Refinance Mega Thread

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MortgageOnBlack
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Re: Refinance Mega Thread

Post by MortgageOnBlack »

zeal4thil wrote: Fri Mar 13, 2020 1:24 pm Currently on a 3.75% 30 year loan for 313K and got an offer to lock 2.875% on 15 year no cost closing before all this drama (first week of feb ) and locked the rates .

Though the fed rates are down i am not able to find any better offer yet with NO COST CLOSING below . I am thinking of closing this and see if we can get better rate later . I am also started to think since the rates are low , is it even worth taking 15 year loans any more as the rate difference is almost now only 0.5% only and with the current economic condition should we lock ourself for a larger monthly payment .
That's what I'm doing. I just closed on a refinance last Friday / 20 year @3.375% (Denver market) with about $920 in fees (appraisal and lender fee minus lender credit). I never take pre-paid Escrow and pre-paid interest into account when refinancing. My break-even with this refinance is ~21 months.
We plan on staying here for 4-5 years at minimum so anything worth doing I'll do.
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Re: Refinance Mega Thread

Post by rascott »

Rates are driven by the MBS market..... and its totally fallen out of bed this week. There is literally too much supply of new MBS coming onto market with this huge refi surge... so naturally the price drops (and yield rises).

This will correct itself in time..... but may take a while. May even see the Fed go back to buying MBS with things being this dislocated.

I would not even bother considering a refi until this market soaks up all this excess supply. The rates aren't going to be favorable
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AZAttorney11
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Re: Refinance Mega Thread

Post by AZAttorney11 »

BruDude wrote: Fri Mar 13, 2020 12:36 pm PenFed has raised their rates 1.125% since last week. Guess I will keep waiting.
Yep, I wanted in on their 15 year at 2.625% last week or early this week, and there was a 0% chance anyone would answer the phone or call me back. Rates soared something fierce in a matter of days. The current refi rates simply aren't competitive compared to what's been readily available over the last six or months. Maybe things will shake out in a couple of weeks. We shall see!
kski74
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Re: Refinance Mega Thread

Post by kski74 »

I've been tracking the rates since I applied on 03.10 early in the morning. I received an automated loan estimate at 2.875 with 0.5 pts. There was no way to lock the rate online during the application. When I finally heard back from loan officer the next day, rates had jumped significantly (3.453% with 0.5 pt) and it just kept on rising from there. I kept on taking twice daily (AM and PM) screenshots (see below) of their rates per my personalized link. Today was the first day that rates/fees didn't move all day. Things stabilizing?

https://imgur.com/a/VpBxw0G
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Re: Refinance Mega Thread

Post by abuss368 »

Continuing to watch rates but they are headed one way: up!
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kski74
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Re: Refinance Mega Thread

Post by kski74 »

abuss368 wrote: Fri Mar 13, 2020 7:32 pm Continuing to watch rates but they are headed one way: up!
Yesterday was the first day in my tracking where they didn't move and stayed flat. Glimmer of hope.
mortfree
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Re: Refinance Mega Thread

Post by mortfree »

PSECU mortgage rates ticked up late in the day on Friday the 13th, 0.125% higher across the board (10, 15, 20, 30 year fixed).

Note: House must be in PA
booboo1234
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Re: Refinance Mega Thread

Post by booboo1234 »

feel so fortunate to have applied at just the right time and locked in at 2.375 15 year no cost.
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Re: Refinance Mega Thread

Post by abuss368 »

kski74 wrote: Sat Mar 14, 2020 5:37 am
abuss368 wrote: Fri Mar 13, 2020 7:32 pm Continuing to watch rates but they are headed one way: up!
Yesterday was the first day in my tracking where they didn't move and stayed flat. Glimmer of hope.
Thanks! I plan to keep watching.
John C. Bogle: “Simplicity is the master key to financial success."
finite_difference
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Re: Refinance Mega Thread

Post by finite_difference »

booboo1234 wrote: Sat Mar 14, 2020 5:56 am feel so fortunate to have applied at just the right time and locked in at 2.375 15 year no cost.
Congrats! That’s a fantastic rate.
The most precious gift we can offer anyone is our attention. - Thich Nhat Hanh
seawolf21
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Re: Refinance Mega Thread

Post by seawolf21 »

kski74 wrote: Sat Mar 14, 2020 5:37 am
abuss368 wrote: Fri Mar 13, 2020 7:32 pm Continuing to watch rates but they are headed one way: up!
Yesterday was the first day in my tracking where they didn't move and stayed flat. Glimmer of hope.
Unfortunately Treasury yields are moving up. Not sure if it is due to Fed buy back program announced on Friday.

