OT: Was offered this to Refi yesterday

[Beretta.sixpack]

I saw the thread the other day, but it got lost in the shuffle....

I am in the market to refi....but im not foaming at the mouth to do it next week....A friend of a friend found out i was in the market, and texted me that they had "some really good options" right now ....my current rate is 4.0 on a 30 from 2015.....he is offering 3.5 on a 30, and 2.75 on a 15 ...texted me we need to watch rates next week...and ZERO origination fees....Im not looking to cash out, just refi to lower rate and payment

is this a good deal? the fees, i believe, are where they get you

should i shop around online? Should i take this offer and show it to other people offering?

edit to add: I read this morning that mid march the fed plans to drop rates a half a point in mid march (usa today money)

 

[tenureplan]

I would wait til this virus plays out. We could have an overnight rate of near 0 again when all is said and done.

 

[Cooterpoot]

Wait. The thought is, the fed is going to drop rates this year. I've heard there could be two rate drops possibly.

 

[Leeshouldveflanked]

My buddy that’s in mortgage business says rates will be going lower

 

[Faustdog]

Most of the time these known drops coming in the fed rate are already built into mortgage rates by now.

 

[Cooterpoot]

Most of the time these known drops coming in the fed rate are already built into mortgage rates by now.

Not this time. There's a lot of talk there's going to be at least a decent drop and rates are already down.

 

[patdog]

2.75% on a 15-year is a hell of a good rate. You might get a better one by waiting, but either way you’ll be in great shape. Whenever you do refi, get the 15-year loan. There’s a LOT of financial freedom in not having a mortgage.

 

[Go Budaw]

I saw the thread the other day, but it got lost in the shuffle....

I am in the market to refi....but im not foaming at the mouth to do it next week....A friend of a friend found out i was in the market, and texted me that they had "some really good options" right now ....my current rate is 4.0 on a 30 from 2015.....he is offering 3.5 on a 30, and 2.75 on a 15 ...texted me we need to watch rates next week...and ZERO origination fees....Im not looking to cash out, just refi to lower rate and payment

is this a good deal? the fees, i believe, are where they get you

should i shop around online? Should i take this offer and show it to other people offering?

edit to add: I read this morning that mid march the fed plans to drop rates a half a point in mid march (usa today money)

First off, the usual disclaimer applies...you need to make sure you are in the house long enough to at least reach your break even point on the fees vs. savings (not monthly payment savings, but increased equity vs. cost). Calculate that before you do anything.

That said, I got 3.37% on a 30-year mortgage (new, not re-fi) 5 months ago when everything was just humming along, so I would be extremely hesitant to go to 3.5 on a 30 year refi now when there is a high probability of an upcoming drop based on COVID. 2.75% on a 15-year might make more sense if you can afford the higher payment, depending on fees.

Also, all the rate drops will be priced into the market before they actually happen, so don’t expect some big decrease in rates when they actually do go down. If you see a great rate that makes sense for your situation and the fee trade-off is worth it, go ahead and jump on it.

 

[jdbulldog]

If the 2.5 is a fixed rate with 0 points and no origination fee take it now and do not be concerned with picking the lows.

 

[rynodawg]

Mortgage experts, so since Fed did make a 0.5 % cut today, how will that impact rates?

Currently five years into a 3.5% thirty year VA loan.

 

[GloryDawg]

The rates were dropped today.

 

[GTAdawg]

Very interested in this thread. Two years ago I did a 30yr at 4.5% and ever since then it seems rates have dropped. Just not sure when it makes sense to pull the trigger on refinance. If I could get a sub 3% rate on a 15 year note then I think I would strongly consider it??

 

[My Bru]

Very interested in this thread. Two years ago I did a 30yr at 4.5% and ever since then it seems rates have dropped. Just not sure when it makes sense to pull the trigger on refinance. If I could get a sub 3% rate on a 15 year note then I think I would strongly consider it??

I'm in the same boat. I did the math earlier this AM and it seems my payment would only go up less than $250.

 

[Beretta.sixpack]

I was told rate droppings dont affect mortgage rates...

Was told twice in the last two days that the fed dropping the rates doesn't have any affect on mortgage rates.....long term/short term/10 year treasury ......was explained in a couple of ways....

against my original post, another mortgage lender offered me 3.15 for a 30 yesterday as well....total closing costs of $2800 plus escrow....

sounds like a good deal, but would still like to hear some more opinions of where we are going and if i should jump now and get it...

 

[Go Budaw]

Very interested in this thread. Two years ago I did a 30yr at 4.5% and ever since then it seems rates have dropped. Just not sure when it makes sense to pull the trigger on refinance. If I could get a sub 3% rate on a 15 year note then I think I would strongly consider it??

It’s all based on the fees. I was in a really similar boat as you in 2016. My first mortgage, I got a 4.625% rate in 2011, refinanced to 3% 15-year in 2016. I used an online lender, Cardinal Financial, to handle the whole thing.

