The unicorn mortgage: 30 year fixed under 3%

[unclescrooge]

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?)

It could also be a function of your loan amount, LTV ratio, and credit score.

[corysold]

If you don't want to be called, LoanDepot is not for you. I put my information in there for a refi and had a call literally 4 seconds later. I've had probably 15 in the day or so since.

[mega317]

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.

I just went through that. The guy finally got back to me today. Sounded swamped. If the rate is as competitive as mine I’d give it a little longer.

[TropikThunder]

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.

Call me conservative, but I wouldn’t compare my rate to the dividend of a giant tobacco company to decide whether to pay down the mortgage. Considering smoking is one of the most highly correlated risk factors for coronavirus deaths. Just sayin’.

[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.

Call me conservative, but I wouldn’t compare my rate to the dividend of a giant tobacco company to decide whether to pay down the mortgage. Considering smoking is one of the most highly correlated risk factors for coronavirus deaths. Just sayin’.

Ok, then how about iron mountain. High yield, and not positively correlated with Corona virus deaths

[wilked]

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.

I just went through that. The guy finally got back to me today. Sounded swamped. If the rate is as competitive as mine I’d give it a little longer.

Exactly. My guess is that their business is at an all time high right now

[Eeveetheragdoll]

Lender fi has been great so far with us, we get our appraisal on Monday, they did say they are swamped with applications our person we are working with said he is working 16 hour days right now because of demand. He apologized for the process being slower than what's normal for Lender Fi.

[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?

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?)

So I verified that twice. I am trying it again in the morning. The 30 year which was no cost is now $15,000 points. 20 year is now $17000 points, which was ~$700s yesterday.

[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?

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?)

It could also be a function of your loan amount, LTV ratio, and credit score.

None of those have changed overnight I am seeing same numbers today as well.

[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?

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

Current rate is 3.625% with a 3.89% APR. the fed may cut again at their upcoming meeting so maybe waiting is a good idea. I really want a 2 handle APR fixed for 30 years.

[JonnyDVM]

I’m going to get greedy and wait. Forecasts are for further rate cuts. Maybe I’ll get lucky and get a negative rate mortgage. The king of the unicorns.

Philosophical question- if one gets a negative mortgage rate do Bogleheads still recommend paying it off early?

[mega317]

Philosophical question- if one gets a negative mortgage rate do Bogleheads still recommend paying it off early?

There are benefits beyond numbers to not having a mortgage

[unclescrooge]

I’m going to get greedy and wait. Forecasts are for further rate cuts. Maybe I’ll get lucky and get a negative rate mortgage. The king of the unicorns.

Philosophical question- if one gets a negative mortgage rate do Bogleheads still recommend paying it off early?

You are right to wait.

Yes, of course they do.

[unclescrooge]

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?)

It could also be a function of your loan amount, LTV ratio, and credit score.

None of those have changed overnight I am seeing same numbers today as well.

Then the spread on the rate changed due to increased demand. Give it time, it'll come down.

[MBB_Boy]

Called my lender Freedom Mortgage today, was offered 2.75% for 30yr at no cost as a streamline refinance. Don't even have to do a credit check.

Very smart of them, I was logging in to get the details necessary to reach out to other lenders about a refi - they put up a big ole interstitial saying to call them, and I did. Now they get to keep the loan!

[finite_difference]

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.

Which lender?

[camillus]

Can I swoop in on this conversation and ask you savvy folks how to effectively shop a mortgage?

I'm currently at 3.0 for a 15 year (5 years in). About 45% LTV. I might be able to save a few dollars with a no cost refi.

What information do I need before I make calls, and who to call/where to start? TIA

[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.

Which lender?

American federal mortgage

[bryansmile]

Can I swoop in on this conversation and ask you savvy folks how to effectively shop a mortgage?

I'm currently at 3.0 for a 15 year (5 years in). About 45% LTV. I might be able to save a few dollars with a no cost refi.

What information do I need before I make calls, and who to call/where to start? TIA

The most effective for me is to check online where they do not require your contact info to provide quotes from multiple lenders. Then I'll call the lenders with the lowest rate and high enough credit for a "no cost" refi to negotiate a slightly better deal (lower rate, more credit).

[Ramjet]

Looking more and more like another rate cut will happen in a few weeks

In a month the unicorn mortgage may be readily available for many

[njdealguy]

Lenderfi now has a message on home page that is temporarily suspending new applications due to too much volume. Wonder how many other lenders are doing like this now!

[MortgageOnBlack]

Very bummed... I closed on a refinance on Friday for 3.375% on a 20-year ($920~ fees including appraisal) and hearing all this noise for lower-rates has me feeling down today.

Not sure what to do next... I haven't even made a payment and My Loan Zone is still showing "In Funding" as the status. Is refinancing again possible? Is it worth it?

