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Mortgage Rates (6 Viewers)

matttyl said:
Why did you have to post this?  I just had to jump through all the hoops to go from 4.5 to 3.5 on my 30 year conventional refi.  Now it's going to drop to under 3?
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The 10 year treasury (which has a huge impact on mortgage rates) will see new fresh lows over the next year. Was all the way down to 1.4% earlier...

I didn't look at a chart, but that could be all time lows. Expect it to crack 1% at some point in the next 2-3 years. 

Rate hikes :lmao:

We've buried ourselves in the Japan cycle of interest rates. Getting a percentage on your money in interest is going to be a thing of the past. 

10 years from now, we may have to pay banks to hold our money. Great job Federal Reserve, you did it!

 
The Ref said:
I'll be closing on a 15 year fixed cash out refi, 3.125 with (.5) point.

between the mortgage, escrow, credit card and HELOC I have open right now my payments will go down $350 a month and I'll have $25K in my pocket.  

Cant turn down that offer.
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How did this turn out for you?  I'll be the first to admit I don't know much about the mortgage/loan business, but I have a good deal of equity in my house right now.  Planning on staying in our current house the next 3-5 years.  We're already looking to buy some land for a future home.  I'd love to grab $25k to put down on that lot and get a break on my mortgage payment.

Enlighten me!

 
johnnyrock62000 said:
Hoping mortgage rates drop with Brexit hitting today. Stocks down but rates appear to be holding steady or down a touch so far according to Mortgage News Daily. 
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A lot of fearful money going into treasury bonds will push the 10 yr down and thus push rates down too. How much is the golden question.

 
If you're planning to refinance in the next 5-50 days, would you rush to get it in, stall for rates to decline, or just ignore the last month of craziness and do whatever we already planned on doing. 

 
cheese said:
If you're planning to refinance in the next 5-50 days, would you rush to get it in, stall for rates to decline, or just ignore the last month of craziness and do whatever we already planned on doing. 
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The base rate that my company has on a 30 yr is 3.75% right now- which is a damn good rate. I would think that the next few days would see that drop a bit.

 
Anyone have knowledge of internet banks offering 30-year fixed on Non-Owner Occupied (i.e. investment) loans? I was told locally I could not get anything but a 5/1 ARM for an investment property I'm pursuing, but I saw BOKF, Sebonic & Pulanski Banks offering 30-year fixed @ 4.1% using NOO/Investment criteria. Am I wrong worrying about added complications and fruitless bureau prequals attempting to go that route? I am without question tier 1 based on score/income/assets.

 
Chadstroma said:
The base rate that my company has on a 30 yr is 3.75% right now- which is a damn good rate. I would think that the next few days would see that drop a bit.
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So as I said above I'm right in the middle of a refi. The plan was to finish it Monday. I don't want to wait longer then next Friday. Will holding out till the end of next week make any difference or is that not long enough for rates to drop?

I don't want to get to greedy. 

 
Wooderson said:
So as I said above I'm right in the middle of a refi. The plan was to finish it Monday. I don't want to wait longer then next Friday. Will holding out till the end of next week make any difference or is that not long enough for rates to drop?

I don't want to get to greedy. 
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:shrug:

If it was me... I would float a few days before locking in and see what happens and decide as I see what happens. My guess is rates will decrease. How long it takes, how much they decrease and for how long..... no one knows.

 
One thing to consider is how much is it worth your worry and headache vs the savings? Let's say you miss out and rates decline a further quarter of a point and you are refinancing 250K? If I am not totally brain fried on a Friday and doing my math wrong, then you missed out on basically saving only $312.50 a year or $26 a month.

 
Buckna said:
One thing to consider is how much is it worth your worry and headache vs the savings? Let's say you miss out and rates decline a further quarter of a point and you are refinancing 250K? If I am not totally brain fried on a Friday and doing my math wrong, then you missed out on basically saving only $312.50 a year or $26 a month.
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http://www.interest.com/mortgage/calculators/mortgage-calculator/

Use a calculator like this to figure out the savings. Then make a decision.

 
Buckna said:
One thing to consider is how much is it worth your worry and headache vs the savings? Let's say you miss out and rates decline a further quarter of a point and you are refinancing 250K? If I am not totally brain fried on a Friday and doing my math wrong, then you missed out on basically saving only $312.50 a year or $26 a month.
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Hmmm I love saving money though :)

Loan is $400k so I'm guessing $40 a month $480 a year.  Not a game changer I guess but just looking at that low rate for 30 years would make me feel good. 

 
Going to meet with my mortgage broker today to finish my refi. 

Anyone in the know have a feeling how rates are looking in the near future?

i think I can "float" the rate for a little bit before locking in. At least I heard that's possible. 

