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MechEng

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The wife and I are thinking about buying a new house in 2-3 years. We currently owe about $98K on our house (original loan amount was $118K). The interest rate is 6% for 30 years...should we refinance?

with only a 2-3 year window, i don't think it is worth your while (and the closing costs) to refinance now.
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The wife and I are thinking about buying a new house in 2-3 years. We currently owe about $98K on our house (original loan amount was $118K). The interest rate is 6% for 30 years...should we refinance?

with only a 2-3 year window, i don't think it is worth your while (and the closing costs) to refinance now.
Also depends on what "thinking about buying a new house" means. Are you starting a family and need more room, i.e. something definite, or just thinking about it?Easy enough to run some numbers and there are lots of zero closing cost options with a little higher interest rates. They could probably close on something less than 5-5.25% without changing the principal at all or have to write a check at closing. If rates are below 5%, then I think he could easily save interest payments each month and pay nothing out of pocket/increase his principal.
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The wife and I are thinking about buying a new house in 2-3 years. We currently owe about $98K on our house (original loan amount was $118K). The interest rate is 6% for 30 years...should we refinance?

with only a 2-3 year window, i don't think it is worth your while (and the closing costs) to refinance now.
Also depends on what "thinking about buying a new house" means. Are you starting a family and need more room, i.e. something definite, or just thinking about it?Easy enough to run some numbers and there are lots of zero closing cost options with a little higher interest rates. They could probably close on something less than 5-5.25% without changing the principal at all or have to write a check at closing. If rates are below 5%, then I think he could easily save interest payments each month and pay nothing out of pocket/increase his principal.
Also, I believe Wells Fargo was running a no cost refi awhile back if your current mortgage is through them. You wouldn't get the prevailing rate, but there's a lot of room between the current prevailing rate and 6%. I'd call your bank first and see if they're running any kind of program like that.
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9 years in on a 30yr fixed mortgage at 5.5% - on a loan of about 275KWhen does it make sense to refi? Don't think we could swing the payments going to a 15 year fixed. If I refi do I go back to a 30 year fixed mortgage?

That's a tough one. You already went through the worst years interest wise. There are 20 year fixed rate programs. I would see what a zero closing cost/zero principal change refi would be. Honestly, I think you may find it hard to get a lot better. You may save a little bit, but might not be worth it. No reason not to call/look at someone like aimloan.com (or any well known mortgage broker site) and just get some GFEs/rate quotes. Again, zero closing cost loans aren't special, you just up the rate and you get a rebate, which can covers the closing costs. If the rate with no cost to you/no upping of principal is less than 5.5% on a 20 year, then at worst you save a few bucks a month and 1 year. If not, then don't bother.
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FHA vs Conventional

3.5% down vs 5% down (no pts)

Not sure on FHA rate vs 4.75% Conventional

FHA 2.25% upfront PMI vs no upfront PMI on Conventional loan

FHA monthly PMI .55% vs Conventional monthly PMI .88%

Closing costs look to be around $5,000. Prepaids around $1,500.

First time homebuyer here. $260K home.

FHA will save me about $4K on a down payment, but get hit with about $5.6K on the upfront 2.25% fee rolled into the loan.

Which route should I go? I could use that extra $4K to do somethings right away with the home...

(Hitting the 401K for a loan for down payment, closing costs, etc.)

:thumbup:

Edited by Mr. Superunkn0wn
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While our mortgage is 25 years, we only had the option of locking in the rate for like 5 years or less. Can you guys really lock in a rate for 30 years?

:goodposting: That's why it's called a "30 year fixed" mortgage.You mustve signed up for a 5 year ARM.Am I missing something in your question?
No, you're not missing anything. Fixed rates on 10+ years here never went below 7%. The info page from my bank had nothing longer than 15 yr fixed.
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While our mortgage is 25 years, we only had the option of locking in the rate for like 5 years or less. Can you guys really lock in a rate for 30 years?

:rolleyes: That's why it's called a "30 year fixed" mortgage.You mustve signed up for a 5 year ARM.Am I missing something in your question?
No, you're not missing anything. Fixed rates on 10+ years here never went below 7%. The info page from my bank had nothing longer than 15 yr fixed.
:shrug::confused: ... Are you in the U.S.? If so, I'd wager a good sum of money that whoever loaned you money for your home made a ####### killing. :unsure:
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In at 4.75...went 30 year fixed no escrow zero points. Closing next month.

