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Thanks for the info.Chadstroma said:50 bps drop in the Fed. Should see a sympathy drop in mortgages but very slight since I am sure they have already priced it in. We will have to see how the bond market reacts.PIK95 said:My CU is back over 6% today. That Aim loan thing is 5.5%. I just want 5.5% (then pay he point to drop it) through someone I can trust.menobrown said:
No prob, I will help as much as I can in any way than I can.Thanks for the info.Chadstroma said:50 bps drop in the Fed. Should see a sympathy drop in mortgages but very slight since I am sure they have already priced it in. We will have to see how the bond market reacts.PIK95 said:My CU is back over 6% today. That Aim loan thing is 5.5%. I just want 5.5% (then pay he point to drop it) through someone I can trust.menobrown said:
Today's rates:30 yr fixed conforming (0 points) = 5.875%
1 point for 0.375% is pretty good. I haven't refinanced in a while, but looking above the spreads for an eighth (0.125%) were 0.625 and 0.75 points. Your spread is 0.333 points per 0.125%.Personally, with that spread, I would look at lower rates as well if the 0.333 points per eight works out well. Note that this is because I plan on this house being the long term house. If you aren't going to be in that house for a while, then paying points may not be smart.I think bankrate.com is a good place to go. Punch in the interest rates and see how much you would save a month and compare it to the point cost and see how many months it would be to break even. If that is less than what you think you will be in that house for, then buying points makes sense. If it is close to break even or you aren't sure how long you will stay, then it probably doesn't make sense. People move a lot more often than you would imagine. If you have kids in school, you probably won't move, but if you are pre-kids that space may get small quickly if you decide to have them.
I will admit, with my ADD you lost me with the spread talk. They wanted to get this done (My family has been dealing with them forever) so they came down to 5.5 with me paying the point because thats what I asked for. I am not going to be moving from this house at least for ten years so it seemed to make sense. Were you saying I should have looked at a 20 or 15 instead?
Eloan is listing a 30 yr fixed a 5.375% (5.559% APR), but I don't know about closing costs or points, etc..
Interesting.Eloan is listing a 30 yr fixed a 5.375% (5.559% APR), but I don't know about closing costs or points, etc..
Can someone explain the difference between the rate and the APR rate to me like I'm a 9th grader?Also, I haven't read the whole thread, but is the general consensus that they're heading down?Interesting.Eloan is listing a 30 yr fixed a 5.375% (5.559% APR), but I don't know about closing costs or points, etc..
I don't know the difference either. I wouldn't have locked if I thought they were heading down, but i am far from an expert.Can someone explain the difference between the rate and the APR rate to me like I'm a 9th grader?Also, I haven't read the whole thread, but is the general consensus that they're heading down?Interesting.Eloan is listing a 30 yr fixed a 5.375% (5.559% APR), but I don't know about closing costs or points, etc..
APR factors in the lender fees. It gives a much truer indication of the cost of the loan. If there is a big spread between the rate and the APR it means that the lender is charging high fees.I don't know the difference either. I wouldn't have locked if I thought they were heading down, but i am far from an expert.Can someone explain the difference between the rate and the APR rate to me like I'm a 9th grader?Also, I haven't read the whole thread, but is the general consensus that they're heading down?Interesting.Eloan is listing a 30 yr fixed a 5.375% (5.559% APR), but I don't know about closing costs or points, etc..
APR factors in the origination fee (e.g. points and other loan costs). It is designed so you can compare loans on an apples-to-apples basis. You can't just look at the stated rate because loans may have different fees up front, compounding, etc.I don't know the difference either. I wouldn't have locked if I thought they were heading down, but i am far from an expert.Can someone explain the difference between the rate and the APR rate to me like I'm a 9th grader?Also, I haven't read the whole thread, but is the general consensus that they're heading down?Interesting.Eloan is listing a 30 yr fixed a 5.375% (5.559% APR), but I don't know about closing costs or points, etc..
Seems high (relatively speaking). I closed 5.5 with no points last week and just yesterday saw a local bank advertising 5.625 with no points.
Nope. I was saying that 0.333 points per 0.125% drop seems to be very good based on other posts above, which means I bet it would be better to pay a point to get 5.5 instead of no points, especially if you are going to be in the house that long.That said, aimloan.com has 5.5 and 0 points and 5.25% for 1 point, so you should check out a few other sites as well. Find out the closing costs good faith estimate (most places can email that to you) so you can compare everything. aimloan.com might not be the best, but they are easy to get rate quotes right on line and are probably in the better rate camp.
