Mortgage refinance

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Topic Author
jaymeetme
Posts: 33
Joined: Wed May 08, 2019 1:44 pm

Mortgage refinance

Post by jaymeetme »

Hello Experts,

Looking for your advise on refinancing my current mortgage. Living in the house since last two years. I bought it for $342K. I pay $1k additional premium every month. Thank you.

Should I refinance based on my current mortgage and the new rates I got from a different lender?

Current :
Mortgage: 7 year arm ( 5 years left before change in interest)
Rate: 3.625%
Balance: $156K

Refi:
Mortage: 15 year fixed
Rate: 3.375%
Closing cost: $1365

Mortage: 30 year fixed
Rate: 3.375%
Closing cost: $1665
mega317
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Joined: Tue Apr 19, 2016 10:55 am

Re: Mortgage refinance

Post by mega317 »

Definitely refi. You can’t get better rates than that? There are many refinance threads ongoing you might learn from.
https://www.bogleheads.org/forum/viewtopic.php?t=6212
mschurner
Posts: 54
Joined: Sun Sep 23, 2018 11:33 pm

Re: Mortgage refinance

Post by mschurner »

Yes. You should refinance. But rates and costs you are quoting are way higher than average. There are ongoing discussions with 30 year at 3% and 15 at 2.75%. Do rate shopping and ask the lender to beat others.
Topic Author
jaymeetme
Posts: 33
Joined: Wed May 08, 2019 1:44 pm

Re: Mortgage refinance

Post by jaymeetme »

Wow..2.75% for 15 year fixed is nice. I got my rates and closing cost from Strong home, one of the preferred Costco lenders. Any suggestion on other lenders should I reach out to? Thank you.
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Nate79
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Location: Delaware

Re: Mortgage refinance

Post by Nate79 »

Shop on Mortgage professor is one option. Aimloan.com is another.
Kennedy
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Re: Mortgage refinance

Post by Kennedy »

jaymeetme wrote: Wed Mar 04, 2020 9:12 pm Wow..2.75% for 15 year fixed is nice. I got my rates and closing cost from Strong home, one of the preferred Costco lenders. Any suggestion on other lenders should I reach out to? Thank you.
I generally use the Costco-affiliated lenders. I do know that they are swamped right now, as are many other lenders.

I noticed that one such lender was on their list last week and wasn't as of Monday morning. In fact, I was emailing one of their loan officers last week checking on rates and then he ghosted me as of Monday.

I spoke to another Costco lender, and he said their company isn't taking any new business with less than a 45 day close right now.
mschurner
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Joined: Sun Sep 23, 2018 11:33 pm

Re: Mortgage refinance

Post by mschurner »

jaymeetme wrote: Wed Mar 04, 2020 9:12 pm Wow..2.75% for 15 year fixed is nice. I got my rates and closing cost from Strong home, one of the preferred Costco lenders. Any suggestion on other lenders should I reach out to? Thank you.
I can see Penfed 2.75% for 15 year, no points as of today. Look at NASA FCU, Better.com. After Fed rate cut, 2.5% seems to be doable. Google is your best friend. Good luck!
BoomerSooner24
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Re: Mortgage refinance

Post by BoomerSooner24 »

Kennedy wrote: Wed Mar 04, 2020 9:17 pm
jaymeetme wrote: Wed Mar 04, 2020 9:12 pm Wow..2.75% for 15 year fixed is nice. I got my rates and closing cost from Strong home, one of the preferred Costco lenders. Any suggestion on other lenders should I reach out to? Thank you.
I generally use the Costco-affiliated lenders. I do know that they are swamped right now, as are many other lenders.

I noticed that one such lender was on their list last week and wasn't as of Monday morning. In fact, I was emailing one of their loan officers last week checking on rates and then he ghosted me as of Monday.

I spoke to another Costco lender, and he said their company isn't taking any new business with less than a 45 day close right now.
Talked to our mortgage broker this afternoon. Just locked in 3%/15 year with $250 CC on jumbo loan with BBVA. It is true the banks are overwhelmed with applications right now. The word on the street is to expect mortgage rate increases by the end of the week to halt the onslaught regardless of what market is doing.
Topic Author
jaymeetme
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Re: Mortgage refinance

Post by jaymeetme »

Thank you all.
wilked
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Re: Mortgage refinance

Post by wilked »

How long will you be in the home?
Topic Author
jaymeetme
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Re: Mortgage refinance

Post by jaymeetme »

Not sure about it but no plans yet to move or sell.
FiscallyResponsible
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Re: Mortgage refinance

Post by FiscallyResponsible »

I locked 2.99% for a 30 year yesterday with pretty minimal closing costs through Costco. Just know that right now, the rate they have listed is probably higher than what they will offer when you talk to them on the phone.
Hyperchicken
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Re: Mortgage refinance

Post by Hyperchicken »

I'll cross-post my experience so far from a nearby thread.

