30 year mortgage under 3%

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simplesimon
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Re: 30 year mortgage under 3%

Post by simplesimon »

unclescrooge wrote: Wed Feb 26, 2020 6:38 pm
simplesimon wrote: Tue Feb 25, 2020 5:13 pm I locked in a 10/1 ARM at 3% a couple weeks ago for a no-cost refinance and wonder after I close on this if I should be looking again.
Who's the lender?
US Bank
Starfish
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Re: 30 year mortgage under 3%

Post by Starfish »

AerialWombat wrote: Wed Feb 26, 2020 1:13 am
ArmchairArchitect wrote: Tue Feb 25, 2020 10:50 pm I've always used Zillow's mortgage/refinance marketplace to get tons of customized rate quotes all at once, then sort by APR:
https://www.zillow.com/refinance/#/

Just make sure to pick a company with stellar reviews.
The rates I see here on the Zillow tool are significantly higher than LenderFI, AimLoan, and even the USAA page for the same loan product as shown on Zillow.
I see very similar results. AimLoan is worse, LenderFi is simlar, Amerisave is also similar.
Deklon
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Re: 30 year mortgage under 3%

Post by Deklon »

Just locked 15 year fixed at 2.75% fixed, no points/origination fee.
UnLearnYourself
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Re: 30 year mortgage under 3%

Post by UnLearnYourself »

mortfree wrote: Wed Feb 26, 2020 2:50 am I always like to give info from PSECU as a data point for others.

As of Feb 25, 2020
10-year: 2.625
15-year: 2.75
20-year: 3.125
30-year: 3.25

I am currently 2 years in on a 30-year at 3.875. 200k paid down to 180k with a few extra payments.

Refi would cost 3650 or so.
Wow. I have a refi app with all my docs signed and ready to submit tomorrow for a 15yr @ 3% with a local bank in MA.

Just submitted my PSECU membership app! Will definitely be shooting for that 2.75% rate if I can. Thanks for posting this! Very timely.
mortfree
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Re: 30 year mortgage under 3%

Post by mortfree »

UnLearnYourself wrote: Wed Feb 26, 2020 8:42 pm
mortfree wrote: Wed Feb 26, 2020 2:50 am I always like to give info from PSECU as a data point for others.

As of Feb 25, 2020
10-year: 2.625
15-year: 2.75
20-year: 3.125
30-year: 3.25

I am currently 2 years in on a 30-year at 3.875. 200k paid down to 180k with a few extra payments.

Refi would cost 3650 or so.
Wow. I have a refi app with all my docs signed and ready to submit tomorrow for a 15yr @ 3% with a local bank in MA.

Just submitted my PSECU membership app! Will definitely be shooting for that 2.75% rate if I can. Thanks for posting this! Very timely.
I believe the property needs to be in PA
UnLearnYourself
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Re: 30 year mortgage under 3%

Post by UnLearnYourself »

mortfree wrote: Wed Feb 26, 2020 8:53 pm
UnLearnYourself wrote: Wed Feb 26, 2020 8:42 pm
mortfree wrote: Wed Feb 26, 2020 2:50 am I always like to give info from PSECU as a data point for others.

As of Feb 25, 2020
10-year: 2.625
15-year: 2.75
20-year: 3.125
30-year: 3.25

I am currently 2 years in on a 30-year at 3.875. 200k paid down to 180k with a few extra payments.

Refi would cost 3650 or so.
Wow. I have a refi app with all my docs signed and ready to submit tomorrow for a 15yr @ 3% with a local bank in MA.

Just submitted my PSECU membership app! Will definitely be shooting for that 2.75% rate if I can. Thanks for posting this! Very timely.
I believe the property needs to be in PA
Seemed too good to be true! Just read the FAQ on their site and found this to be true. Lucky for those in PA. Haven't seen any rates in MA or National Banks that touch that. Anybody know one one by chance?
Last edited by UnLearnYourself on Wed Feb 26, 2020 9:02 pm, edited 1 time in total.
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1789
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Re: 30 year mortgage under 3%

Post by 1789 »

Folks, we are refi from 30 year fixed 4.375 to 15 year 3%. Not doing 30 year again.
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)
UnLearnYourself
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Re: 30 year mortgage under 3%

Post by UnLearnYourself »

Deklon wrote: Wed Feb 26, 2020 8:31 pm Just locked 15 year fixed at 2.75% fixed, no points/origination fee.
What bank?
Spedward
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Re: 30 year mortgage under 3%

Post by Spedward »

