CrossEyed
Footballguy
I knew I shouldn't have locked. Oh well, still happy I'm saving as much money as I am and good to know that I'll have no mortgage payments when the kids graduate high school.
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Mortgage Rates (5 Viewers)
- Thread starter MechEng
- Start date
towney
Footballguy
On a 15 yr in my area your looking at 2.75%-2.875% with a loan amount over 150K and good credit (0 pts.). Remember lower interest rates quoted could include higher then normal closing costs so don't get caught up in the rate till you see the closing costs. Always get a closing costs fees worksheet from the mortgage broker or bank before committing. Also try to stay local and be careful of the internet companies.
CrossEyed
Footballguy
Any chance I can lower my rate with the bank before I close even though I locked at 2.99%?ETA: It's a refi.
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towney
Footballguy
More then likely not for banks do not have the flexibility, once you lock your done. With a mortgage broker you have a little flexibility for they have multiple lenders to place the loan with and can switch to get you a lower rate, but this starts the whole process over. 2.99% is respectable as long as the closing costs are not out of whack, which we do not know. You could call the banks loan officer's bluff and tell them your switching to another mortgage company with a lower rate/costs unless they lower your rate to current market, say 2.75%. Nothing ventured nothing gained...
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CrossEyed
Footballguy
170K loan. Origination fee of $975 all other fees were minimal or fixed (ie title insurance, credit check, appraisal fee, etc) Lowering to 2.875% only saves me about $2K over the life of the loan, so I'm not sure it's worth the hassle.
Don Quixote
Footballguy
For any mortgage guys... I'm under contract on a new house. Putting down 20% leaves me in the "jumbo" category, and I don't want to put down as much as would be needed to avoid that. The lender first gave me numbers on a jumbo loan, then proposed a first trust up to the $625k limit and a second trust for the remainder, which, according to his numbers, would give me a lower monthly payment in the aggregate. To the extent I want to pay it down some, I figure I can pay down the second trust with the higher rate first.
Any reason not to do that?
Any reason not to do that?
St. Louis Bob
Footballguy
Had a 30 year 4.875% too last August, refinancing next week at a 15 year 3.25%.
PIK95
Footballguy
Up or down?
culdeus
Footballguy
going down. I'm waiting till 30 year crosses 3. Mortgage debt outstanding continues to fall. As long as this is the case I can't see how the rates go anywhere with what is going on in the world.
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Insoxicated
2.75% for 15yr at PenFed with 1% origination fee.
The Ref
Footballguy
Sweet Jesus. I just did a 15 year at 3.25 two months ago (with .5 point back) and I feel ripped off.
The Ref
Footballguy
I know this is far from the perfect finance answer, but I make it a point to only re-fi if I can take years off my note. I have re-fied 3 times in my life and each time I have kept the payments about the same but cut years. If you got a 30 year at 5, see what it will cost you to take it down to 20 years. I'd gladly trade the extra money in my pocket every month (via the re-fi) for 5-10 years of freedom.'[icon] said:
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Insoxicated
No it's actually great advice. I can move to a 15yr for less than 100/mo more. The downside is I'm looking at 3k+ in closing costs....Will think on it. Just not sure how much longer I'm going to stay at this house....
flapgreen
Footballguy
I don't know #### compared to most people around here. Do mortgage continuing to drop mean the housing market is getting worse? Three years ago, I thought we were getting a fantastic deal at 5% on a 15 yr. Now, that's almost twice the going rate. Meanwhile, homes are continuing not to sell in this area, but I wouldn't say they are worth a ton less. We don't plan on moving for a long time, so it hasn't affected us much.
Random
Footballguy
I would not even consider refinancing with anything more than minimal closing costs. I've done 3 refis in the last two years and haven't paid a dime in any fees (net of credits).
culdeus
Footballguy
No, it means people actually like the way USA is doing things compared to other countries and they are pouring money in here and there's nowhere to put it all.
FavreCo
Footballguy
Who have you used on those re-fi's?
lumpy19
Footballguy
Isn't this kind of state dependent? I can't refi in NY without at least 3-4k in fees.On a completely unrelated note, I wonder how hard it would be to get a mortgage approved for a 2nd home. With rates so low I want to buy a lake house, rent it out when I'm not using it and lock in a tiny rate.
Random
Footballguy
Amerisave.com
inca911
Footballguy
You can borrow money from anywhere, so there is no need to stay "in state". My last refi was through McGlone mortgage in Wisconsin (their rates appear high today, relative to others). Just check bankrate.com and make some calls. Note that you still may have to put out 3k to close, but that's because of interest payments on last loan, new loan escrow, etc. Sure there will be fees as well, but my savings was enough to pay for all fees in 7 months of reduced payments.2nd home isn't hard either, but it depends on your income and other debts. If you have a great loan to value on your first home, plus good income, then someone will lend you money to buy another.
It's all the Fed.
