The unicorn mortgage: 30 year fixed under 3%

[unclescrooge]

It finally happened!

When I heard the 50bps rate cut I started calling banks to refi my loan. It's currently 7/1 ARM at 3%, with 6 years and 8 months before the rate adjusts. And I locked in a 30 year fixed loan at 2.875% at zero costs!

Zero lender fees, zero title insurance, and zero escrow. Appraisal and credit pull fee to be refunded, and an extra $600 towards prepaids.

I used loan depot. But before you get too excited, I was apparently in the Goldilocks zone... Jumbo loan, 800 Fico, <60% LTV, and high income.

I also called Citi, and PNC Bank but they weren't as good. They were at 3% on 7 or 10 year ARMs at no cost, or minimal cost.

The guy at PNC said he'd have to offer me $30,000 in credits to match the loan.

[nepats]

Congrats! Is Loandepot a lender?

[jsaver]

I'm in that Goldilocks zone too. I'm currently on a 15 @ 3.25 with 12 years remaining but I guess I could refinance into a 30 and pay extra each month. I need to do the math on that. Or maybe I can find a 15 at that rate.

[unclescrooge]

I'm in that Goldilocks zone too. I'm currently on a 15 @ 3.25 with 12 years remaining but I guess I could refinance into a 30 and pay extra each month. I need to do the math on that. Or maybe I can find a 15 at that rate.

I think someone mentioned 15 year was at 2.5% on another thread.

But why would you pay it down? At this rate, it's like free money.

[regularguy455]

It finally happened!

When I heard the 50bps rate cut I started calling banks to refi my loan. It's currently 7/1 ARM at 3%, with 6 years and 8 months before the rate adjusts. And I locked in a 30 year fixed loan at 2.875% at zero costs!

Zero lender fees, zero title insurance, and zero escrow. Appraisal and credit pull fee to be refunded, and an extra $600 towards prepaids.

I used loan depot. But before you get too excited, I was apparently in the Goldilocks zone... Jumbo loan, 800 Fico, <60% LTV, and high income.

I also called Citi, and PNC Bank but they weren't as good. They were at 3% on 7 or 10 year ARMs at no cost, or minimal cost.

The guy at PNC said he'd have to offer me $30,000 in credits to match the loan.

Well done! I thought I set a world record with 3.0 but looks like you took the cake!

[lakpr]

But why would you pay it down? At this rate, it's like free money.

If you carry the mortgage and invest in the stock market, it's leveraging; it's quite possible that the bet would pay off, but you are taking the risk. A true "risk-less" comparison for paying down the mortgage are the long-term treasuries.

10 year treasuries are yielding 1% as of today. Compared to that, a 15-year 2.5% or 30-year 3% rates sound positively enticing to the lenders, and conversely, still a good deal for the borrowers to pay down the mortgage.

[finite_difference]

So for us mere mortals with a regular loan and good credit, what are the no cost refi 30-year rates?

[jsaver]

I'm in that Goldilocks zone too. I'm currently on a 15 @ 3.25 with 12 years remaining but I guess I could refinance into a 30 and pay extra each month. I need to do the math on that. Or maybe I can find a 15 at that rate.

I think someone mentioned 15 year was at 2.5% on another thread.

But why would you pay it down? At this rate, it's like free money.

Because I want to have it paid off before retirement which is in 12-20 years.

[mega317]

So for us mere mortals with a regular loan and good credit, what are the no cost refi 30-year rates?

I just got 3.25% no fees from lenderfi. LTV 65%. I ended up paying a little for 3.125%.

[unclescrooge]

It finally happened!

When I heard the 50bps rate cut I started calling banks to refi my loan. It's currently 7/1 ARM at 3%, with 6 years and 8 months before the rate adjusts. And I locked in a 30 year fixed loan at 2.875% at zero costs!

Zero lender fees, zero title insurance, and zero escrow. Appraisal and credit pull fee to be refunded, and an extra $600 towards prepaids.

I used loan depot. But before you get too excited, I was apparently in the Goldilocks zone... Jumbo loan, 800 Fico, <60% LTV, and high income.