I got a 5/1 at 2.65 over the summer.
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peseta
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Re: 30 year mortgage under 3%

Post by peseta »

Just locked 30-year fixed refinance at 3.25% fixed, no points/origination fee. First Mortgage Direct. Could also do 15-year at 2.75%. 30-year for only a .5% premium seemed worth it to me for the optionality.
d0gerz
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Re: 30 year mortgage under 3%

Post by d0gerz »

I have a question. When people refinance for 'zero costs/no origination fee' does it really mean you paid nothing to refinance? What about things like recording fee, appraisal, lender's title insurance, etc. all these extra things I had to pay for when getting my first mortgage? Are people able to have these waived as well in a refinance? Or is the 'no fee' only referring to loan origination charges?
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peseta
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Re: 30 year mortgage under 3%

Post by peseta »

d0gerz wrote: Wed Feb 26, 2020 9:41 pm I have a question. When people refinance for 'zero costs/no origination fee' does it really mean you paid nothing to refinance? What about things like recording fee, appraisal, lender's title insurance, etc. all these extra things I had to pay for when getting my first mortgage? Are people able to have these waived as well in a refinance? Or is the 'no fee' only referring to loan origination charges?
Just actual loan origination costs. In my state, I still have to pay recording fee, title insurance, and a few other small sundry fees. I don't need an appraisal because they are comfortable I have good LTV. (Also, there's prepaid interest and escrow, but that shouldn't be counted, because you will get an equivalent amount of that back from the institution holding your current mortgage.)

As someone up-thread noted, you can get a "negative-points" mortgage that will "pay" the closing costs, in exchange for a higher rate. I'm okay with paying them myself; my break-even is anywhere from 8 to 15 months, depending on how conservative you calculate it (see: https://www.dinkytown.net/java/mortgage ... lator.html), which makes it a no-brainer.

FWIW, I've been watching rates for a few years and waiting for an opportunity like this. Might not come around again anytime soon.
mervinj7
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Re: 30 year mortgage under 3%

Post by mervinj7 »

d0gerz wrote: Wed Feb 26, 2020 9:41 pm I have a question. When people refinance for 'zero costs/no origination fee' does it really mean you paid nothing to refinance? What about things like recording fee, appraisal, lender's title insurance, etc. all these extra things I had to pay for when getting my first mortgage? Are people able to have these waived as well in a refinance? Or is the 'no fee' only referring to loan origination charges?
Those are not waived. You still pay them but you can get negative points to cover them. For example, I mentioned above that I'm in the middle of a zero cost refinance from 3.75% to 3.25%. It's -0.44% in points to cover all the expenses you mentioned above.
psychoslowmatic
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Re: 30 year mortgage under 3%

Post by psychoslowmatic »

UnLearnYourself wrote: Wed Feb 26, 2020 8:58 pm
mortfree wrote: Wed Feb 26, 2020 8:53 pm
UnLearnYourself wrote: Wed Feb 26, 2020 8:42 pm
mortfree wrote: Wed Feb 26, 2020 2:50 am I always like to give info from PSECU as a data point for others.

As of Feb 25, 2020
10-year: 2.625
15-year: 2.75
20-year: 3.125
30-year: 3.25

I am currently 2 years in on a 30-year at 3.875. 200k paid down to 180k with a few extra payments.

Refi would cost 3650 or so.
Wow. I have a refi app with all my docs signed and ready to submit tomorrow for a 15yr @ 3% with a local bank in MA.

Just submitted my PSECU membership app! Will definitely be shooting for that 2.75% rate if I can. Thanks for posting this! Very timely.
I believe the property needs to be in PA
Seemed too good to be true! Just read the FAQ on their site and found this to be true. Lucky for those in PA. Haven't seen any rates in MA or National Banks that touch that. Anybody know one one by chance?
https://www.aligncu.com/personal/loans- ... oans/rates
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unclescrooge
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Re: 30 year mortgage under 3%

Post by unclescrooge »

Spedward wrote: Wed Feb 26, 2020 9:11 pm I got a 5/1 at 2.65 over the summer.
From whom? Please share deets.
chet96
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Re: 30 year mortgage under 3%

Post by chet96 »

silverlitegs wrote: Wed Feb 26, 2020 6:09 am
mortfree wrote: Wed Feb 26, 2020 2:50 am I always like to give info from PSECU as a data point for others.

As of Feb 25, 2020
10-year: 2.625
15-year: 2.75
20-year: 3.125
30-year: 3.25

I am currently 2 years in on a 30-year at 3.875. 200k paid down to 180k with a few extra payments.

