Refinance Mega Thread

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CatHerder
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Re: Refinance Mega Thread

Post by CatHerder »

A big thank you to the folks on this thread for the lead on Interactive Mortgage. I just locked the no cost 15-year at 1.99% at about 59% LTV. We had bought 5 years ago with a 3.75% 30-year fixed, and I'm really looking forward to cutting 10 years off the mortgage and only paying $600 more each month. Never thought I'd be able to switch into a 15-year so quickly.
gaurav811
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Re: Refinance Mega Thread

Post by gaurav811 »

At these low rates I don't see the point of paying off the mortgage or getting a 15 year loan. I totally understand the joy of being "debt free" and owning a paid off home but mortgage is the only contract where someone will lend you hundreds of thousands of dollars at fixed rate for long durations. And in no other country except US you get these 30 year fixed rate products. There is a reason why......no sane financial institution will try to predict inflation/interest rate over that long term period. It would be a death sentence if things go wrong. It only works today because government guarantees these loans in US. Its basically a subsidy to homeowners and why would you not take advantage of it.

Financially the choice is simple. Can you earn(after taxes) 2.25%(my 30year mortgage rate)*0.7(30% tax rate) = 1.5% in your investment portfolio. Not today but over a span of 30 years on average. I think I can and hence I will keep refinancing (to either lower rate or extend the loan duration) and keep investing my savings in higher return avenues.
unstartable
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Re: Refinance Mega Thread

Post by unstartable »

gaurav811 wrote: Wed Oct 07, 2020 7:41 pm And in no other country except US you get these 30 year fixed rate products. There is a reason why......no sane financial institution will try to predict inflation/interest rate over that long term period. It would be a death sentence if things go wrong. It only works today because government guarantees these loans in US. Its basically a subsidy to homeowners and why would you not take advantage of it.
I don't think I agree with this. Google told me that 30 year fixed mortgage rates in Germany are 1.65% right now.
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

unstartable wrote: Wed Oct 07, 2020 8:20 pm
gaurav811 wrote: Wed Oct 07, 2020 7:41 pm And in no other country except US you get these 30 year fixed rate products. There is a reason why......no sane financial institution will try to predict inflation/interest rate over that long term period. It would be a death sentence if things go wrong. It only works today because government guarantees these loans in US. Its basically a subsidy to homeowners and why would you not take advantage of it.
I don't think I agree with this. Google told me that 30 year fixed mortgage rates in Germany are 1.65% right now.
Japan is down there too. There was a thread about it opened recently. $800K house on income of $160K with 50% down and a fixed 1.5.% 30 year mortgage
InvestDoc
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Re: Refinance Mega Thread

Post by InvestDoc »

RollinFreight wrote: Mon Oct 05, 2020 10:11 pm 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?
I refinanced with Owning and they sold my mortgage to PHH. I've made 2 payments to PHH without issue but am in the process of refinancing again. Some of the reviews on BBB scared me too, including reports of not crediting the payments on time. They supposedly charge $7.50 for paying by phone but online it's free. You can't set up automatic payment until the day your mortgage is officially transferred (which was on the day my mortgage was due, but I was still able to link my bank account and submit a payment same day).

The only sketchy thing they've done so far is to send me a letter saying I'm not insured enough and they wanted me to buy enough insurance to cover the full loan amount (even though Owning had no issue with my insurance coverage). However, my homeowner's insurance company said it is illegal for them to ask me to overinsure the home and that by law the insurance company can only provide insurance for the rebuild cost, which obviously is less than the home purchase price due to the value of the land. They sent a letter to PHH quoting the California Civil Code overinsurance law and I never heard anything further from PHH. Also, PHH said in their letter that they would not buy additional insurance on my behalf, but I believe some reviews on BBB said they did that.
InvestDoc
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Re: Refinance Mega Thread

Post by InvestDoc »

I'm currently refinancing with a lender who has been extremely slow and has poor communication because he's so overloaded with applications. I applied 8/6, went in to processing on 8/20, and just heard 10/7 that my loan was going to underwriting. I'm curious whether the processing or underwriting is the longest part of a refinance? My lender said that they're usually taking 60-70 days for refi's and I'm already at the 60 day mark, so I'm hoping I'll be closing in the next 10 days but am not hopeful given that it took more than a month for the processing. My last refi moved lightning fast compared to this one, so I have no idea what to expect from here on out and the loan officer always seems super busy and annoyed when I call for updates.

