Refinance Mega Thread

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
gaurav811
Posts: 35
Joined: Fri Feb 13, 2015 4:44 pm

Re: Refinance Mega Thread

Post by gaurav811 »

I was locked in with interactive mortgage but I got a call from loan depot and I told them about my 2.375% rate at interactive they said they could probably do 2.25%. No cost loan. it took a full application and a 1 hour of waiting but they did confirm that I would get no cost 30 year fixed refi at 2.25%. Actually there is a $300 credit to go towards escrow reserves.

This deal is only available if your loan amount is less than 510k and LTV is <60% LTV.
So please contact loan depot only if you qualify.
Last edited by gaurav811 on Mon Oct 05, 2020 4:44 pm, edited 1 time in total.
zrzhu111
Posts: 212
Joined: Sun Sep 01, 2013 6:03 pm

Re: Refinance Mega Thread

Post by zrzhu111 »

gaurav811 wrote: Fri Oct 02, 2020 9:00 pm I was locked in with interactive mortgage but I got a call from loan depot and I told them about my 2.375% rate at interactive they said they could probably do 2.25%. No cost loan. it took a full application and a 1 hour of waiting but they did confirm that I would get no cost 30 year fixed refi at 2.25%. Actually there is a $300 credit to go towards escrow reserves. This is for a 510k loan amount and <60% LTV.
So please contact loan depot and ask them to beat IM.
Lucky you. Interactive mortgage is not licensed in NY. It's pretty hard to find a decent lender.

I'm taking the approach as @BrandonBogle suggested. I'm hoping i can get 2.75% with no closing costs, but it will be still pretty hard especially in NY there's huge transfer tax.
presto987
Posts: 325
Joined: Sun Aug 30, 2020 10:58 pm

Re: Refinance Mega Thread

Post by presto987 »

happyyoda wrote: Fri Oct 02, 2020 8:42 pm
presto987 wrote: Fri Oct 02, 2020 10:04 am
happyyoda wrote: Thu Oct 01, 2020 11:21 pm I locked and started the process with Loan Cabin 9 weeks ago. Still in the queue for the underwriter to review.

I have been checking with my LO every week. When I asked for a rate sheet, the LO said there is none and there is only one rate: the rate that I locked.

When I asked for a rate float down, the LO responded stating it would be considered only at the time of approval not before that. I am also told that the rate I locked (2.75%) is better than the current rate and hence I won't get a rate float down.

The only hopeful thing is they have promised to extend the rate lock beyond 60 days free of charge.

Did anyone here get a rate float down with Loan Cabin?

The waiting continues...
That is really weird about the rate sheet. What you're being told is in direct contradiction to what I and others have been told.

As far as the float down, I was told that it's a one-time thing that is only considered around 10 days before closing (which would be after you come out of underwriting). So that's consistent with what you've been told.

I am also not surprised that you're not currently eligible for a float down. In order to be eligible for a float down at LC, you need rates to drop by at least 0.125% (some other lenders require a 0.25% drop for float down). The rates at the end of July when you locked were pretty close to the best rates they've had. Plus now they are pricing in the 0.5% G-fee (though not sure if they take that into account for float down purposes when they are looking at someone who will close long before December).

Admittedly I don't know exactly how they evaluate the float down. Do they compare their current pricing to your locked pricing? Or do they look at a standardized pricing like the FRED rate? Etc.
Thanks for your response.

I think my LO at Loan Cabin may have limited experience.

In today's update, my LO said that my loan would be conditionally approved next week and once I submit the requested documents, it would be approved and closed in a week. I have my doubts on the timeline that Loan Cabin has provided me.

I spoke to an Interactive Mortgage Loan consultant today, who is offering 2.5% no net cost (as opposed to 2.75% no net cost with Loan Cabin). Their timeline is 3 weeks to underwriting review/approval and then close within 35 days from the application date.

Given that Interactive Mortgage's rate & timeline is attractive can I start the refi with them? If Loan Cabin has more delays, I can drop them and go with Interactive Mortgage. If Loan Cabin closes sooner, can I provide that info to Interactive Mortgage to refi right after the first refi with LC?

Does Interactive Mortgage' have any 6 month clause (I am doing a no cash out refi).

I would like to complete my refi with the best rate before the FHFA fee kicks in on Dec 1st.
I had begun the process with Interactive Mortgage and had a good experience with them. Of course it all depends on how good your LO and Loan Processor are. But they generally seem to have a streamlined process, are easy to work with, and close relatively quickly.

Because IM is pretty quick to close, I would not recommend closing with LC and then IM. That is going to create too much confusion with IM. What I would do is to have both processes running in parallel. When you get to the point of a potential float down with LC, see if they are able to float you down to beat IM. If so, then close with LC. If not, then close with IM.

Another option is to take your LE from IM and ask Better, Ally, or Loan Depot to beat it. But the bottom line is that at this point, LC is no longer competitive unless you get a big float down. So you can allow that process to continue, but most likely you will not close with them.

To answer your question about the 6-month clause, I think LenderFi is the only lender that asks some people to sign such a document. However, with any lender there is a risk that if you refi within 6 months, they won't want to work with you in the future. But I'm not sure why you're asking that question, because if you close with IM at 2.5%, probably you won't be looking to refi again within 6 months, right?
Last edited by presto987 on Fri Oct 02, 2020 9:38 pm, edited 1 time in total.
presto987
Posts: 325
Joined: Sun Aug 30, 2020 10:58 pm

Re: Refinance Mega Thread

Post by presto987 »

gaurav811 wrote: Fri Oct 02, 2020 9:00 pm I was locked in with interactive mortgage but I got a call from loan depot and I told them about my 2.375% rate at interactive they said they could probably do 2.25%. No cost loan. it took a full application and a 1 hour of waiting but they did confirm that I would get no cost 30 year fixed refi at 2.25%. Actually there is a $300 credit to go towards escrow reserves. This is for a 510k loan amount and <60% LTV.
So please contact loan depot and ask them to beat IM.
Congratulations, I am pretty certain that is the lowest no-cost rate that anyone has gotten for a 30-year fixed!

LoanDepot can be pretty aggressive about beating other offers. But you have to talk to the right person. I tried calling a "Loan Consultant" at a local office, and the person I spoke to was very friendly, but the pricing wasn't competitive at all, and they had no interest/ability in price matching. Seems like you need to talk to a "Licensed Lending Officer". They can be hit or miss. Seems like you got a good one; I was able to find a good one as well, who beat an LE I had from LC.
presto987
Posts: 325
Joined: Sun Aug 30, 2020 10:58 pm

Re: Refinance Mega Thread

Post by presto987 »

Did you need to send him an LE from IM, or did he just go by what you told him? Or I guess you could show the IM website since they list their rate publicly there.
happyyoda
Posts: 17
Joined: Mon Feb 20, 2017 9:02 pm

Re: Refinance Mega Thread

Post by happyyoda »

presto987 wrote: Fri Oct 02, 2020 9:25 pm
happyyoda wrote: Fri Oct 02, 2020 8:42 pm
presto987 wrote: Fri Oct 02, 2020 10:04 am
happyyoda wrote: Thu Oct 01, 2020 11:21 pm I locked and started the process with Loan Cabin 9 weeks ago. Still in the queue for the underwriter to review.