Refi would cost 3650 or so.
How is PSECU to deal with? They are one of the lenders I’m looking into.
PSECU actual rates after everything are almost .25 higher than posted above
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simplesimon
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Re: 30 year mortgage under 3%

Post by simplesimon »

d0gerz wrote: Wed Feb 26, 2020 9:41 pm I have a question. When people refinance for 'zero costs/no origination fee' does it really mean you paid nothing to refinance? What about things like recording fee, appraisal, lender's title insurance, etc. all these extra things I had to pay for when getting my first mortgage? Are people able to have these waived as well in a refinance? Or is the 'no fee' only referring to loan origination charges?
Lender pays for all that in exchange for a slightly higher rate.
mortfree
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Re: 30 year mortgage under 3%

Post by mortfree »

chet96 wrote: Thu Feb 27, 2020 1:15 am
silverlitegs wrote: Wed Feb 26, 2020 6:09 am
mortfree wrote: Wed Feb 26, 2020 2:50 am I always like to give info from PSECU as a data point for others.

As of Feb 25, 2020
10-year: 2.625
15-year: 2.75
20-year: 3.125
30-year: 3.25

I am currently 2 years in on a 30-year at 3.875. 200k paid down to 180k with a few extra payments.

Refi would cost 3650 or so.
How is PSECU to deal with? They are one of the lenders I’m looking into.
PSECU actual rates after everything are almost .25 higher than posted above
I’ve been very happy with PSECU.

Did the mortgage in 2006, then refi in 2008 and 2013 with a payoff in 2016.

Then a new mortgage late 2017.

There is some effort involved with the refi and you may need to fax or mail documents instead of an upload (based on someone else’s recent experience).
RobLyons
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Re: 30 year mortgage under 3%

Post by RobLyons »

amindu wrote: Tue Feb 25, 2020 9:02 pm
stoptothink wrote: Tue Feb 25, 2020 5:18 pm
willthrill81 wrote: Tue Feb 25, 2020 4:52 pm I don't know how likely a 30 year mortgage under 3% is, but we got a 2.5% 15 year mortgage back in 2013. We kept it only a year before we sold the property though.
The broker who sold us our mortgage called last week. We have a 15yr at 3.125% and he said he could probably get us 2.65% right now. Would be great if we weren't a few months from having it paid off.
Hi do you mind sharing the info of your broker, i would be interested if i can get a 15 yr at 2.65%, thanks.

Sorry to jump in but I was quoted a 2.677 15 year from AAA of all places. My brokers info below. If it works out let me know. Still trying to talk myself into pulling the trigger (currently 3.50% 22 years remaining


Louis Alfaia
Mortgage Consultant

AAA NORTHEAST BANK
110 Royal Little Drive | Providence, RI 02904
T: 800-446-6997, ext. 3054 | M: 617-756-6611| F: 401-868-6565
lalfaia@aaanortheast.com
"Great parenting sets the foundation for a better world"
Count of Notre Dame
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Re: 30 year mortgage under 3%

Post by Count of Notre Dame »

60B4E24B wrote: Wed Feb 26, 2020 8:23 am I was recently quoted 30 year @ 3.25% and 7/1 ARM @ 2.375%. Those are for jumbos in NYC, before relationship discounts.
What is the bank? Looking for a similar loan in California.
UnLearnYourself
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Re: 30 year mortgage under 3%

Post by UnLearnYourself »

RobLyons wrote: Thu Feb 27, 2020 5:48 am
amindu wrote: Tue Feb 25, 2020 9:02 pm
stoptothink wrote: Tue Feb 25, 2020 5:18 pm
willthrill81 wrote: Tue Feb 25, 2020 4:52 pm I don't know how likely a 30 year mortgage under 3% is, but we got a 2.5% 15 year mortgage back in 2013. We kept it only a year before we sold the property though.
The broker who sold us our mortgage called last week. We have a 15yr at 3.125% and he said he could probably get us 2.65% right now. Would be great if we weren't a few months from having it paid off.
Hi do you mind sharing the info of your broker, i would be interested if i can get a 15 yr at 2.65%, thanks.