FavreCo
Footballguy
Yet Greenspan just said the opposite. Wouldn't surprise me if they went up on his alzheimer's drivel. I could really use 2.5%.
gianmarco
Footballguy
Currently at 28 yrs left on a 30 yr fixed at 4.625% with BOA. Found a local company here that can refi at 3.625% 30 yr fixed and it'll be about $2k in closing costs. No appraisal needed. While I only plan on staying here 4-5 more yrs, it'll take about $150 off/month and will pay for itself in 2 yrs so I don't see much reason not to at this point.
inca911
Footballguy
Those closing costs still seem a little high, with no appraisal fee. I'd check if you can take a higher rate like 3.75% with lower closing costs. If your loan is about 230k, the difference between 3.625% and 3.75% is only $17/month. If you plan to be there 4 more years, that's only an $816 difference for that term. That's money you might be able to keep in your pocket right now with lower closing costs in exchange for a minor rate increase.
gianmarco
Footballguy
It was like $1500 for docs and like $600 for title fees. But, they are rolling it into the loan so it's nothing out of pocket. But, I'll ask and see if there's anything that can be done.
towney
Footballguy
Let's figure your breakeven, what is your current principle and interest payment without escrow impounds? What will be your new loan amount? 2K for closing costs seems reasonable in my mind. Remember to get a written closing costs breakdown before committing.
gianmarco
Footballguy
Loan type and term: 30 Years Conventional Pay Now Original principal balance: $295,100.00 Transaction history Contractual remaining term: 28 years, 5 months Workout information Interest rate: 4.625% Current principal balance: $287,626.66 Escrow balance: $100.61 Here is my May payment info:
Interest portion: $1,110
Principal: $407
Escrow: $142
Does that help?
towney
Footballguy
Yep. Based on these figures your current P&I pymt. is $1,517.23. Let's work with a new loan amount of 290K rolling the closing costs in, your new P&I pymt. would be $1,322.55 at 3.625% and saving you $195 per month. Your breakeven period based on 2K closing costs would be 10.25 months so since your looking at staying at least 4 years the refi. makes sense. As mentioned from another poster taking a 3.75% or even 3.875% rate and seeing how much of the 2K the mortgage company would cover is another option to consider, post back what they say. As a general rule of thumb for every .25% percent in rate is a plus or minus 1pt., so at 3.75% you could be looking at a reduction in closing costs by $725. At 3.875% $1,450 reduction.
The Captain
Footballguy
As someone who has no financial hardships, but my mortgage is under water, I feel like I'm completely missing out on these historically low interest rates.
Does anyone know how I can get in the game? Or is my only way out a short sale on the current home and the purchase of a new home? Thought about skipping payments for a while in an attempt to qualify for an modification, but I don't have a leg to stand on based on household income.
Both my first and 2nd loans are adjustable so I have no complaints right now, but I can see all of the mortgage relief programs going by the wayside when rates start to increase. Then I'm really stuck.
Appreciate any insight.
Does anyone know how I can get in the game? Or is my only way out a short sale on the current home and the purchase of a new home? Thought about skipping payments for a while in an attempt to qualify for an modification, but I don't have a leg to stand on based on household income.
Both my first and 2nd loans are adjustable so I have no complaints right now, but I can see all of the mortgage relief programs going by the wayside when rates start to increase. Then I'm really stuck.
Appreciate any insight.
Dragons
Delusions of Grandeur
I'm in the same situation, except I also took advantage of HARP 1.0.
Chadstroma
Footballguy
I never dreamed of 3.5% on a 30 year either. Heck, I remember only a few years ago thinking how amazing a second at 3.5% was insane. Honestly, this is the bottom. The only question is how long does it stay here. Hopefully I can take advantage on it in a deal soon.
Otis
Footballguy
Damnit this refi is taking forever. I locked at 3.25% on a 15 year and I'm starting to wonder about the lower rates. I'm going to be a little higher than the lowest rates because we are high balance conforming loan amount, but still, with 15 years at Wells Fargo around 2.875%, I am also feeling ripped off. Damnit!
My closing costs are gonna be around 5k or 6k -- how the hell do everyone else's seem so low? I guess it's because we have a larger loan, and so the tax we pay on it will be higher?
My closing costs are gonna be around 5k or 6k -- how the hell do everyone else's seem so low? I guess it's because we have a larger loan, and so the tax we pay on it will be higher?
FavreCo
Footballguy
I'll be around $3500 closing costs when I pull the trigger. Everywhere I look, if you want the lowest rate, the closing costs are more.Damnit this refi is taking forever. I locked at 3.25% on a 15 year and I'm starting to wonder about the lower rates. I'm going to be a little higher than the lowest rates because we are high balance conforming loan amount, but still, with 15 years at Wells Fargo around 2.875%, I am also feeling ripped off. Damnit!My closing costs are gonna be around 5k or 6k -- how the hell do everyone else's seem so low? I guess it's because we have a larger loan, and so the tax we pay on it will be higher?