I have been checking with my LO every week. When I asked for a rate sheet, the LO said there is none and there is only one rate: the rate that I locked.

When I asked for a rate float down, the LO responded stating it would be considered only at the time of approval not before that. I am also told that the rate I locked (2.75%) is better than the current rate and hence I won't get a rate float down.

The only hopeful thing is they have promised to extend the rate lock beyond 60 days free of charge.

Did anyone here get a rate float down with Loan Cabin?

The waiting continues...
That is really weird about the rate sheet. What you're being told is in direct contradiction to what I and others have been told.

As far as the float down, I was told that it's a one-time thing that is only considered around 10 days before closing (which would be after you come out of underwriting). So that's consistent with what you've been told.

I am also not surprised that you're not currently eligible for a float down. In order to be eligible for a float down at LC, you need rates to drop by at least 0.125% (some other lenders require a 0.25% drop for float down). The rates at the end of July when you locked were pretty close to the best rates they've had. Plus now they are pricing in the 0.5% G-fee (though not sure if they take that into account for float down purposes when they are looking at someone who will close long before December).

Admittedly I don't know exactly how they evaluate the float down. Do they compare their current pricing to your locked pricing? Or do they look at a standardized pricing like the FRED rate? Etc.
Thanks for your response.

I think my LO at Loan Cabin may have limited experience.

In today's update, my LO said that my loan would be conditionally approved next week and once I submit the requested documents, it would be approved and closed in a week. I have my doubts on the timeline that Loan Cabin has provided me.

I spoke to an Interactive Mortgage Loan consultant today, who is offering 2.5% no net cost (as opposed to 2.75% no net cost with Loan Cabin). Their timeline is 3 weeks to underwriting review/approval and then close within 35 days from the application date.

Given that Interactive Mortgage's rate & timeline is attractive can I start the refi with them? If Loan Cabin has more delays, I can drop them and go with Interactive Mortgage. If Loan Cabin closes sooner, can I provide that info to Interactive Mortgage to refi right after the first refi with LC?

Does Interactive Mortgage' have any 6 month clause (I am doing a no cash out refi).

I would like to complete my refi with the best rate before the FHFA fee kicks in on Dec 1st.
I had begun the process with Interactive Mortgage and had a good experience with them. Of course it all depends on how good your LO and Loan Processor are. But they generally seem to have a streamlined process, are easy to work with, and close relatively quickly.

Because IM is pretty quick to close, I would not recommend closing with LC and then IM. That is going to create too much confusion with IM. What I would do is to have both processes running in parallel. When you get to the point of a potential float down with LC, see if they are able to float you down to beat IM. If so, then close with LC. If not, then close with IM.

Another option is to take your LE from IM and ask Better, Ally, or Loan Depot to beat it. But the bottom line is that at this point, LC is no longer competitive unless you get a big float down. So you can allow that process to continue, but most likely you will not close with them.

To answer your question about the 6-month clause, I think LenderFi is the only lender that asks some people to sign such a document. However, with any lender there is a risk that if you refi within 6 months, they won't want to work with you in the future. But I'm not sure why you're asking that question, because if you close with IM at 2.5%, probably you won't be looking to refi again within 6 months, right?
Thank you, presto987.

If Interactive Mortgage can close within 35 days with the 2.5% rate, then I would like to go with them (LC’s standard answer has been ‘it will take 1 or 2 more weeks’, every week!). The LO at IM said that I may not be eligible for the 2.375% rate since my LTV is 64%! :(

I have tried Better before – they refused to match any lender for me (I am in CA and it could be because of the loan amount). I can try and see if Ally, or Loan Depot can do better than IM.

Regarding the 6-month clause question: I see many folks here doing multiple rounds of refi with the same (better.com) or different lenders – wanted to keep my options open if the refi rate goes down again within 6 months! :)
manatee2005
Posts: 1437
Joined: Wed Dec 18, 2019 9:17 pm

Re: Refinance Mega Thread

Post by manatee2005 »

Intelli loan had 2.39% APR. I called them and they said it’s only if you pay 1.5% points. I laughed and hung up.
gaurav811
Posts: 35
Joined: Fri Feb 13, 2015 4:44 pm

Re: Refinance Mega Thread

Post by gaurav811 »

presto987 wrote: Fri Oct 02, 2020 10:31 pm Did you need to send him an LE from IM, or did he just go by what you told him? Or I guess you could show the IM website since they list their rate publicly there.
No LE was required. They actually verified it by checking IM's website and that was good enough for them.
soccerbogle
Posts: 22
Joined: Tue Sep 08, 2020 6:53 pm

Re: Refinance Mega Thread

Post by soccerbogle »

presto987 wrote: Fri Oct 02, 2020 9:33 pm
gaurav811 wrote: Fri Oct 02, 2020 9:00 pm I was locked in with interactive mortgage but I got a call from loan depot and I told them about my 2.375% rate at interactive they said they could probably do 2.25%. No cost loan. it took a full application and a 1 hour of waiting but they did confirm that I would get no cost 30 year fixed refi at 2.25%. Actually there is a $300 credit to go towards escrow reserves. This is for a 510k loan amount and <60% LTV.
So please contact loan depot and ask them to beat IM.
Congratulations, I am pretty certain that is the lowest no-cost rate that anyone has gotten for a 30-year fixed!

LoanDepot can be pretty aggressive about beating other offers. But you have to talk to the right person. I tried calling a "Loan Consultant" at a local office, and the person I spoke to was very friendly, but the pricing wasn't competitive at all, and they had no interest/ability in price matching. Seems like you need to talk to a "Licensed Lending Officer". They can be hit or miss. Seems like you got a good one; I was able to find a good one as well, who beat an LE I had from LC.
Interesting. My Loan Officer at Loan Depot told me they couldn't beat my current mortgage (recently refinanced to 20 years at 2.875) at less than 60% LTV. It is a condo though, not sure if that makes a difference.