The first thing I’ll tell you is that their customer service was horrendous. They were extremely late getting / approving paperwork on their end, which caused me to have to call multiple times to get the rate lock extended due to problems on their end. Once I had to threaten to cancel the application altogether. They also sent me a request for repairs on an appraisal that included getting a tear in the liner of my pool fixed and also some peeling vinyl in my laundry room repaired. Problem is, my house didn’t even have a pool, or a vinyl laundry room floor. They sent me the R4R for the wrong damn house. BUT, after getting all that sorted out, the fees were only about $1,800 altogether when accounting for the added interest from baking the origination charges into the loan and everything. Unbeatable, and the whole process paid for itself in less than 6 months in increased equity, and my payment only went up about $100. They sent an agent to handle the closing where I just met them at Starbucks and signed all the paperwork.

Moral of the story, if you can shop around, and you can put up with a little BS / incompetence on the lending side, you can save yourself some serious coin. I find it a lot easier to do all of the above when I’m already in the property and don’t really have a hard clock to complete the process. New property / mortgage where I’m up against it to close or be out on the street, I’d rather use a local brick-and-mortar lender to handle it.

 

[aTotal360]

I just had a client refi for 30 years @ 2.75%, no origination fee, no points.

Just keep in mind interest rate and APR are not the same. The lenders aren't giving away money. APR is what you actually pay. It includes fees (spread throughout the length of the mortgage) plus the interest rate. The delta between the APR and interest rate is what they are making. Get the APR # before doing backflips.

 

[Go Budaw]

I just had a client refi for 30 years @ 2.75%, no origination fee, no points.

Just keep in mind interest rate and APR are not the same. The lenders aren't giving away money. APR is what you actually pay. It includes fees (spread throughout the length of the mortgage) plus the interest rate. The delta between the APR and interest rate is what they are making. Get the APR # before doing backflips.

Wow. You mind me asking where? I’m at 3.375% now and thought that was excellent. Haven’t seen anything lower than that on the re-fi market, let alone a full 0.625% lower.

 

[missouridawg]

I just had a client refi for 30 years @ 2.75%, no origination fee, no points.

Just keep in mind interest rate and APR are not the same. The lenders aren't giving away money. APR is what you actually pay. It includes fees (spread throughout the length of the mortgage) plus the interest rate. The delta between the APR and interest rate is what they are making. Get the APR # before doing backflips.

Is there a good place that does a tidy calculation of the "to re-fi or not" question? We're on year 6 of a 30 year at 4.625%. And thinking it may be time to go ahead and do this.

 

[DawgInThe256]

Don't know if there are better options, but I've used bankrate.com in the past

https://www.bankrate.com/calculators/mortgages/refinance-calculator.aspx

 

[TNT.sixpack]

My son purchased a new home in October and the rates were 3.49 for a 30 year fixed then so I'm not sure what he's offering you is very enticing. As others have said, I'd wait a little while longer.

 

[aTotal360]

He used The Federal Savings Bank.

 

[johnson86-1]

Very interested in this thread. Two years ago I did a 30yr at 4.5% and ever since then it seems rates have dropped. Just not sure when it makes sense to pull the trigger on refinance. If I could get a sub 3% rate on a 15 year note then I think I would strongly consider it??

If you're at 4.5%, a refi into another 30 year would almost certainly make sense now, unless you have some credit issue that would prevent you from getting competitive rates, although as people are mentioning, you might do better by waiting.

Moving to a 15 year mortgage would have some benefits as far as forced savings, but it's hard to beat a 30 year fixed loan for 3.5%. If you are not at the very least maxing out your tax advantaged savings (e.g., 401k, roth, HSA, whatever you have available), I would stick to the 30 and focus on maxing those out, or at least make sure you put the difference in the monthly payment between the 15 and 30 into those vehicles.

 

[lanceharbor7]

Pull the trigger.

The ten year hit .95% today. That's a record low. Mortgage rates are based on the ten year treasury yield. The APR comment is very valid, but you should be able to find 30 year mortgages in the 3% range. I know Jumbo mortgages (510k plus) can be had for 3.375 for 30 years. 15 year mortgages sub 2.85%. This is the time to get while the getting is good in the mortgage market. I would not hesitate to refi.

Is there a good place that does a tidy calculation of the "to re-fi or not" question? We're on year 6 of a 30 year at 4.625%. And thinking it may be time to go ahead and do this.

 

[Beretta.sixpack]

Offered 3.125/30 and 2.75/15 today.....

I think im gonna take the 3.125 on the 30 and add 2 extra payments a year....i wanted to take the 15, but with my wife about a year away from going back to the workforce, im gonna play it safe with the 30....

3.125, $895 closing fee/30 year...

I was told if i shopped hard, i could probably find lower....Im locked in I think for 60 days, so i may wait a week or so before i signs the paper work unless i get convinced i can really do no better...

 

[Apoplectic_Objurgator]

a 15 yr changed my life....js

 

[Sienfield]

I’m in the process of refinancing and have a locked rate of 3.5 for 20 years. Today their rate drops to 3 percent. To get the lower rate will I have cancel altogether and start over? It’s almost ready to close.

