Fantasy Football - Footballguys Forums
MechEng

Mortgage Rates

Recommended Posts

I can currently refinance for 5.5% from my current 6.5%. Will they continue to drop, go up or stay steady? It just dropped .125% from yesterdays rate.

Share this post


Link to post
Share on other sites

I can currently refinance for 5.5% from my current 6.5%. Will they continue to drop, go up or stay steady? It just dropped .125% from yesterdays rate.

if you can get 5.5% i would take it, especially in light of the current credit constraints that persist throughout real estate right now.that is historically a phenomenal rate. i personally wouldn't gamble to try and extract another 10 bips out of it.

Share this post


Link to post
Share on other sites

If the feds cuts rates again will that cause them to go down?

The Fed rates do not have a direct affect on mortgage rates. 5.5% is historically a GREAT rate. If you can roll on this and keep closing costs down or at 0 from the lender then I would not gamble with it going lower and do it. Do not worry about whether you could have got another .125% off on your rate when you are saving a full 1% already.

Share this post


Link to post
Share on other sites

IMO rates will be trending lower up to, at least, until the Fed has their .5 cut. Bonds are way up today, as are mortgage backed securities. If you are even CONSIDERING a refinance though, it's time to touch base with a broker/banker and at least get set up so that you can lock ASAP when the time is right.

Edited by Meat

Share this post


Link to post
Share on other sites

Pffft, people have been saying "you better lock in now" for the past 2 years. Why's today any different?

Share this post


Link to post
Share on other sites

Pffft, people have been saying "you better lock in now" for the past 2 years. Why's today any different?

You go ahead and let us know when rates have bottomed out Nostradamus.

Share this post


Link to post
Share on other sites

Pffft, people have been saying "you better lock in now" for the past 2 years. Why's today any different?

You go ahead and let us know when rates have bottomed out Nostradamus.
They will have bottomed out when they start to go back up.

Share this post


Link to post
Share on other sites

Pffft, people have been saying "you better lock in now" for the past 2 years. Why's today any different?

You go ahead and let us know when rates have bottomed out Nostradamus.
They will have bottomed out when they start to go back up.
Depends how you define bottom out.

Share this post


Link to post
Share on other sites

I read a piece today suggesting that the Fed's Jan 30 rate cut is already being priced into the 10yr bond, so we shouldn't expect another significant decline in mortgage rates once the Fed actually cuts.

Personally, I see the Fed have to cut a few more times this year, so I wouldn't surprise me to see rates closer to 5% at some pt this year.

:unsure:

Share this post


Link to post
Share on other sites

Pffft, people have been saying "you better lock in now" for the past 2 years. Why's today any different?

You go ahead and let us know when rates have bottomed out Nostradamus.
They will have bottomed out when they start to go back up.
Depends how you define bottom out.
Personally, I tend to define it as when they start to go back up.

Share this post


Link to post
Share on other sites

If the feds cuts rates again will that cause them to go down?

The Fed rates do not have a direct affect on mortgage rates.

5.5% is historically a GREAT rate. If you can roll on this and keep closing costs down or at 0 from the lender then I would not gamble with it going lower and do it. Do not worry about whether you could have got another .125% off on your rate when you are saving a full 1% already.

Can you really get 5.5% with 0 from the lender? I'm going to settlement Friday on a 30-year fixed at 5.5, but I had to pay a point -- though no closing costs, other than the appraisal and the title company's filing fees.

My wife and I have great credit, but have still found the lender to be paying a lot closer attention to our financial history and situation than they did 18 months ago when we bought the house.

Edited to add that there's a good discussion of mortgage refinancing here. It motivated me to refi and save almost $200 a month. My wife was like, "How did you decide it was a good time to refinance?" and I told her -- "Oh, a bunch of guys on a fantasy football message board said so."

Edited by The_Man

Share this post


Link to post
Share on other sites

I'm waiting until this summer when I expect the economy to be at its bottom point and rates to be lower than they are now. Not a big deal if I'm wrong as I don't see rates climbing at all.

Edited by LHUCKS

Share this post


Link to post
Share on other sites

Dumb question but i believe im locked in at 5.875, what would be cutoff to make a refi worth it.

We are about 4 years in.

Share this post


Link to post
Share on other sites

Pffft, people have been saying "you better lock in now" for the past 2 years. Why's today any different?