Who know where this will be in two weeks.
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1789
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Post by 1789 »

I heard the rates moved up. What caused this? We were lucky to finish signing 15 year refinance at 2.75% with total costs 2k.
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Re: Refinance Mega Thread

Post by Silly Wabbit »

I locked a 10/1 ARM last week with keybank at 2.75% with -1.23 points in lender credit. It's a jumbo loan with about 78% LTV.
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Re: Refinance Mega Thread

Post by seawolf21 »

1789 wrote: Sat Mar 14, 2020 11:04 am I heard the rates moved up. What caused this? We were lucky to finish signing 15 year refinance at 2.75% with total costs 2k.
Lenders don’t have enough back office support to process the huge volume of applications. Supply as in capacity to process loans (as opposed to money) is a constraint causing mortgage rates to go up. Where is not enough supply to meant demand, prices go up.
Count of Notre Dame
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Re: Refinance Mega Thread

Post by Count of Notre Dame »

Silly Wabbit wrote: Sat Mar 14, 2020 11:08 am I locked a 10/1 ARM last week with keybank at 2.75% with -1.23 points in lender credit. It's a jumbo loan with about 78% LTV.
Does keybank loan in California? How much do you actually expect to pay in total costs (appraisal, title fees, etc.)? My bank First Republic offered me a 10/1 ARM 3% loan modification for $2k.
Gibby45
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Re: Refinance Mega Thread

Post by Gibby45 »

Curious to see what impact today's slashing of the fed fund rate will have. I was able to lock a 30 year fixed at 3% but walked away in favor of an ARM. Still deciding between a 7/1 at 2.75 or a 10/1 at 2.875.
zeal4thil
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Re: Refinance Mega Thread

Post by zeal4thil »

I have locked and set the closing date thsi Friday for a Refinance . Now is there any period i have to wait before doing a refinance if the rates go down due to today's move . I am not able to get this answer from my mortgage broker . I have not signed any closing document yet and should i wait and watch or can i close and refinance later may be after few weeks .

My current Rate 3.75$ 30 Year . Locked ar 2.875% No Cost 15 year , Really looking for around 2.25% as already people are getting that rate even before today;s move now expecting it may even touch to 2% or less .

pls advise guys .
JoeJohnson
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Re: Refinance Mega Thread

Post by JoeJohnson »

rascott wrote: Fri Mar 13, 2020 2:59 pm Rates are driven by the MBS market..... and its totally fallen out of bed this week. There is literally too much supply of new MBS coming onto market with this huge refi surge... so naturally the price drops (and yield rises).

This will correct itself in time..... but may take a while. May even see the Fed go back to buying MBS with things being this dislocated.

I would not even bother considering a refi until this market soaks up all this excess supply. The rates aren't going to be favorable
Seems like the Fed has committed to $200B in MBS
kski74
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Re: Refinance Mega Thread

Post by kski74 »

JoeJohnson wrote: Sun Mar 15, 2020 6:31 pm
rascott wrote: Fri Mar 13, 2020 2:59 pm Rates are driven by the MBS market..... and its totally fallen out of bed this week. There is literally too much supply of new MBS coming onto market with this huge refi surge... so naturally the price drops (and yield rises).

This will correct itself in time..... but may take a while. May even see the Fed go back to buying MBS with things being this dislocated.