Sorry to jump in but I was quoted a 2.677 15 year from AAA of all places. My brokers info below. If it works out let me know. Still trying to talk myself into pulling the trigger (currently 3.50% 22 years remaining


Louis Alfaia
Mortgage Consultant

AAA NORTHEAST BANK
110 Royal Little Drive | Providence, RI 02904
T: 800-446-6997, ext. 3054 | M: 617-756-6611| F: 401-868-6565
lalfaia@aaanortheast.com
Contacted Louis and got a 2.875% on a 15yr quote paying $322 in pts. 3.325% on a 30yr paying no pts.
60B4E24B
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Re: 30 year mortgage under 3%

Post by 60B4E24B »

Count of Notre Dame wrote: Thu Feb 27, 2020 12:30 pm
60B4E24B wrote: Wed Feb 26, 2020 8:23 am I was recently quoted 30 year @ 3.25% and 7/1 ARM @ 2.375%. Those are for jumbos in NYC, before relationship discounts.
What is the bank? Looking for a similar loan in California.
Citizens. They were generally 1/8th higher than Citi/BoA, but I haven't received recent quotes from the latter two.
Tribonian
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Re: 30 year mortgage under 3%

Post by Tribonian »

mister_sparkle wrote: Wed Feb 26, 2020 6:56 pm I have made literally one payment on my 3.625% 30-year mortgage.

Am I insane for even considering a re-fi?
5 payments in on a conforming 30 yr fixed @ 3.375 and am looking at Hugh Choi’s calculator (https://www.hughcalc.org/loancomp.cgi) and waiting to see if rates drop below 3 w/o points.

On the bright side, still have most of the documentation handy. On the downside, cannot switch to 15 year yet.
RobLyons
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Re: 30 year mortgage under 3%

Post by RobLyons »

UnLearnYourself wrote: Thu Feb 27, 2020 5:19 pm
RobLyons wrote: Thu Feb 27, 2020 5:48 am
amindu wrote: Tue Feb 25, 2020 9:02 pm
stoptothink wrote: Tue Feb 25, 2020 5:18 pm
willthrill81 wrote: Tue Feb 25, 2020 4:52 pm I don't know how likely a 30 year mortgage under 3% is, but we got a 2.5% 15 year mortgage back in 2013. We kept it only a year before we sold the property though.
The broker who sold us our mortgage called last week. We have a 15yr at 3.125% and he said he could probably get us 2.65% right now. Would be great if we weren't a few months from having it paid off.
Hi do you mind sharing the info of your broker, i would be interested if i can get a 15 yr at 2.65%, thanks.

Sorry to jump in but I was quoted a 2.677 15 year from AAA of all places. My brokers info below. If it works out let me know. Still trying to talk myself into pulling the trigger (currently 3.50% 22 years remaining


Louis Alfaia
Mortgage Consultant

AAA NORTHEAST BANK
110 Royal Little Drive | Providence, RI 02904
T: 800-446-6997, ext. 3054 | M: 617-756-6611| F: 401-868-6565
lalfaia@aaanortheast.com
Contacted Louis and got a 2.875% on a 15yr quote paying $322 in pts. 3.325% on a 30yr paying no pts.

Not bad? Is that 2.875% APR?
I'm itching to refi to the 15 but feel like rates will be dropping more and I don't want to pay $5,500 + an extra $300 a month at this point..
PM me if preferred. Thanks!
"Great parenting sets the foundation for a better world"
UnLearnYourself
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Joined: Tue Feb 01, 2011 9:19 pm

Re: 30 year mortgage under 3%

Post by UnLearnYourself »

RobLyons wrote: Thu Feb 27, 2020 6:25 pm
UnLearnYourself wrote: Thu Feb 27, 2020 5:19 pm
RobLyons wrote: Thu Feb 27, 2020 5:48 am
amindu wrote: Tue Feb 25, 2020 9:02 pm
stoptothink wrote: Tue Feb 25, 2020 5:18 pm

The broker who sold us our mortgage called last week. We have a 15yr at 3.125% and he said he could probably get us 2.65% right now. Would be great if we weren't a few months from having it paid off.
Hi do you mind sharing the info of your broker, i would be interested if i can get a 15 yr at 2.65%, thanks.

Sorry to jump in but I was quoted a 2.677 15 year from AAA of all places. My brokers info below. If it works out let me know. Still trying to talk myself into pulling the trigger (currently 3.50% 22 years remaining


Louis Alfaia
Mortgage Consultant

AAA NORTHEAST BANK
110 Royal Little Drive | Providence, RI 02904
T: 800-446-6997, ext. 3054 | M: 617-756-6611| F: 401-868-6565
lalfaia@aaanortheast.com
Contacted Louis and got a 2.875% on a 15yr quote paying $322 in pts. 3.325% on a 30yr paying no pts.