You go ahead and let us know when rates have bottomed out Nostradamus.
They will have bottomed out when they start to go back up.
Depends how you define bottom out.
Personally, I tend to define it as when they start to go back up.
By your definition, stocks bottom out constantly throughout any given day.I can't imagine a worse message board conversation. I'm sincerely sorry I responded to your post to begin with. I must be really bored. Carry on.

Share this post


Link to post
Share on other sites

If the feds cuts rates again will that cause them to go down?

The Fed rates do not have a direct affect on mortgage rates.

5.5% is historically a GREAT rate. If you can roll on this and keep closing costs down or at 0 from the lender then I would not gamble with it going lower and do it. Do not worry about whether you could have got another .125% off on your rate when you are saving a full 1% already.

Can you really get 5.5% with 0 from the lender? I'm going to settlement Friday on a 30-year fixed at 5.5, but I had to pay a point -- though no closing costs, other than the appraisal and the title company's filing fees.

My wife and I have great credit, but have still found the lender to be paying a lot closer attention to our financial history and situation than they did 18 months ago when we bought the house.

Edited to add that there's a good discussion of mortgage refinancing here. It motivated me to refi and save almost $200 a month. My wife was like, "How did you decide it was a good time to refinance?" and I told her -- "Oh, a bunch of guys on a fantasy football message board said so."

I can lock in at that right now for a 30 year at Wachovia. (not within 60 days of closing yet) No points.

Share this post


Link to post
Share on other sites

Dumb question but i believe im locked in at 5.875, what would be cutoff to make a refi worth it. We are about 4 years in.

find out how much you would save per month with your new rate and calculate how many months it would take you to break even versus the amount of closing costs you pay. if you plan on being in the house longer than the amt of months you find in the previous step then it makes sense.

Share this post


Link to post
Share on other sites

If the feds cuts rates again will that cause them to go down?

The Fed rates do not have a direct affect on mortgage rates.

5.5% is historically a GREAT rate. If you can roll on this and keep closing costs down or at 0 from the lender then I would not gamble with it going lower and do it. Do not worry about whether you could have got another .125% off on your rate when you are saving a full 1% already.

Can you really get 5.5% with 0 from the lender? I'm going to settlement Friday on a 30-year fixed at 5.5, but I had to pay a point -- though no closing costs, other than the appraisal and the title company's filing fees.

My wife and I have great credit, but have still found the lender to be paying a lot closer attention to our financial history and situation than they did 18 months ago when we bought the house.

Edited to add that there's a good discussion of mortgage refinancing here. It motivated me to refi and save almost $200 a month. My wife was like, "How did you decide it was a good time to refinance?" and I told her -- "Oh, a bunch of guys on a fantasy football message board said so."

:lmao:

I bet she just looked at you with this dumbfounded look similiar to :mellow:

I was at a Wells Fargo mortgage office monday of last week. The manager and I are talking about me working there so he was showing me their system. We did not really talk rates but we ran a few scenario's. Wells has some ability to move their rates on a number of different factors but it was very possible to get 5.5% without points on a 30 year fixed a week ago. I am sure that would hold true now.

Underwriting will be conservative for a long time and things like 100% financing and stated income are either going to be a thing of the past.... well.... at least in how it was done over the last 8 years or so. Meaning, there may be some programs out there that you can get 100% financing but with large reserves in the bank and high FICO etc.... you will not find a no doc, 100% financing loan like I got late 2006 anymore.

Share this post


Link to post
Share on other sites

No expert on US rates, but I would bet that declines are not likely soon.

The Fed will cut rates, probably a couple more times. I would expect probably 1% more to be taken off the Fed rate.Problem with mortgages is that the cost of credit is going up and that is passed along to consumers. So although the Fed rate is going to decrease the spread is also currently increasing. Mortgage rates may drift down a bit more, but don't expect anywhere near a 1:1 correlation with the Fed cuts.

Share this post


Link to post
Share on other sites

Dumb question but i believe im locked in at 5.875, what would be cutoff to make a refi worth it. We are about 4 years in.

find out how much you would save per month with your new rate and calculate how many months it would take you to break even versus the amount of closing costs you pay. if you plan on being in the house longer than the amt of months you find in the previous step then it makes sense.
That is the way to go. How long you have been there or had the loan does not really matter- unless it reflects into a pre-payment penalty or that you have no equity or upside down on what you owe.