I also called Citi, and PNC Bank but they weren't as good. They were at 3% on 7 or 10 year ARMs at no cost, or minimal cost.

The guy at PNC said he'd have to offer me $30,000 in credits to match the loan.

Well done! I thought I set a world record with 3.0 but looks like you took the cake!

Thanks!

[unclescrooge]

But why would you pay it down? At this rate, it's like free money.

If you carry the mortgage and invest in the stock market, it's leveraging; it's quite possible that the bet would pay off, but you are taking the risk. A true "risk-less" comparison for paying down the mortgage are the long-term treasuries.

10 year treasuries are yielding 1% as of today. Compared to that, a 15-year 2.5% or 30-year 3% rates sound positively enticing to the lenders, and conversely, still a good deal for the borrowers to pay down the mortgage.

True, although Altria is yielding 7%. Not risk-free, but certainly recession resistant.

[unclescrooge]

I'm in that Goldilocks zone too. I'm currently on a 15 @ 3.25 with 12 years remaining but I guess I could refinance into a 30 and pay extra each month. I need to do the math on that. Or maybe I can find a 15 at that rate.

I think someone mentioned 15 year was at 2.5% on another thread.

But why would you pay it down? At this rate, it's like free money.

Because I want to have it paid off before retirement which is in 12-20 years.

Makes sense.

[JGoneRiding]

Well shoot now you are making my 3.24% no lender fees but do have to pay title look bad! And I was so excited.

But no goldilocks zone for me. Only a 355k loan but I plan to.keep this one for 20 years or so so I am excited!

[SEAworld9]

Delete

[SEAworld9]

Wow congrats! We’re at 75% LTV, 632k left, 790 credit and the best we can find is 3.25 no cost (2300 credit) or 3.125 paying $361.

[unclescrooge]

Wow congrats! We’re at 75% LTV, 632k left, 790 credit and the best we can find is 3.25 no cost (2300 credit) or 3.125 paying $361.

Well shoot now you are making my 3.24% no lender fees but do have to pay title look bad! And I was so excited.

But no goldilocks zone for me. Only a 355k loan but I plan to.keep this one for 20 years or so so I am excited!

My wife and I first bought a house together in 2014 and since then I've always gone with the 7/1 ARM to keep the rate low (around 3%). I refinanced the first house 4 times and the second one once already.

If I hadn't gotten a rate under 3%, I would've opted for an adjustable product, except that Loan Depot didn't offer them and no else came close either.

If you didn't find one now, I'm confident you will during the next recession.

[bryansmile]

So for us mere mortals with a regular loan and good credit, what are the no cost refi 30-year rates?

3%, only have to pay for appraisal if it's required.

[mcdb84]

Just locked a 2.625% 30 year fixed VA IRRRL. 0 points, Funding Fee Exempt, and no origination fees. Just have to pay for Title Fees and Recording Fee.

[unclescrooge]

Just locked a 2.625% 30 year fixed VA IRRRL. 0 points, Funding Fee Exempt, and no origination fees. Just have to pay for Title Fees and Recording Fee.

That's awesome! Congrats.

[AlphaLess]

It finally happened!

When I heard the 50bps rate cut I started calling banks to refi my loan. It's currently 7/1 ARM at 3%, with 6 years and 8 months before the rate adjusts. And I locked in a 30 year fixed loan at 2.875% at zero costs!

Zero lender fees, zero title insurance, and zero escrow. Appraisal and credit pull fee to be refunded, and an extra $600 towards prepaids.

I used loan depot. But before you get too excited, I was apparently in the Goldilocks zone... Jumbo loan, 800 Fico, <60% LTV, and high income.

I also called Citi, and PNC Bank but they weren't as good. They were at 3% on 7 or 10 year ARMs at no cost, or minimal cost.

The guy at PNC said he'd have to offer me $30,000 in credits to match the loan.

I fit the profile:
- Jumbo,
- 840 FICO score (on 850 scale),
- Very high income,
- < 60 LTV

PNC, Citi, Chase, all have crappy rates.
I am currently in 5/1ARM at 2.75%.

Would you mind sharing who is this with?

