditional approval over a week ago and still hasn’t received them. All of my pending items have been submitted/approved but closing is scheduled for next Thursday and I’m worried these transcripts may hold up closing. Has anyone else noticed delays in the IRS getting their lender transcripts? This is my fourth home purchase and don’t remember this sort of thing happening previously.

My dad passed away recently and I’ll be taking over the mortgage. I make about $55k/year with a 770 credit score. There’s around $160k left on the loan and the house is worth about $296k. It’s currently an FHA 30-year.

I don’t have any other debt (no car payment, no credit cards, etc.).

I’m thinking about refinancing into a conventional loan and putting like $75k down to bring the payment down and get rid of PMI.

Does that sound like a good move or am I missing something?