I would not even bother considering a refi until this market soaks up all this excess supply. The rates aren't going to be favorable
Seems like the Fed has committed to $200B in MBS
Is that likely to be a good thing for the mortgage rates? 10 year Treasury yields still seem to be going up and I understood that drop to be most responsible for the overall drop in mortgage rates before demand flooded the market and things started going back up.
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magicwaltz
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Re: Refinance Mega Thread

Post by magicwaltz »

JoeJohnson wrote: Sun Mar 15, 2020 6:31 pm Seems like the Fed has committed to $200B in MBS
Does that mean the mortgage rates are going down?
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Re: Refinance Mega Thread

Post by seawolf21 »

magicwaltz wrote: Sun Mar 15, 2020 6:44 pm
JoeJohnson wrote: Sun Mar 15, 2020 6:31 pm Seems like the Fed has committed to $200B in MBS
Does that mean the mortgage rates are going down?
It would help but there is still the constraint on lender’s ability to process the current deluge of applications. That needs to be cleared out before lenders start lowering rates to closely match Treasury yields.
JoeJohnson
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Re: Refinance Mega Thread

Post by JoeJohnson »

kski74 wrote: Sun Mar 15, 2020 6:42 pm
JoeJohnson wrote: Sun Mar 15, 2020 6:31 pm
rascott wrote: Fri Mar 13, 2020 2:59 pm Rates are driven by the MBS market..... and its totally fallen out of bed this week. There is literally too much supply of new MBS coming onto market with this huge refi surge... so naturally the price drops (and yield rises).

This will correct itself in time..... but may take a while. May even see the Fed go back to buying MBS with things being this dislocated.

I would not even bother considering a refi until this market soaks up all this excess supply. The rates aren't going to be favorable
Seems like the Fed has committed to $200B in MBS
Is that likely to be a good thing for the mortgage rates? 10 year Treasury yields still seem to be going up and I understood that drop to be most responsible for the overall drop in mortgage rates before demand flooded the market and things started going back up.
The 10 year is currently approx 0.64%.... Down significantly
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Silly Wabbit
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Re: Refinance Mega Thread

Post by Silly Wabbit »

Count of Notre Dame wrote: Sun Mar 15, 2020 4:01 pm
Silly Wabbit wrote: Sat Mar 14, 2020 11:08 am I locked a 10/1 ARM last week with keybank at 2.75% with -1.23 points in lender credit. It's a jumbo loan with about 78% LTV.
Does keybank loan in California? How much do you actually expect to pay in total costs (appraisal, title fees, etc.)? My bank First Republic offered me a 10/1 ARM 3% loan modification for $2k.
I think they're nationwide.

Cost are:

* 995 origination cost
* 1490 appraisal, credit report, flood report, etc
* 1621 title
* 242 recording

They mentioned that they might be able to waive the appraisal too, but that's still pending.

Lender credits will cover those costs with about 7500 left over to cover pre-paids and fund escrow.
Last edited by Silly Wabbit on Sun Mar 15, 2020 11:53 pm, edited 1 time in total.
greybus
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Re: Refinance Mega Thread

Post by greybus »

It appears the Price Guarantee from better.com has been removed from their website- it's giving an error mesage as of now at least.

https://better.com/with/better-price-guarantee
seawolf21
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Re: Refinance Mega Thread

Post by seawolf21 »

greybus wrote: Sun Mar 15, 2020 10:44 pm It appears the Price Guarantee from better.com has been removed from their website- it's giving an error mesage as of now at least.

https://better.com/with/better-price-guarantee
They got rid of it. It's not referenced in FAQ either. At this point I can't recommend better.com anymore. Their pricing is not good. Only thing going for them at the moment is a $2,500 AMEX credit for those targeted (YMMV).
kski74
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Re: Refinance Mega Thread

Post by kski74 »

JoeJohnson wrote: Sun Mar 15, 2020 7:10 pm
kski74 wrote: Sun Mar 15, 2020 6:42 pm
JoeJohnson wrote: Sun Mar 15, 2020 6:31 pm
rascott wrote: Fri Mar 13, 2020 2:59 pm Rates are driven by the MBS market..... and its totally fallen out of bed this week. There is literally too much supply of new MBS coming onto market with this huge refi surge... so naturally the price drops (and yield rises).