Should I expect things to move quicker now that I'm in underwriting or is that also a time-consuming process?
Goal33
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Post by Goal33 »

InvestDoc wrote: Thu Oct 08, 2020 12:30 am I'm currently refinancing with a lender who has been extremely slow and has poor communication because he's so overloaded with applications. I applied 8/6, went in to processing on 8/20, and just heard 10/7 that my loan was going to underwriting. I'm curious whether the processing or underwriting is the longest part of a refinance? My lender said that they're usually taking 60-70 days for refi's and I'm already at the 60 day mark, so I'm hoping I'll be closing in the next 10 days but am not hopeful given that it took more than a month for the processing. My last refi moved lightning fast compared to this one, so I have no idea what to expect from here on out and the loan officer always seems super busy and annoyed when I call for updates.

Should I expect things to move quicker now that I'm in underwriting or is that also a time-consuming process?
Sucks. What’s the details of the deal? If it’s still attainable then just bring it someplace else. If it’s no longer available then you have to deal with it. Underwriting may be fast but that depends if they need more information or not. I had a similar situation and couldn’t beat my rate anywhere so had to deal with it.
Calirefi2020
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Re: Refinance Mega Thread

Post by Calirefi2020 »

presto987 wrote: Wed Oct 07, 2020 11:31 am No. LenderFi is the only lender that people here have reported as asking you to sign a document to agree that you will not refi within 6 months and that they may claw back lender credits if you do.

On a related note, though, it seems that Better is getting more difficult about doing multiple refis with them during a 6 month period. In the past people were able to do back-to-back refis with them with no issue. Now they don't seem to be allowing it.
The 6 month document Lenderfi asks to sign does not allow another refi with Lenderfi only or just any lender?
Calirefi2020
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Re: Refinance Mega Thread

Post by Calirefi2020 »

I’m currently in process of refi with Lenderfi ( 30 year fixed) $617k loan( high conforming in SoCal) condo 81% LTV..2.875%..Loan may likely close by 10/17.. I am wondering if any one with similar terms had received under 2.5% rate recently.. I could pay off some principal and bring down LTV to under 78% for my next refi..Any thoughts on my situation?
traveler00
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Re: Refinance Mega Thread

Post by traveler00 »

Calirefi2020 wrote: Thu Oct 08, 2020 4:59 am I’m currently in process of refi with Lenderfi ( 30 year fixed) $617k loan( high conforming in SoCal) condo 81% LTV..2.875%..Loan may likely close by 10/17.. I am wondering if any one with similar terms had received under 2.5% rate recently.. I could pay off some principal and bring down LTV to under 78% for my next refi..Any thoughts on my situation?
I'm currently doing a high conforming loan with Lenderfi that is scheduled to close in the next week or two. 30 year fixed @ 2.625% no cost loan, 580K, 58% LTV, single family home, also in California. Lender credit to offset all fees and appraisal waived. Only things out of pocket are prepaid interest and property taxes. When I locked in, 2.5% was possible if I paid approx. $650 in points + closing costs. I opted to do a no cost loan @ 2.625% instead. I am very happy with this as Lenderfi has very good rates for high conforming loans. I had another lender quote me over 3%.
presto987
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Re: Refinance Mega Thread

Post by presto987 »

Calirefi2020 wrote: Thu Oct 08, 2020 4:54 am
presto987 wrote: Wed Oct 07, 2020 11:31 am No. LenderFi is the only lender that people here have reported as asking you to sign a document to agree that you will not refi within 6 months and that they may claw back lender credits if you do.

On a related note, though, it seems that Better is getting more difficult about doing multiple refis with them during a 6 month period. In the past people were able to do back-to-back refis with them with no issue. Now they don't seem to be allowing it.
The 6 month document Lenderfi asks to sign does not allow another refi with Lenderfi only or just any lender?
Any lender. That is why they ask you to sign the document, and that is what's different about them.

Many lenders would not let you refi with them within 6 months, but they don't need you to sign a document for that; they would just refuse to work with you before 6 months have passed.