5.5 WITH a point sounds a bit high to me BUT you also have to know that I do not have rates in front of me and am going off what I am seeing and hearing rather than doing- if that makes sense. You can spend 30 min and call a few banks and look up a few places on the net to get a decent idea of what the 'average' rates are. If you do this, you can call a broker but be careful because it is not unknown for them to over promise to get you in the door and then turn a bait and switch. By all means, shop brokers too but just be careful.ETA: Keep in mind there are a lot of variables involved like where you live and if you have a jumbo or not so that 5.5% with a point could very well be a good deal at this time.
I predict the opposite of what you'd like to see will happen.
I just checked the rate at the same bank we're doing our refi with (Pentagon Federal) and they are 1.25 point higher than they were on the day I locked.
We should close in early March on a 15 yr with 4.625%, which looks very very good right now.Many thanks to the OP and those who posted in this thread - I wasn't thinking seriously about refinancing until I saw some of the deals and rates here. Great resource.
I just checked the rate at the same bank we're doing our refi with (Pentagon Federal) and they are 1.25 point higher than they were on the day I locked.We should close in early March on a 15 yr with 4.625%, which looks very very good right now.Many thanks to the OP and those who posted in this thread - I wasn't thinking seriously about refinancing until I saw some of the deals and rates here. Great resource.
Nice rate!
Just closed today. Thanks again to those in this thread! :tipscap:I just checked the rate at the same bank we're doing our refi with (Pentagon Federal) and they are 1.25 point higher than they were on the day I locked.We should close in early March on a 15 yr with 4.625%, which looks very very good right now.Many thanks to the OP and those who posted in this thread - I wasn't thinking seriously about refinancing until I saw some of the deals and rates here. Great resource.
Nice rate!
Yea, with inflation looking more and more here and here to stay I would say that we will not see those kind of rates for a long time.Just closed today. Thanks again to those in this thread! :tipscap:I just checked the rate at the same bank we're doing our refi with (Pentagon Federal) and they are 1.25 point higher than they were on the day I locked.
Sorry but I think mortgage rates on 30 year fixed will keep going higher even as the fed lowers rates.
"Pushing on a string" will be the most overused phrase of 2008.
Agreed.
Actually it is likely helping put upward pressure on the 10 year treasury as that bill has to keep pace with inflation and the lower Fed rates helps increase inflationary pressures.
Shouldn't it be the other way around? Are banks' savings account rates also tied to the 10-year treasury?
The yield on the treasury bill needs to competitive in order to attrack investors. With inflation up it tends to pressure the yield up and when inflation is low it pressures it down. It is not a 1 for 1 type of effect, keep in mind, which is why I used the word 'pressure'. I think that rates may have some influence from the 10 year but it certainly is not the only factor. Banks look at interesting bearing deposits as 'cheap' funding. How 'cheap' it is depends on things like competition (you can generally get better interest rates in Chicago vs L.A.) and need (it is not a coincidence that you can get better rates at on-line accounts from E-Trade, WaMu, and Countrywide) among the first that come to mind. Smaller community/regional banks are more likely to give better rates because it costs more for them to raise capital otherwise vs say a large bank like BofA or Wells Fargo. Another factor is how they gain those deposits- this is why you can get better rates by going on-line than by walking in to a branch from banks like WaMu and Citi. It costs less for the on-line channel to gather deposits since there is no over head vs a branch where you pay the employees, lease, maintenance, etc.
Mortgage Backed Securities trading way down this morning after the positive earnings reports from Goldman & Lehman... should be interesting this afternoon what the additional fed cut does. I wouldn't count on rates getting much better. We were quoting 5.875% 30-year w/ no points yesterday. Anticipating possibly 5.75% this morning, but most likely a re-price for the worse coming this PM...
What means this? I just stumbled upon this thread. The wife and I are looking to refi. Currently we have a 30 year at 6.00 and an HELOC (variable) at 8.375. (The HELOC may have changed...that number was from 1/1). The HELOC is about 46k and we could probably pay good chunk of that off if we really wanted to, but right now I'd rather stay a little more liquid. What are my best options? Should I just refi the HELOC to a fixed rate and if so what is the going rate for that? Should I refi them both separately? Should I refi them both and combine (but probably have to pay PMI for a bit at that point)? I'm sure there's more info you guys need to give me good answers, just let me know what you need.