Share this post


Link to post
Share on other sites

I think the entire yield curve will continue to drop. The housing and credit crunch will only get worse. 'Prime until '09' will be too optimistic. It will spread to not only the housing market. Look for billions in chargeoffs to go with our recession. All of this will continue the flight to bonds and keep yields pushing down. imho

Share this post


Link to post
Share on other sites

just locked in a 30 year fixed re-fi today @ 5.125

the mortgage guy said that he has 15-20 people with the paperwork all filled out floating the loan until they think the rates have stopped going down. I just can't see the rates getting below 5 for a 30-yr so it wasn't worth the risk to me to pass up the rate I got.

Share this post


Link to post
Share on other sites

just locked in a 30 year fixed re-fi today @ 5.125the mortgage guy said that he has 15-20 people with the paperwork all filled out floating the loan until they think the rates have stopped going down. I just can't see the rates getting below 5 for a 30-yr so it wasn't worth the risk to me to pass up the rate I got.

Which bank? What state? Points? Closing costs?

Share this post


Link to post
Share on other sites

just locked in a 30 year fixed re-fi today @ 5.125the mortgage guy said that he has 15-20 people with the paperwork all filled out floating the loan until they think the rates have stopped going down. I just can't see the rates getting below 5 for a 30-yr so it wasn't worth the risk to me to pass up the rate I got.

Which bank? What state? Points? Closing costs?
Ditto -- share the wealth man. That sounds like a great deal you got. We're considering refinancing also.

Share this post


Link to post
Share on other sites

just locked in a 30 year fixed re-fi today @ 5.125the mortgage guy said that he has 15-20 people with the paperwork all filled out floating the loan until they think the rates have stopped going down. I just can't see the rates getting below 5 for a 30-yr so it wasn't worth the risk to me to pass up the rate I got.

Which bank? What state? Points? Closing costs?
Ditto -- share the wealth man. That sounds like a great deal you got. We're considering refinancing also.
:lmao:

Share this post


Link to post
Share on other sites

just locked in a 30 year fixed re-fi today @ 5.125the mortgage guy said that he has 15-20 people with the paperwork all filled out floating the loan until they think the rates have stopped going down. I just can't see the rates getting below 5 for a 30-yr so it wasn't worth the risk to me to pass up the rate I got.

Which bank? What state? Points? Closing costs?
Ditto -- share the wealth man. That sounds like a great deal you got. We're considering refinancing also.
:blackdot:
:shrug:

Share this post


Link to post
Share on other sites

Dumb question but i believe im locked in at 5.875, what would be cutoff to make a refi worth it. We are about 4 years in.

find out how much you would save per month with your new rate and calculate how many months it would take you to break even versus the amount of closing costs you pay. if you plan on being in the house longer than the amt of months you find in the previous step then it makes sense.
That is the way to go. How long you have been there or had the loan does not really matter- unless it reflects into a pre-payment penalty or that you have no equity or upside down on what you owe.
Not that it's significant, but at some point, wouldn't you have to figure in the extra 4 years (in this case) he's going to be making payments, given that he only has 26 more years on his current mortgage versus starting over with a new 30 year term. I guess if he continues to move and get new mortgages, this becomes irrelevant, but at some point, and depending upon the number of years in on the current loan, I think it has to come into play somewhere.

Share this post


Link to post
Share on other sites

We're refi'ing at 5.75% on a 30-year fixed 1st, maxed out at the just-under jumbo amount in CA of $417k, and we have a second at 7.6% that's also a 30-year fixed but that we'll obviously pay off through a subsequent refi, once the jumbo loans pencil out sometime in the future. This was by far the best deal we could find, and the lender is paying for appraisal and the title search (about $500 value). This about as good as it gets in CA right now.

Share this post


Link to post
Share on other sites

just locked in a 30 year fixed re-fi today @ 5.125the mortgage guy said that he has 15-20 people with the paperwork all filled out floating the loan until they think the rates have stopped going down. I just can't see the rates getting below 5 for a 30-yr so it wasn't worth the risk to me to pass up the rate I got.

Which bank? What state? Points? Closing costs?
Ditto -- share the wealth man. That sounds like a great deal you got. We're considering refinancing also.
:eek:
:porked:
1 point, Iowa, Veridian Credit Union (who then sells it immediately to PHH Mortgage)

Share this post


Link to post
Share on other sites

I can currently refinance for 5.5% from my current 6.5%. Will they continue to drop, go up or stay steady? It just dropped .125% from yesterdays rate.

They will go down. I would do 15 year Interest only mortage, don't do 30 year.Good Luck :goodposting:

Share this post


Link to post
Share on other sites

I can currently refinance for 5.5% from my current 6.5%. Will they continue to drop, go up or stay steady? It just dropped .125% from yesterdays rate.