Legally, I don't know whether LenderFi can actually enforce the document. But from an ethical standpoint, I think you should only go with LenderFi if you intend to stick to the 6 months. More broadly, I think people should only refi within 6 months if pricing moves significantly. Otherwise I feel like we are taking advantage of these lenders who are providing a service to us. Open to other viewpoints though.
presto987
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Re: Refinance Mega Thread

Post by presto987 »

traveler00 wrote: Thu Oct 08, 2020 9:51 am
Calirefi2020 wrote: Thu Oct 08, 2020 4:59 am I’m currently in process of refi with Lenderfi ( 30 year fixed) $617k loan( high conforming in SoCal) condo 81% LTV..2.875%..Loan may likely close by 10/17.. I am wondering if any one with similar terms had received under 2.5% rate recently.. I could pay off some principal and bring down LTV to under 78% for my next refi..Any thoughts on my situation?
I'm currently doing a high conforming loan with Lenderfi that is scheduled to close in the next week or two. 30 year fixed @ 2.625% no cost loan, 580K, 58% LTV, single family home, also in California. Lender credit to offset all fees and appraisal waived. Only things out of pocket are prepaid interest and property taxes. When I locked in, 2.5% was possible if I paid approx. $650 in points + closing costs. I opted to do a no cost loan @ 2.625% instead. I am very happy with this as Lenderfi has very good rates for high conforming loans. I had another lender quote me over 3%.
Traveler00 - have you looked into Interactive Mortgage? For a while they were advertising 2.375% at no cost if you met certain conditions (looks like you would qualify). Today it looks like they've bumped up the rate to 2.5% though. I'm guessing it's because they're now pricing in the 0.5% g-fee.
traveler00
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Re: Refinance Mega Thread

Post by traveler00 »

presto987 wrote: Thu Oct 08, 2020 9:55 am
Calirefi2020 wrote: Thu Oct 08, 2020 4:54 am
presto987 wrote: Wed Oct 07, 2020 11:31 am No. LenderFi is the only lender that people here have reported as asking you to sign a document to agree that you will not refi within 6 months and that they may claw back lender credits if you do.

On a related note, though, it seems that Better is getting more difficult about doing multiple refis with them during a 6 month period. In the past people were able to do back-to-back refis with them with no issue. Now they don't seem to be allowing it.
The 6 month document Lenderfi asks to sign does not allow another refi with Lenderfi only or just any lender?
Any lender. That is why they ask you to sign the document, and that is what's different about them.

Many lenders would not let you refi with them within 6 months, but they don't need you to sign a document for that; they would just refuse to work with you before 6 months have passed.

Legally, I don't know whether LenderFi can actually enforce the document. But from an ethical standpoint, I think you should only go with LenderFi if you intend to stick to the 6 months. More broadly, I think people should only refi within 6 months if pricing moves significantly. Otherwise I feel like we are taking advantage of these lenders who are providing a service to us. Open to other viewpoints though.
I completely agree with this previous response. I have gotten to know people at Lenderfi very well and they are working their tails off 7 days a week at all hours of the day. Therefore, only lock-in with them if you really intend on using them. It's fine to shop around because it's a free market but if you're going to shop, do it before you lock-in with a lender so they haven't started any work for you.
grp2c
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Re: Refinance Mega Thread

Post by grp2c »

traveler00 wrote: Thu Oct 08, 2020 10:10 am Therefore, only lock-in with them if you really intend on using them. It's fine to shop around because it's a free market but if you're going to shop, do it before you lock-in with a lender so they haven't started any work for you.
The problem is that most lenders will only pricematch a locked LE.
traveler00
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Re: Refinance Mega Thread

Post by traveler00 »

grp2c wrote: Thu Oct 08, 2020 10:22 am
traveler00 wrote: Thu Oct 08, 2020 10:10 am Therefore, only lock-in with them if you really intend on using them. It's fine to shop around because it's a free market but if you're going to shop, do it before you lock-in with a lender so they haven't started any work for you.
The problem is that most lenders will only pricematch a locked LE.
Oh ok. I didn't realize it had to be locked.
traveler00
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Re: Refinance Mega Thread

Post by traveler00 »

presto987 wrote: Thu Oct 08, 2020 9:57 am
traveler00 wrote: Thu Oct 08, 2020 9:51 am
Calirefi2020 wrote: Thu Oct 08, 2020 4:59 am I’m currently in process of refi with Lenderfi ( 30 year fixed) $617k loan( high conforming in SoCal) condo 81% LTV..2.875%..Loan may likely close by 10/17.. I am wondering if any one with similar terms had received under 2.5% rate recently.. I could pay off some principal and bring down LTV to under 78% for my next refi..Any thoughts on my situation?
I'm currently doing a high conforming loan with Lenderfi that is scheduled to close in the next week or two. 30 year fixed @ 2.625% no cost loan, 580K, 58% LTV, single family home, also in California. Lender credit to offset all fees and appraisal waived. Only things out of pocket are prepaid interest and property taxes. When I locked in, 2.5% was possible if I paid approx. $650 in points + closing costs. I opted to do a no cost loan @ 2.625% instead. I am very happy with this as Lenderfi has very good rates for high conforming loans. I had another lender quote me over 3%.
Traveler00 - have you looked into Interactive Mortgage? For a while they were advertising 2.375% at no cost if you met certain conditions (looks like you would qualify). Today it looks like they've bumped up the rate to 2.5% though. I'm guessing it's because they're now pricing in the 0.5% g-fee.
I didn't know about Interactive Mortgage until i saw it mentioned in this forum recently. If the rates fall substantially next year, I'll consider them.
presto987
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Re: Refinance Mega Thread

