How Would You Like a 3.99% Mortgage?

• Report this Comment On January 22, 2009, at 5:42 PM, SteveTheInvestor wrote:

  Toll's plan might work to some extent, but I would not plan to see people swarming their office looking to buy a house. People are too freaked out about sinking prices and most just can't bring themselves to buy. It's a spiral that for now can't be stopped. I don't know anybody who thinks homes are cheap yet. Lower in price, yes, but not cheap. When they become cheap (whatever level that is), the buyers will come. Not until then.

• Report this Comment On January 22, 2009, at 8:14 PM, sev65 wrote:

  If it sounds too good to be true, it generally is...Consider this fact: These homes start around $400,000 and in many markets are priced well over $1 million. In this economy, a 4% return on this sort of base price is sweet for the builder, given the rates of return on alternative investments and lots of dead inventory. Buyers are now looking at customer satisfaction scores, builder and sub-contractor employment practices and are wanting quality and value for their housing dollar. Home buyers are much more thoughtful and frugal in their decision-making these days. The Toll "McMansion" era is over...

• Report this Comment On January 23, 2009, at 12:53 PM, myop wrote:

  Something you have to watch out for is that when these organizations offer lower than average mortgage rates, despite the fact that you have excellent credit scores and have a 20 percent down payment, they also base it on how much you borrow. If the house you're trying to purchase is below, say, 100,000 after your 20 percent down, they don't give you the lowest rate after all. They're going to get their money one way or the other - the interest rate they're getting is never enough for them! So they charge you larger closing costs or fees somewhere - or raise the interest rates so not even the most financially responsible person with the best credit history is going to get the lowest rate - as advertised - unless they borrow a lot more money - preferably with a lot longer borrowing time such as 30 or 40 years as opposed to 15 years. Many of them will also charge you up front application fees even when you're just checking them out to compare with other lenders, as is your right, they don't want to give you a pre-approval without the money up front. So if you decide that they weren't the best deal for you and you prefer another lender - you're not getting that application fee and oftentimes - appraisal fee that some demand upfront - back. Always try to research complaints about these organizations online to see what users are saying about them and see if it sounds like they're going to do the same to you before you send any money or sign any agreement.

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