Not bad? Is that 2.875% APR?
I'm itching to refi to the 15 but feel like rates will be dropping more and I don't want to pay $5,500 + an extra $300 a month at this point..
PM me if preferred. Thanks!
Interest rate.

And closing costs were quoted at $2,995 (+ prepaid taxes and per diem interest, which I view as sunk costs anyways).
remomnyc
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Re: 30 year mortgage under 3%

Post by remomnyc »

About to close 10/1 ARM at 2.0% with 0.961% upfront pts + $1k origination fee. Rate includes 25-bp reduction for moving funds to BoA.
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unclescrooge
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Re: 30 year mortgage under 3%

Post by unclescrooge »

60B4E24B wrote: Thu Feb 27, 2020 5:42 pm
Count of Notre Dame wrote: Thu Feb 27, 2020 12:30 pm
60B4E24B wrote: Wed Feb 26, 2020 8:23 am I was recently quoted 30 year @ 3.25% and 7/1 ARM @ 2.375%. Those are for jumbos in NYC, before relationship discounts.
What is the bank? Looking for a similar loan in California.
Citizens. They were generally 1/8th higher than Citi/BoA, but I haven't received recent quotes from the latter two.
Just called them. Apparently they are citizens one bank in California and do not do jumbo loans unless you have an existing relationship with them.
d0gerz
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Re: 30 year mortgage under 3%

Post by d0gerz »

mervinj7 wrote: Wed Feb 26, 2020 10:17 pm
d0gerz wrote: Wed Feb 26, 2020 9:41 pm I have a question. When people refinance for 'zero costs/no origination fee' does it really mean you paid nothing to refinance? What about things like recording fee, appraisal, lender's title insurance, etc. all these extra things I had to pay for when getting my first mortgage? Are people able to have these waived as well in a refinance? Or is the 'no fee' only referring to loan origination charges?
Those are not waived. You still pay them but you can get negative points to cover them. For example, I mentioned above that I'm in the middle of a zero cost refinance from 3.75% to 3.25%. It's -0.44% in points to cover all the expenses you mentioned above.
Just so I understand, does this mean you are getting an effective rate of 3.75% - 0.44% = 3.31%? i.e. the extra 6 bps is to cover all expenses resulting in zero cost upfront. That's fantastic!
mervinj7
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Re: 30 year mortgage under 3%

Post by mervinj7 »

d0gerz wrote: Thu Feb 27, 2020 9:18 pm
mervinj7 wrote: Wed Feb 26, 2020 10:17 pm Those are not waived. You still pay them but you can get negative points to cover them. For example, I mentioned above that I'm in the middle of a zero cost refinance from 3.75% to 3.25%. It's -0.44% in points to cover all the expenses you mentioned above.
Just so I understand, does this mean you are getting an effective rate of 3.75% - 0.44% = 3.31%? i.e. the extra 6 bps is to cover all expenses resulting in zero cost upfront. That's fantastic!
That's not quite right.
1. Our current mortgage rate is 3.75% on a existing loan from two years ago. Let's leave that aside.
2. My new quoted rate for the refinancing is 3.25% with -0.44% in points. Let's say the loan was for $1.2M, then there would be a lender credit of $1.2M*(-0.44%)=(-$5300). If the sum of the closing related costs come out to $4400, then I'm left with $900 in net credit from the lender. That makes this a true no-cost refinance and my effective rate does actually come out to 3.25%.
From this starting point, I can up and down in the rate by either buying points to lower the rate or increasing the rate to get more lender credits. For example, I may accept 0.06% (-0.44%+0.50%) in points to get 3.125% rate or get a bigger credit of -0.94% ($11,920) by accepting a higher rate of 3.375%.
chet96
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Re: 30 year mortgage under 3%

Post by chet96 »