Post by presto987 »

traveler00 wrote: Thu Oct 08, 2020 10:29 am
grp2c wrote: Thu Oct 08, 2020 10:22 am
traveler00 wrote: Thu Oct 08, 2020 10:10 am Therefore, only lock-in with them if you really intend on using them. It's fine to shop around because it's a free market but if you're going to shop, do it before you lock-in with a lender so they haven't started any work for you.
The problem is that most lenders will only pricematch a locked LE.
Oh ok. I didn't realize it had to be locked.
This is sometimes true but not always. On my previous refi, I got an LE from LenderFi before locking, and Better was able to beat it. I did not lock at LenderFi and told them I was moving forward elsewhere.

Even if you do lock though, the principle here is to be cognizant of the work that these lenders are doing on your behalf, communicate with them, and withdraw your application if you're not planning to move forward. For example, I had recently applied with IM and was upfront that I was already locked with LC but was having trouble with LC's responsiveness. I said that if LC got their act together I would likely want to move forward with them. The LO at IM was comfortable locking me despite that. I started moving through the process with IM, but when it became clear that LC was going to work out, I withdrew my IM application.
dks05c
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Re: Refinance Mega Thread

Post by dks05c »

Jwalker678 wrote: Wed Oct 07, 2020 4:56 pm I just locked 1.99 on a 15 yr with loan depot and 6,300 closing cost including 2,400 transfer taxes (Florida). 410,000 no cash out and < 40% Ltv. Now I’m reading that some or getting the same rate at no costs. Should I expect to do better?
I'm also in Florida and am currently locked with Better.com at 2.25% 15 yr with $4200 in credits, which negates my closing costs. $345K loan no cash out 62% LTV.

Between the two I'd probably take my deal, but it's not very far off. Unfortunately for us, title and transfer taxes are more expensive in Florida compared to a lot of states other states, so when people say zero closing costs on here its not always comparing apples to apples. Also Interactive Mortgage isn't licensed in Florida so we wouldn't qualify for that deal.
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BrandonBogle
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Post by BrandonBogle »

dks05c wrote: Thu Oct 08, 2020 12:28 pm
Jwalker678 wrote: Wed Oct 07, 2020 4:56 pm I just locked 1.99 on a 15 yr with loan depot and 6,300 closing cost including 2,400 transfer taxes (Florida). 410,000 no cash out and < 40% Ltv. Now I’m reading that some or getting the same rate at no costs. Should I expect to do better?
I'm also in Florida and am currently locked with Better.com at 2.25% 15 yr with $4200 in credits, which negates my closing costs. $345K loan no cash out 62% LTV.

Between the two I'd probably take my deal, but it's not very far off. Unfortunately for us, title and transfer taxes are more expensive in Florida compared to a lot of states other states, so when people say zero closing costs on here its not always comparing apples to apples. Also Interactive Mortgage isn't licensed in Florida so we wouldn't qualify for that deal.
If jwalker’s $6,300 closing costs doesn’t include prepaids and escrow, (i.e, D + E costs minus credits), then I’d say yours is MUCH better. A quarter percent higher, but $6,300 cheaper up front.
Hoosier CPA
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Re: Refinance Mega Thread

Post by Hoosier CPA »

gaurav811 wrote: Wed Oct 07, 2020 7:41 pm At these low rates I don't see the point of paying off the mortgage or getting a 15 year loan. I totally understand the joy of being "debt free" and owning a paid off home but mortgage is the only contract where someone will lend you hundreds of thousands of dollars at fixed rate for long durations. And in no other country except US you get these 30 year fixed rate products. There is a reason why......no sane financial institution will try to predict inflation/interest rate over that long term period. It would be a death sentence if things go wrong. It only works today because government guarantees these loans in US. Its basically a subsidy to homeowners and why would you not take advantage of it.

