At some points what bank would want to write 30 year notes.

K

KINGOFSHORTS

They hit slightly less than 4% today. but at some point what bank is going to want to underwrite a 30 year loan for less than 4%

Not exactly a great proposition to collect less than 4% to loan money out to risky Americans so they can buy a risky asset that could go underwater.

The FED wants to lower mortgage interest but at some point no one will want to write them if the yields are not consummate with the risk involved.
 
So how would you explain 30y JGB at <2% yield then? And yield on the current 30y is well below 4% (arnd 2.92%, to be exact). Or do you mean mtges?
 
Regarding mortgages, they wont. The wife and I have credit scores above 740. We have LTV above 80%. We have documented income for 5 years plus over 100k. We have zero credit card debt and one car payment. And I have been trying to refi @ 4 or less with zero points for a month and cannot find one bank willing to do it.

Far as I can see the numbers are a farce.

If anybody has an institution that will lend freely please link me.
 
Quote from Crispy:

Regarding mortgages, they wont. The wife and I have credit scores above 740. We have LTV above 80%. We have documented income for 5 years plus over 100k. We have zero credit card debt and one car payment. And I have been trying to refi @ 4 or less with zero points for a month and cannot find one bank willing to do it.

Far as I can see the numbers are a farce.

If anybody has an institution that will lend freely please link me.
More...

A perfect example of how dysfunctional and broken the credit markets have become.
 
Quote from Crispy:

Regarding mortgages, they wont. The wife and I have credit scores above 740. We have LTV above 80%. We have documented income for 5 years plus over 100k. We have zero credit card debt and one car payment. And I have been trying to refi @ 4 or less with zero points for a month and cannot find one bank willing to do it.

Far as I can see the numbers are a farce.

If anybody has an institution that will lend freely please link me.
More...

Thats the issue, with the uncertainty in the markets and risk of asset deflation (homes) loaning for 30 years at 4% seems a bit silly from a business prospective.

I am not surprised a bank is unwilling to provide such a loan since even if you have perfect credit, you and the home you are buying has a risk level higher what a 4% loan would stipulate.

Try a 15 year loan, odds could be better.
 
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