mervinj7 wrote: Fri Feb 28, 2020 11:36 am
d0gerz wrote: Thu Feb 27, 2020 9:18 pm
mervinj7 wrote: Wed Feb 26, 2020 10:17 pm Those are not waived. You still pay them but you can get negative points to cover them. For example, I mentioned above that I'm in the middle of a zero cost refinance from 3.75% to 3.25%. It's -0.44% in points to cover all the expenses you mentioned above.
Just so I understand, does this mean you are getting an effective rate of 3.75% - 0.44% = 3.31%? i.e. the extra 6 bps is to cover all expenses resulting in zero cost upfront. That's fantastic!
That's not quite right.
1. Our current mortgage rate is 3.75% on a existing loan from two years ago. Let's leave that aside.
2. My new quoted rate for the refinancing is 3.25% with -0.44% in points. Let's say the loan was for $1.2M, then there would be a lender credit of $1.2M*(-0.44%)=(-$5300). If the sum of the closing related costs come out to $4400, then I'm left with $900 in net credit from the lender. That makes this a true no-cost refinance and my effective rate does actually come out to 3.25%.
From this starting point, I can up and down in the rate by either buying points to lower the rate or increasing the rate to get more lender credits. For example, I may accept 0.06% (-0.44%+0.50%) in points to get 3.125% rate or get a bigger credit of -0.94% ($11,920) by accepting a higher rate of 3.375%.
Great explanation. One question - in your example, can your $900 net credit be used to cover prepaid escrow, or do you just lose it? I remember reading somewhere that any excess credit can only be used for 3rd party costs, and not paid in cash. Maybe it varies from lender to lender?
Baldrekr
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Location: Seattle, WA

Re: 30 year mortgage under 3%

Post by Baldrekr »

AlphaLess wrote: Tue Feb 25, 2020 10:52 pm Looking forward to:
- 10 year going under 1%,
- front of the curve being at zero,
- 30 year being available at below 3%,
- 5x1 ARM being available at 2.5%
You can already get a 5/1 ARM for 2.0% and no points.

Schwab starts their 5/1 pricing at 2.75%, but if you move some funds to them they will reduce by the rate up to 0.75% (Advantage pricing) depending on how much in assets you move over. $750K moved over already gets you 0.5% off.

https://www.schwab.com/public/schwab/ba ... loan-types
Count of Notre Dame
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Re: 30 year mortgage under 3%

Post by Count of Notre Dame »

Received a quote for 2.625% on a 5/1 ARM from B of A. I currently have a 7/1 ARM (6 years left) at 3.00% (done with a re-cast no cost). I’d save $450 per month in interest if I refinanced at no cost (except for closing costs). Does this seem like a slam dunk? I'd be giving up a year of guaranteed 3% interest.
Spedward
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Re: 30 year mortgage under 3%

Post by Spedward »

unclescrooge wrote: Thu Feb 27, 2020 12:57 am
Spedward wrote: Wed Feb 26, 2020 9:11 pm I got a 5/1 at 2.65 over the summer.
From whom? Please share deets.
Wells actually. It is a jumbo so perhaps it equals to the 2.75-ish that others have seen here and there.
AlphaLess
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Location: Kentucky

Re: 30 year mortgage under 3%

Post by AlphaLess »

Baldrekr wrote: Fri Feb 28, 2020 3:18 pm
AlphaLess wrote: Tue Feb 25, 2020 10:52 pm Looking forward to:
- 10 year going under 1%,
- front of the curve being at zero,
- 30 year being available at below 3%,
- 5x1 ARM being available at 2.5%
You can already get a 5/1 ARM for 2.0% and no points.

Schwab starts their 5/1 pricing at 2.75%, but if you move some funds to them they will reduce by the rate up to 0.75% (Advantage pricing) depending on how much in assets you move over. $750K moved over already gets you 0.5% off.

https://www.schwab.com/public/schwab/ba ... loan-types
Thank you. So this is what I would call non-market pricing. $250K or so: I would move. But much higher than that, and it is a hassle for me.

My current rate is 2.75%, and I have some time to refi.
"A Republic, if you can keep it". Benjamin Franklin. 1787. | Party affiliation: Vanguard. Religion: low-cost investing.
cogito
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Re: 30 year mortgage under 3%

Post by cogito »

mister_sparkle wrote: Wed Feb 26, 2020 6:56 pm I have made literally one payment on my 3.625% 30-year mortgage.

Am I insane for even considering a re-fi?
I'd like to hear some wisdom regarding this as well. I've made two payments on a 3.75% 30 year with PMI. What would be the downsides or concerns in looking around to knock off half a percent on a no-cost refinance?
mervinj7
Posts: 1540
Joined: Thu Mar 27, 2014 3:10 pm

Re: 30 year mortgage under 3%

Post by mervinj7 »

cogito wrote: Fri Feb 28, 2020 8:02 pm
mister_sparkle wrote: Wed Feb 26, 2020 6:56 pm I have made literally one payment on my 3.625% 30-year mortgage.

Am I insane for even considering a re-fi?
I'd like to hear some wisdom regarding this as well. I've made two payments on a 3.75% 30 year with PMI. What would be the downsides or concerns in looking around to knock off half a percent on a no-cost refinance?