Financially the choice is simple. Can you earn(after taxes) 2.25%(my 30year mortgage rate)*0.7(30% tax rate) = 1.5% in your investment portfolio. Not today but over a span of 30 years on average. I think I can and hence I will keep refinancing (to either lower rate or extend the loan duration) and keep investing my savings in higher return avenues.
Not arguing with your point, but don't you have to factor in taxes on both sides? Or are you figuring the difference will go into a 401k or something tax advantaged?
dks05c
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Post by dks05c »

Hoosier CPA wrote: Thu Oct 08, 2020 12:54 pm
gaurav811 wrote: Wed Oct 07, 2020 7:41 pm At these low rates I don't see the point of paying off the mortgage or getting a 15 year loan. I totally understand the joy of being "debt free" and owning a paid off home but mortgage is the only contract where someone will lend you hundreds of thousands of dollars at fixed rate for long durations. And in no other country except US you get these 30 year fixed rate products. There is a reason why......no sane financial institution will try to predict inflation/interest rate over that long term period. It would be a death sentence if things go wrong. It only works today because government guarantees these loans in US. Its basically a subsidy to homeowners and why would you not take advantage of it.

Financially the choice is simple. Can you earn(after taxes) 2.25%(my 30year mortgage rate)*0.7(30% tax rate) = 1.5% in your investment portfolio. Not today but over a span of 30 years on average. I think I can and hence I will keep refinancing (to either lower rate or extend the loan duration) and keep investing my savings in higher return avenues.
Not arguing with your point, but don't you have to factor in taxes on both sides? Or are you figuring the difference will go into a 401k or something tax advantaged?
I think his calc is going to wrong way. The interest you are saving on your mortgage is tax free. So you really need to earn a higher rate pre-tax in order to match.
dks05c
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Re: Refinance Mega Thread

Post by dks05c »

BrandonBogle wrote: Thu Oct 08, 2020 12:42 pm
dks05c wrote: Thu Oct 08, 2020 12:28 pm
Jwalker678 wrote: Wed Oct 07, 2020 4:56 pm I just locked 1.99 on a 15 yr with loan depot and 6,300 closing cost including 2,400 transfer taxes (Florida). 410,000 no cash out and < 40% Ltv. Now I’m reading that some or getting the same rate at no costs. Should I expect to do better?
I'm also in Florida and am currently locked with Better.com at 2.25% 15 yr with $4200 in credits, which negates my closing costs. $345K loan no cash out 62% LTV.

Between the two I'd probably take my deal, but it's not very far off. Unfortunately for us, title and transfer taxes are more expensive in Florida compared to a lot of states other states, so when people say zero closing costs on here its not always comparing apples to apples. Also Interactive Mortgage isn't licensed in Florida so we wouldn't qualify for that deal.
If jwalker’s $6,300 closing costs doesn’t include prepaids and escrow, (i.e, D + E costs minus credits), then I’d say yours is MUCH better. A quarter percent higher, but $6,300 cheaper up front.
Assuming no prepaids/escrow, I'd probably say my deal is 2K better. I still use the 1 point = .25% rate, so that quarter point would be worth 4k on a 400k loan. His title/taxes are probably a couple hundred bucks more due to the 50K loan difference. $6300 points minus $4K points minus maybe $300 other costs = $2000. If he has any prepaids/escrow, that would change things for sure.
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BrandonBogle
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Post by BrandonBogle »

dks05c wrote: Thu Oct 08, 2020 1:16 pm
BrandonBogle wrote: Thu Oct 08, 2020 12:42 pm
dks05c wrote: Thu Oct 08, 2020 12:28 pm
Jwalker678 wrote: Wed Oct 07, 2020 4:56 pm I just locked 1.99 on a 15 yr with loan depot and 6,300 closing cost including 2,400 transfer taxes (Florida). 410,000 no cash out and < 40% Ltv. Now I’m reading that some or getting the same rate at no costs. Should I expect to do better?
I'm also in Florida and am currently locked with Better.com at 2.25% 15 yr with $4200 in credits, which negates my closing costs. $345K loan no cash out 62% LTV.

Between the two I'd probably take my deal, but it's not very far off. Unfortunately for us, title and transfer taxes are more expensive in Florida compared to a lot of states other states, so when people say zero closing costs on here its not always comparing apples to apples. Also Interactive Mortgage isn't licensed in Florida so we wouldn't qualify for that deal.
If jwalker’s $6,300 closing costs doesn’t include prepaids and escrow, (i.e, D + E costs minus credits), then I’d say yours is MUCH better. A quarter percent higher, but $6,300 cheaper up front.
Assuming no prepaids/escrow, I'd probably say my deal is 2K better. I still use the 1 point = .25% rate, so that quarter point would be worth 4k on a 400k loan. His title/taxes are probably a couple hundred bucks more due to the 50K loan difference. $6300 points minus $4K points minus maybe $300 other costs = $2000. If he has any prepaids/escrow, that would change things for sure.
Ahh, I misread that you had $6,300 in credits when I thought you had $6,300 profit because of credits after closing costs. $2k definitely makes it hard as that gap is much less.
Jwalker678
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Post by Jwalker678 »

