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MAJOR bummer indeed! Ugh!!! We need to find a new Penfed w/o the bs costs...Bummer. No extra BS costs earned them my business back in April. I guess they're changing their business model.Worm said:Penfed (current mortgage location) has started charging a 1% origination as of last week.Thorn said:
If it makes you feel better, I've talked to a couple of places today and can't get lower than 4.875%. So he may not be lying to you about that. Was he lying about the 4.75%... my guess is he probably was just to rope you in. They lie. It's what they do.4.875% is a damn good rate imo.
My bet is he was not trying to rope you in. When I talk to clients I give them that day's rate. If it changes before they make their decision whose fault is that? Rates fluctuate from day to day minute to minute. If a borrower is quoted 4.5% and sleeps on it for a few days they were not informed correct about the rate process or took too long to sign and because of their laziness, negligence (what have you) their rate went up anywhere between .125 and .375%. No fault of the loan officer/broker by the borrower inaction.
You are in the neighborhood of $1186/mo principal and interest correct?If you got 4.875% on a 30 year for $155,000 loan amount P&I would be $820.27. $360/mo savings, keep in mind you are adding how many years back on to your mortgage? You are also adding closing costs. So in effect #360 x 360 months= $130,600 savings over the life of the loan. Adding on 5 years? 60 x $820.27= $49,216 plus whatever closing costs will be. Subtract that from your total savings and figure out how long you plan on staying in the house.
My principal payment is currently $232, my interest $717, so my principal and interest is right at $950. With escrow, my total payment is around $1325/month.
I based my P&I on $206,000 @ 5.625% over 30 years= $1186/moWith your P&I saving $130 might not be worth it in your situation. This week is supposed to be bad for rates, the outlook is much better later this month or early February.
say what?
Canadian Mortgage rates are a little lower then yours. I'm in a 5 year term that floats based -0.6% off of the prime lending rate. Actually since posting this it has dropped another 50 basis points. So, it will be more like 2.4% for my next payment.
If you do not find anyone, let me know, I can find someone for you with my contacts. Also, just FYI- Talking to some guys with Countrywide that I know and they were saying that they have 'the best rates out there' right now but they are swamped and are at 60 day locks that they are even blowing. Not sure how 'accurate' the best rates thing is or if that extends out of Chicago but might be worthwhile for you guys looking to call Countrywide.
HELOCS and 2nd's are not enjoying the same decline in interest rates due to the fact that there is no market for them. If other banks are not buying then rates go up to dissuade borrowers from taking money out on them.
You'll have to check the terms of your HEL or HELOC. Mine was a variable rate, but there was a provision that it could not go below the original interest rate by more than x%. Otherwise, I'd think you'd already be seeing a pretty good rate. Of course I'm not a mortgage pro, and I don't even have a HELOC anymore since I refinanced last year and rolled it all in, but that was how it worked on my agreement (maybe with quarterly resets).
Here is the Penfed HELOC page. Looks like you can lock in for one that resets every 5 years, currently it is listed at 5/4.62% APR. (I didn't get too much into the details, but it looks like that is only if you have quite a bit of equity in your home).
Man, I hope so. I'm looking for a 15 year refi and was feeling like I may have missed the boat. Right now I'm seeing 5.25, up half a point from a few weeks ago. Any clues to when they paln to do whatever it is they plan on doing to get them moving south?
That would be incredible.
I would much rather see that happen (as I would take advantage of it) than all of the bank bailout crap. If we are going to do bailouts, I would rather see the money go straight to the folks paying the taxes or go straight into infrastructure, i.e. bridges, roads, etc. that actually need work or energy independence.
If anyone is in a similar situation with an FHA loan. I went back to the original lender and they offered to streamline refi at 5.0% for only around $1,600 closing costs. Basically lower my monthly payment by about $170 for $1,600 upfront; should break even in about 10 months then its all savings from there. If you are already in the FHA loan program, the streamline refi is a very easy process.
most loans will let you "float down" either for free or for a 1/2 point or something. Check with your lender before locking to know for sure. I'm in the middle of a refi and I have the option of floating down if rates get lower than what I locked at prior to us closing on the new mortgage.
As far as I know, the 15K is something you could deduct regardless of when you purchase this year because it will be a change to the tax code not dependent on a point in time. One thing to remember, if you get in for say 5% and then two months from now there is a 4% rate, you can just refi. It may cost you a bit out of pocket but if the % is large enough you'll come out way ahead at the end of the loan.
Heck, they could have just taken the the $100k+ per working American from the last bailout and this stimulus and deposited it in everyone's mortgage and we would all be better off. Just think about it. 1.6 trillion. 150 million workers, including the richest people. That means we are spending over $100,000 per worker. Where the hell is that all going? My wife and I work and our mortgage would be paid off. I think that would open up our consumer spending a bit and also put us in a great position for retirement and college tuitions, etc. Instead, we spend $900 billion trying to create hundreds of thousands of jobs when that money would be life changing for 95% of EVERY worker in our country. I would rather spend life changing money on 140 million people instead of less than 1% of that number.
Thanks, I'll check CW and PM you for contacts if needed.
In Frisco and looking to either refi or would possibly purchase around Allen, Richardson, Murphy area. Thanks for the hookup.
We could take some of this money and put it into education... perhaps improve math skills?
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