Very happy with that. When you factor in the interest deduction in our tax bracket the after tax rate is 3.42%.

Insane.

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Rates again are hitting historic lows. You should be able to get with no points.

30 yr fixed 4.625%

15 yr fixed 4.00%

Always get a GFE or closing cost worksheet before ever locking or proceeding with your mortgage process. HTH

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FHA vs Conventional3.5% down vs 5% down (no pts)Not sure on FHA rate vs 4.75% ConventionalFHA 2.25% upfront PMI vs no upfront PMI on Conventional loanFHA monthly PMI .55% vs Conventional monthly PMI .88%Closing costs look to be around $5,000. Prepaids around $1,500.First time homebuyer here. $260K home.FHA will save me about $4K on a down payment, but get hit with about $5.6K on the upfront 2.25% fee rolled into the loan.Which route should I go? I could use that extra $4K to do somethings right away with the home...(Hitting the 401K for a loan for down payment, closing costs, etc.) :D

Roll it in and stay liquid to put that nice back deck for summer and fall BBQs you want to do. You'll never feel that money rolled into the fees and loans...I know that's probably not very Dave Ramsey friendly. But over 25-30 years, you likely won't die in this home meaning you'll ove again...lots of good things on the horizon over the long term. Don't stretch yourself, enjoy the new home.
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While our mortgage is 25 years, we only had the option of locking in the rate for like 5 years or less. Can you guys really lock in a rate for 30 years?

:D

That's why it's called a "30 year fixed" mortgage.

You mustve signed up for a 5 year ARM.

Am I missing something in your question?

No, you're not missing anything. Fixed rates on 10+ years here never went below 7%. The info page from my bank had nothing longer than 15 yr fixed.
:lmao::wub::confused:
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While our mortgage is 25 years, we only had the option of locking in the rate for like 5 years or less. Can you guys really lock in a rate for 30 years?

:lmao:

That's why it's called a "30 year fixed" mortgage.

You mustve signed up for a 5 year ARM.

Am I missing something in your question?

No, you're not missing anything. Fixed rates on 10+ years here never went below 7%. The info page from my bank had nothing longer than 15 yr fixed.
:confused::confused::confused:
Isn't Early Canadian? Maybe rates there never got that low?
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FHA vs Conventional3.5% down vs 5% down (no pts)Not sure on FHA rate vs 4.75% ConventionalFHA 2.25% upfront PMI vs no upfront PMI on Conventional loanFHA monthly PMI .55% vs Conventional monthly PMI .88%Closing costs look to be around $5,000. Prepaids around $1,500.First time homebuyer here. $260K home.FHA will save me about $4K on a down payment, but get hit with about $5.6K on the upfront 2.25% fee rolled into the loan.Which route should I go? I could use that extra $4K to do somethings right away with the home...(Hitting the 401K for a loan for down payment, closing costs, etc.) :lmao:

If you can afford the 5% down, the conventional will save you money in the long run. FHA you are locked into a PMI for the life of your loan. Conventional, it goes away after you're in 20%. See if the conventional will possibly lower the down for you, or finance the down.
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While our mortgage is 25 years, we only had the option of locking in the rate for like 5 years or less. Can you guys really lock in a rate for 30 years?

:confused: That's why it's called a "30 year fixed" mortgage.You mustve signed up for a 5 year ARM.Am I missing something in your question?
No, you're not missing anything. Fixed rates on 10+ years here never went below 7%. The info page from my bank had nothing longer than 15 yr fixed.
:confused::confused: ... Are you in the U.S.? If so, I'd wager a good sum of money that whoever loaned you money for your home made a ####### killing. :unsure:
Canada....where the banks didn't need bailing out. Signed 5 yrs at 4.15 on a 25 yr mortgage. 5 years is generally the longest anyone locks in for as it's the best balance of low rate/long time. I could have taken less than 2% on a 1 yr.
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While our mortgage is 25 years, we only had the option of locking in the rate for like 5 years or less. Can you guys really lock in a rate for 30 years?