Difficult to compare given that my loan is $65k greater. The $6,300 is E+D, no prepaid and I don't escrow. Here is how I would make the comparison. I add my cost to the $410,000 mortgage, now $416,300 (so no out of pocket cash and what I am actually doing) and get a payment of $2,679. Now, if I keep that payment and solve for what interest rate to amortize a $410,000 no cost loan, I get 2.21%.
If you could get 2% and pay $4,200 your payment on $349,200 would be $2,247.The $345,000 no cost loan at 2.25% takes your payment to $2,260.
I am trying to figure, as I read through these posts, how some are getting no cost, 2% loans?
snizzlephritz
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Post by snizzlephritz »

I'm looking into refinancing my personal home loan. I live in Kansas. The remaining balance on the loan is about 140k. Looking at Interactive Mortgage's site, the rates they advertise are for a minimum loan amount of 350k. Should I be concerned that Interactive Mortgage or other lenders either won't approve a loan for 140k or will charge a higher interest rate if my loan balance is this low?
presto987
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Post by presto987 »

Interactive Mortgage isn't licensed in Kansas.

Most lenders would probably approve you assuming you meet their other criteria, but you're not going to get rates as low as what other people are talking about in this thread.
dlrkw9mu
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Post by dlrkw9mu »

grp2c wrote: Thu Oct 08, 2020 10:22 am
traveler00 wrote: Thu Oct 08, 2020 10:10 am Therefore, only lock-in with them if you really intend on using them. It's fine to shop around because it's a free market but if you're going to shop, do it before you lock-in with a lender so they haven't started any work for you.
The problem is that most lenders will only pricematch a locked LE.
I don't think this is true. Most lenders will only price-match if you present a competitors LE (usually one dated within the past 1-3 days). I purchased my house in 2018 and have refinanced 3 times since then. I've shopped around each time and have never come across a lender requiring the competitors LE to be locked.
Tenesmus83
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Post by Tenesmus83 »

Has anyone refinanced with aimloan recently? Are they pretty fast? All the traditional lenders are backed up and taking forever to get anything done
a010z
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Post by a010z »

gaurav811 wrote: Wed Oct 07, 2020 7:41 pm At these low rates I don't see the point of paying off the mortgage or getting a 15 year loan.
...
Financially the choice is simple. Can you earn(after taxes) 2.25%(my 30year mortgage rate)*0.7(30% tax rate) = 1.5% in your investment portfolio. Not today but over a span of 30 years on average.
Completely agree with what you said!
I try to tell the same to other people around me, but they are just too focused on trying to payoff the mortgage as soon as possible...

BTW, shouldn't your investment return rate be at least 2.25% * 1.3 (30% tax) = 2.925% for it to be better to invest than payoff the loan?
Essenza
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Re: Refinance Mega Thread

Post by Essenza »

Are any of the lenders with good rates (2.25% for 10/15 year, no closing costs, $629K balance, 37% LTV) know to be better at dealing with self-employed C-Corp income?
mrpista
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Location: CA

Re: Refinance Mega Thread

Post by mrpista »

Can anyone provide some ballpark numbers for the below refinance loan?

Loan amt: $1,900,000
LTV: 67%
Credit score: 800+
Current rate: 3.875 30yr fixed
Location: CA

I am getting quotes of 3.5% for 30yr fixed with no points, no closing costs which I think is not great. Anyone has done better in the recent past or contacts for a good bank/loan agent?

Thanks!
mookie
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Re: Refinance Mega Thread

Post by mookie »

I just locked with Better: $400K, 15 year fixed at 2.25%, 2.278% APR, LTV 70%, Lender credit $4300.

I'm trying to shop my title insurance. Better's section C quote is $3000. Radian isn't doing title insurance where I live (PA). Does anybody have a recommendation for a title company that they had a good experience with?
jbuzolich
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Re: Refinance Mega Thread

Post by jbuzolich »

Tenesmus83 wrote: Thu Oct 08, 2020 5:50 pm Has anyone refinanced with aimloan recently? Are they pretty fast? All the traditional lenders are backed up and taking forever to get anything done
Been about four years but both our current loans are with aim and we have refinanced with them a couple times. I remember it being relatively quick. Maybe a month each time start to finish. We're hopefully signing next week on our first refi with Better. Aim was not offering any low fee loans when I checked.
mceagle555
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Re: Refinance Mega Thread

Post by mceagle555 »

mookie wrote: Thu Oct 08, 2020 9:18 pm I just locked with Better: $400K, 15 year fixed at 2.25%, 2.278% APR, LTV 70%, Lender credit $4300.

