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Wait, so any non-military shmo like myself can do this? Are they really offering by far the best deals?Tempting...
Can you expand on this? What do you mean by 'one of the bad ones'? I had my loan through Countrywide(they've had plenty of troubles), which was transferred to US Bank. Are you saying that some of these 2nd banks are paying down loans for people? Sounds a little fishy.
I didn't believe it either and spoke with his mortgage broker. I have WAMU and he said they aren't selling off any debt. My friend had Fremont Investment who sold to Carrington. He got a letter about refinancing and he called and it all fell into place with him. I know it sounds confusing but it happened. He was told it was the Debt Forgivness Act. He is in Mass. so I don't know if this is for every state or not.
Maybe someone with more knowledge on this can provide more specific info.Not much better for a true zero point loan with no junk fees. Always ask for a good faith estimate. It's very rare that you find a deal. If a rate is lower than everyone else, there is usually a reason for it.Walton Goggins said:
The Fed announced that they plan to buy more Fannie, Freddie and Ginnie mortgage back securities. That could help lower them so more. That's what knocked the rates to where they are today. Rates were 6.5% before they announced they were going to use bailout money immediately to buy MBSs.
Right on. 5.5% is paying around 2% Yield or better to the broker. So on a $200,000 they are making $4000 just on the rate alone.Rates are 4.75% and may go down. There have been so many applications though the turn times on underwriting are ridiculous. Also, due to high volume of loan applications even with the MBS markets are getting better rates have gone up. There is too much business.
That would be nice. I refinanced a loan I was only 6 months into in February '08 and got a 5.5% 30 year. If I could get into the 4's I'd think about another refi. I plan on being here for a while.
Do you have an FHA loan? If so you could streamline. Streamline FHA is where if you already have an FHA loan and have good payment history you have an 850 score in their eyes and they do not need income verification or credit inquiry. Only your mortgage tradeline. Closes in about a week, maybe 2 with the high loan requests. Also, you can do it with or without an appraisal. Bad part without an appraisal is that they use your original FHA balance as value so most borrowers end up paying closing costs out of pocket.
It's a conventional loan.
So essentially those are rates for tomorrow?
No those were rates at the end of business today.
I would look carefully at it. I remember back in the early 2000s when rates went from almost 8% to around 5% and I seem to remember that a 1% drop was usually about a couple year break even due to closing costs. With 8.5 years left, you don't have a lot of time to break even, plus you are adding almost 7 years to your overall loan.
That's pretty much the time frame that I last refinanced to 4.9%. I wouldn't refinance back to the full 15 years. She'll write the note for 8 years at the 15 year %. I'd still make the same payment I am now to knock it down even further.
That makes sense.I wish current lenders made it easier to just drop your rates instead of going through closing. I understand that they want to make it "difficult" so people don't refinance, but geez, if you know what the current rate would be with 0 closing costs, why not make it easier? Then a big company like Wells Fargo keeps the business and isn't paying fees/commissions on the new loans.I may have to call up Wells and see what they could do. I am in the 5s, so I need a 4ish 30 year rate for it to make sense with closing costs. If they are willing to change the rate wihtout jumping through hoops even a 0.5 rate drop woud be plenty good enough.
I have a friend who went into a Wachovia bank and his was a 30 year fixed at 5% / no points and no orig fee.
Do these rates depend on the loan-to-value ratio everywhere? I'm working on a refi now at 5.0%, 0/0, and in this State understand that it's got to be at or better than 75% to get that rate; otherwise it'll go 5.125%. (Pretty optimistic about that; the appraisal's tomorrow)
What kinds of rates are you (and others?) offering on a Jumbo right now? I need to refi $600k.
No, that should be yesterday, but nobody would do it for .276 yield spread. On average, you're looking around a 1.00 yield. So, 5.25% is more than likely the rate you would get across the board. Maybe 5.125% if they are competing for the loan.
I just got a 4.5% quote from Wachovia on a 15 yr Refi with a 1% discount.
what do you mean by 1% discount?what was your rate before the refi? The bulk of my current mortgage is at 5.75%, with a smaller one (20% of total) at 6.25%. Wondering when it becomes worth it.eta: I have 14 yrs left, looking for a 15 yr mortgage.
You pay 1% to get the lower rate. It was 4.75% without the 1%. Most of the time you can add the 1% back to the loan. You need to figure out your break even point if you got the higher rate without paying the 1%.