I would not mind trying if 5/1, 7/1 might be at 2.5%, or 30-year at 2.75%.

[mcdb84]

Just locked a 2.625% 30 year fixed VA IRRRL. 0 points, Funding Fee Exempt, and no origination fees. Just have to pay for Title Fees and Recording Fee.

That's awesome! Congrats.

Thanks! Pennymac was trying to retain business since they saw a credit inquiry and knew I was shopping. The loan officer was able to match the offer that Pennymac gave me and it was a no brainer. I was very skeptical at first, but I was sent the loan estimate and in fact locked in a 2.625%.

I'm hoping rates just keep dropping and I'll go ahead and refi again in another 8 months.

[unclescrooge]

It finally happened!

When I heard the 50bps rate cut I started calling banks to refi my loan. It's currently 7/1 ARM at 3%, with 6 years and 8 months before the rate adjusts. And I locked in a 30 year fixed loan at 2.875% at zero costs!

Zero lender fees, zero title insurance, and zero escrow. Appraisal and credit pull fee to be refunded, and an extra $600 towards prepaids.

I used loan depot. But before you get too excited, I was apparently in the Goldilocks zone... Jumbo loan, 800 Fico, <60% LTV, and high income.

I also called Citi, and PNC Bank but they weren't as good. They were at 3% on 7 or 10 year ARMs at no cost, or minimal cost.

The guy at PNC said he'd have to offer me $30,000 in credits to match the loan.

I fit the profile:
- Jumbo,
- 840 FICO score (on 850 scale),
- Very high income,
- < 60 LTV

PNC, Citi, Chase, all have crappy rates.
I am currently in 5/1ARM at 2.75%.

Would you mind sharing who is this with?

I would not mind trying if 5/1, 7/1 might be at 2.5%, or 30-year at 2.75%.

Not sure if I'm allowed to post here, but I'll pm you

[AlphaLess]

Not sure if I'm allowed to post here, but I'll pm you

Roger.
TYVM

[justsomeguy2018]

I refinanced in Sept/Oct to 3.5% (from 4.375%), no fees ($400 net credit actually), but I think I paid like $398 to go from 3.625% to 3.5%.

Reading this thread now I feel a little annoyed that I didn't just wait a little longer....ugh

[Gibby45]

Just locked a 30 year mortgage at 3.00% (APR 3.09%). Not a jumbo loan. Appraisal waived. No origination/lender fee. I have to pay the title fees and recording fees. Escrow waived. Using Silverton Mortgage. Still doesn't seem real.

[dodecahedron]

Hearing about this eventuality still feels surreal!

When my late husband and I first started househunting (in early 1980s) I remember checking into 30-year mortgage rates and getting a quote for 18% for a 30-year fixed rate mortgage. And even *that* required paying a ¨point¨ upfront. Plus a bunch of other miscellaneous closing costs.

We ultimately went for a one-year adjustable rate mortgage on our first home in 1984 with a ¨teaser¨ rate of 10.5% and an annual cap of 2% (but the true underlying initial rate would have been 13% without the teaser.) We wound up refinancing after a year or and then selling a few years after that. And then after moving, we bought again, with an adjustable mortgage that I believe was still double-digits (but maybe not as much of a teaser and I think there was a lifetime cap as well as an annual cap) and we refinanced that a few more times and eventually got into a 30 year first rate of 7%, which we thought was too good to be true. We wound up paying *that* entirely off in 2003.

Never dreamed mortgage rates would get so low as they are today.

[chenzi]

Just before the rate-cut, BOFA was offering me a 15-year loan at 2.5% (no costs) if I moved in 500K in assets to them. Going to check if that has changed!

[260chrisb]

Well done!! I thought I was living well with my 15 year 3% from four years ago!!

[alfaspider]

There must be a decent bit of regional variation going on. I fit the same profile as OP, but am not seeing anything under 3.38. Was really hoping to at least be under 3.3 before pulling the trigger on a refi.

[MMLC3]

Just before the rate-cut, BOFA was offering me a 15-year loan at 2.5% (no costs) if I moved in 500K in assets to them. Going to check if that has changed!