They will go down. I would do 15 year Interest only mortage, don't do 30 year.Good Luck :goodposting:
Why is this?

Share this post


Link to post
Share on other sites

Dumb question but i believe im locked in at 5.875, what would be cutoff to make a refi worth it. We are about 4 years in.

find out how much you would save per month with your new rate and calculate how many months it would take you to break even versus the amount of closing costs you pay. if you plan on being in the house longer than the amt of months you find in the previous step then it makes sense.
That is the way to go. How long you have been there or had the loan does not really matter- unless it reflects into a pre-payment penalty or that you have no equity or upside down on what you owe.
Not that it's significant, but at some point, wouldn't you have to figure in the extra 4 years (in this case) he's going to be making payments, given that he only has 26 more years on his current mortgage versus starting over with a new 30 year term. I guess if he continues to move and get new mortgages, this becomes irrelevant, but at some point, and depending upon the number of years in on the current loan, I think it has to come into play somewhere.
Not really. Lowering the rate is what is going to save money and the costs associated with the re-fi is what is going to cost money. Assuming after 4 years the closing costs are less than what you have paid to principal then you are lowering your loan amount and assuming you take a 30 year mortgage 4 years in and re-fi into a new 30 year mortgage the things that will change are the rate and the monthly payments. You could then pay the same amount that you were paying on the previous loan and excellerate your payoff on the mortgage (if you really wanted to do this- but I would suggest there is, in most cases, a better use of your cash flow than this) and actually pay off the loan much faster than the original loan. How long he has held a mortgage really is not one of the crucial variables in itself- although it is a good indicator of things like rate (knowing about what rates were offered 4 years ago in general), equity (pay off of principal and/or appreciation/depreciation), and misc (like possible pre-payment penalty on an ARM etc)

Share this post


Link to post
Share on other sites

So really it was 6.125?

lol yeahit is misleading when you quote a rate after you buy it down.
It seems we need some FFA rules for posting rates.I can get 4.5 if I buy a point also.

Share this post


Link to post
Share on other sites

I can currently refinance for 5.5% from my current 6.5%. Will they continue to drop, go up or stay steady? It just dropped .125% from yesterdays rate.

They will go down. I would do 15 year Interest only mortage, don't do 30 year.Good Luck :thumbup:
Why is this?
i think he is talking about a product that is a 30 year fixed loan with the first 15 years as I/O and the next 15 years like a 15 year P&I loan. odds are you'll refi before you ever hit your 16th year so you get an I/O loan fixed for a long period of time.i like that product as well personally if you arne't comfortable with an option arm.

Share this post


Link to post
Share on other sites

So really it was 6.125?

lol yeahit is misleading when you quote a rate after you buy it down.
:thumbup:

Share this post


Link to post
Share on other sites

So really it was 6.125?

lol yeahit is misleading when you quote a rate after you buy it down.
Lets sidebar: do you recommend buying down on a rate if you plan on staying in the same location for a long time? I know with the 30 year I'm looking at, an 1/8th of a % pays itself off in 14 months.

Share this post


Link to post
Share on other sites

I can currently refinance for 5.5% from my current 6.5%. Will they continue to drop, go up or stay steady? It just dropped .125% from yesterdays rate.

They will go down. I would do 15 year Interest only mortage, don't do 30 year.Good Luck :thumbup:
Why is this?
i think he is talking about a product that is a 30 year fixed loan with the first 15 years as I/O and the next 15 years like a 15 year P&I loan. odds are you'll refi before you ever hit your 16th year so you get an I/O loan fixed for a long period of time.i like that product as well personally if you arne't comfortable with an option arm.
What kinds of rates are currently being quoted with these types of loans? I'm in a 5 yr I/O loan (fixed for 2.5 more years at 5.25%). Because the market has declined and is likely to continue to decline, would you recommend avoiding fixed P&I loans for the near future?

Share this post


Link to post
Share on other sites

So really it was 6.125?

Not exactly how it works. When you buy a point, you are paying 1% on the full amount. If your loan is 400k then that is $4000. You would pay this much annually if your rate was 6.125. If his rate is 5.125, and he is buying a point, he is probably at 5.375 or so, which is still an excellent rate right now.