Small, temporary hit to your credit score. Some lenders like LenderFi will take back lender credits if you don't keep your loan for six months. Others only have a one payment requirement. Otherwise go for it.
manatee2005
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Joined: Wed Dec 18, 2019 9:17 pm

Re: 30 year mortgage under 3%

Post by manatee2005 »

mister_sparkle wrote: Wed Feb 26, 2020 6:56 pm I have made literally one payment on my 3.625% 30-year mortgage.

Am I insane for even considering a re-fi?
No, if the math works, do it.
mortfree
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Joined: Mon Sep 12, 2016 7:06 pm

Re: 30 year mortgage under 3%

Post by mortfree »

mortfree wrote: Wed Feb 26, 2020 2:50 am I always like to give info from PSECU as a data point for others.

As of Feb 25, 2020
10-year: 2.625
15-year: 2.75
20-year: 3.125
30-year: 3.25

I am currently 2 years in on a 30-year at 3.875. 200k paid down to 180k with a few extra payments.

Refi would cost 3650 or so.
I’ve been running my numbers. Here is what I came up with and can’t decide if it’s worth the extra $260/month on a 15-year.

Monthly payment. Interest remaining. Payoff date.

Current:
940 no extra. 100k interest. Payoff end of 2045 (25 years)

1200: 65.9k interest Payoff April 2037 (17 years)

Refi to 15
1200: 39170 interest. Payoff May 2035
UnLearnYourself
Posts: 368
Joined: Tue Feb 01, 2011 9:19 pm

Re: 30 year mortgage under 3%

Post by UnLearnYourself »

Have a package ready to sign with the following options:

15yr @ 2.772, no pts, w/ $2,678 closing costs (+ prepaid tax & per diem interest)

30yr @ 3.266, no pts, w/ same above closing costs

Question is do I lock these great rates or be greedy and float to see what the markets do on Monday?
foo.c
Posts: 101
Joined: Sat Jul 15, 2017 4:55 pm

Re: 30 year mortgage under 3%

Post by foo.c »

I'm 28 months into a 15 year note @ 2.875% and have already paid approximately 25% of the total interest on the loan.

Assuming a basically 0 cost refinance of my outstanding principal, the 30 year rate needs to be around 1.25% in order to keep my total interest paid the same. Doesn't look like I'll be refinancing any time soon.

I don't really care what the rate is, I want to pay as little total interest as possible. Maybe the 15 year will fall into the low 2% or lower and I'll have to think about it.
fyre4ce
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Joined: Sun Aug 06, 2017 11:29 am

Re: 30 year mortgage under 3%

Post by fyre4ce »

:moneybag
foo.c wrote: Sat Feb 29, 2020 9:58 am I'm 28 months into a 15 year note @ 2.875% and have already paid approximately 25% of the total interest on the loan.

Assuming a basically 0 cost refinance of my outstanding principal, the 30 year rate needs to be around 1.25% in order to keep my total interest paid the same. Doesn't look like I'll be refinancing any time soon.

I don't really care what the rate is, I want to pay as little total interest as possible. Maybe the 15 year will fall into the low 2% or lower and I'll have to think about it.
Mathematically speaking, this is not the correct approach because it ignores the time value of money. $1 paid 15 years from now is not as expensive as $1 today. Ignoring the term of the loan, you should be willing to refinance for 0 cost for a small amount of interest savings, on the basis of money saved versus hassle of the process.

If you refinance to another 15 year you’ll be adding another 28 months on your loan term. If that’s undesirable, you could always over-pay the new loan on schedule to pay it off on the same date as your old one. You could look at a 10 year, or a 10/1 ARM and pay it off on a 10 year schedule.
foo.c
Posts: 101
Joined: Sat Jul 15, 2017 4:55 pm

Re: 30 year mortgage under 3%

Post by foo.c »

fyre4ce wrote: Sat Feb 29, 2020 1:22 pm :moneybag
foo.c wrote: Sat Feb 29, 2020 9:58 am I don't really care what the rate is, I want to pay as little total interest as possible. Maybe the 15 year will fall into the low 2% or lower and I'll have to think about it.
Mathematically speaking, this is not the correct approach because it ignores the time value of money. $1 paid 15 years from now is not as expensive as $1 today. Ignoring the term of the loan, you should be willing to refinance for 0 cost for a small amount of interest savings, on the basis of money saved versus hassle of the process.
I'm ok with choosing the "wrong" path that has a more knowable outcome. I don't need perfection to hit my goals, and I will be fine paying on my current mortgage. I also understand that usually a 30 year mortgage and investing the difference in the market yields a bigger result, but I feel the same about that.
Count of Notre Dame
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Joined: Fri Oct 11, 2013 1:08 pm

Re: 30 year mortgage under 3%

Post by Count of Notre Dame »

Anyone going to lock a rate on Monday? Is there a downside to a free rate lock?
softwaregeek
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Joined: Wed May 08, 2019 8:59 pm

Re: 30 year mortgage under 3%

Post by softwaregeek »

mister_sparkle wrote: Wed Feb 26, 2020 6:56 pm I have made literally one payment on my 3.625% 30-year mortgage.