 

[aTotal360]

A lender I use just said this on FB..."Rates are great right now and just wanted everybody know how great! I quoted 2.50% on 15 year fixed conventional rates on two separate loan quotes yesterday. I quoted 2.875% on a 30 year fixed FHA loan on Monday with a bar with a 633 middle credit score. I’ve actually quoted 30 year fixed conventional rates as low as 3% also."

 

[aTotal360]

Ask if you can "recast" the loan. Lender I use will typically allow you to do within the first 12 months of the loan for a nominal charge ($100 admin fee).

 

[patdog]

A recast is different than a refinance. You don't get a lower rate. You simply make a large principal payment and then re-amortize the lower principal balance over the original term of the loan.

 

[BertleTheTurtle]

I purchased my home in February 2019 under a 30 yr FRM at 4.75%. Monday, I was offered 3.375% and yesterday I locked in at 3.125%. The 25 bps drop was from the rate cut by the Fed yesterday morning. I'm also in a position where I can lock this rate in for 60 days. If rates are lower than 3.125% at the end of the 60 days, my lender will allow me to take the lower rate. The market is going to be extremely volatile the next few months, but I'm not sold the Fed is going to continue to cut rates as others have stated. The Fed announced rate cuts early and the market was up by lunch and then we gave it all back by mid-afternoon. I'm not sold that rate cuts will provide any investor confidence during a time of global pandemic. These maneuvers may work for other recessionary indicators, but a virus outbreak is going to keep the public on their heels. President Trump is going to continue to put pressure on Powell to cut rates, but if yesterday's market reaction is any indicator, I wouldn't expect to see any further rate cuts.

 

[Watchdog999]

You can also ask them to waive the escrow so don’t have to fool with that anymore and just pay the insurance and taxes yourself

 

[aTotal360]

You're right. I got ahead of myself.

 

[jack daniels dog]

I am extremely interested in this thread. I purchased my house with a "bridge loan" in July 18. Had to have it closed on new mortgage after renovations by January 19. Ended up with a shyster brokerage man who claimed he could do all kinds of things for me he couldn't, by the time i figured out what was happening i had no choice but to go forward. Now in a 30 year 4.875 Fixed Mortgage. What little calculating i've done, based on a few numbers i know, and i am no math genius, it seems with some rates being thrown around on here, i could dang near have the same payment on a 15 year mortgage vs. 30 year.

If anyone cares to offer the advice, what avenue would you take, or company contact, to look into this refinance, and i really don't want to deal with a brokerage house that is just going to turn around and sell my mortgage to a US Bank like this last guy did.

 

[garndawg]

If anyone cares to offer the advice, what avenue would you take, or company contact, to look into this refinance, and i really don't want to deal with a brokerage house that is just going to turn around and sell my mortgage to a US Bank like this last guy did.

I'll put in a 'me too', but I don't really care about it being sold. I just want PMI eliminated and a lower overall APR...whichever way works is fine by me.

 

[lanceharbor7]

refi

Most conventional loans are sold by most banks so don't sweat that part. Shoot me a DM if you desire. This is a golden opportunity to refi at record low rates. Use any handy dandy mortgage calculator and you can see the numbers. I have clients refinancing non stop. You stand to save A LOT of money. I will say the 20 year rate was higher than 30 year rates because of the yield curve inversion. However 10-15 year rates are sill low. Less than 3%. Reminder, if you have a HELOC (home equity line of credit) that has a balance and you want to combine, the banks may consider it a "cash out" which will make for a higher rate. However at 4.875 you would still save at least percentage point.

I am extremely interested in this thread. I purchased my house with a "bridge loan" in July 18. Had to have it closed on new mortgage after renovations by January 19. Ended up with a shyster brokerage man who claimed he could do all kinds of things for me he couldn't, by the time i figured out what was happening i had no choice but to go forward. Now in a 30 year 4.875 Fixed Mortgage. What little calculating i've done, based on a few numbers i know, and i am no math genius, it seems with some rates being thrown around on here, i could dang near have the same payment on a 15 year mortgage vs. 30 year.

If anyone cares to offer the advice, what avenue would you take, or company contact, to look into this refinance, and i really don't want to deal with a brokerage house that is just going to turn around and sell my mortgage to a US Bank like this last guy did.

 

[Jwsjr]

Does anyone offer a lower rate on 10 yr v. 15 year?

 

[Go Budaw]

He used The Federal Savings Bank.

Thanks. Did he happen to be a veteran? Looks like that particular bank specializes in lower rates for active / retired military, which unfortunately wouldn’t help me much.

 

[Irondawg]

Bringing this back up to the top because I'm going shopping tomorrow for rates - is now a good time to do it or wait a few weeks?

Looking to do a 15 refinance and currently at ~3.9%

 

[bruiser.sixpack]

You will be able to get better than 3.9 on a 15 y.

Patience is a virtue.

 

[Irondawg]

Yep just how much lower. Had a friend get 2.5 a little over a week ago but not sure they are still that low