Guess I got a bad one. lol
gaurav811
Posts: 35
Joined: Fri Feb 13, 2015 4:44 pm

Re: Refinance Mega Thread

Post by gaurav811 »

manatee2005 wrote: Fri Oct 02, 2020 11:18 pm Intelli loan had 2.39% APR. I called them and they said it’s only if you pay 1.5% points. I laughed and hung up.
What's the point of quoting APR if they don't include points in the calculation. Classic bate and switch
presto987
Posts: 325
Joined: Sun Aug 30, 2020 10:58 pm

Re: Refinance Mega Thread

Post by presto987 »

Well, I’d call it “misleading” or “unhelpful”, not a bait and switch. The rate itself is probably 2.125% or 2.25%. Then the points cause the APR to go up to 2.39%. So it is probably accurate, but it doesn’t tell you the whole story, because APR assumes that the costs are amortized over the entire term, which isn’t helpful for most of us. It’s only helpful if you fully intend to keep the house and the mortgage for the full term.
bling
Posts: 754
Joined: Sat Jan 21, 2012 12:49 pm

Re: Refinance Mega Thread

Post by bling »

soccerbogle wrote: Sat Oct 03, 2020 12:34 am
presto987 wrote: Fri Oct 02, 2020 9:33 pm
gaurav811 wrote: Fri Oct 02, 2020 9:00 pm I was locked in with interactive mortgage but I got a call from loan depot and I told them about my 2.375% rate at interactive they said they could probably do 2.25%. No cost loan. it took a full application and a 1 hour of waiting but they did confirm that I would get no cost 30 year fixed refi at 2.25%. Actually there is a $300 credit to go towards escrow reserves. This is for a 510k loan amount and <60% LTV.
So please contact loan depot and ask them to beat IM.
Congratulations, I am pretty certain that is the lowest no-cost rate that anyone has gotten for a 30-year fixed!

LoanDepot can be pretty aggressive about beating other offers. But you have to talk to the right person. I tried calling a "Loan Consultant" at a local office, and the person I spoke to was very friendly, but the pricing wasn't competitive at all, and they had no interest/ability in price matching. Seems like you need to talk to a "Licensed Lending Officer". They can be hit or miss. Seems like you got a good one; I was able to find a good one as well, who beat an LE I had from LC.
Interesting. My Loan Officer at Loan Depot told me they couldn't beat my current mortgage (recently refinanced to 20 years at 2.875) at less than 60% LTV. It is a condo though, not sure if that makes a difference.

Guess I got a bad one. lol
what prevents you from doing a cash-out refinance to meet the 60% LTV and then lump sum pay it back after you close?
Jagger
Posts: 12
Joined: Fri Sep 25, 2020 10:05 am

Re: Refinance Mega Thread

Post by Jagger »

Has anyone else had problems with the LenderFi/BSI payment web site, either today or in the past? We're trying to make our first one-time ACH payment and the servicer site seems to be down.
User avatar
BrandonBogle
Posts: 3591
Joined: Mon Jan 28, 2013 11:19 pm

Re: Refinance Mega Thread

Post by BrandonBogle »

bling wrote: Sat Oct 03, 2020 9:40 am what prevents you from doing a cash-out refinance to meet the 60% LTV and then lump sum pay it back after you close?
Fannie Mae charges lenders more for cash-out refis than rate-and-term refis, and most lenders would pass that cost to the borrower in terms of a higher rate or fewer credits/more points.
User avatar
anon_investor
Posts: 4276
Joined: Mon Jun 03, 2019 1:43 pm

Re: Refinance Mega Thread

Post by anon_investor »

ChiKid24 wrote: Fri Oct 02, 2020 1:27 pm
FrugalProfessor wrote: Wed Sep 30, 2020 1:59 pm
ChiKid24 wrote: Wed Sep 30, 2020 1:57 pm
mrmicro wrote: Mon Sep 28, 2020 7:53 pm Just closed my refi with Better today
Locked: 9/1
Loan funded: 9/28
Better Credits: No cost + ~3K credits
Rate: 2.5% 30 yr fixed in CA

Does anyone know what would be the wait period to refi again? Interactive Mortgage is offering 2.375. Is there a 6 month wait period with Better or do they take back credits if I refi even before the first payment?
No wait period with Better, unless they've changed their policies. I closed with them in July and locked with Lenderfi on a new refi the very next day.
Why did you do back-to-back refi's? Did rates fall dramatically or are you just playing the exploiting-lender-credits game (and rinsing and repeating)?
My first refi was with Better at 3% and credits that netted me an additional $1k after covering all costs. Second refi was with Lenderfi at 2.75% with credits to cover all closing costs, so net cost to me was $0. If rates fall and I get credits to cover the costs, I will continue to refi on the way down. That said, I did sign the 6-months no refi document with Lenderfi so probably should wait and see where things are early next year. Technically I can probably get out of it, or simply pay back the credit if rates fall so far it makes sense.
I am in the same boat as you. Started the pandemic 2.5 years into a 3.875% 30 year fixed. Did a refi in May with Ally to 3.375%, 30 year fix with a net credit of $2k+. Then did a refi with LenderFi (with 6 month clawback) in July to 2.75%, 30 year fixed at no cost. After the 6 month waiting period, I would refi again if I would get a 2.5% or less 30 year no cost.
gaurav811
Posts: 35
Joined: Fri Feb 13, 2015 4:44 pm

Re: Refinance Mega Thread

Post by gaurav811 »

bling wrote: Sat Oct 03, 2020 9:40 am
soccerbogle wrote: Sat Oct 03, 2020 12:34 am
presto987 wrote: Fri Oct 02, 2020 9:33 pm
gaurav811 wrote: Fri Oct 02, 2020 9:00 pm I was locked in with interactive mortgage but I got a call from loan depot and I told them about my 2.375% rate at interactive they said they could probably do 2.25%. No cost loan. it took a full application and a 1 hour of waiting but they did confirm that I would get no cost 30 year fixed refi at 2.25%. Actually there is a $300 credit to go towards escrow reserves. This is for a 510k loan amount and <60% LTV.
So please contact loan depot and ask them to beat IM.
Congratulations, I am pretty certain that is the lowest no-cost rate that anyone has gotten for a 30-year fixed!

LoanDepot can be pretty aggressive about beating other offers. But you have to talk to the right person. I tried calling a "Loan Consultant" at a local office, and the person I spoke to was very friendly, but the pricing wasn't competitive at all, and they had no interest/ability in price matching. Seems like you need to talk to a "Licensed Lending Officer". They can be hit or miss. Seems like you got a good one; I was able to find a good one as well, who beat an LE I had from LC.
Interesting. My Loan Officer at Loan Depot told me they couldn't beat my current mortgage (recently refinanced to 20 years at 2.875) at less than 60% LTV. It is a condo though, not sure if that makes a difference.