:confused:

That's why it's called a "30 year fixed" mortgage.

You mustve signed up for a 5 year ARM.

Am I missing something in your question?

No, you're not missing anything. Fixed rates on 10+ years here never went below 7%. The info page from my bank had nothing longer than 15 yr fixed.
:confused::unsure::confused:
Isn't Early Canadian? Maybe rates there never got that low?
:confused: and that was with 20% down.
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FHA vs Conventional

3.5% down vs 5% down (no pts)

Not sure on FHA rate vs 4.75% Conventional

FHA 2.25% upfront PMI vs no upfront PMI on Conventional loan

FHA monthly PMI .55% vs Conventional monthly PMI .88%

Closing costs look to be around $5,000. Prepaids around $1,500.

First time homebuyer here. $260K home.

FHA will save me about $4K on a down payment, but get hit with about $5.6K on the upfront 2.25% fee rolled into the loan.

Which route should I go? I could use that extra $4K to do somethings right away with the home...

(Hitting the 401K for a loan for down payment, closing costs, etc.)

:goodposting:

If you can afford the 5% down, the conventional will save you money in the long run. FHA you are locked into a PMI for the life of your loan. Conventional, it goes away after you're in 20%. See if the conventional will possibly lower the down for you, or finance the down.
I've read this is not true (or no longer true). Know of someone who went FHA and was told have to be at least 5 years into the loan as well as the 20% or so equity into it and the PMI will go away. It's that extra upfront 2.25% which gets added onto the loan which never goes away I guess.
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FHA vs Conventional

3.5% down vs 5% down (no pts)

Not sure on FHA rate vs 4.75% Conventional

FHA 2.25% upfront PMI vs no upfront PMI on Conventional loan

FHA monthly PMI .55% vs Conventional monthly PMI .88%

Closing costs look to be around $5,000. Prepaids around $1,500.

First time homebuyer here. $260K home.

FHA will save me about $4K on a down payment, but get hit with about $5.6K on the upfront 2.25% fee rolled into the loan.

Which route should I go? I could use that extra $4K to do somethings right away with the home...

(Hitting the 401K for a loan for down payment, closing costs, etc.)

:goodposting:

If you can afford the 5% down, the conventional will save you money in the long run. FHA you are locked into a PMI for the life of your loan. Conventional, it goes away after you're in 20%. See if the conventional will possibly lower the down for you, or finance the down.
I've read this is not true (or no longer true). Know of someone who went FHA and was told have to be at least 5 years into the loan as well as the 20% or so equity into it and the PMI will go away. It's that extra upfront 2.25% which gets added onto the loan which never goes away I guess.
:lmao: I just bought a home about 6 months ago and that's how the mortgage broker explained it to me... that the pmi was cheaper with an FHA (about half), but it was rolled into the loan and lasted the life of the loan. I don't know if it can vary depending on state, or mortgage company, or if things changed. If you have someone, just ask them the options.

ETA: Actually, I don't remember all the details. I just remember that conventional made a lot more sense for me and was cheaper in the long run, even though I had initially thought FHA was a better deal and intended to get FHA. After I looked at both, I went conventional. FHA also requires a lot of minor things to be repaired first and can delay closing. Some sellers are not too keen on them.

Edited by desert rose
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FHA vs Conventional

3.5% down vs 5% down (no pts)

Not sure on FHA rate vs 4.75% Conventional

FHA 2.25% upfront PMI vs no upfront PMI on Conventional loan

FHA monthly PMI .55% vs Conventional monthly PMI .88%

Closing costs look to be around $5,000. Prepaids around $1,500.

First time homebuyer here. $260K home.

FHA will save me about $4K on a down payment, but get hit with about $5.6K on the upfront 2.25% fee rolled into the loan.

Which route should I go? I could use that extra $4K to do somethings right away with the home...

(Hitting the 401K for a loan for down payment, closing costs, etc.)