Perhaps I should be content; trying to time the bottom was pretty hard. I felt pretty good locking back in mid-February

[Hyperchicken]

Very bummed... I closed on a refinance on Friday for 3.375% on a 20-year ($920~ fees including appraisal) and hearing all this noise for lower-rates has me feeling down today.

All lenders look to be so swamped with refinancing applications that the rates have crept up slightly in the last few days. IMO they won't move down until the backlog of pending requests clears, which may take a while, and who knows what else happens by then.

Just curious, 20 years term is somewhat unusual - did you get a better deal for 20 years? And how did it compare to the more common 15 and 30, in case you looked at these?

[primetime]

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.

Well now I know what to ask for. 2.5% (APR 2.6%) on $150k refinance loan with home valued at $285k.

Think this can be done on 15 year with only title and recording fees?

820 credit score.

I don’t understand why I would go to a 30 year at 2.75%, i’m trying to get this sob paid off sooner rather than later.

[guitarguy]

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

This is where I'm at haha. 15 year at 2.875% in 2015. Not going to bother touching that lol.

[primetime]

Called my lender Freedom Mortgage today, was offered 2.75% for 30yr at no cost as a streamline refinance. Don't even have to do a credit check.

Very smart of them, I was logging in to get the details necessary to reach out to other lenders about a refi - they put up a big ole interstitial saying to call them, and I did. Now they get to keep the loan!

How much was being refinanced at this rate? People are telling me since I'm only at roughly 150k to refinance, that I'm not going to touch 2.75 at 30 or 15 unless I pay major points lol

Oh well, I guess I'll just have to wait a month when the rates go down to 2.5% at 15 years no cost other than 500 appraisal fee or something for a nice 2.546% APR. Right now these guys are buried in applications so the buyers negotiation power sucks right now.

[anewboglehead]

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%.

I have a similar profile:
- Jumbo (though have an option to pay down to get under jumbo category if necessary)
- >800 FICO
- high income (I think? approx 500k W-2)
- 60 LTV

I'm currently on a 7/1 ARM at 3% with 5 years remaining, hoping to get terms similar to your unicorn loan! That is amazing!!

Would you mind sharing the agent with me as well? I called loan depot and a few other brokers and the rates are not even close to yours for no/low cost loans.

[MBB_Boy]

Called my lender Freedom Mortgage today, was offered 2.75% for 30yr at no cost as a streamline refinance. Don't even have to do a credit check.

Very smart of them, I was logging in to get the details necessary to reach out to other lenders about a refi - they put up a big ole interstitial saying to call them, and I did. Now they get to keep the loan!

How much was being refinanced at this rate? People are telling me since I'm only at roughly 150k to refinance, that I'm not going to touch 2.75 at 30 or 15 unless I pay major points lol

Oh well, I guess I'll just have to wait a month when the rates go down to 2.5% at 15 years no cost other than 500 appraisal fee or something for a nice 2.546% APR. Right now these guys are buried in applications so the buyers negotiation power sucks right now.

A bit over 350k

[seawolf21]

Anybody seen this being offered?

United Wholesale Mortgage now offering mortgage interest rates as low as 2.5%

https://www.housingwire.com/articles/uw ... ow-as-2-5/

[e5116]

Anybody seen this being offered?

United Wholesale Mortgage now offering mortgage interest rates as low as 2.5%

https://www.housingwire.com/articles/uw ... ow-as-2-5/

I saw the same article pop up on my feed, although don't have anything to add...Looks like it has to be broker partners that sign up for it and then conceivably can offer those rates? It's not like a general consumer can just apply directly with UWM, right? Looks like the lock period is very short (8-22 days) with significant costs to extend. So, it's a play for those brokers that can close quickly perhaps.

[seawolf21]

Anybody seen this being offered?

United Wholesale Mortgage now offering mortgage interest rates as low as 2.5%

https://www.housingwire.com/articles/uw ... ow-as-2-5/

I saw the same article pop up on my feed, although don't have anything to add...Looks like it has to be broker partners that sign up for it and then conceivably can offer those rates? It's not like a general consumer can just apply directly with UWM, right? Looks like the lock period is very short (8-22 days) with significant costs to extend. So, it's a play for those brokers that can close quickly perhaps.

I’m hoping it will cause other lenders to lower rates as I don’t qualify for this due to a close within last 18 months with UWM.

[wfrobinette]

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've been getting unicorn rates since I started buying homes in 1999. Every mortgage I got on a purchase or a refi has been we'll never see rates this low again. Yet here we are. Just closed a 30 year at 3%.

[wfrobinette]

Anybody seen this being offered?

United Wholesale Mortgage now offering mortgage interest rates as low as 2.5%

https://www.housingwire.com/articles/uw ... ow-as-2-5/

I saw the same article pop up on my feed, although don't have anything to add...Looks like it has to be broker partners that sign up for it and then conceivably can offer those rates? It's not like a general consumer can just apply directly with UWM, right? Looks like the lock period is very short (8-22 days) with significant costs to extend. So, it's a play for those brokers that can close quickly perhaps.