Guess I got a bad one. lol
what prevents you from doing a cash-out refinance to meet the 60% LTV and then lump sum pay it back after you close?
You don't need exactly 60% LTV. Less than that is fine too. I can't share contact details of loan depot loan officer here so PM of needed.
zrzhu111
Posts: 212
Joined: Sun Sep 01, 2013 6:03 pm

Re: Refinance Mega Thread

Post by zrzhu111 »

gaurav811 wrote: Sat Oct 03, 2020 2:13 pm
bling wrote: Sat Oct 03, 2020 9:40 am
soccerbogle wrote: Sat Oct 03, 2020 12:34 am
presto987 wrote: Fri Oct 02, 2020 9:33 pm
gaurav811 wrote: Fri Oct 02, 2020 9:00 pm I was locked in with interactive mortgage but I got a call from loan depot and I told them about my 2.375% rate at interactive they said they could probably do 2.25%. No cost loan. it took a full application and a 1 hour of waiting but they did confirm that I would get no cost 30 year fixed refi at 2.25%. Actually there is a $300 credit to go towards escrow reserves. This is for a 510k loan amount and <60% LTV.
So please contact loan depot and ask them to beat IM.
Congratulations, I am pretty certain that is the lowest no-cost rate that anyone has gotten for a 30-year fixed!

LoanDepot can be pretty aggressive about beating other offers. But you have to talk to the right person. I tried calling a "Loan Consultant" at a local office, and the person I spoke to was very friendly, but the pricing wasn't competitive at all, and they had no interest/ability in price matching. Seems like you need to talk to a "Licensed Lending Officer". They can be hit or miss. Seems like you got a good one; I was able to find a good one as well, who beat an LE I had from LC.
Interesting. My Loan Officer at Loan Depot told me they couldn't beat my current mortgage (recently refinanced to 20 years at 2.875) at less than 60% LTV. It is a condo though, not sure if that makes a difference.

Guess I got a bad one. lol
what prevents you from doing a cash-out refinance to meet the 60% LTV and then lump sum pay it back after you close?
You don't need exactly 60% LTV. Less than that is fine too. I can't share contact details of loan depot loan officer here so PM of needed.
What state are you in? I got from 2.75% from them with credits to cover total in D and about 1k left to compensate E which is huge in NY.
presto987
Posts: 325
Joined: Sun Aug 30, 2020 10:58 pm

Re: Refinance Mega Thread

Post by presto987 »

In case helpful to folks here, cross-posting something that I posted on Slickdeals.

Here are some of the current recommended lenders.

Great pricing upfront (no cost refis):
- Interactive Mortgage (CA and 3 other states only)
- LenderFi

Great upfront pricing with ability to get large lender credits:
- LC
- Dave Pressel at Bayshore: He is a lender who has posted on Slickdeals and is offering good pricing, knowing that Slickdeals members are looking for rock bottom pricing. Note, not everyone at Bayshore offers the same pricing.
- LoanDepot: they are very hit or miss, but some LOs are very good and offer good deals. I'd recommend applying through a specific LO's link rather than directly through the homepage. I found the name of a good LO in the refi thread.

Lenders who are good about price matching:
- LoanDepot: same comments as above apply. I've talked to two LOs who had no interest in even trying to price match, but also another one who was able to beat a very strong offer from LC. Others have posted similar success stories.
- Better: they will usually beat other offers by $100, but you can turn that $100 into $850 if you qualify for an appraisal waiver and get a title quote from Radian.
- Ally

So if you want a low rate at no-cost and a simple process, go with IM (if available in your state) or LenderFi. If you want to try to sweeten the deal a bit from there, ask LD or Better to beat it.

If you want to have extra lender credits after all costs, IM and LF don't offer that, but you can still ask LD or Better to beat those. If you are successful, both LD and Better will allow you to further increase your credits by increasing your rate. Also check out LC and Dave P. if you are interested in credits.

Better limits its lender credit to $5k, so realistically the most net credit anyone can get through Better (after D+E costs) is around $3900. That number is state-dependent of course.

LC and LD are the places to go if you want to be able to get significantly more lender credit by increasing your rate.

It does not hurt to get quotes from a couple of local mortgage brokers. They should be able to give you a quote without a full application. Brokers work with wholesale lenders like Quicken and UWM and can get you good rates. Surprisingly, a broker can get you a better deal through Quicken (even after broker fee) than you would get by going direct to Quicken.

Finally, many lenders are likely already pricing in the 0.5% g-fee. Only those with 30-day locks or less might not be pricing it in yet.
gaurav811
Posts: 35
Joined: Fri Feb 13, 2015 4:44 pm

Re: Refinance Mega Thread

Post by gaurav811 »

zrzhu111 wrote: Sat Oct 03, 2020 3:28 pm
What state are you in? I got from 2.75% from them with credits to cover total in D and about 1k left to compensate E which is huge in NY.
In CA
need403bhelp
Posts: 1136
Joined: Thu May 28, 2015 6:25 pm

Re: Refinance Mega Thread

Post by need403bhelp »

presto987 wrote: Sun Aug 30, 2020 11:20 pm
need403bhelp wrote: Sun Aug 30, 2020 6:54 pm
BrandonBogle wrote: Sat Aug 29, 2020 12:03 am
need403bhelp wrote: Sat Aug 29, 2020 12:01 am Thanks for your advice re going with lender #1.

I wish 2.375% 30 year fixed was on my rate table, but it is not and they won’t budge on giving me that rate.

FWIW, the difference in interest over the entire 30 years between the two loans is $6598.04, so I guess I could think of it as them giving me half the difference between the two loans but all up front.
Don’t forget the time value of money and potential inflation (if you believe we’d have inflation over the next 30 years).
So despite the overwhelming advice on this forum to go with lender #1, I'm still debating the two options.

My other though - I do have another loan app that I just recently locked with LoanDepot for 2.375% but not at zero cost. If I close with lender #1 this week, I could probably get a TMS statement in the next few weeks, and tell LoanDepot "hey, my underlying loan has changed." That way I could, theoretically, have my large cash in hand cake and eat my 2.375% rate also.

Anyone have any such experience with LoanDepot - i.e., switching mortgage loans in the (early) part of a refi? The LD agent did tell me it is taking close to 60 days to close.

Thanks!
First post here, but I've been following this thread religiously for the last month.

I agree with everyone else that lender #1 is a no-brainer. Why? Because you are netting close to $4000 and still have the optionality of refinancing again at a lower rate if available. Worst case scenario, if you cannot get a 2.375% low/no cost deal for refi #2, you can use some of the $4000 that you made during refi #1 toward refi #2's closing costs and still come out ahead compared to doing one refi with lender #2. Heck, by using the $4000 you made on refi #1, maybe you can even buy down refi #2's rate to 2.25%! That would be a real win, and the only cost would be the time/effort of having to refi twice.

I do like the idea of what you're suggesting doing with Loan Depot. It sounds like it should be possible, but I don't have any specific knowledge about that. How would they know that your loan has changed?

The 60-day timing would be good, because it should be long enough to get your TMS statement, but short enough to avoid the December 1 Fannie Mae fee getting priced into your loan.