:)

If you can afford the 5% down, the conventional will save you money in the long run. FHA you are locked into a PMI for the life of your loan. Conventional, it goes away after you're in 20%. See if the conventional will possibly lower the down for you, or finance the down.
I've read this is not true (or no longer true). Know of someone who went FHA and was told have to be at least 5 years into the loan as well as the 20% or so equity into it and the PMI will go away. It's that extra upfront 2.25% which gets added onto the loan which never goes away I guess.
:unsure: I just bought a home about 6 months ago and that's how the mortgage broker explained it to me... that the pmi was cheaper with an FHA (about half), but it was rolled into the loan and lasted the life of the loan. I don't know if it can vary depending on state, or mortgage company, or if things changed. If you have someone, just ask them the options.

ETA: Actually, I don't remember all the details. I just remember that conventional made a lot more sense for me and was cheaper in the long run, even though I had initially thought FHA was a better deal and intended to get FHA. After I looked at both, I went conventional. FHA also requires a lot of minor things to be repaired first and can delay closing. Some sellers are not too keen on them.

OK. So I also just read that one diff is with FHA the equity needed to get out of PMI is based on the initial loan amount whereas with a conventional you can take advantage of rising home values (yeah right).
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  • 2 weeks later...

FHA vs Conventional

3.5% down vs 5% down (no pts)

Not sure on FHA rate vs 4.75% Conventional

FHA 2.25% upfront PMI vs no upfront PMI on Conventional loan

FHA monthly PMI .55% vs Conventional monthly PMI .88%

Closing costs look to be around $5,000. Prepaids around $1,500.

First time homebuyer here. $260K home.

FHA will save me about $4K on a down payment, but get hit with about $5.6K on the upfront 2.25% fee rolled into the loan.

Which route should I go? I could use that extra $4K to do somethings right away with the home...

(Hitting the 401K for a loan for down payment, closing costs, etc.)

:shrug:

If you can afford the 5% down, the conventional will save you money in the long run. FHA you are locked into a PMI for the life of your loan. Conventional, it goes away after you're in 20%. See if the conventional will possibly lower the down for you, or finance the down.
I've read this is not true (or no longer true). Know of someone who went FHA and was told have to be at least 5 years into the loan as well as the 20% or so equity into it and the PMI will go away. It's that extra upfront 2.25% which gets added onto the loan which never goes away I guess.
:excited: I just bought a home about 6 months ago and that's how the mortgage broker explained it to me... that the pmi was cheaper with an FHA (about half), but it was rolled into the loan and lasted the life of the loan. I don't know if it can vary depending on state, or mortgage company, or if things changed. If you have someone, just ask them the options.

ETA: Actually, I don't remember all the details. I just remember that conventional made a lot more sense for me and was cheaper in the long run, even though I had initially thought FHA was a better deal and intended to get FHA. After I looked at both, I went conventional. FHA also requires a lot of minor things to be repaired first and can delay closing. Some sellers are not too keen on them.

OK. So I also just read that one diff is with FHA the equity needed to get out of PMI is based on the initial loan amount whereas with a conventional you can take advantage of rising home values (yeah right).
I was told that PMI on an FHA loan needed to be there for 5 years and then when you are at 22% equity after 5 years, you can request to have PMI removed. The equity needed to get out of PMI is based off the amount the home is worth at the time you are requesting to have PMI cancelled (the 5+ year mark). I'm 100% positive this is what I was told.
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Is it pretty much a lost cause to attempt to refinance if you're underwater

I refinanced my first mortgage (to 97.75% of current value) and paid off most, but not all, of my 2nd mortgage with the extra cash. The 2nd mortgage put me ~$20k under water. So it can be done.You should talk to a mortgage broker to see if there are any programs you qualify for.
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OK. So I also just read that one diff is with FHA the equity needed to get out of PMI is based on the initial loan amount whereas with a conventional you can take advantage of rising home values (yeah right).

I was told that PMI on an FHA loan needed to be there for 5 years and then when you are at 22% equity after 5 years, you can request to have PMI removed. The equity needed to get out of PMI is based off the amount the home is worth at the time you are requesting to have PMI cancelled (the 5+ year mark). I'm 100% positive this is what I was told.
When I refinanced, I was told what superunknown wrote.
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Any clue what a 15 year paying a point rate is now? My C.U. told me they would give me 3.75ish last week on my refi but we couldn't lock till after the appraisel. I have 5.5-30 right now on this house and want to shorten it up a bit. :yes: I just did my other house at 15 for 4.5 or 4.75 a month or two ago and want to get them in line with each other.

