Mortgage Refinance - Owe under $200K - Best Rates

[jimmo]

The Mega Refinance thread is largely filled with examples of people getting rates around 2.75% with no costs or even credits, but they owe above $200K/$250K which seems to be floor for the best rates. Would like to start a thread for those looking to refinance with loan amounts below $200K and what you are finding and where.

I currently owe $154K and best option I have so far is for a 10 year 2.99% no cost (or $295 if I can't get them to waive appraisal) through Third Federal. They're offering that on balances above $110K. Would preferably be at a 15 year term and lower rate, but seems most of the lenders are in the 3.25 - 3.45% rate for my balance if I want to stick with no-cost.

Some have suggested doing a cash-out refinance to get loan above above $200K or 250K. I looked into it briefly, but doesn't seem worth the hassle to me and not even clear you'd still get best rates doing so.

Anyhow, anyone else have data points to share for refinancing balances below $200K? What terms are you finding and with whom?

[hayhayday]

If you can get a better rate on a 10/1 or 15 for ~200k might be worth it to cash out then prepay which would bring term back down and get you the better rate.

[BrandonBogle]

Have them compete with each other. Even without the promotional offer I'm doing for $2,500 extra cash back, I got offered 2.375% on a 15-year for $1,055 out of pocket on a $150k loan. Instead, I'm using one of the other rate options to get even more cash back (in exchange for a higher rate).

[Mudpuppy]

My mortgage balance is currently below 200k. A local credit union is willing to offer a 15 year 2.50% rate and 10 year 2.375% rate (both with points), but it was not a no-cost refi and their closing costs were high.

[ras4250]

Have them compete with each other. Even without the promotional offer I'm doing for $2,500 extra cash back, I got offered 2.375% on a 15-year for $1,055 out of pocket on a $150k loan. Instead, I'm using one of the other rate options to get even more cash back (in exchange for a higher rate).

would you mind sharing what bank is offering that 2.375% rate?

[NDS]

Have them compete with each other. Even without the promotional offer I'm doing for $2,500 extra cash back, I got offered 2.375% on a 15-year for $1,055 out of pocket on a $150k loan. Instead, I'm using one of the other rate options to get even more cash back (in exchange for a higher rate).

would you mind sharing what bank is offering that 2.375% rate?

+500

[atreju]

I'm in the process of closing with Better with the following refi:
Loan amount: $168,000
Closing Costs: ~$900 (assumes no appraisal, does not include escrow/prepaids)
Rate: 2.875%
Note: Will also be receiving $2,500 AMEX credit card credit

[mtwhmemn]

Last week I locked a 20 year 3% with Better.com financing $188K in NC. I'll net a gain of around $300 after the $2500 AMEX credit.

[BrandonBogle]

Have them compete with each other. Even without the promotional offer I'm doing for $2,500 extra cash back, I got offered 2.375% on a 15-year for $1,055 out of pocket on a $150k loan. Instead, I'm using one of the other rate options to get even more cash back (in exchange for a higher rate).

would you mind sharing what bank is offering that 2.375% rate?

+500

loanDepot

[jerrysmith]

I'm in the middle of a refi to a 10. Well under 200k and it's 2.75 fixed w/ Regions Bank.

[megabad]

Can confirm that there is no barrier at 200/250. I just refinanced about 150k at market rates and got a quote for another 300k at the same rate at the same time. My lenders just say as long as you are over 100k, it’s fine.

[BrandonBogle]

Can confirm that there is no barrier at 200/250. I just refinanced about 150k at market rates and got a quote for another 300k at the same rate at the same time. My lenders just say as long as you are over 100k, it’s fine.

It varies by lender. Generally speaking, I've found $100k, $200k, $250k, $300k and $500k to be boundary lines. However, for my local credit union, this doesn't apply. Any mortgage above their minimum to get a mortgage gets the same rate (as long as it is a conforming loan). So you really have to just keep an open mind about it and if you are close to a $50k boundary, ask to see if that would make a difference.

[jimmo]

Can confirm that there is no barrier at 200/250. I just refinanced about 150k at market rates and got a quote for another 300k at the same rate at the same time. My lenders just say as long as you are over 100k, it’s fine.

It varies by lender. Generally speaking, I've found $100k, $200k, $250k, $300k and $500k to be boundary lines. However, for my local credit union, this doesn't apply. Any mortgage above their minimum to get a mortgage gets the same rate (as long as it is a conforming loan). So you really have to just keep an open mind about it and if you are close to a $50k boundary, ask to see if that would make a difference.

Yes, this has been my experience as well. Obviously every bank and credit union is a little different, but best rates tend to be on balances between $250k-$500K. There are of course exceptions.