This will correct itself in time..... but may take a while. May even see the Fed go back to buying MBS with things being this dislocated.

I would not even bother considering a refi until this market soaks up all this excess supply. The rates aren't going to be favorable
Seems like the Fed has committed to $200B in MBS
Is that likely to be a good thing for the mortgage rates? 10 year Treasury yields still seem to be going up and I understood that drop to be most responsible for the overall drop in mortgage rates before demand flooded the market and things started going back up.
The 10 year is currently approx 0.64%.... Down significantly
The last reading on March 13 was 0.94%, which was up significantly from its low 0.54% on March 9 when rates were at their lowest. Rates started shooting up on March 10.
pdog2006
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Re: Refinance Mega Thread

Post by pdog2006 »

My current Rate is 4.25%. I can get 3.375% now with about $3000 in closing costs. I had a chance at 3.25% last week and missed it. Debating of waiting or locking it in.
Count of Notre Dame
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Re: Refinance Mega Thread

Post by Count of Notre Dame »

Silly Wabbit wrote: Sun Mar 15, 2020 10:01 pm
Count of Notre Dame wrote: Sun Mar 15, 2020 4:01 pm
Silly Wabbit wrote: Sat Mar 14, 2020 11:08 am I locked a 10/1 ARM last week with keybank at 2.75% with -1.23 points in lender credit. It's a jumbo loan with about 78% LTV.
Does keybank loan in California? How much do you actually expect to pay in total costs (appraisal, title fees, etc.)? My bank First Republic offered me a 10/1 ARM 3% loan modification for $2k.
I think they're nationwide.

Cost are:

* 995 origination cost
* 1490 appraisal, credit report, flood report, etc
* 1621 title
* 242 recording

They mentioned that they might be able to waive the appraisal too, but that's still pending.

Lender credits will cover those costs with about 7500 left over to cover pre-paids and fund escrow.
Would you mind PM'ing your broker information? I'd like to get a quote but don't want to fill out the forms, etc.
pdog2006
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Re: Refinance Mega Thread

Post by pdog2006 »

pdog2006 wrote: Mon Mar 16, 2020 11:15 am My current Rate is 4.25%. I can get 3.375% now with about $3000 in closing costs. I had a chance at 3.25% last week and missed it. Debating of waiting or locking it in.
I ended up with 3.125% today. Happy guy
JoeJohnson
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Re: Refinance Mega Thread

Post by JoeJohnson »

kski74 wrote: Mon Mar 16, 2020 7:00 am
JoeJohnson wrote: Sun Mar 15, 2020 7:10 pm
kski74 wrote: Sun Mar 15, 2020 6:42 pm
JoeJohnson wrote: Sun Mar 15, 2020 6:31 pm
rascott wrote: Fri Mar 13, 2020 2:59 pm Rates are driven by the MBS market..... and its totally fallen out of bed this week. There is literally too much supply of new MBS coming onto market with this huge refi surge... so naturally the price drops (and yield rises).

This will correct itself in time..... but may take a while. May even see the Fed go back to buying MBS with things being this dislocated.

I would not even bother considering a refi until this market soaks up all this excess supply. The rates aren't going to be favorable
Seems like the Fed has committed to $200B in MBS
Is that likely to be a good thing for the mortgage rates? 10 year Treasury yields still seem to be going up and I understood that drop to be most responsible for the overall drop in mortgage rates before demand flooded the market and things started going back up.
The 10 year is currently approx 0.64%.... Down significantly
The last reading on March 13 was 0.94%, which was up significantly from its low 0.54% on March 9 when rates were at their lowest. Rates started shooting up on March 10.
The 0.64% was a live, implied rate based on futures trading on Sunday night. There are ways to know the implied rate other than looking at the official ticker.
finite_difference
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Re: Refinance Mega Thread

Post by finite_difference »

pdog2006 wrote: Mon Mar 16, 2020 5:42 pm
pdog2006 wrote: Mon Mar 16, 2020 11:15 am My current Rate is 4.25%. I can get 3.375% now with about $3000 in closing costs. I had a chance at 3.25% last week and missed it. Debating of waiting or locking it in.
I ended up with 3.125% today. Happy guy
I feel like in the current 0–0.25% rate environment it should be possible to get a 2.25% 30-year for no cost? Assuming +2% since they have to make some profit.