Running the numbers on LenderFi (haven't called anyone yet) - refinance, $200K loan on a $500K house, SoCal ZIP code, 800+ credit score. Best I got so far was 3.375-3.5% on a 30 year loan, 3.25-3.375% on 15 years, with +/- few hundred dollars in points. With $3K in points I get 3% on 30 years and 2.625% on 15 years.

Upping the loan to $300-350K lowers the interest rate; conversely, quotes for $150K loan balance are higher. So apparently this is outside of the sweet spot.
mega317
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Re: Mortgage refinance

Post by mega317 »

Hyperchicken wrote: Thu Mar 05, 2020 2:19 pm Upping the loan to $300-350K lowers the interest rate
OK dumb question. Could one take a larger loan with a cash-out and then after closing pay the extra cash towards the mortgage?
https://www.bogleheads.org/forum/viewtopic.php?t=6212
Hyperchicken
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Re: Mortgage refinance

Post by Hyperchicken »

mega317 wrote: Thu Mar 05, 2020 4:07 pm OK dumb question. Could one take a larger loan with a cash-out and then after closing pay the extra cash towards the mortgage?
I can't see why not, unless the lender is somehow specifically against cash-out refinancing.
flarf
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Re: Mortgage refinance

Post by flarf »

BoomerSooner24 wrote: Wed Mar 04, 2020 9:26 pm Talked to our mortgage broker this afternoon. Just locked in 3%/15 year with $250 CC on jumbo loan with BBVA. It is true the banks are overwhelmed with applications right now. The word on the street is to expect mortgage rate increases by the end of the week to halt the onslaught regardless of what market is doing.
I heard the same today from a Wells Fargo mortgage banker. They just don't have the capacity to handle all of the inbound interest.

Another banker I spoke with today mentioned that rates are up 1/8 across the board from yesterday. He said the lowest rates were last Friday, even before the Fed rate cut.
Topic Author
jaymeetme
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Joined: Wed May 08, 2019 1:44 pm

Re: Mortgage refinance

Post by jaymeetme »

Thank you everyone for your responses. I got new rate from American Federal Mortgage at 2.75% for 15 year term. They collect $1300 ($550 appraisal fee and a $750 lock deposit). The 750 lock deposit is credited back at closing on the closing disclosure OR if the loan is denied or if the purchase of the house falls through. I like this option but Is there any catch here? What should I keep in mind before I lock this rate?
Topic Author
jaymeetme
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Re: Mortgage refinance

Post by jaymeetme »

And now the loan manager also mentioned $1622 third party settlement charges and per diem interest on the principal balance. Can someone please explain what these means before I ask him about these charges?
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1789
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Re: Mortgage refinance

Post by 1789 »

jaymeetme wrote: Fri Mar 06, 2020 10:00 am Thank you everyone for your responses. I got new rate from American Federal Mortgage at 2.75% for 15 year term. They collect $1300 ($550 appraisal fee and a $750 lock deposit). The 750 lock deposit is credited back at closing on the closing disclosure OR if the loan is denied or if the purchase of the house falls through. I like this option but Is there any catch here? What should I keep in mind before I lock this rate?
So at the end i assume you are paying $550 but there should be some other fees like title etc? No? Just pointing out so you know if can be more than $550 eventually.
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)
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1789
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Re: Mortgage refinance

Post by 1789 »

jaymeetme wrote: Fri Mar 06, 2020 10:27 am And now the loan manager also mentioned $1622 third party settlement charges and per diem interest on the principal balance. Can someone please explain what these means before I ask him about these charges?
Hmm. The per diem interest is the one that comes from the older mortgage. Because you had a different interest rate they will collect that money per day until new mortgage kicks in, i think.
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)
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1789
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Re: Mortgage refinance

Post by 1789 »

jaymeetme wrote: Fri Mar 06, 2020 10:27 am And now the loan manager also mentioned $1622 third party settlement charges and per diem interest on the principal balance. Can someone please explain what these means before I ask him about these charges?
Can the settlement charge be title company fees?
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)
tunerunner
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Re: Mortgage refinance

Post by tunerunner »

Currently about 7 years into a 30-year fixed at 3.125% - should I bother even looking? About $125k worth left. Would definitely consider a 15 year.
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1789
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Re: Mortgage refinance