 
It's like I'm a ####### economist with my calls in this thread. 

Dont worry, rates have nowhere to go but down, yes down, not up.

As we draw towards our next global economic crisis and the negative yield scheme catches up, with central banks having little options left, treasuries/bond yields will continue to fall. 

 
Wooderson said:
Locked in at 3.625% yesterday 30 year fixed refi. No more PMI. Going to save $415 a month. 
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I locked in at 3.625 on a refill last week.  I was 3 years into a 30yr, and I am going to refinance for a 25yr.  I could have done 20yr, but wanted a little breathing room due to my unstable job situation.  It's going to knock off myb$115 a month PMI, and save me an additional $75 a month.  I think I still had like 3-4yrs of the PMI, so that's a huge savings.  I bought the house for $240 in 2013, and the zestimate says $278.  I think that may be a little high, so we shall see what the appraisal says. :popcorn:

 
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Quez said:
I locked in at 3.625 on a refill last week.  I was 3 years into a 30yr, and I am going to refinance for a 25yr.  I could have done 20yr, but wanted a little breathing room due to my unstable job situation.  It's going to knock off myb$115 a month PMI, and save me an additional $75 a month.  I think I still had like 3-4yrs of the PMI, so that's a huge savings.  I bought the house for $240 in 2013, and the destinate says $278.  I think that may be a little high, so we shall see what the appraisal says. :popcorn:
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A bit of unsolicited advice.

Unless you are getting cash back, the lender is paying most or all of your closing costs or you have low credit scores you should be looking at a 30 year fixed more like 3.125%-3.25% range for loan amounts up to $417K and of course with no points.

Don't do a 20 or 25 year note. Ever.

Reason is simple. Most lenders have same rates for 20 and 25 year notes as the 30 year fixed, at best usually .125% better. Loan likely has no prepayment penalty so if you are not getting benefit of lower rate(15 year note) then why would you cut off your financial flexibility? No reason for it. If you want to pay it off in 20 years you can set up an amortization schedule and pay it off in 20 years but you never let them put you on a 20 year note because if things get tough financially you'll want the flexibility of the lower payment on the 30 year fixed.

In terms of fixed rate loan the only two options I'd ever look at are 30 and 15 year fixed. You won't see benefit of a significantly lower rate until you drop down to the 15 year note rate. I know you indicated you are not comfortable with that payment due to job situation, again another reason to give yourself flexibility of the 30 year note, but for those that are comfortable you should be looking at a rate in the 2.5-2.625% range.

 
Wooderson said:
Thanks 52 week low today. 
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Been in the business 20 years last month and this is the lowest conventional conforming fixed rates I've ever seen.

Not sure about ARM rates or government loans have been lower but for sure I know the jumbo rate market is actually worse than it was in the spring.

 
I bought in 2010 at 4.5%. Refied to another 30 in 2013 at 3.625% and bothe pulled out equity for some home repairs and dropped PMI causing my payment to go done slightly because of cash out. Very tempted to refi again to an even lower rate and pull more equity out to put towards house and/or pay down other debt. Bought at 260 in 2010. Because of last cash out still owe about 249. Zillow has me at 385. That shortsale looks like it was a good investment. Previous owners bought at 469 only 3 years prior on a house built for 255 in 2002.

 
menobrown said:
A bit of unsolicited advice.

Unless you are getting cash back, the lender is paying most or all of your closing costs or you have low credit scores you should be looking at a 30 year fixed more like 3.125%-3.25% range for loan amounts up to $417K and of course with no points.

Don't do a 20 or 25 year note. Ever.

Reason is simple. Most lenders have same rates for 20 and 25 year notes as the 30 year fixed, at best usually .125% better. Loan likely has no prepayment penalty so if you are not getting benefit of lower rate(15 year note) then why would you cut off your financial flexibility? No reason for it. If you want to pay it off in 20 years you can set up an amortization schedule and pay it off in 20 years but you never let them put you on a 20 year note because if things get tough financially you'll want the flexibility of the lower payment on the 30 year fixed.

In terms of fixed rate loan the only two options I'd ever look at are 30 and 15 year fixed. You won't see benefit of a significantly lower rate until you drop down to the 15 year note rate. I know you indicated you are not comfortable with that payment due to job situation, again another reason to give yourself flexibility of the 30 year note, but for those that are comfortable you should be looking at a rate in the 2.5-2.625% range.
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Does it matter that I only had 10% down on the initial 30yr?  I have a +800 score & wife is +700, and the lowest rates he told me were 3.5 for a 20yr.  Nothing near 3.2, but we locked in last week, I'm not sure if they changed that much in a week...  I'm not sure if it's too late or not, but maybe I should ask him I we could do a 30yr instead... :unsure:

 
menobrown said:
A bit of unsolicited advice.