I’m hoping it will cause other lenders to lower rates as I don’t qualify for this due to a close within last 18 months with UWM.

Try Sebonic/Cardinal I closed a refi in October and again late last month.

They are highly automated and all on line. I had a hiccup this time because I changed job right in the middle of things.

[vbdoug]

Re seawolf21 » Wed May 13, 2020
Anybody seen this being offered? United Wholesale Mortgage now offering mortgage interest rates as low as 2.5%
https://www.housingwire.com/articles/uw ... ow-as-2-5/

I spoke with a broker associated with United Wholesale today and we may do some business. I am currently into year seven of a 3.875% APR 30 years fixed. Original loan was for $140k and now down to $116k. United Wholesale appears to have a fine reputation but I will be dealing with the broker, not the company.

Any specific advice re this company and its agents?

[seawolf21]

Was able to get better.com to price match and got a 30 year 2.875% $420K - net credit after subtracting Sections A/B/C/E is $200 in my favor. So it looks like I found the unicorn.

[marklar13]

Re seawolf21 » Wed May 13, 2020
Anybody seen this being offered? United Wholesale Mortgage now offering mortgage interest rates as low as 2.5%
https://www.housingwire.com/articles/uw ... ow-as-2-5/

I spoke with a broker associated with United Wholesale today and we may do some business. I am currently into year seven of a 3.875% APR 30 years fixed. Original loan was for $140k and now down to $116k. United Wholesale appears to have a fine reputation but I will be dealing with the broker, not the company.

Any specific advice re this company and its agents?

I closed a refi two weeks ago with Garden State Loans -- with the loan servicing immediately being transferred United Wholesale Mortgage. Loan funded last week, and I just got onboarded onto their website today -- everything went pretty smoothly. If you can get them to give you an offer that you like, then I wouldn't hesitate.

[fallingeggs]

I closed with United Warehouse Mortgage yesterday: 30-year, fixed, conventional, 10% down at 2.999%. Catch is that you'll be paying a broker fee (in my case 1%, lifting the effective rate to 3.1%). Lowest quote from five or so other lenders was 3.125% before a few hundred in points, I believe. For this first time home buyer, I'm a happy camper.

UWM was fast and responsive. Closed in 30 days. Wouldn't hesitate to recommend them if you have a solid broker. (And if you are in Florida, I have a recommendation for that!)

[unclescrooge]

I closed with United Warehouse Mortgage yesterday: 30-year, fixed, conventional, 10% down at 2.999%. Catch is that you'll be paying a broker fee (in my case 1%, lifting the effective rate to 3.1%). Lowest quote from five or so other lenders was 3.125% before a few hundred in points, I believe. For this first time home buyer, I'm a happy camper.

UWM was fast and responsive. Closed in 30 days. Wouldn't hesitate to recommend them if you have a solid broker. (And if you are in Florida, I have a recommendation for that!)

Congrats!
What was your loan amount?

[vbdoug]

Re United Wholesale's 2.5% APR
I have been speaking to a mortgage broker who offered 3%
He indicated the rate was higher because it is a condo and it is considered a "low value" loan.
Not bad, but I was hoping for a lower rate.

Re Better.
So I got an AX card today to qualify for the $2500 credit and put in my application.
I was very surprised and disappointed when the best they could do was 3.5%
Another poster in a different thread said you should get a written quote from a different lender and they might match it. I asked if this was a ploy that might work and she said "yes".
More hoops.

[seawolf21]

Re United Wholesale's 2.5% APR
I have been speaking to a mortgage broker who offered 3%
He indicated the rate was higher because it is a condo and it is considered a "low value" loan.
Not bad, but I was hoping for a lower rate.

Re Better.
So I got an AX card today to qualify for the $2500 credit and put in my application.
I was very surprised and disappointed when the best they could do was 3.5%
Another poster in a different thread said you should get a written quote from a different lender and they might match it. I asked if this was a ploy that might work and she said "yes".
More hoops.

Presenting a competitor offer to better.com is not a hoop; it's an unlisted better.com "Task."

[fallingeggs]

I closed with United Warehouse Mortgage yesterday: 30-year, fixed, conventional, 10% down at 2.999%. Catch is that you'll be paying a broker fee (in my case 1%, lifting the effective rate to 3.1%). Lowest quote from five or so other lenders was 3.125% before a few hundred in points, I believe. For this first time home buyer, I'm a happy camper.

UWM was fast and responsive. Closed in 30 days. Wouldn't hesitate to recommend them if you have a solid broker. (And if you are in Florida, I have a recommendation for that!)

Congrats!
What was your loan amount?

Purchase price 550k for a loan amount of 495k, which is just under the Freddie/Fannie limit for the area of around 510k (ie, it isn't a jumbo).