He is paying 1% towards the closing costs to get that rate. So he is essentially buying his rate down to 4.5% for $2000 on a $200,000. Look at the savings over 15 years for buying down- 4.5% on $200,000= $1529.98 P&I. Say 4.75 is par P&I is $1555.66 so over 180 months you are saving yourself $25.68 per month = $4622.40 savings over the life of the loan. Will you have that mortgage for 15 years??? It will take 77 months to break even on the discount point alone. Is that worth it? Plus on a 15 year par rate should be 4.25% as of today's pricing. Here are 15 year rates from one of my lenders-4.250% -0.625%4.375% -0.875%4.500% -1.375%
I was betting that we won't see significantly lower rates in the next 15 years. I know that I will be in this house for at least 6 years which is where my break even was. I actually went to a 20 year 4.75 with no points. Payment difference was about $230/month. We pay bi weekly so i will pay it off in about 17 years. I couldn't find those rates you posted around here.
That is because you have not found a loan officer who is desperate for business. You can find some one to get you a par rate and 1% origination or lower. If you buy the rate down with a discount they are only making money on the front end fees (excluding YSP) Most brokers will not do a loan for less than 2% on the front or back end combined.
I'm in the same boat (~$725k) and have been asking around every couple of weeksand I'm seeing rates in the low 6's. I paid 2 points 3 years ago to get down to 5.75%and I'm glad I did. I personally need to see jumbo's drop to the low 5's to have a refimake sense for me but, from the people I've spoken to, it doesn't sound like thejumbos are going to move down that far.Anyone on this thread have any insights on jumbo rates?
Hate to tell you this but Countrywide is one of the lenders I have quoted those rates straight from their rate sheets. Depending on your situation there are hits to the rate (for example- credit score, adverse market, c/o, etc.) Some hits are pretty severe like having a credit score in the 680's there is like a 1.00% hit to the YSP.
Refinance applications are up significantly in the last few months. How many loan officers are desperate for business? Maybe I am going about this wrong. You can PM me these lenders that are offering 4.25% on a 15 or 20 yr mtg.bshell27 said:
Thanks for the info, keep it coming.I haven't checked since we bought this house but our score then was in the mid 700's I think. And we don't have to refi, we want to take advantage of a deal if it comes along but I'm not going to do it if it doesn't make any sense just to say I refinanced.
4.77 with lower closing costs might be the best option. The payment difference will only be 10-20 per month. What is the loan amount and I could show you the difference.
we are refinancing right now....the guy helping us has been great and on top of everything. If you need someone, I'd highly recommend him....let me know.
FHA streamline: If you already have an FHA insured loan and have not missed a payment YOU ARE QUALIFIED! They do not want income verification or credit scores. The lenders only want your mortgage tradeline or a verification of mortgage to insure that you made payments. You are like an 850 credit score and make 1 million dollars per month. It is normal closing costs, the value is tricky though.You can do a streamline with or without an appraisal. They say 90% of people who do it without appraisal PAY out of pocket closing costs due to the fact they use the ORIGINAL loan amount as value. So if you took out $200,000 then you probably do not need an appraisal. It looks like you would not because you have some equity so WITH appraisal would not be the way to go for you (saves closing costs). If you finance $185K or better on a $200,000 value then you are at 92.5% LTV and fit the guidelines. Streamlines close in 1-2 weeks and are pretty simple to do. It is all the rage right now from FHA files closed 1-2 years ago when they were doing files that were basically sub-prime mortgages. FHA guidelines took over sub-prime for a little while, but now they are more strict. Anyway, You are probably paying a little less than $981 principal and interest correct? Is it worth it to you to add 6K back into your loan and get a loan at 4.5% on $185,000 and have a P&I payment at $937? About $44 per month savings. FHA does not allow more than $500 cash back on a rate/term streamline refi, so that loan amount might be high as well as closing costs, but this is why they are telling you it may not be worth your time. $44 is alot of money to some people, but the cost to get that savings does not make much sense. Takes over 10 years to recover from cost alone.I've been looking to refinance mine as well. I spoke to 2 local lenders here in Ohio and was told that unless the rates drop below 4.5, that it's not worth my time. (more likely theirs...IMO).I'm currently 4yrs into a 30yr FHA loan on a $200k home. We got it with a 2:1 buydown deal with the home builder, so our rate is now at 5.185% (or soemthing like that). Regardless, we now owe about $179k and have not had our home appraised, but I'm guessing the value probably dropped with everything going on. What's the best step for me in this situation? For those of you in the know, is it worth my time to search out a lower rate for refinance? Are these guys just feeding me a line of BS so they don't lose money, or am I really wasting my time trying to refinance? I want to lower my payment if I can. I have no HELOC and only the one mortgage.What's this about a streamline FHA refi? This is the first I've heard of this...
247 @ 4.77= $1291.45 over 30 years247K @ 4.625= $1269.92 $21.53 dollar difference for $2300 savings on costs. 106-107 months to save difference. Will you be in this home for 9 years? Will you have this loan for 9 years???Another question, why not negotiate for lower rate??? You could probably get 4.625% with the $2600 costs. Although rates did get a little bit worse today.