Unless you are getting cash back, the lender is paying most or all of your closing costs or you have low credit scores you should be looking at a 30 year fixed more like 3.125%-3.25% range for loan amounts up to $417K and of course with no points.

Don't do a 20 or 25 year note. Ever.

Reason is simple. Most lenders have same rates for 20 and 25 year notes as the 30 year fixed, at best usually .125% better. Loan likely has no prepayment penalty so if you are not getting benefit of lower rate(15 year note) then why would you cut off your financial flexibility? No reason for it. If you want to pay it off in 20 years you can set up an amortization schedule and pay it off in 20 years but you never let them put you on a 20 year note because if things get tough financially you'll want the flexibility of the lower payment on the 30 year fixed.

In terms of fixed rate loan the only two options I'd ever look at are 30 and 15 year fixed. You won't see benefit of a significantly lower rate until you drop down to the 15 year note rate. I know you indicated you are not comfortable with that payment due to job situation, again another reason to give yourself flexibility of the 30 year note, but for those that are comfortable you should be looking at a rate in the 2.5-2.625% range.
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I really, really, really, really, very really dislike hearing one size fits all statements like this in personal finance. Sometimes a 20 year has significant savings (the rate I see with my parent company right now is a difference of .375%) over a 30 but going to a 15 just doesn't make sense for flexibility etc. On $200K you are talking about $24K difference in cost over the life of each loan in amortization and rate difference. If you pay on the same amortization schedule but the difference in rate, you are giving up about $7K in cost. Why? Sure, a 15 year may make more sense with even more savings but it does not always make sense for every customer.

I don't do loans anymore but when I did I always, always, always, always- listened to the customer, figured out their specific situation, wants and needs and then tailored a solution that best addressed them while educating them on their options along the way.

 
Chadstroma said:
I really, really, really, really, very really dislike hearing one size fits all statements like this in personal finance. Sometimes a 20 year has significant savings (the rate I see with my parent company right now is a difference of .375%) over a 30 but going to a 15 just doesn't make sense for flexibility etc. On $200K you are talking about $24K difference in cost over the life of each loan in amortization and rate difference. If you pay on the same amortization schedule but the difference in rate, you are giving up about $7K in cost. Why? Sure, a 15 year may make more sense with even more savings but it does not always make sense for every customer.

I don't do loans anymore but when I did I always, always, always, always- listened to the customer, figured out their specific situation, wants and needs and then tailored a solution that best addressed them while educating them on their options along the way.
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Well that .375% rate difference from the 30 to 20 is extremely unusual. It only takes one lender to do something unusual but to focus on something one lender does is pretty shoddy advice in my opinion and makes me think the 30 is not priced so hot.

I monitor rates every day on Bankrate and Zillow and  typically largest spread I see with lenders is .125%.

Speaking specifically on the person I responded to offer advice he's surely not getting .375% rate improvement. Sorry you dislike my advice.

 
menobrown said:
Well that .375% rate difference from the 30 to 20 is extremely unusual. It only takes one lender to do something unusual but to focus on something one lender does is pretty shoddy advice in my opinion and makes me think the 30 is not priced so hot.

I monitor rates every day on Bankrate and Zillow and  typically largest spread I see with lenders is .125%.

Speaking specifically on the person I responded to offer advice he's surely not getting .375% rate improvement. Sorry you dislike my advice.
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If your advice is never then yes, I think it is crap for advice. The better advice is to weigh your options based on your specific situation, needs and wants with what is available and make a decision from there. Sorry, but there is no reason to tell anyone a blanket statement of "never do a 20 year mortgage". If you want to say that most often it is not much benefit then I am certainly ok with that and would even agree that in most instances a 15 or 30 yr make more sense.

 
Quez said:
Does it matter that I only had 10% down on the initial 30yr?  I have a +800 score & wife is +700, and the lowest rates he told me were 3.5 for a 20yr.  Nothing near 3.2, but we locked in last week, I'm not sure if they changed that much in a week...  I'm not sure if it's too late or not, but maybe I should ask him I we could do a 30yr instead... :unsure:
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Makes zero difference what you initially put down. What matters now is loan to appraisal value with only exception if you've owned the home less than a year some lenders won't accept appraisal value over purchase price.

Rates are slightly better last week but like .125% range better for most conventional products.

Sorry if I complicated anything, if you are happy you are happy but I felt and continue to feel a 30 year note makes more sense to you and you should be able to get a lower rate. Maybe the person you locked with is a great guy or friend and he's the only person you want to do business with or trust. But have you input your loan criteria on Zillow or Bankrate? I'm imagine you'll find something more along the lines of what I'm talking about in terms of rates.