BTW, would appreciate a PM if you're willing to share who lender #2 is, and also from which lenders you got LE's to price match with Better, lender #2, and Loan Depot. Thanks!
Thanks again for your thoughts ( bold added for emphasis in quote above ).

As a reminder loan #1 closed & funded w/Better.com earlier September. 30 year fixed conv w/waived escrows 2.5%, A $0, B&C ~$1,580, E $94.00, Lender Credits -$3,100 (state doesn't allow cash back @ closing so paid down principal ~$1,300), also apparently getting ~$1,400 check in mail for refund of delayed 0.5% FHFA fee, plus pending $2,500 statement credit to AMEX Card. So A+B+C+E+Lender Credits&AMEX&FHFA refund = ~$-5,300.

Getting ready to close loan #2, scheduled for late this coming week. 30 year fixed conv w/waived escrows 2.25%, A $1595, B&C ~$1,335, E $160, Lender Credit -$1,310, so A+B+C+E+Lender Credit = ~$1,780, which I am completely fine paying as it is covered mostly by my cash/principal decrease for loan #1. FWIW, when rate shopping a bit for loan #2, I was able to get a personal check for >50% of this amount from another lender who couldn't match (very long story and required lots of back and forth), plus hoping to get $250 gift card from Quicken also.

Now, I do have another option for loan #2, and they seem to be about $450 cheaper as far as A+B+C+E+lender credits than who I'm scheduled to close with above. However, they seem to take longer in general, and made a bigger deal about underlying loan changing (perhaps because they didn't really get it at the beginning and I had to be very detailed and crystal clear about what happened, whereas the other lender was just "sure no problem we'll change payoff amount and lender being paid off").

So really I'm trying to decide whether to go ahead and close later this week with the $1,780 lender or risk waiting to save another $450. Any thoughts appreciated. Also, I guess I’ll point out ahead of time I’m not really interested in raising the rate for refi #2 to 2.375% to make it true no cost, as I really just want to be done refinancing for a longer period of time, which having 2.25% will allow.

Thanks!
edm86
Posts: 4
Joined: Fri Oct 02, 2020 2:30 pm

Re: Refinance Mega Thread

Post by edm86 »

I've been trying to follow along with this thread but it is quite lengthy. Is anyone here from NY having any success with a refi? I just bought my house in late 2019 and my principal now is 715k at 3.5%.

I do have some cash to pay down some of the debt now but wondering what rates everyone is getting. Thanks!
presto987
Posts: 325
Joined: Sun Aug 30, 2020 10:58 pm

Re: Refinance Mega Thread

Post by presto987 »

To need403bhelp:

Nice work! Worst case, you are going to wind up with a 2.25% rate while netting $3500 in the process (not to mention the $ from the lenders who could not beat your offers).

I assume the lender that you’re about to close with doesn’t match other offers after you lock? And no float down possibility?

What about the alternate lender? If you move to them, do they offer matches or float downs after locking? If so, there could be some value to having that optionality beyond the $450 savings. If not, I would probably just go ahead and close with the lender that you’re almost done with (even though I normally try to get the best possible deal :)).
orangejelloh
Posts: 45
Joined: Fri Nov 11, 2016 11:02 am

Re: Refinance Mega Thread

Post by orangejelloh »

Interested in some feedback about a possible refinance.

I just purchased my home a bit over a month ago in CT. LTV just slightly under 80%, principal around 500k.

Current loan is 15 year at 2.5% with a local-ish bank.


I just locked a 15 year fixed at 2.125% with Loan Depot. A+B+C+E-Lender credits = -1800.

I'm trying to see if Better or LenderFi can improve on that offer. Should I think about any other lenders? IM and Loan Cabin aren't licensed in CT.

Would others recommend I go through with this? It seems like a no brainer for a 0.375% reduction in rate and to get a free $1800. However, this is my first home and first refinance, so I'm curious whether I'm missing possible drawbacks. My current mortgage is with a brick and mortar bank. Will working with LoanDepot instead cause headaches? (I.e. the loan estimate says they will not service the loan... is that something to worry about?)

Thanks!
m7a8a6
Posts: 19
Joined: Mon Aug 17, 2020 8:25 pm

Re: Refinance Mega Thread

Post by m7a8a6 »

Quick question for the folks on the forum...

So I just got the pre closing disclosure and it looks like LenderFi added a two month prepaid property taxes and insurance to it. This wasn’t on the loan estimate. This has obviously bumped up the closing costs.

There is also a 3 month escrow for property taxes and insurance which was listed on the loan estimate.

Is this situation something to worry about and dispute? It increases the total amount of cash to bring to closing.

Appreciate any guidance and perspective on this.
tj
Posts: 3925
Joined: Thu Dec 24, 2009 12:10 am

Re: Refinance Mega Thread

Post by tj »

m7a8a6 wrote: Sun Oct 04, 2020 5:20 pm Quick question for the folks on the forum...

So I just got the pre closing disclosure and it looks like LenderFi added a two month prepaid property taxes and insurance to it. This wasn’t on the loan estimate. This has obviously bumped up the closing costs.

There is also a 3 month escrow for property taxes and insurance which was listed on the loan estimate.

Is this situation something to worry about and dispute? It increases the total amount of cash to bring to closing.

Appreciate any guidance and perspective on this.
Why would it matter? You have to pay that stuff anyway.
zrzhu111
Posts: 212
Joined: Sun Sep 01, 2013 6:03 pm

Re: Refinance Mega Thread

Post by zrzhu111 »

edm86 wrote: Sun Oct 04, 2020 3:25 pm I've been trying to follow along with this thread but it is quite lengthy. Is anyone here from NY having any success with a refi? I just bought my house in late 2019 and my principal now is 715k at 3.5%.

I do have some cash to pay down some of the debt now but wondering what rates everyone is getting. Thanks!
Many of lenders mentioned in this thread are not licensed in NY. you should try Loan Depot, Better, Network Capital. I've tried brokers and the experience was pretty bad. The brokers didn't provide any better rates but did charge broker fees.
need403bhelp
Posts: 1136
Joined: Thu May 28, 2015 6:25 pm

Re: Refinance Mega Thread

Post by need403bhelp »

presto987 wrote: Sun Oct 04, 2020 3:30 pm To need403bhelp:

Nice work! Worst case, you are going to wind up with a 2.25% rate while netting $3500 in the process (not to mention the $ from the lenders who could not beat your offers).
Thanks! I feel like it's been a pretty intense part-time job for me, so I'm ready to move on to the next task :)
presto987 wrote: Sun Oct 04, 2020 3:30 pm I assume the lender that you’re about to close with doesn’t match other offers after you lock? And no float down possibility?
Current lender matched some quotes previously, currently "no margin left" per LO, and I believe it. Haven't asked specifically about float down, although I do know I currently have lowest rate on their rate sheet.
presto987 wrote: Sun Oct 04, 2020 3:30 pm What about the alternate lender? If you move to them, do they offer matches or float downs after locking? If so, there could be some value to having that optionality beyond the $450 savings. If not, I would probably just go ahead and close with the lender that you’re almost done with (even though I normally try to get the best possible deal :)).
Other lender has already floated down (well, rate match where they lowered rate & kept lender credits as is) once also for current offer. They haven't specifically told me whether they will rate match/float down further, and I suspect it is not a straightforward policy. I did try to get them to get their title company to waive some pretty significant fees, but unlike other lenders with whom I'd worked, their title company wouldn't budge (but apparently it only employs 8 ppl per Google so maybe the reason). It would probably be too late to switch title companies and still close. Also, I really need to get more info from them as we would need rate lock extension, etc. So a lot of ifs with this lender, and the LO is, let's say, not the most responsive person in the world although they have good rates.