BoFA gave me 3.00% for 30 yr fixed for jumbo loan (no points) for new house purchase of course back in September.

Need to evaluate if rates have dropped significant enough, to refi.

[unclescrooge]

Just before the rate-cut, BOFA was offering me a 15-year loan at 2.5% (no costs) if I moved in 500K in assets to them. Going to check if that has changed!

BoFA gave me 3.00% for 30 yr fixed for jumbo loan (no points) for new house purchase of course back in September.

Need to evaluate if rates have dropped significant enough, to refi.

That's a solid rate!

In my experience, refi is usually a quarter to half point higher than a home purchase. Not sure why.

[willthrill81]

Good for you! A 30 year for under 3% really is amazing. About the only thing more amazing is no mortgage at all!

[rascott]

It finally happened!

When I heard the 50bps rate cut I started calling banks to refi my loan. It's currently 7/1 ARM at 3%, with 6 years and 8 months before the rate adjusts. And I locked in a 30 year fixed loan at 2.875% at zero costs!

Zero lender fees, zero title insurance, and zero escrow. Appraisal and credit pull fee to be refunded, and an extra $600 towards prepaids.

I used loan depot. But before you get too excited, I was apparently in the Goldilocks zone... Jumbo loan, 800 Fico, <60% LTV, and high income.

I also called Citi, and PNC Bank but they weren't as good. They were at 3% on 7 or 10 year ARMs at no cost, or minimal cost.

The guy at PNC said he'd have to offer me $30,000 in credits to match the loan.

I'm glad you are happy with your rate (it's a great one)... but the Fed rate cut has nothing to do with mortgage rates whatsoever.

And I fully expect mortgage rates to be lower in a few weeks. But if you can get a true no cost refi like you did, go for it.

[simplesimon]

Are there usually different rates at different LTV marks? (80%, 70%, 60%, etc)

[Admiral]

I'm in that Goldilocks zone too. I'm currently on a 15 @ 3.25 with 12 years remaining but I guess I could refinance into a 30 and pay extra each month. I need to do the math on that. Or maybe I can find a 15 at that rate.

I think someone mentioned 15 year was at 2.5% on another thread.

But why would you pay it down? At this rate, it's like free money.

I have 15 year @ 2.25%. Originated Sept 2016.

3% is good. I think you will soon be able to do better (if you haven't already).

[Starfish]

I saw couple of posts praising loan depot on this forum and I gave it a try.
I fill in some info and today morning a guy call me? WHY? I don't want to talk to anybody about a loan, thank you. Everything should be online. He did it during my commute so it was no wasted time for me but still.
The guy was the salesman type, although I was clear that I am interested in only one number: Interest rate for no cost no points 30y fixed. He talked way too much and tried to push other products (points, 15y etc).
At the end his offer was pretty underwhelming, I could get better very easily: 3.25% with 1k$ costs.
I have an ~800 point credit score, the house is worth double than the loan and my annual income is high comparing to the loan (more than half).
I would not go to loan depot. There are better options out there, starting with low cost (Asian) loan brokers or online options like Amerisave which I used twice.

[abuss368]

That is a great rate for 30 years! Enjoy.

[Jmh04j]

I just got quoted 2.875% on a 30 year fixed. 1.125% in fees plus normal closing costs. I figured the payback vs my current mortgage is about 4 years. I think I will be in the house for that long. Does it make sense to do it?

[bryansmile]

I just got quoted 2.875% on a 30 year fixed. 1.125% in fees plus normal closing costs. I figured the payback vs my current mortgage is about 4 years. I think I will be in the house for that long. Does it make sense to do it?

I locked a slightly higher rate for a 30 year no cost refi. Can always refinance for no fee in the future I guess.

[JonnyDVM]

I’ve been toying with a refinance but I went to loan depot and I’m a bit scared to wanted my phone number. I don’t want a barrage of phone calls. Do they shop your info out to a bunch of different lenders ?

I have a 30 year jumbo at 3.55%. And I thought that was the best rate I’d ever have a chance to get when we took it.