And I'll add I advertise rates on both of those sites, depends what products I'm pushing. But I don't post rates on Friday so you won't see my company in those rate searches and I'm not here to solicit business so don't want anyone to think that's my goal. Just trying to offer advice.

Also if the best rate the person you are working is high it does not mean they are screwing you over or anything. Might just be the best rate available to them, lenders have different rates and profit margins so not trying to paint a negative picture of that individual.

 
johnnyrock62000 said:
@Chadstroma or anyone else?

We built new and closed in 8/2009 at 5% 30Y Conv + HELOC and were ineligible for HARP. I GC'd it myself. I believe equity is at least 28% now but RE friends think lower. Concern about appraisals coming in stopped me from hitting the bottom on a refi.

Now we'd finally like to finish the basement, add a deck and possibly a 64' x 40' pole barn. 

Local bank did my one-time close construction-to-permanent loan and immediately sold it to a big bank who still holds it. 

  • What do you think are my best options for a cash-out refi for a larger amount where the proceeds would cover improvements and possibly other debt if possible? With Jumbo rates so good I'm looking to do one big loan rather than a max conv. + HELOC.
  • What type of process would this be?
  • Appraisal up front based on the plans, then construction draws? 
  • What type of financing institution should I be targeting for this type of product for best rate, lowest fees and ability to close as smoothly as possible? TIA
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Bump for @menobrown 

 
Quez said:
I locked in at 3.625 on a refill last week.  I was 3 years into a 30yr, and I am going to refinance for a 25yr.  I could have done 20yr, but wanted a little breathing room due to my unstable job situation.  It's going to knock off myb$115 a month PMI, and save me an additional $75 a month.  I think I still had like 3-4yrs of the PMI, so that's a huge savings.  I bought the house for $240 in 2013, and the zestimate says $278.  I think that may be a little high, so we shall see what the appraisal says. :popcorn:
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How did Zillow compare to your appraisal?

 
fantasycurse42 said:
It's like I'm a ####### economist with my calls in this thread. 

Dont worry, rates have nowhere to go but down, yes down, not up.

As we draw towards our next global economic crisis and the negative yield scheme catches up, with central banks having little options left, treasuries/bond yields will continue to fall. 
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How much worse is it going to get?

 
Ministry of Pain said:
How much worse is it going to get?
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Worse? 

For a consumer looking for a mortgage, the term you're looking for is better. Rates can get into the 2's for 30 year in the next 3-5 years (maybe even lower)... The 10 year treasury yield isn't flying higher anytime soon, that is tied directly to mortgage rates. 

For an investor looking for yield, yes worse. 

 
I agree, but hope we're right, FC.

I just bought a new house and took an adjustable rate mortgage based on the assumption that rates are going to stay low or go lower.

 
I just locked in at 3.375% for a 30 year. Going from 4% from 2012 that will save me just over $200/month. As others speculated it could drop even lower but at $200/month savings I'm taking the bird in the hand. 

 
I'd like to take advantage of these low rates. I got quoted 3.75% from Wells Fargo on a 30yr w/$5,500 in closing costs.

Where should I be looking to find the best deal?

 
Gianni Verscotchie said:
I'd like to take advantage of these low rates. I got quoted 3.75% from Wells Fargo on a 30yr w/$5,500 in closing costs.

Where should I be looking to find the best deal?
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Try a local mortgage company that doesn't have such high costs.  Big banks are not the best places to get home loans IMO

 
Getzlaf15 said:
Try a local mortgage company that doesn't have such high costs.  Big banks are not the best places to get home loans IMO
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I bought my house through one of the (highly rated) places on Zillow.  2.875% for 15 years - done last April.  

 
Yeah.  The local guys who are just originating and selling are usually both more competitive on rate and easier to deal with.

 
Gianni Verscotchie said:
I'd like to take advantage of these low rates. I got quoted 3.75% from Wells Fargo on a 30yr w/$5,500 in closing costs.

Where should I be looking to find the best deal?
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Where are you located? I used this company in 2010 and again in 2013 in a refi. They originate the loan and pass it off to Provident Funding.

http://www.hartwest.com

 
:kicksrock:   just saw VA rates are now starting at 2.75% for a 30 year fixed.  We got a 3.25% 30 year back in April.  Considering refinancing already. (but will probably wait)

 
urbanhack said:
Did you come out ahead?   My place sold in 4 days for a nice chunk above listing price.  That part of the city is on fire.  Hope you made out.  
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Going to rent it out probably. Will make money on it for sure though. 

Area is blowing up. 

Btw, let me know if you know anyone looking for a place to rent. 

 
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