In any case, thanks for your thoughts that closing with the lender who is $450 more could be reasonable choice if no possibility to save more with cheaper lender.
Hoosier CPA
Posts: 107
Joined: Tue Nov 22, 2016 9:43 pm

Re: Refinance Mega Thread

Post by Hoosier CPA »

Just to share info - my better.com mortgage was initially to be serviced by The Money Source, and before the first payment was due, it was transferred to Mr Cooper (which is Nationstar?). Using the search on this site, it appears Mr Cooper is legitimate. The mortgage funded on 9/16 - I think I'll wait until the Amex credit hits before seeing if I can reduce the rate again (2.875% on a 30, high credit, $215K balance on $400K home).
AB609
Posts: 54
Joined: Thu Oct 17, 2019 9:02 am

Re: Refinance Mega Thread

Post by AB609 »

Hoosier CPA wrote: Mon Oct 05, 2020 8:04 am Just to share info - my better.com mortgage was initially to be serviced by The Money Source, and before the first payment was due, it was transferred to Mr Cooper (which is Nationstar?). Using the search on this site, it appears Mr Cooper is legitimate. The mortgage funded on 9/16 - I think I'll wait until the Amex credit hits before seeing if I can reduce the rate again (2.875% on a 30, high credit, $215K balance on $400K home).
Same thing happened to me. Not a big deal but somewhat annoying. I went through the effort to get everything setup with TMS for nothing. Mr. Cooper as of today apparently hasn't loaded me into their system (can take 7 days according to their website). I was waiting to make a payment on this loan before looking into another refinance.
fanmail
Posts: 422
Joined: Thu Sep 20, 2012 5:54 pm

Re: Refinance Mega Thread

Post by fanmail »

Hoosier CPA wrote: Mon Oct 05, 2020 8:04 am Just to share info - my better.com mortgage was initially to be serviced by The Money Source, and before the first payment was due, it was transferred to Mr Cooper (which is Nationstar?). Using the search on this site, it appears Mr Cooper is legitimate. The mortgage funded on 9/16 - I think I'll wait until the Amex credit hits before seeing if I can reduce the rate again (2.875% on a 30, high credit, $215K balance on $400K home).
Similar result, and I have my AMEX credit now as well.
14k
Posts: 13
Joined: Wed Sep 25, 2019 4:46 pm

Re: Refinance Mega Thread

Post by 14k »

Does refinancing to a 30 year mortgage "reset" my mortage back to day 1 of a 30 year mortgage or does it carry on from where I'm at with my current mortgage? e.g. 25 years left on original mortgage taken out in 2015. If the first statement is true, does this negate the cost savings from the reduced interest rate!? (since I'm paying interest for an additional 5 years)
ensign_lee
Posts: 350
Joined: Fri Mar 12, 2010 10:03 am

Re: Refinance Mega Thread

Post by ensign_lee »

14k wrote: Mon Oct 05, 2020 2:02 pm Does refinancing to a 30 year mortgage "reset" my mortage back to day 1 of a 30 year mortgage or does it carry on from where I'm at with my current mortgage? e.g. 25 years left on original mortgage taken out in 2015. If the first statement is true, does this negate the cost savings from the reduced interest rate!? (since I'm paying interest for an additional 5 years)
It absolutely resets it.

If you wanted to keep everything the same in your example, you would look for a 25 year mortgage.
sudohouse
Posts: 5
Joined: Tue Sep 01, 2020 11:25 pm

Re: Refinance Mega Thread

Post by sudohouse »

Investment Property, 540k Balance at 4.5%

Locked in with LD 10 days ago at 3.625% with 1.5k in lender fees (This was the best out of 10 quotes at the time)

Amerisave came back today with 3.125% with 1.5k in lender fees

I already paid 500$ to LD for the Appraisal does anyone have any experience in getting them to float down to match the Amerisave after 10 days? .5% seems like a HUGE improvement! Should I threaten to cancel?
presto987
Posts: 325
Joined: Sun Aug 30, 2020 10:58 pm

Re: Refinance Mega Thread

Post by presto987 »

ensign_lee wrote: Mon Oct 05, 2020 2:46 pm
14k wrote: Mon Oct 05, 2020 2:02 pm Does refinancing to a 30 year mortgage "reset" my mortage back to day 1 of a 30 year mortgage or does it carry on from where I'm at with my current mortgage? e.g. 25 years left on original mortgage taken out in 2015. If the first statement is true, does this negate the cost savings from the reduced interest rate!? (since I'm paying interest for an additional 5 years)
It absolutely resets it.

If you wanted to keep everything the same in your example, you would look for a 25 year mortgage.
Yes.

To answer your last question, I think the answer depends on how much lower the interest rate is. BUT, in my view, this is not the right way to think about it. If you refinance into a new 30-year mortgage with a lower interest rate, nothing prevents you from making the same monthly payment that you used to make. If you do that, then you will pay off your mortgage in less than 25 years and save a lot on interest. Or you can calculate how much you need to pay each month so that you finish in 25 years. If you do that, your monthly payment will be lower than it used to be, and you will save on interest, but you'll still pay it off in 25 years.

Of course if you intend to pay off your mortgage in 25 years, then you might want to look at pricing for 25-year mortgages in case the pricing is better than for 30-year mortgages. But generally there is not much difference (if any), and a 30-year gives you more flexibility. If you don't want to give yourself that flexibility because you don't trust yourself, then it might be best to go with a 25-year mortgage.
presto987
Posts: 325
Joined: Sun Aug 30, 2020 10:58 pm

Re: Refinance Mega Thread

Post by presto987 »

tj wrote: Sun Oct 04, 2020 5:56 pm
m7a8a6 wrote: Sun Oct 04, 2020 5:20 pm Quick question for the folks on the forum...

So I just got the pre closing disclosure and it looks like LenderFi added a two month prepaid property taxes and insurance to it. This wasn’t on the loan estimate. This has obviously bumped up the closing costs.

There is also a 3 month escrow for property taxes and insurance which was listed on the loan estimate.