People were able to get close to 3% before the Fed cut the rate by 1% to a benchmark of 0-0.25%?
The most precious gift we can offer anyone is our attention. - Thich Nhat Hanh
ssn
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Re: Refinance Mega Thread

Post by ssn »

Current mortgage scenario -
Balance : $200,000.00
Interest : 3.625 %
Term : 30 years
We are 5 years in.
I am checking with guaranteed rate (rate.com) and he is offering me 15 year loan @ 2.5% but the total closing cost is around $7000.00. The new total monthly payment including escrow is less only by $100.00 as compare to current monthly payment. I have a feeling that the closing cost is too high. It includes everything - title fees, appraiser, balance escrow etc.

booboo1234 and zeal4thil,
May I ask which lender did you use who charged no closing costs?

Another question - There are advanced mortgage calculators out there which spit out numbers if I key-in additional payment but I do not understand their calculations. How can I know if the output is trustworthy? In other words, I want to decide if refinancing to 15 year is right decision and at what cost (interest rate, closing costs). Also note that I already pay additional payment every month in my current mortgage which reduces my principal directly. If I refinance, I would still continue it.

Any guidance is appreciated.

-ssn
MindBogler
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Re: Refinance Mega Thread

Post by MindBogler »

I got a 30 year locked at 2.75% but it wasn't at no cost. I would say it was a reasonable cost (~1200). The break even for me is about 6 months so it was a no brainer.
user280
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Re: Refinance Mega Thread

Post by user280 »

MindBogler wrote: Mon Mar 16, 2020 9:58 pm I got a 30 year locked at 2.75% but it wasn't at no cost. I would say it was a reasonable cost (~1200). The break even for me is about 6 months so it was a no brainer.
Congrats! Locked with who? Any price-matching involved?
Independent George
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Post by Independent George »

I somehow missed this thread; I got a 15 years at 3.25% (with $3,500 fees, not points paid) back in September 2019. At this point, I'm not interested in refinancing again unless I can get it down to below 2.75% (which seems unlikely even in this rate environment). I think I'm at the point of diminishing returns beyond just the dollar value of the interest - I'm already paying it down fast enough that it takes a major reduction to make it worth it.
Inframan4712
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Re: Refinance Mega Thread

Post by Inframan4712 »

Silly Wabbit wrote: Sun Mar 15, 2020 10:01 pm
Count of Notre Dame wrote: Sun Mar 15, 2020 4:01 pm
Silly Wabbit wrote: Sat Mar 14, 2020 11:08 am I locked a 10/1 ARM last week with keybank at 2.75% with -1.23 points in lender credit. It's a jumbo loan with about 78% LTV.
Does keybank loan in California? How much do you actually expect to pay in total costs (appraisal, title fees, etc.)? My bank First Republic offered me a 10/1 ARM 3% loan modification for $2k.
I think they're nationwide.

Not nationwide. I just checked the site. My state is not in their list of about a dozen+ states. It was in a dropdown list so I couldn't copy paste it to show here.

Rates are better than aimloan, as of yesterday, anyway. I tried but couldn't lock through aimloan last week during the drop. Hoping things improve in a few weeks.
weirdsong1
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Re: Refinance Mega Thread

Post by weirdsong1 »

ssn wrote: Mon Mar 16, 2020 9:52 pm Current mortgage scenario -
Balance : $200,000.00
Interest : 3.625 %
Term : 30 years
We are 5 years in.
I am checking with guaranteed rate (rate.com) and he is offering me 15 year loan @ 2.5% but the total closing cost is around $7000.00. The new total monthly payment including escrow is less only by $100.00 as compare to current monthly payment. I have a feeling that the closing cost is too high. It includes everything - title fees, appraiser, balance escrow etc.

booboo1234 and zeal4thil,
May I ask which lender did you use who charged no closing costs?