I think the rate on the HELOC is lower at this point due to fed rate cuts and the Fed is going to cut rates again today. I would wait until you know what the rate is before deciding.What means this? I just stumbled upon this thread. The wife and I are looking to refi. Currently we have a 30 year at 6.00 and an HELOC (variable) at 8.375. (The HELOC may have changed...that number was from 1/1). The HELOC is about 46k and we could probably pay good chunk of that off if we really wanted to, but right now I'd rather stay a little more liquid. What are my best options? Should I just refi the HELOC to a fixed rate and if so what is the going rate for that? Should I refi them both separately? Should I refi them both and combine (but probably have to pay PMI for a bit at that point)? I'm sure there's more info you guys need to give me good answers, just let me know what you need.
Just found a newer statement...the rate on the HELOC is now down to 7.125 as of the last statement. Am I likely better off getting this to a fixed rate or keeping it adjustable?I think the rate on the HELOC is lower at this point due to fed rate cuts and the Fed is going to cut rates again today. I would wait until you know what the rate is before deciding.What means this? I just stumbled upon this thread. The wife and I are looking to refi. Currently we have a 30 year at 6.00 and an HELOC (variable) at 8.375. (The HELOC may have changed...that number was from 1/1). The HELOC is about 46k and we could probably pay good chunk of that off if we really wanted to, but right now I'd rather stay a little more liquid. What are my best options? Should I just refi the HELOC to a fixed rate and if so what is the going rate for that? Should I refi them both separately? Should I refi them both and combine (but probably have to pay PMI for a bit at that point)? I'm sure there's more info you guys need to give me good answers, just let me know what you need.
What's the term on the HELOC? If it's 10, or even 20, might not be worth rolling it into a 30 at a lower rate.Just found a newer statement...the rate on the HELOC is now down to 7.125 as of the last statement. Am I likely better off getting this to a fixed rate or keeping it adjustable?I think the rate on the HELOC is lower at this point due to fed rate cuts and the Fed is going to cut rates again today. I would wait until you know what the rate is before deciding.What means this? I just stumbled upon this thread. The wife and I are looking to refi. Currently we have a 30 year at 6.00 and an HELOC (variable) at 8.375. (The HELOC may have changed...that number was from 1/1). The HELOC is about 46k and we could probably pay good chunk of that off if we really wanted to, but right now I'd rather stay a little more liquid. What are my best options? Should I just refi the HELOC to a fixed rate and if so what is the going rate for that? Should I refi them both separately? Should I refi them both and combine (but probably have to pay PMI for a bit at that point)? I'm sure there's more info you guys need to give me good answers, just let me know what you need.
Why wouldn't you just pay it off? A HELOC is pretty liquid isn't it? And you're certainly not earning more than 7.125 on the money.What's the term on the HELOC? If it's 10, or even 20, might not be worth rolling it into a 30 at a lower rate.Just found a newer statement...the rate on the HELOC is now down to 7.125 as of the last statement. Am I likely better off getting this to a fixed rate or keeping it adjustable?I think the rate on the HELOC is lower at this point due to fed rate cuts and the Fed is going to cut rates again today. I would wait until you know what the rate is before deciding.What means this? I just stumbled upon this thread. The wife and I are looking to refi. Currently we have a 30 year at 6.00 and an HELOC (variable) at 8.375. (The HELOC may have changed...that number was from 1/1). The HELOC is about 46k and we could probably pay good chunk of that off if we really wanted to, but right now I'd rather stay a little more liquid. What are my best options? Should I just refi the HELOC to a fixed rate and if so what is the going rate for that? Should I refi them both separately? Should I refi them both and combine (but probably have to pay PMI for a bit at that point)? I'm sure there's more info you guys need to give me good answers, just let me know what you need.
I'm embarrassed to say that when I read your question I didn't even know. I looked it up online and it says it is a 14 year term.What's the term on the HELOC? If it's 10, or even 20, might not be worth rolling it into a 30 at a lower rate.Just found a newer statement...the rate on the HELOC is now down to 7.125 as of the last statement. Am I likely better off getting this to a fixed rate or keeping it adjustable?I think the rate on the HELOC is lower at this point due to fed rate cuts and the Fed is going to cut rates again today. I would wait until you know what the rate is before deciding.What means this? I just stumbled upon this thread. The wife and I are looking to refi. Currently we have a 30 year at 6.00 and an HELOC (variable) at 8.375. (The HELOC may have changed...that number was from 1/1). The HELOC is about 46k and we could probably pay good chunk of that off if we really wanted to, but right now I'd rather stay a little more liquid. What are my best options? Should I just refi the HELOC to a fixed rate and if so what is the going rate for that? Should I refi them both separately? Should I refi them both and combine (but probably have to pay PMI for a bit at that point)? I'm sure there's more info you guys need to give me good answers, just let me know what you need.
) with the hope that it will come down in the next 6 weeks.