Is this situation something to worry about and dispute? It increases the total amount of cash to bring to closing.

Appreciate any guidance and perspective on this.
Why would it matter? You have to pay that stuff anyway.
Agree, and I would also add that it is typical for prepaid property taxes etc. to be adjusted on the closing disclosure compared to the LE. They are supposed to collect prepaid property taxes for anything due in the next 2 months (I believe this is per Fannie Mae). When they create the LE, they don't always include these items, in part because it will depend on when closing is (just like prepaid interest).
presto987
Posts: 325
Joined: Sun Aug 30, 2020 10:58 pm

Re: Refinance Mega Thread

Post by presto987 »

orangejelloh wrote: Sun Oct 04, 2020 4:23 pm Interested in some feedback about a possible refinance.

I just purchased my home a bit over a month ago in CT. LTV just slightly under 80%, principal around 500k.

Current loan is 15 year at 2.5% with a local-ish bank.


I just locked a 15 year fixed at 2.125% with Loan Depot. A+B+C+E-Lender credits = -1800.

I'm trying to see if Better or LenderFi can improve on that offer. Should I think about any other lenders? IM and Loan Cabin aren't licensed in CT.

Would others recommend I go through with this? It seems like a no brainer for a 0.375% reduction in rate and to get a free $1800. However, this is my first home and first refinance, so I'm curious whether I'm missing possible drawbacks. My current mortgage is with a brick and mortar bank. Will working with LoanDepot instead cause headaches? (I.e. the loan estimate says they will not service the loan... is that something to worry about?)

Thanks!
Seems like a great deal - you reduce your rate by 0.375% and make $1800 in the process. I would definitely go through with it, unless the bank you used for your purchase has some kind of clawback provision for refinancing so quickly. But I doubt they do.

Good idea to get quotes from Better and LenderFi as well.
pumpkinwaggle
Posts: 14
Joined: Wed Sep 30, 2020 8:14 pm

Re: Refinance Mega Thread

Post by pumpkinwaggle »

pumpkinwaggle wrote: Thu Oct 01, 2020 10:08 pm
presto987 wrote: Thu Oct 01, 2020 7:29 pm ^ Great to hear! Assuming Better waives your appraisal, you should be able to save another $550. And by having them price-match title costs to Radian, that should be another $200 (they price-match this by increasing the lender credit by the amount of the price difference). Finally, your section "E" costs should go down when you get your initial closing disclosure.

If all goes as planned, hopefully you will make $2700 net credit on this refi!

If you get another better offer before you close, there is still room for them to increase lender credits by another $1000. But if not, you are in a great spot.
Yes, it’s thanks to you all here! :D I was so confused yesterday and got back on track with your advice.

I emailed Radian this morning. Let’s see if I hear back.

PS: After getting the first estimate from Loan Depot yesterday and getting half a dozen calls and emails from them, I didn’t hear back from them today after asking for the no cost estimate... maybe all these bad reviews are correct...
Here is a quick update with my experience with Better. So far, super smooth, great communication and good progress (I was quick to do all their tasks immediately when I got the notice).

9/29 - Started getting soft estimates, talked to about a dozen lenders (before finding this great thread! Would have saved me hours on the phone...)
9/30 - Got full estimates from various lenders and Better was always able to match. They responded within a couple of hours every time I asked something and checked with me on the phone as well which is great.
10/1 - Got the final match from Better (from $2,705 to $3,799 credit after a couple of matches, at 2.75% for refi with cash out) and started the full process by doing all the tasks on the website to lock the rate somewhere around 6pm.
10/2 - Got a message in the morning at 8am that my rate was locked at the agreed rate and credit. Application was assigned to the processing expert which once again gets back to me in just a few hours. Received the update that I got the appraisal waiver. I had to pay $550 to get the process going but the appraisal will be returned so that'll be a nice $550 back to me.
10/5 - Received conditional approval. Title was ordered. I got the quote from Radian which may save me about $200 if Better can match the cost.

To be continued...
candyzh
Posts: 3
Joined: Mon Oct 05, 2020 5:23 pm

Re: Refinance Mega Thread

Post by candyzh »

Hi,

I am new to this forum and see people are mostly discussing the fixed rate with different terms. Any specific reason why no one is considering an ARM at this moment? Is it because the rate is so low and people all bet it will increase in the future? I am actually going to make a purchase loan instead of refi, but debating if I should go with a 30 fixed or 10/1 ARM with a 0.5% spread between those two. Any thoughts would be appreciated!!
mkr971
Posts: 1
Joined: Mon Oct 05, 2020 5:33 pm

Re: Refinance Mega Thread

Post by mkr971 »

gaurav811 wrote: Sun Oct 04, 2020 1:00 am
zrzhu111 wrote: Sat Oct 03, 2020 3:28 pm
What state are you in? I got from 2.75% from them with credits to cover total in D and about 1k left to compensate E which is huge in NY.
In CA
Gaurav811, Can you please pm the contact details of the LO at Loan Depot? I just joined the forum and am not yet authorized to send any pm. I am in CA. TYIA.
Last edited by mkr971 on Mon Oct 05, 2020 6:00 pm, edited 1 time in total.
Investor1319
Posts: 51
Joined: Mon May 28, 2018 12:58 pm

Re: Refinance Mega Thread

Post by Investor1319 »

I've been working on my refinance in NJ for awhile and we're getting close to having it go through. I just wanted to make sure the rate I got back in July is still competitive.

2.625%
20 year fixed
No closing costs
$2,500 AmEx Credit
State- NJ

Thanks!
presto987
Posts: 325
Joined: Sun Aug 30, 2020 10:58 pm

Re: Refinance Mega Thread

Post by presto987 »

Investor1319 wrote: Mon Oct 05, 2020 6:10 pm I've been working on my refinance in NJ for awhile and we're getting close to having it go through. I just wanted to make sure the rate I got back in July is still competitive.

2.625%
20 year fixed
No closing costs
$2,500 AmEx Credit
State- NJ

Thanks!
Seems pretty good. Obviously people have done better, but that can vary based on your loan size, LTV, etc., which we don't know. And not sure about NJ specifically.

You could try to get in touch with Dave Pressel at Bayshore Mortgage to see if he can price out your situation. He has been offering good deals to people at Slickdeals. That would be a good way to double-check how good your deal is.
User avatar
BrandonBogle
Posts: 3591
Joined: Mon Jan 28, 2013 11:19 pm

Re: Refinance Mega Thread

Post by BrandonBogle »

ensign_lee wrote: Mon Oct 05, 2020 2:46 pm
14k wrote: Mon Oct 05, 2020 2:02 pm Does refinancing to a 30 year mortgage "reset" my mortage back to day 1 of a 30 year mortgage or does it carry on from where I'm at with my current mortgage? e.g. 25 years left on original mortgage taken out in 2015. If the first statement is true, does this negate the cost savings from the reduced interest rate!? (since I'm paying interest for an additional 5 years)
It absolutely resets it.