Post by 1789 »

tunerunner wrote: Fri Mar 06, 2020 10:31 am Currently about 7 years into a 30-year fixed at 3.125% - should I bother even looking? About $125k worth left. Would definitely consider a 15 year.
I think you can get 2.65% or so on 15 year. Around a half percentage point. I would investigate how much closing costs and titling fees would be. I am going thru process for 2.75% on 15 year with total fees coming around 3k.
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)
bryansmile
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Re: Mortgage refinance

Post by bryansmile »

jaymeetme wrote: Fri Mar 06, 2020 10:27 am And now the loan manager also mentioned $1622 third party settlement charges and per diem interest on the principal balance. Can someone please explain what these means before I ask him about these charges?
American federal is a reputable loan originator. The charges you mentioned (except for the prorated interest on principal) are typical lender fees and third party charges for refinancing. To learn more, you just have to google the terms. The prorated interest on principal is something you have to pay either way.
Some people including myself prefer no cost refinance where the lender pays for all of thelender/third party charges via a lender credit. You'll get a higher interest rate.
https://www.mtgprofessor.com/A%20-%20Re ... rtgage.htm
Topic Author
jaymeetme
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Re: Mortgage refinance

Post by jaymeetme »

Thank you all. Appreciate all your responses. One final question, the lender is planning to transfer servicing of my loan. Does that impact me in any sense?
kiddoc
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Re: Mortgage refinance

Post by kiddoc »

Are you planning to pay off the current mortgage early? I ran calculations on re-financing my 15 year 3.875 % mortgage and it didn't make sense to re-finance to 2.75%. The main reason was that I am planning to pay off the current mortgage in a total of 4.5 years and am around 2 years into it. Refinancing leads to higher costs over this time frame despite the much lower interest rate. Please look at the total cost of mortgage on mortgage professor to make sure you run this calculation if you are accelerating the mortgage payments.

People of course will say that not accelerating the mortgage, borrowing at 2.75% and investing leads to better returns. These would be the same people who would recommend not keeping a 2.75% margin account and use it to invest (exactly the same risk as keeping a mortgage and very few people get interest tax deduction now).
"The four most dangerous words in investing are: 'this time it's different.'" - Sir John Templeton
kiddoc
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Re: Mortgage refinance

Post by kiddoc »

jaymeetme wrote: Fri Mar 06, 2020 10:27 am And now the loan manager also mentioned $1622 third party settlement charges and per diem interest on the principal balance. Can someone please explain what these means before I ask him about these charges?
3rd party settlement charges are things like lender title insurance, ALTA, settlement fees and flood certification. These will be added costs to you on top of the appraisal fee, etc.

per diem interest is likely the pre-paid interest till the end of the first partial month.

Please request a lending disclosure document from them. This will list all relevant fees. It looks like your total out of pocket costs will approach $3000 despite the credit.
"The four most dangerous words in investing are: 'this time it's different.'" - Sir John Templeton
kiddoc
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Re: Mortgage refinance

Post by kiddoc »

jaymeetme wrote: Fri Mar 06, 2020 5:20 pm Thank you all. Appreciate all your responses. One final question, the lender is planning to transfer servicing of my loan. Does that impact me in any sense?
Likely means they will sell off your loan as soon as they issue it. Very common with conforming mortgages like yours. Hit or miss with customer service depending on who buys the loan: awesome regional bank vs shady loan companies.
"The four most dangerous words in investing are: 'this time it's different.'" - Sir John Templeton
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sergeant
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Re: Mortgage refinance

Post by sergeant »

OP, check with your current lender. They may offer you a lower rate on your current loan at no cost and no paperwork.
AA- 20+ Years of Expenses Fixed Income/The remainder in Equities.
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anon_investor
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Re: Mortgage refinance

Post by anon_investor »

sergeant wrote: Sat Mar 07, 2020 3:43 pm OP, check with your current lender. They may offer you a lower rate on your current loan at no cost and no paperwork.
+1, I plan to call up my current lender tomorrow to inquire.
Topic Author
jaymeetme
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Re: Mortgage refinance

Post by jaymeetme »

Thank you everyone for your responses. Appreciate it. I will check with my current lender too.
LAGirl2018
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Re: Mortgage refinance

Post by LAGirl2018 »

Does anybody have a recommendation to refinance a Jumbo 30-year loan in Los Angeles, CA? We have our current loan at 3.65%. Thanks!
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sergeant
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Re: Mortgage refinance

Post by sergeant »

LAGirl2018 wrote: Mon Jun 22, 2020 3:40 pm Does anybody have a recommendation to refinance a Jumbo 30-year loan in Los Angeles, CA? We have our current loan at 3.65%. Thanks!
There is a huge refinance thread here. Search for it. Owning and Better seems to get a lot of love for your situation.
AA- 20+ Years of Expenses Fixed Income/The remainder in Equities.
LAGirl2018
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Re: Mortgage refinance