Edited by PIK95
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PMI

What are you guys paying on 5% down conventional loans? I've got a couple lenders both quoting me .94%. Another says she can shop it and the best she saw was .66% which I'd probably qualify for because of my good FICO scores. Problem is she has a higher interest rate (4.875%). I think i'm going to go with the .94% PMI and lock in a 4.5% no points rate tomorrow if I can. The logic being the interest savings on one is about the same as the PMI savings on the other and PMI will eventually go away while the interest difference stays and saves me about $20K in interest over the life of the loan.

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PMIWhat are you guys paying on 5% down conventional loans? I've got a couple lenders both quoting me .94%. Another says she can shop it and the best she saw was .66% which I'd probably qualify for because of my good FICO scores. Problem is she has a higher interest rate (4.875%). I think i'm going to go with the .94% PMI and lock in a 4.5% no points rate tomorrow if I can. The logic being the interest savings on one is about the same as the PMI savings on the other and PMI will eventually go away while the interest difference stays and saves me about $20K in interest over the life of the loan.

You are probably still better off taking the lower rate, vs. the lower PMI, but just to muddle things up a little more, PMI is currently tax deductible, but has not always been deductible and may not be deductible in the future.
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Here's another one.

Owner's Title Insurance - yay or nay and why? I realize Lender's Title Insurance is mandatory but Owner's is not, and one indirectly covers you while the other covers you also directly.

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Signing the docs at 3pm today to refinance into a 20-year @ 4.375%. No points. $1800 in closing costs.

Fantastic...Rates are at all time lows right now. You should have no problem finding 30 yr fixes @ 4.375% and 15 yr @ 3.875% 0 pts. depending on your loan amounts. Again you must get the "Initial Cost Worksheet" (like the old GFE) before you proceed with any mortgage transaction. Shop 3 different sources including mortgage brokers, mortgage brokers will tend to have better rates then banks or CU.Owners title policy will stay in effect as long as you own your home, but is not required. The policy protects you against any liens or encumbrances that might pop up. If you have a owners policy and are refinancing you will get re-issue credit on your new lenders policy, if you do not you will pay full policy price.
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Here's another one.Owner's Title Insurance - yay or nay and why? I realize Lender's Title Insurance is mandatory but Owner's is not, and one indirectly covers you while the other covers you also directly.

I guess I better get this. Hate to shell out the cash, but the property is a short sale and I guess you never know...
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Here's another one.Owner's Title Insurance - yay or nay and why? I realize Lender's Title Insurance is mandatory but Owner's is not, and one indirectly covers you while the other covers you also directly.

I guess I better get this. Hate to shell out the cash, but the property is a short sale and I guess you never know...
I was in mortgage banking for 15yrs up until the crash. Though this is purely anecdotal and subjective...I would not feel comfortable purchasing a home without it. You would likely be safe if you are purchasing a new home from a developer; but there are no guarantees.Even with Title Insurance, there are no guarantees that there are no outstanding lawful claims to the property. But, the issuer of an Owner's title insurance policy is certifying to you that to the best of their knowledge there are no lawful (legitimate claims that win in court and thus cause loss to you) claims. Further, that if a lawful claim arises, they will defend you and compensate you for losses you sustain. Typically the max liability of the Title issuer is the purchase price of the home. But, be careful to read the exclusions; often, they exclude a lot. The title insurance co. might, however, be willing to grant you broader coverage if you purchase various endorsements for a fee. All of this is subject to state-specific law. So do your research. IMO, it's better to spend a few hundred dollars now to work with a title attorney who will ensure that you're getting what you think you're getting, rather than getting an unpleasant surprise in court one day. While I understand that not everyone has mattresses stuffed with money, I have seen over and over again the problems people have that could have been avoided for about $1000.00 spent on hiring your own attorney, home inspector, and appraiser. $1K is a lot of money to many people; but when it's held up to the purchase price of the home and what that home means to your family, it starts to look like a better bargain. Good luck with it.
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UPDATE: 6/29

Rate are again surprising us. With the 10yr T-bill below 3%

30 yr fixed rates w/ no points are hovering at 4.25% - 4.375% and 15 yr at 3.75% (loan amounts above 170K).