Another question - There are advanced mortgage calculators out there which spit out numbers if I key-in additional payment but I do not understand their calculations. How can I know if the output is trustworthy? In other words, I want to decide if refinancing to 15 year is right decision and at what cost (interest rate, closing costs). Also note that I already pay additional payment every month in my current mortgage which reduces my principal directly. If I refinance, I would still continue it.

Any guidance is appreciated.

-ssn
Regarding advanced calculators, the Mortgage Professor (and his calculators https://www.mtgprofessor.com/calculators.htm) may be able to help your decision making process.

Although you don't ask specifically, on the question of locking in a 15 year vs a 30 year (and then overpaying), be prepared for the fact that you cannot pay less on the 15 year. While the 30 year (and overpaying) gives you the flexibility to save money should there be a financial emergency...like, and I'm just tossing out absurdities, a once-in-a-lifetime pandemic. Although the lifetime interest paid would be more on the 30y, there is perhaps some value in that extra freedom.

Best of luck with the refi.
dabrian
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Post by dabrian »

30 yr fixed is back to 3.375 at Penfedwith no points as of now. I saw it as low as 2.875 when this craziness started but I couldn't get them to return my calls. Credit Unions are my only option for refi because my loan balance is only 70k.
thatme
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Post by thatme »

I seem to have timed this well (dumb luck). I locked in 2.375%, true no-cost refi, with LenderFi, 15 years fixed. I haven’t closed yet but things are progressing. It doesn’t sound like people are getting rates lower than this despite the recent Fed action. Given the uncertainty in the economy I wish I could find 2.5%, 30 year just to give myself a bit of flexibility but I think we’ll be fine.
wootwoot
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Post by wootwoot »

I checked LenderFi yesterday for a 30 year. The lowest no-cost refi rate was 4.125%.
thatme
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Post by thatme »

Interesting, rates are definitely weird right now. I applied ~24 hours before LenderFi stopped taking apps temporarily and was quoted 2.75% for 15 year, no cost. By the time they called to lock it had dropped to 2.375% and I immediately locked. Maybe I ended up being really lucky... we’ll see how it goes.
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hand
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Post by hand »

thatme wrote: Tue Mar 17, 2020 11:31 am I seem to have timed this well (dumb luck). I locked in 2.375%, true no-cost refi, with LenderFi, 15 years fixed. I haven’t closed yet but things are progressing. It doesn’t sound like people are getting rates lower than this despite the recent Fed action. Given the uncertainty in the economy I wish I could find 2.5%, 30 year just to give myself a bit of flexibility but I think we’ll be fine.
Typically you lock a rate schedule, you may be able to shift to the corresponding 30 year rate for your lock day.
Faisal
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Post by Faisal »

To everyone who helped earlier a great big thank you for the advice and support.

We are in the process of getting the refinance application put in and I got a decent mortgage rate. 2.750 for a 30 year fixed rate. I however am getting quoted a very large closing cost. They are quoting

Closing costs of 12,424
Pre-praid of 7,640

for a total of roughly 20k.

Our current escrow balance is $7,504.63

When we bought the house the closing costs were roughly 21k. That makes sense to me. A brand new home there are a lot more fees. Like title and surveys.

I am very confused as to why we have 20k in fees again. Could someone shed some light on the matter?
chuckb84
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Post by chuckb84 »

I locked 3.125% 30 year fixed with Lenderfi and a $2400 lender credit towards closing about 24 hours before they stopped taking applications, and the loan is locked, approved and "in processing". I missed the rock bottom, but only by 0.125%, and this will save $250/month. It seems to be the only good financial thing I'm able to do right now. All the rest is "don't just do something, stand there."
RobLyons
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Post by RobLyons »