Am I insane for even considering a re-fi?
I did it in September. Now refi with all expenses paid is cheaper. Dropping a quarter point
Admiral
Posts: 3022
Joined: Mon Oct 27, 2014 12:35 pm

Re: 30 year mortgage under 3%

Post by Admiral »

If the Fed now cuts rates at March meeting (as expected) then rates could go even lower. Not guaranteed, of course, and might already be priced in. But I might wait to see how things shake out.
rustymutt
Posts: 3959
Joined: Sat Mar 07, 2009 12:03 pm

Re: 30 year mortgage under 3%

Post by rustymutt »

Unexpected inflation is what we need to contain these 30 year lows. A little dab will do it.
Even educators need education. And some can be hard headed to the point of needing time out.
Tdubs
Posts: 1102
Joined: Tue Apr 24, 2018 7:50 pm

Re: 30 year mortgage under 3%

Post by Tdubs »

mister_sparkle wrote: Wed Feb 26, 2020 6:56 pm I have made literally one payment on my 3.625% 30-year mortgage.

Am I insane for even considering a re-fi?
Maybe not . . . in a couple more weeks.
softwaregeek
Posts: 566
Joined: Wed May 08, 2019 8:59 pm

Re: 30 year mortgage under 3%

Post by softwaregeek »

fyre4ce wrote: Sat Feb 29, 2020 1:22 pm :moneybag
foo.c wrote: Sat Feb 29, 2020 9:58 am I'm 28 months into a 15 year note @ 2.875% and have already paid approximately 25% of the total interest on the loan.

Assuming a basically 0 cost refinance of my outstanding principal, the 30 year rate needs to be around 1.25% in order to keep my total interest paid the same. Doesn't look like I'll be refinancing any time soon.

I don't really care what the rate is, I want to pay as little total interest as possible. Maybe the 15 year will fall into the low 2% or lower and I'll have to think about it.
Mathematically speaking, this is not the correct approach because it ignores the time value of money. $1 paid 15 years from now is not as expensive as $1 today. Ignoring the term of the loan, you should be willing to refinance for 0 cost for a small amount of interest savings, on the basis of money saved versus hassle of the process.

If you refinance to another 15 year you’ll be adding another 28 months on your loan term. If that’s undesirable, you could always over-pay the new loan on schedule to pay it off on the same date as your old one. You could look at a 10 year, or a 10/1 ARM and pay it off on a 10 year schedule.
I am dropping my rate from 3.25 to 3.0, costs covered. This is not a massive monthly savings and is a pain in the rear, but I'm not afraid of doing the work and the savings are like free money. It's easier than investing, for sure. Locking in a modest cost reduction for zero cost has an infinite rate of return . Does my mortgage go out a little longer? Only if I don't pay it down early.
bryanm
Posts: 333
Joined: Mon Aug 13, 2018 3:48 pm

Re: 30 year mortgage under 3%

Post by bryanm »

softwaregeek wrote: Mon Mar 02, 2020 12:42 pm I am dropping my rate from 3.25 to 3.0, costs covered. This is not a massive monthly savings and is a pain in the rear, but I'm not afraid of doing the work and the savings are like free money. It's easier than investing, for sure. Locking in a modest cost reduction for zero cost has an infinite rate of return . Does my mortgage go out a little longer? Only if I don't pay it down early.
How much money are you saving, and how much would you pay not to have that "pain in the rear"? Make sure to discount savings into the future :happy
jmann2380
Posts: 6
Joined: Sun Jan 04, 2015 6:58 pm

Re: 30 year mortgage under 3%

Post by jmann2380 »

1.5 years into a 30yr @ 4.44%. Just locked a 15yr @ 2.625% with negative points bringing the closing costs down to ~$800. Craziness. Lenderfi was the company and they handily beat AimLoan and significantly crushed my local banks I have relationships with.
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