Remember always get the Closing Cost/Inital Fees Worksheet before you lock and proceed. Get off the fence now...

Edited by towney
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UPDATE: 6/29Rate are again surprising us. With the 10yr T-bill below 3%30 yr fixed rates w/ no points are hovering at 4.25% - 4.375% and 15 yr at 3.75% (loan amounts above 170K).Remember always get the Closing Cost/Inital Fees Worksheet before you lock and proceed. Get off the fence now...

I haven't sifted through all 34 pages, but I'm assuming those rates apply to a "traditional" 20/80 approach. I'm a dummy on this stuff, so bear with me; what is the additional points I'd expect to pay if I went for a 10/90 approach (i.e. a second mortgage to bring me to the 20% equity limits)? Is this still done? I haven't really been paying attention to the ramifications of the housing bubble as we've been in our house for awhile, but are now looking to upgrade esp. with these rates. Also, anyone recommend using some of the on-line style mortgage lenders? QuickenLoans, others? or is it better/easier to use a bricks/mortar place.
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UPDATE: 6/29

Rate are again surprising us. With the 10yr T-bill below 3%

30 yr fixed rates w/ no points are hovering at 4.25% - 4.375% and 15 yr at 3.75% (loan amounts above 170K).

Remember always get the Closing Cost/Inital Fees Worksheet before you lock and proceed. Get off the fence now...

I haven't sifted through all 34 pages, but I'm assuming those rates apply to a "traditional" 20/80 approach Yes. I'm a dummy on this stuff, so bear with me; what is the additional points I'd expect to pay if I went for a 10/90 approach You should be about the same maybe an 1/8% higher in the rate, it's going to be what rate you can get on the second (i.e. a second mortgage to bring me to the 20% equity limits)? Is this still done? Still being done, just have to find a first and second lender I haven't really been paying attention to the ramifications of the housing bubble as we've been in our house for awhile, but are now looking to upgrade esp. with these rates.

Also, anyone recommend using some of the on-line style mortgage lenders? QuickenLoans, others? or is it better/easier to use a bricks/mortar place. I have heard horror stories about online companies, so my suggestion is to pick a local lender or mortgage broker that will be there at your closing. With an online company you might get someone out of state

HTH

Edited by towney
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My mortgage guy just quoted me 4.5 with one-eighth of a point which I can lock today. I usually find that the real world rates are a little higher than what you read quoted on the Internet. It's like new car prices.

I think I'm going to do it - will save almost $250 per month.

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While our mortgage is 25 years, we only had the option of locking in the rate for like 5 years or less. Can you guys really lock in a rate for 30 years?

:confused: That's why it's called a "30 year fixed" mortgage.You mustve signed up for a 5 year ARM.Am I missing something in your question?
No, you're not missing anything. Fixed rates on 10+ years here never went below 7%. The info page from my bank had nothing longer than 15 yr fixed.
:confused: :confused: ... Are you in the U.S.? If so, I'd wager a good sum of money that whoever loaned you money for your home made a ####### killing. :unsure:
predatory lending
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My mortgage guy just quoted me 4.5 with one-eighth of a point which I can lock today. I usually find that the real world rates are a little higher than what you read quoted on the Internet. It's like new car prices. I think I'm going to do it - will save almost $250 per month.

Here's a hint/secret get him to waive the 1/8 point. Tell him you have other quotes that are lower. I have locked in 3 clients today at 4.375% 30 yr fixed 0 pts and I'm not an online company, but a owner of a mortgage brokerage business. Trust me if you shop and your loan amount is 170K or higher should be no reason you can't get 4.375% or in your case 4.5% w/ 0pts.
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My mortgage guy just quoted me 4.5 with one-eighth of a point which I can lock today. I usually find that the real world rates are a little higher than what you read quoted on the Internet. It's like new car prices. I think I'm going to do it - will save almost $250 per month.

