Does anyone know a lender that offers a 7 year fixed mortgage?

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bigtex
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Does anyone know a lender that offers a 7 year fixed mortgage?

Post by bigtex »

In order for a refi for me to make sense I need a 7 year fixed mortgage around 2.75% on 100k loan. Do any lenders even offer something like this? I am not having any luck so far.
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David Jay
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Re: Does anyone know a lender that offers a 7 year fixed mortgage?

Post by David Jay »

Why does it have to be a 7 year fixed?

As long as you can get a 2.75% interest rate, you can turn any mortgage into a 7 year mortgage. By law, all home mortgages are simple interest. If you pay on a 7 year schedule, you get a 7 year mortgage.

So find a 10 year or 15 year at 2.75% and make it what you want it to be...
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius
Katietsu
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Re: Does anyone know a lender that offers a 7 year fixed mortgage?

Post by Katietsu »

Maybe I do not understand. But why not a standard 15 year fixed mortgage and you just make extra principal payments?

Edit: Someone beat me to the suggestion.
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bigtex
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Re: Does anyone know a lender that offers a 7 year fixed mortgage?

Post by bigtex »

Okay I realize what you are saying now. So that brings me to my next question. Am I likely to find anything out there that would be a no closing cost at around 2.75%? If closing costs are a few thousand I don’t think refinancing even makes sense for me.
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bigtex
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Re: Does anyone know a lender that offers a 7 year fixed mortgage?

Post by bigtex »

I have heard you can roll closing costs into the rate. So if the normal rate is 2.50% would a lender make it 2.75% to include the closing costs? Basically I don’t to put forward any of my own cash in refinancing.
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djpeteski
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Re: Does anyone know a lender that offers a 7 year fixed mortgage?

Post by djpeteski »

You may want to looking into lenders that can do a home equity loan. Not a line of credit, but a loan. They tend to be fixed interest rate, low closing costs, and for a fixed term. The terms can be much shorter, and I think I either had a 6 or 7 year loan the last time I refinanced (long since paid off).

Also the interest rates tend to be very low if the loan is put in first position.

I got mine from Regions bank and the rate was lower than the advertised teaser HELOC rate.
Jags4186
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Re: Does anyone know a lender that offers a 7 year fixed mortgage?

Post by Jags4186 »

bigtex wrote: Mon Aug 03, 2020 8:19 am Okay I realize what you are saying now. So that brings me to my next question. Am I likely to find anything out there that would be a no closing cost at around 2.75%? If closing costs are a few thousand I don’t think refinancing even makes sense for me.
There is a 1000 post+ “Refinance Mega Thread” that you can look on to find lenders to go to. Although your loan is likely too small to qualify, apparently they are writing 1.875% 15 year loans now.
MrJedi
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Re: Does anyone know a lender that offers a 7 year fixed mortgage?

Post by MrJedi »

What you need to do is ask for lender credits to cover closing costs. You will see this on a loan estimate. Your true closing costs are in sections A, B, C, and E, so you want credits that offset these sections. Asking for credits will increase your interest rate, basically like buying negative points.

Sections F and G are costs you pay already even without refinancing.

Another tactic that is not part of a true no cost refi is rolling closing costs into the loan. Note that this is not the same as the above scenario with lender credits. While you are not bringing extra cash to close, you are adding to your principal balance and losing equity in this case. This isn't inherently bad, but a lot of people get confused on this vs the above case where you get credits instead. Financing your closing costs vs getting credits for your closing costs.
frugalmama
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Re: Does anyone know a lender that offers a 7 year fixed mortgage?

Post by frugalmama »

I have this same problem...7 years or so left and about 80,000 left to go. I have not been successful in finding a scenario that I come out better yet because the closing costs are so high, even when looking at a 15 year. It looks great until you get to the fine print. Those pesky closing costs.
MathWizard
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Re: Does anyone know a lender that offers a 7 year fixed mortgage?

Post by MathWizard »

bigtex wrote: Mon Aug 03, 2020 8:03 am In order for a refi for me to make sense I need a 7 year fixed mortgage around 2.75% on 100k loan. Do any lenders even offer something like this? I am not having any luck so far.
I got a no cost 7 year $45K HEL and used it to pay off my mortgage.
I considered it a mortgage .
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David Jay
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Re: Does anyone know a lender that offers a 7 year fixed mortgage?

Post by David Jay »

Check out this post: viewtopic.php?p=5409679#p5409767

2.75%, 30 year fixed, true zero closing cost.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius
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