Share this post


Link to post
Share on other sites

So really it was 6.125?

lol yeahit is misleading when you quote a rate after you buy it down.
Lets sidebar: do you recommend buying down on a rate if you plan on staying in the same location for a long time? I know with the 30 year I'm looking at, an 1/8th of a % pays itself off in 14 months.
it really depends, but i typically never buy rates down. i would rather save the known expense up front and pay a slightly higher monthly amount for an unknown period of time until i sell or refinance. you also have time value of money of paying now versus paying over time.but that is a personal decision...just like some people like to pay off their home ASAP, something i would never do. you will get many very smart people who advocate buying rates down i am sure. i just have never seen the need to do it for my own situation.

Share this post


Link to post
Share on other sites

I can currently refinance for 5.5% from my current 6.5%. Will they continue to drop, go up or stay steady? It just dropped .125% from yesterdays rate.

They will go down. I would do 15 year Interest only mortage, don't do 30 year.Good Luck :goodposting:
Why is this?
i think he is talking about a product that is a 30 year fixed loan with the first 15 years as I/O and the next 15 years like a 15 year P&I loan. odds are you'll refi before you ever hit your 16th year so you get an I/O loan fixed for a long period of time.i like that product as well personally if you arne't comfortable with an option arm.
What kinds of rates are currently being quoted with these types of loans? I'm in a 5 yr I/O loan (fixed for 2.5 more years at 5.25%). Because the market has declined and is likely to continue to decline, would you recommend avoiding fixed P&I loans for the near future?
i don't know.chadstroma or proninja may know.i'm in residential real estate but not a mortgage broker.

Share this post


Link to post
Share on other sites

So really it was 6.125?

Not exactly how it works. When you buy a point, you are paying 1% on the full amount. If your loan is 400k then that is $4000. You would pay this much annually if your rate was 6.125. If his rate is 5.125, and he is buying a point, he is probably at 5.375 or so, which is still an excellent rate right now.
:goodposting:

Share this post


Link to post
Share on other sites

Dumb question but i believe im locked in at 5.875, what would be cutoff to make a refi worth it. We are about 4 years in.

find out how much you would save per month with your new rate and calculate how many months it would take you to break even versus the amount of closing costs you pay. if you plan on being in the house longer than the amt of months you find in the previous step then it makes sense.
That is the way to go. How long you have been there or had the loan does not really matter- unless it reflects into a pre-payment penalty or that you have no equity or upside down on what you owe.
Not that it's significant, but at some point, wouldn't you have to figure in the extra 4 years (in this case) he's going to be making payments, given that he only has 26 more years on his current mortgage versus starting over with a new 30 year term. I guess if he continues to move and get new mortgages, this becomes irrelevant, but at some point, and depending upon the number of years in on the current loan, I think it has to come into play somewhere.
Not really. Lowering the rate is what is going to save money and the costs associated with the re-fi is what is going to cost money. Assuming after 4 years the closing costs are less than what you have paid to principal then you are lowering your loan amount and assuming you take a 30 year mortgage 4 years in and re-fi into a new 30 year mortgage the things that will change are the rate and the monthly payments. You could then pay the same amount that you were paying on the previous loan and excellerate your payoff on the mortgage (if you really wanted to do this- but I would suggest there is, in most cases, a better use of your cash flow than this) and actually pay off the loan much faster than the original loan. How long he has held a mortgage really is not one of the crucial variables in itself- although it is a good indicator of things like rate (knowing about what rates were offered 4 years ago in general), equity (pay off of principal and/or appreciation/depreciation), and misc (like possible pre-payment penalty on an ARM etc)
If you have a set time you planned on paying off the house, 30 and 15 aren't the only options, either. You can get a 25 or a 20 (in some cases even odd numbers like 27, 23, etc.) and stay close to the number of years you have left while still lowering your payments and laying out less interest over the rest of the loan.

Share this post


Link to post
Share on other sites

We're refi'ing at 5.75% on a 30-year fixed 1st, maxed out at the just-under jumbo amount in CA of $417k, and we have a second at 7.6% that's also a 30-year fixed but that we'll obviously pay off through a subsequent refi, once the jumbo loans pencil out sometime in the future. This was by far the best deal we could find, and the lender is paying for appraisal and the title search (about $500 value). This about as good as it gets in CA right now.

I'm assuming this was a much cheaper option than going with one jumbo mortgage for the entire debt amount?My wife and I were going to take the same approach as you when we were homeshopping in the fall.

Share this post


Link to post
Share on other sites

California30 year FRM (Loan<$417K)5.375% with no closing costs

which lender?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Recently Browsing   0 members

    No registered users viewing this page.