I'm trying to shop my title insurance. Better's section C quote is $3000. Radian isn't doing title insurance where I live (PA). Does anybody have a recommendation for a title company that they had a good experience with?
That's a good rate. Where did you get Better to match to with such a high lender credit?
barberakb
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Re: Refinance Mega Thread

Post by barberakb »

grp2c wrote: Thu Oct 08, 2020 10:22 am
traveler00 wrote: Thu Oct 08, 2020 10:10 am Therefore, only lock-in with them if you really intend on using them. It's fine to shop around because it's a free market but if you're going to shop, do it before you lock-in with a lender so they haven't started any work for you.
The problem is that most lenders will only pricematch a locked LE.
This is not true. I have bought 7 houses and used multiple lenders, I always shop around atleast 3 lenders per house and all of them competed against each other without a locked loan estimate. They needed a LE but it never had to be locked
traveler00
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Re: Refinance Mega Thread

Post by traveler00 »

Essenza wrote: Thu Oct 08, 2020 9:11 pm Are any of the lenders with good rates (2.25% for 10/15 year, no closing costs, $629K balance, 37% LTV) know to be better at dealing with self-employed C-Corp income?
I'd recommend Lenderfi for that situation.
dks05c
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Re: Refinance Mega Thread

Post by dks05c »

Any suggestions on how to courteously break a lock? I'm not too far into the refi process but this is my first time backing out of one so feel a little sleezy doing so.
AB609
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Re: Refinance Mega Thread

Post by AB609 »

mookie wrote: Thu Oct 08, 2020 9:18 pm I just locked with Better: $400K, 15 year fixed at 2.25%, 2.278% APR, LTV 70%, Lender credit $4300.

I'm trying to shop my title insurance. Better's section C quote is $3000. Radian isn't doing title insurance where I live (PA). Does anybody have a recommendation for a title company that they had a good experience with?
Call around to a couple local title companies. I got quotes from a couple local places and better ended up matching the quote when I told them I would use my own title company. It saved me a couple hundred in fees.
Jags4186
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Re: Refinance Mega Thread

Post by Jags4186 »

dks05c wrote: Fri Oct 09, 2020 8:50 am Any suggestions on how to courteously break a lock? I'm not too far into the refi process but this is my first time backing out of one so feel a little sleezy doing so.
“Hi, I’ve received a better offer from elsewhere. Can you beat this? If not, I am going to move forward with XYZ.”

It’s business, nothing personal.
dks05c
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Re: Refinance Mega Thread

Post by dks05c »

mookie wrote: Thu Oct 08, 2020 9:18 pm I just locked with Better: $400K, 15 year fixed at 2.25%, 2.278% APR, LTV 70%, Lender credit $4300.

I'm trying to shop my title insurance. Better's section C quote is $3000. Radian isn't doing title insurance where I live (PA). Does anybody have a recommendation for a title company that they had a good experience with?
FYI I'm going through a refi with Better. Almost exact same terms as you. Better title started doing the title search, then I switched to Radian as it was a couple hundred dollars less. Better Title then emailed asking why I switched, I told them due to price, and they actually came back and beat Radian's price by a couple hundred bucks, so I switched back.

As for title companies, First American Title is national and usually pretty fair.
Mid20
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Re: Refinance Mega Thread

Post by Mid20 »

Jags4186 wrote: Fri Oct 09, 2020 9:43 am
dks05c wrote: Fri Oct 09, 2020 8:50 am Any suggestions on how to courteously break a lock? I'm not too far into the refi process but this is my first time backing out of one so feel a little sleezy doing so.
“Hi, I’ve received a better offer from elsewhere. Can you beat this? If not, I am going to move forward with XYZ.”

It’s business, nothing personal.
Agree with this advice! We recently did the same - provided our original lender the opportunity to match the offer but they couldn’t so I requested to withdraw our application. I was initially hesitant, but it was a business decision.
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

mookie wrote: Thu Oct 08, 2020 9:18 pm I just locked with Better: $400K, 15 year fixed at 2.25%, 2.278% APR, LTV 70%, Lender credit $4300.