[TheOscarGuy]

I’ve been toying with a refinance but I went to loan depot and I’m a bit scared to wanted my phone number. I don’t want a barrage of phone calls. Do they shop your info out to a bunch of different lenders ?

I have a 30 year jumbo at 3.55%. And I thought that was the best rate I’d ever have a chance to get when we took it.

Ditto. they wanted a lot of additional info. I saw their name mentioned in this post and thought I would give them a shot but I dont want to be in such a situation. I guess I will continue with lenderfi and ask a few credit unions in the area.

[Jmh04j]

Ally Bank quoted me 3%. They offer a $500 discount on closing costs. Still working to see if I can get that rate down. I really want an APR of sub 3%

[SEAworld9]

I’ve been toying with a refinance but I went to loan depot and I’m a bit scared to wanted my phone number. I don’t want a barrage of phone calls. Do they shop your info out to a bunch of different lenders ?

ha i'm in the process with lenderfi and it's the exactly opposite. we've uploaded all of the required docs, have a "conditional approval" whatever that really means, and i can't get the guy to respond to any of the 4 messages in the online system or 2 emails i've sent since saturday.

[TheOscarGuy]

So lenderfi jumped through the roof for me just now, when trying it from home. I wanted to go ahead and apply and I am seeing crazy high points and higher interest rate quotes for exact same details as earlier today. Anyone seeing this as well?

[dukeblue219]

So lenderfi jumped through the roof for me just now, when trying it from home. I wanted to go ahead and apply and I am seeing crazy high points and higher interest rate quotes for exact same details as earlier today. Anyone seeing this as well?

Nope. They've inched up from this AM, but nothing worse than I saw last night. Might be something about your location (or a typo in your search?)

[Count of Notre Dame]

Ally Bank quoted me 3%. They offer a $500 discount on closing costs. Still working to see if I can get that rate down. I really want an APR of sub 3%

What is the term of your loan? Were you able to get this quote without applying on their website? I have quotes from B of A and US Bank but am looking to get First Republic to match terms on a 10/1 jumbo 80/20 LTV ARM at 3%, no points. No relationship discounts. Wondering whether I should apply to a 4th bank to try to make these banks compete?

[unclescrooge]

It finally happened!

When I heard the 50bps rate cut I started calling banks to refi my loan. It's currently 7/1 ARM at 3%, with 6 years and 8 months before the rate adjusts. And I locked in a 30 year fixed loan at 2.875% at zero costs!

Zero lender fees, zero title insurance, and zero escrow. Appraisal and credit pull fee to be refunded, and an extra $600 towards prepaids.

I used loan depot. But before you get too excited, I was apparently in the Goldilocks zone... Jumbo loan, 800 Fico, <60% LTV, and high income.

I also called Citi, and PNC Bank but they weren't as good. They were at 3% on 7 or 10 year ARMs at no cost, or minimal cost.

The guy at PNC said he'd have to offer me $30,000 in credits to match the loan.

I'm glad you are happy with your rate (it's a great one)... but the Fed rate cut has nothing to do with mortgage rates whatsoever.

And I fully expect mortgage rates to be lower in a few weeks. But if you can get a true no cost refi like you did, go for it.

I know that and the market knows that. But some banks might panic, and expecting a recession someone there might set an artificially low rate.

Based on feedback from my friends, seems like that rate is off the table, for now.

[unclescrooge]

Are there usually different rates at different LTV marks? (80%, 70%, 60%, etc)

I believe so.

[unclescrooge]

I just got quoted 2.875% on a 30 year fixed. 1.125% in fees plus normal closing costs. I figured the payback vs my current mortgage is about 4 years. I think I will be in the house for that long. Does it make sense to do it?

No. I would wait. What's your current rate?

[unclescrooge]

I’ve been toying with a refinance but I went to loan depot and I’m a bit scared to wanted my phone number. I don’t want a barrage of phone calls. Do they shop your info out to a bunch of different lenders ?

I have a 30 year jumbo at 3.55%. And I thought that was the best rate I’d ever have a chance to get when we took it.

No, they are a loan originator. I think the second largest noon-bank lender/originator in the US.