Here's a hint/secret get him to waive the 1/8 point. Tell him you have other quotes that are lower. I have locked in 3 clients today at 4.375% 30 yr fixed 0 pts and I'm not an online company, but a owner of a mortgage brokerage business. Trust me if you shop and your loan amount is 170K or higher should be no reason you can't get 4.375% or in your case 4.5% w/ 0pts.
Jeez - wish you were in Baltimore. Our credit is excellent, too. This guy is really great/efficient, but I never feel like I'm getting the best price from him. Any tips on how to find a decent mortgage guy?
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On the Good Faith Estimate, in addition to the eighth of a point, there are also these costs:

Tax related service: $90

Underwriting fee: $295

Processing fee: $295

Wire fee: $35

Attorney fees: $800

Are these legit, or can I negotiate these or find someone else to do the loan without them?

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On the Good Faith Estimate, in addition to the eighth of a point, there are also these costs:

Tax related service: $90 Lender 3rd party fee for collecting property tax data Legit

Underwriting fee: $295Legit Lender Fee and non-neg.

Processing fee: $295Pays for the processor who takes over from the loan officer

Wire fee: $35Legit Non-neg.

Attorney fees: $800Not sure why an attorney, but in most states you use a title company

Are these legit, or can I negotiate these or find someone else to do the loan without them?

Go shop your refi, you do this when buying a car so why not on a bigger investment. Let the companies know you are getting 3-4 estimates/rate quotes and to have them put their best foot forward first go around. No need to pay 1/8pt on 4.5% if there is something better out there. Again, make sure you get the estimate(s) before committing.

Start by finding a local mortgage broker. Go to bankrate.com and search Balt. or look in your Sunday Real Estate section for interest rate advertising by different companies.

Edited by towney
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UPDATE: 6/29Rate are again surprising us. With the 10yr T-bill below 3%30 yr fixed rates w/ no points are hovering at 4.25% - 4.375% and 15 yr at 3.75% (loan amounts above 170K).Remember always get the Closing Cost/Inital Fees Worksheet before you lock and proceed. Get off the fence now...

I haven't sifted through all 34 pages, but I'm assuming those rates apply to a "traditional" 20/80 approach. I'm a dummy on this stuff, so bear with me; what is the additional points I'd expect to pay if I went for a 10/90 approach (i.e. a second mortgage to bring me to the 20% equity limits)? Is this still done? I haven't really been paying attention to the ramifications of the housing bubble as we've been in our house for awhile, but are now looking to upgrade esp. with these rates. Also, anyone recommend using some of the on-line style mortgage lenders? QuickenLoans, others? or is it better/easier to use a bricks/mortar place.
Where are you guys getting these 4.25-4.5 rates.I talked to my bank and BOA and so far the lowest I've heard back is 4.875, 0 points and thats with a credit rating of 775+
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UPDATE: 6/29Rate are again surprising us. With the 10yr T-bill below 3%30 yr fixed rates w/ no points are hovering at 4.25% - 4.375% and 15 yr at 3.75% (loan amounts above 170K).Remember always get the Closing Cost/Inital Fees Worksheet before you lock and proceed. Get off the fence now...

I haven't sifted through all 34 pages, but I'm assuming those rates apply to a "traditional" 20/80 approach. I'm a dummy on this stuff, so bear with me; what is the additional points I'd expect to pay if I went for a 10/90 approach (i.e. a second mortgage to bring me to the 20% equity limits)? Is this still done? I haven't really been paying attention to the ramifications of the housing bubble as we've been in our house for awhile, but are now looking to upgrade esp. with these rates. Also, anyone recommend using some of the on-line style mortgage lenders? QuickenLoans, others? or is it better/easier to use a bricks/mortar place.
Where are you guys getting these 4.25-4.5 rates.I talked to my bank and BOA and so far the lowest I've heard back is 4.875, 0 points and thats with a credit rating of 775+
There is a misconception that it is best to go back to your current lender/bank,but in my opinion the right mortgage broker will by far beat the banks rates. HTH
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Got quoted today for 4.5 no points/no closing. Would save $125- a month. I already have 4.875 so not gonna do this one yet. For those asking about where to find these, I am in MA and my loan is just under 400k so he makes a good commission or yield on me so that's why I get a good rate.

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