Post by LAGirl2018 »

Thanks for the quick response. Owning does not offer any Jumbo loans currently and Better does not offer a lower rate than what we currently have. Was hoping for some sort of unicorn :)
isubrama
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Re: Mortgage refinance

Post by isubrama »

LAGirl2018 wrote: Mon Jun 22, 2020 5:24 pm Thanks for the quick response. Owning does not offer any Jumbo loans currently and Better does not offer a lower rate than what we currently have. Was hoping for some sort of unicorn :)
some one mentioned in one of the other threads, is that they got better rate by calling.
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sergeant
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Re: Mortgage refinance

Post by sergeant »

isubrama wrote: Mon Jun 22, 2020 5:39 pm
LAGirl2018 wrote: Mon Jun 22, 2020 5:24 pm Thanks for the quick response. Owning does not offer any Jumbo loans currently and Better does not offer a lower rate than what we currently have. Was hoping for some sort of unicorn :)
some one mentioned in one of the other threads, is that they got better rate by calling.
Yes, check the thread for the proper process to play companies against each other and also collect AMEX bonus.
AA- 20+ Years of Expenses Fixed Income/The remainder in Equities.
LAGirl2018
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Re: Mortgage refinance

Post by LAGirl2018 »

Would either of you mind linking that thread for me? For some reason I cannot find it. And wow yes AMEX points would be great too!!
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unclescrooge
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Re: Mortgage refinance

Post by unclescrooge »

LAGirl2018 wrote: Mon Jun 22, 2020 6:12 pm Would either of you mind linking that thread for me? For some reason I cannot find it. And wow yes AMEX points would be great too!!
Search for unicorn mortgage.

Also call first republic and ask for their eagle program.
It's currently 3% with a few thousand in fees. Only downside is you have to move all your banking to them.
Hyperchicken
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Re: Mortgage refinance

Post by Hyperchicken »

There's 30 year mortgage under 3% thread, and another "unicorn" 30 year mortgage under 3% thread - pick which one you want, with or without the unicorn. :wink: Then there's jumbo mortgage, relationship mortgage, and a general refinance megathread. If you add "pay off vs. invest" into the mix, this whole forum is stuffed with mortgage threads, which is awesome.
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BrandonBogle
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Re: Mortgage refinance

Post by BrandonBogle »

LAGirl2018 wrote: Mon Jun 22, 2020 6:12 pm Would either of you mind linking that thread for me? For some reason I cannot find it. And wow yes AMEX points would be great too!!
viewtopic.php?f=2&t=289559&p=5329873#p5329729
Pjholl
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Re: Mortgage refinance

Post by Pjholl »

Hello,

Just wanted to give insight on my refinance I just did. I used an online lender loancabin.com and closed at 2.25% 15 year fixed. They all do not charge any lender fees for this. Shopped this with 4-5 banks. Hope this helps everyone on the forum get the best loan.
surfstar
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Re: Mortgage refinance

Post by surfstar »

Pjholl wrote: Fri Jul 17, 2020 3:11 am Hello,

Just wanted to give insight on my refinance I just did. I used an online lender loancabin.com and closed at 2.25% 15 year fixed. They all do not charge any lender fees for this. Shopped this with 4-5 banks. Hope this helps everyone on the forum get the best loan.
Surprisingly, the reviews I see for LC aren't bad.
What is surprising, is the "rate" they show for our situation - 2.375% for a 30 yr. Seems hard to believe. (even 2.5% w/ points/etc is way too cheap to believe)
Also you just joined today and your only two posts direct people to try LC out.
I'm going to go with "if it seems to good to be true..."
abyan
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Re: Mortgage refinance

Post by abyan »

The reviews I found online for LC were pretty awful. They said folks are being told it will take a minimum of two months to close, and then they never hear from them again. LenderFi did my refi, and is doing another right now, and their rates are competitive, AND while they're definitely slower than they were before -- and it can help to nudge them with a few emails -- so far I've been in this process with them for two weeks, and I'm hoping to get final underwriting approval shortly. I suspect every lender is getting slammed, so response time will be slow. But two months, while the loans could go up and down in the meantime, no thanks.
VCC
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Re: Mortgage refinance

Post by VCC »

LenderFi is down to 2.25% on a 30 yr w/ points. As for Loan Cabin, I can't vouch for them. Posters on Slick Deals forum have been using them & other lenders to compete against each other. Lowest so far on a 30 yr w/o closing costs has been 2.625.
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