If you wanted to keep everything the same in your example, you would look for a 25 year mortgage.
Or get the 30 and pay more than the minimum payment so it still ends in 25 years
candyzh wrote: Mon Oct 05, 2020 5:35 pm Hi,

I am new to this forum and see people are mostly discussing the fixed rate with different terms. Any specific reason why no one is considering an ARM at this moment? Is it because the rate is so low and people all bet it will increase in the future? I am actually going to make a purchase loan instead of refi, but debating if I should go with a 30 fixed or 10/1 ARM with a 0.5% spread between those two. Any thoughts would be appreciated!!
At this time, many lenders are actually charging more for ARMs than fixed rates right now. But even if not, if the rate and costs are similar, why gamble?
candyzh
Posts: 3
Joined: Mon Oct 05, 2020 5:23 pm

Re: Refinance Mega Thread

Post by candyzh »

You are absolutely right! The tricky part is to determine if the difference between the 30 fixed and 10 ARM is big enough to take the interest rate risk. Currently the difference is 0.5% for me, a very hard call...
presto987
Posts: 325
Joined: Sun Aug 30, 2020 10:58 pm

Re: Refinance Mega Thread

Post by presto987 »

candyzh wrote: Mon Oct 05, 2020 9:12 pm You are absolutely right! The tricky part is to determine if the difference between the 30 fixed and 10 ARM is big enough to take the interest rate risk. Currently the difference is 0.5% for me, a very hard call...
What are the actual rates you're considering? And what is the approximate loan size?

0.5% is a pretty big difference. I would lean toward the lower rate. What is the likelihood that you keep this house for over 10 years?
RollinFreight
Posts: 1
Joined: Mon Oct 05, 2020 9:57 pm

Re: Refinance Mega Thread

Post by RollinFreight »

Owning sold my Mortgage at 2.5% to PHH Mortgage. Reviews say they are not very good in terms of customer service (fees, escrow errors, late Prop tax payments, etc.). I was looking at Interactive Mortgage at 2.35% no cost. It will cost me $600 after two refinances (recording fees, doc fees, etc). IM uses CMG Mortgage for servicing. are they better than PHH?
Not a lot of data on CMG. BBB has more complaints on PHH that bothers me (fees/business integrity issues) and PHH has litigations from customer side. should I refi just for this?
Last edited by RollinFreight on Tue Oct 06, 2020 7:56 pm, edited 1 time in total.
jb3
Posts: 197
Joined: Sun Jan 16, 2011 11:27 pm

Re: Refinance Mega Thread

Post by jb3 »

My quote from Loan Cabin, how does this look?

Loan 359k
Rate 2.625

A B C E = 3,446
Credit = 3,000

I also see closing costs financed (paid from Loan amount) = 793

I can also shop for title insurance. This assumes 1,600 which seems high.
candyzh
Posts: 3
Joined: Mon Oct 05, 2020 5:23 pm

Re: Refinance Mega Thread

Post by candyzh »

presto987 wrote: Mon Oct 05, 2020 9:55 pm
candyzh wrote: Mon Oct 05, 2020 9:12 pm You are absolutely right! The tricky part is to determine if the difference between the 30 fixed and 10 ARM is big enough to take the interest rate risk. Currently the difference is 0.5% for me, a very hard call...
What are the actual rates you're considering? And what is the approximate loan size?

0.5% is a pretty big difference. I would lean toward the lower rate. What is the likelihood that you keep this house for over 10 years?
The 30 fixed I got is 2.875, 10 ARM is 2.375. Loan size is about 800k.

First time buyer so I am not sure how long I am going to be in this home, depends on if I really like the neighborhood/ house itself after I moved in... heard people say that very few people stay in their first home for more than 10 years, but at the same time more than half of people choose long-term fixed rate mortgage (read the numbers in some random article) :oops:
presto987
Posts: 325
Joined: Sun Aug 30, 2020 10:58 pm

Re: Refinance Mega Thread

Post by presto987 »

candyzh wrote: Mon Oct 05, 2020 10:28 pm
presto987 wrote: Mon Oct 05, 2020 9:55 pm
candyzh wrote: Mon Oct 05, 2020 9:12 pm You are absolutely right! The tricky part is to determine if the difference between the 30 fixed and 10 ARM is big enough to take the interest rate risk. Currently the difference is 0.5% for me, a very hard call...
What are the actual rates you're considering? And what is the approximate loan size?

0.5% is a pretty big difference. I would lean toward the lower rate. What is the likelihood that you keep this house for over 10 years?
The 30 fixed I got is 2.875, 10 ARM is 2.375. Loan size is about 800k.

First time buyer so I am not sure how long I am going to be in this home, depends on if I really like the neighborhood/ house itself after I moved in... heard people say that very few people stay in their first home for more than 10 years, but at the same time more than half of people choose long-term fixed rate mortgage (read the numbers in some random article) :oops:
I was a first time home buyer several years ago and got a 7/1 ARM at 2.5% (could have gone with 2.375% but opted to increase my lender credit). This was after a relationship discount for moving assets to the bank. 30-year fixed mortgages were above 3% at that time.

Less than 4 years later, I refi'd into a 30-year fixed at 2.625% (could have gotten 2.5% and made money after all closing costs, but again opted to increase lender credit). We are now thinking of moving in a year or so.

If you live in an area where there is a superconforming loan limit of $766k, you might want to consider reducing your loan size (if possible) to that limit. That might let you get a better 30-year fixed rate, perhaps as good as 2.5% or 2.625% at no cost. If not, then I would go with the 10/1 ARM and look to refi later if you can get a fixed rate mortgage at a similar rate.
presto987
Posts: 325
Joined: Sun Aug 30, 2020 10:58 pm

Re: Refinance Mega Thread

Post by presto987 »

jb3 wrote: Mon Oct 05, 2020 10:22 pm My quote from Loan Cabin, how does this look?

Loan 359k
Rate 2.625

A B C E = 3,446
Credit = 3,000

I also see closing costs financed (paid from Loan amount) = 793

I can also shop for title insurance. This assumes 1,600 which seems high.
A+B+C+E seems really high even after accounting for the $1600 in title fees. LC usually doesn't charge anything in A or B. Is your E really high?

Aside from that, hard to evaluate your deal without knowing your LTV, state, and other details. Your best bet is to get another quote from LenderFi or one of the other competitive lenders mentioned in this thread.
jb3
Posts: 197
Joined: Sun Jan 16, 2011 11:27 pm

Re: Refinance Mega Thread

Post by jb3 »

E is $440. C is 3k.

65‰ LTV. Location NJ.

Maybe not a good deal...
Post Reply