Random
Footballguy
If you're talking about prepaid property taxes, this is not really a refi cost. Same with prepaid insurance. They will just go into an escrow account until they become due, at which time your bank will pay them from that account. The costs are pretty much everything else (unless you need to pay down your balance) and whatever they're increasing your balance by ("rolling into the balance").Damnit this refi is taking forever. I locked at 3.25% on a 15 year and I'm starting to wonder about the lower rates. I'm going to be a little higher than the lowest rates because we are high balance conforming loan amount, but still, with 15 years at Wells Fargo around 2.875%, I am also feeling ripped off. Damnit!
My closing costs are gonna be around 5k or 6k -- how the hell do everyone else's seem so low? I guess it's because we have a larger loan, and so the tax we pay on it will be higher?
Ned
Footballguy
What's up with the internet companies?
towney
Footballguy
You always have the option to switch to another mortgage company offering the lower rate, but you might have to pay for a new appraisal. If the escrow items such as taxes and insurance are part of the 5k-6k cost then this might be in line. There is no reason whay a mortgage company should take longer then 45 days for a refi, heck I'm getting them done within 30 days.Damnit this refi is taking forever. I locked at 3.25% on a 15 year and I'm starting to wonder about the lower rates. I'm going to be a little higher than the lowest rates because we are high balance conforming loan amount, but still, with 15 years at Wells Fargo around 2.875%, I am also feeling ripped off. Damnit!My closing costs are gonna be around 5k or 6k -- how the hell do everyone else's seem so low? I guess it's because we have a larger loan, and so the tax we pay on it will be higher?
This should not be the case, now if you want to pay points to reduce the rate even more then yes otherwise it's the mortgage company, lender or loan officer quite possibly padding their pockets.
First off your not going to get the best rate that you could with say a local mortgage co. or broker. Chances are that the internet mortgage company will no attend you closing. In my experience you are going to get a more personal experience with someone that is local.Remember to always shop around with a few local companies and if you want get one from an internet company to compare.
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Highly doubtful. High interest rates aren't the reason for the housing bear, and rates have been historically low for a long time now, so going a little lower isn't going to all of the sudden make a big difference in values.
Random
Footballguy
This is just completely false.
NJDawgPound
Footballguy
What's the minimum penalty period to qualify for an FHA mortgage after a short sale? Still 3 years?
BigJim®
Footballguy
Ok, well I guess it's my turn to ask for FBG expert opinions. Two years ago I wanted to refi from a 30 year (fixed 5.5% APR) to a 15 year loan at Wells Fargo (current lender). They ran some numbers, and instead suggested that I refi to a 20 year using a streamlined process under the Obama plan... which I did to a 20 year fixed 4.75% APR. There were a couple reasons for this. First, we had a home equity line with a $17,000 balance from a kitchen redo. Second, they said I could avoid new appraisal or any closing costs at all, and would be free to reconsider a 15 year at any later time. Since then, the equity line has been fully paid and I'd estimate that I'm at <> $110,000 in equity on appraisal value.
My inclination is to make another visit to Wells and see what they can offer for a 15 year refi. I saw Otis' post that Wells is at 2.875% on a 15 year right now... is that accurate? I've always been wary of moving from Wells to another lender, possibly for no good reason other than familiarity and ignorance on other impacts (I get some benefits at Wells given the number and type of accounts I have with them).
(1) Is it a no-brainer that I should be looking to better my loan?
(2) Is it really best to look for the lowest APR, regardless of lender? Am I ignorant for not starting my search using some internet rate shopping site? Looking at Bankrate.com, I'm seeing companies like Roundpoint Mortgage Company, Midwest Mortgage Capital and something called Aimloan.com with nice 3% rates, but frankly it makes me uneasy to think about refinancing my home with some company I have never heard of.
(3) What sort of benefit would I have to change from a 20 year @ 4.75% fixed to a 15 year @ 3% fixed? Would the benefits outweigh closing costs (which I'd just pay in cash assuming they are <$5000).
Thanks in advance
My inclination is to make another visit to Wells and see what they can offer for a 15 year refi. I saw Otis' post that Wells is at 2.875% on a 15 year right now... is that accurate? I've always been wary of moving from Wells to another lender, possibly for no good reason other than familiarity and ignorance on other impacts (I get some benefits at Wells given the number and type of accounts I have with them).
(1) Is it a no-brainer that I should be looking to better my loan?
(2) Is it really best to look for the lowest APR, regardless of lender? Am I ignorant for not starting my search using some internet rate shopping site? Looking at Bankrate.com, I'm seeing companies like Roundpoint Mortgage Company, Midwest Mortgage Capital and something called Aimloan.com with nice 3% rates, but frankly it makes me uneasy to think about refinancing my home with some company I have never heard of.
(3) What sort of benefit would I have to change from a 20 year @ 4.75% fixed to a 15 year @ 3% fixed? Would the benefits outweigh closing costs (which I'd just pay in cash assuming they are <$5000).
Thanks in advance