Considering the info here and surge in refi, I'm waiting 30-60 days to even consider a refi again. It's not worth my time at this point to keep checking and being disappointed.
"Great parenting sets the foundation for a better world"
booboo1234
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Post by booboo1234 »

thatme wrote: Tue Mar 17, 2020 11:31 am I seem to have timed this well (dumb luck). I locked in 2.375%, true no-cost refi, with LenderFi, 15 years fixed. I haven’t closed yet but things are progressing. It doesn’t sound like people are getting rates lower than this despite the recent Fed action. Given the uncertainty in the economy I wish I could find 2.5%, 30 year just to give myself a bit of flexibility but I think we’ll be fine.
same exact situation here. i wanted to refi to a 20 or 30 year, but my guy told me that my 15 year 2.75 approval was changed to a 2.375 loan so i locked right away. now im a little worried about that higher payment with a 15 year =(
chrischris
Posts: 128
Joined: Fri Apr 16, 2010 1:25 pm

Re: Refinance Mega Thread

Post by chrischris »

My situation:

Home value : $500,000
Current mortgage amount: $255,000
Current mortgage rate: 3.5% (4 years in)

I honestly never planned to refinance since I thought I did ok at 3.5%. However, dropping to around 3.125% would save me around $200 a month and a lot of interest over the life of the loan. We don't plan on moving.

Did I miss the boat on the low interest rates? A 15 year mortgage at 2.75% also sounds nice since we could afford the higher payment...

Any advice?
kski74
Posts: 74
Joined: Fri Mar 15, 2019 6:19 pm

Re: Refinance Mega Thread

Post by kski74 »

chrischris wrote: Tue Mar 17, 2020 7:06 pm My situation:

Home value : $500,000
Current mortgage amount: $255,000
Current mortgage rate: 3.5% (4 years in)

I honestly never planned to refinance since I thought I did ok at 3.5%. However, dropping to around 3.125% would save me around $200 a month and a lot of interest over the life of the loan. We don't plan on moving.

Did I miss the boat on the low interest rates? A 15 year mortgage at 2.75% also sounds nice since we could afford the higher payment...

Any advice?
My observation. I applied for a 20-year refinance at 2.875% on 3.10 with a small lender credit. By the time they got back to me the next day, the same loan had jumped 0.625%. APR kept on rising from 03.11-03.13. This week, it's slowly been going back down, but still 0.5% higher than on 03.10. I'm being patient and monitoring twice daily.
Last edited by kski74 on Tue Mar 17, 2020 7:14 pm, edited 1 time in total.
chrischris
Posts: 128
Joined: Fri Apr 16, 2010 1:25 pm

Re: Refinance Mega Thread

Post by chrischris »

kski74 wrote: Tue Mar 17, 2020 7:12 pm
My observation. I applied for a 20-year refinance a 2.875% on 3.10 with a small lender credit. By the time they got back to me the next day, the same loan had jumped 0.625%. APR kept on rising from 03.11-03.13. This week, it's slowly been going back down, but still 0.5% higher than on 03.10. I'm being patient and monitoring twice daily.
Thank you. One article I read suggested that lenders are overwhelmed with applications so they raised rates to slow things down. When they catch up, rates might decrease (or so the article said).

https://www.cnn.com/2020/03/16/success/ ... index.html
kski74
Posts: 74
Joined: Fri Mar 15, 2019 6:19 pm

Re: Refinance Mega Thread

Post by kski74 »

chrischris wrote: Tue Mar 17, 2020 7:14 pm
kski74 wrote: Tue Mar 17, 2020 7:12 pm
My observation. I applied for a 20-year refinance a 2.875% on 3.10 with a small lender credit. By the time they got back to me the next day, the same loan had jumped 0.625%. APR kept on rising from 03.11-03.13. This week, it's slowly been going back down, but still 0.5% higher than on 03.10. I'm being patient and monitoring twice daily.
Thank you. One article I read suggested that lenders are overwhelmed with applications so they raised rates to slow things down. When they catch up, rates might decrease (or so the article said).

https://www.cnn.com/2020/03/16/success/ ... index.html
That's correct. One of the lenders (Loan Depot) told me that was exactly the case on the phone. That being said, for an "overwhelmed" bunch, they sure follow up a lot ... every day!
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