I'm trying to shop my title insurance. Better's section C quote is $3000. Radian isn't doing title insurance where I live (PA). Does anybody have a recommendation for a title company that they had a good experience with?
Odd. I have a friend located in PA who refi’d with Better twice in the past three months and used Radian both times. How was “Radian isn’t doing title insurance where I live (PA)” determined? Perhaps this is a recent development and we can get you in touch with a rep at Radian that can help.
ossipago
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Re: Refinance Mega Thread

Post by ossipago »

I locked in with two lenders because I considered the downsides minor based on the experiences of others in this thread. I regret it as one of the lenders is really aggressive when they reach a milestone, calling multiple times a day and filling up my voice mail box. I hate phone calls and want to withdraw with that lender just because of that. I know it's petty ...
morgen
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Re: Refinance Mega Thread

Post by morgen »

Are any of the banks still doing cash out refinances for jumbo loans? I have a friend who is 925,000 house value who wants to refi at 600,000 (125k to existing mtg, rolling in fees, balance to his pocket) but his main bank is no longer doing refi at all. The couple places they said they spoke to won't do cash out into the 'jumbo zone'. Anyone been successful at getting one lately? Any help would be much appreciated. :oops:
Tenesmus83
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Re: Refinance Mega Thread

Post by Tenesmus83 »

What LTV ratio do lenders like to see to get the best rates? 60%?
curiouspanda
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Re: Refinance Mega Thread

Post by curiouspanda »

HI all,

First time going through a refi. Working with a broker my friend had used recently and was given a verbal quote of 3%, 30 year fixed, no closing costs. Current mortgage is 3.5% 7/1 ARM. Second loan via employer that we will keep in place. Got the disclosures today and the LE says 3.125% with A+B+C costs of $5k. Not locked. Do we sign this or ask them to amend the LE per verbal quote? Thank you!
dlrkw9mu
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Re: Refinance Mega Thread

Post by dlrkw9mu »

curiouspanda wrote: Fri Oct 09, 2020 3:51 pm HI all,

First time going through a refi. Working with a broker my friend had used recently and was given a verbal quote of 3%, 30 year fixed, no closing costs. Current mortgage is 3.5% 7/1 ARM. Second loan via employer that we will keep in place. Got the disclosures today and the LE says 3.125% with A+B+C costs of $5k. Not locked. Do we sign this or ask them to amend the LE per verbal quote? Thank you!
The latter - Get the LE updated.
pumpkinwaggle
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Re: Refinance Mega Thread

Post by pumpkinwaggle »

zrzhu111 wrote: Tue Oct 06, 2020 9:06 pm Did you email clientrelations@radian.com for quotes from Radian? I emailed them asking if they work with Network Capital and never heard anything back.
Yes that is the address I used. I had to ping them a second time to get a quote.
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anon_investor
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Re: Refinance Mega Thread

Post by anon_investor »

curiouspanda wrote: Fri Oct 09, 2020 3:51 pm HI all,

First time going through a refi. Working with a broker my friend had used recently and was given a verbal quote of 3%, 30 year fixed, no closing costs. Current mortgage is 3.5% 7/1 ARM. Second loan via employer that we will keep in place. Got the disclosures today and the LE says 3.125% with A+B+C costs of $5k. Not locked. Do we sign this or ask them to amend the LE per verbal quote? Thank you!
Without knowing your specifics, even 3% sounds bad, others are posting lower rates for no cost refi.
curiouspanda
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Re: Refinance Mega Thread

Post by curiouspanda »

anon_investor wrote: Fri Oct 09, 2020 7:57 pm
curiouspanda wrote: Fri Oct 09, 2020 3:51 pm HI all,

First time going through a refi. Working with a broker my friend had used recently and was given a verbal quote of 3%, 30 year fixed, no closing costs. Current mortgage is 3.5% 7/1 ARM. Second loan via employer that we will keep in place. Got the disclosures today and the LE says 3.125% with A+B+C costs of $5k. Not locked. Do we sign this or ask them to amend the LE per verbal quote? Thank you!
Without knowing your specifics, even 3% sounds bad, others are posting lower rates for no cost refi.
Excellent credit. California. I was told the rate is slightly higher because we have a second. Otherwise, it would have been 2.875, no closing. 1st loan balance $690k, 74% LTV (not counting 2nd loan in this LTV). 2nd loan $100k deferred and will be kept. I asked banker to update the LE but he said he would have to get an exception to get to what he verbally quoted and that we should sign the initial disclosures since we won't be locked to it. He said the system defaults to it. He said it will change when he gets the exception. Does that sound right? TIA.
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