Refi at this rate?

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Topic Author
huai
Posts: 25
Joined: Mon Jul 24, 2017 9:11 am

Refi at this rate?

Post by huai » Fri Jul 05, 2019 11:41 am

800 k property
600 k purchase mortgage taken out last year as 10/1 at 3.875
Current payoff balance is 585

I have an opportunity to refi at the moment to a 5/1 at 3.44 with about $1k in fees. Saves me $150/month for next 5 years but also shortens my lock from 9 more years to 5. Break even for closing costs is 7 months.

Would you take the deal?

Right now I pay an extra 3k per year towards principal, if I keep payment the same it will be an extra 4800

DEBTINATOR
Posts: 100
Joined: Thu Oct 20, 2011 8:05 pm

Re: Refi at this rate?

Post by DEBTINATOR » Fri Jul 05, 2019 12:19 pm

No, I wouldn’t.

I just did a 30yr at 3.5%.

All that interest rate risk for 0.06%? Pass!

Search for the relationship mortgage thread.

barnaclebob
Posts: 3710
Joined: Thu Aug 09, 2012 10:54 am

Re: Refi at this rate?

Post by barnaclebob » Fri Jul 05, 2019 12:21 pm

How quickly are you planning to pay off the house?

mervinj7
Posts: 917
Joined: Thu Mar 27, 2014 3:10 pm

Re: Refi at this rate?

Post by mervinj7 » Fri Jul 05, 2019 1:43 pm

DEBTINATOR wrote:
Fri Jul 05, 2019 12:19 pm
No, I wouldn’t.

I just did a 30yr at 3.5%.

All that interest rate risk for 0.06%? Pass!

Search for the relationship mortgage thread.
30 year refinance for 3.5%? If so, which bank was that?

vtjon
Posts: 211
Joined: Fri Jul 20, 2012 12:53 pm

Re: Refi at this rate?

Post by vtjon » Fri Jul 05, 2019 3:06 pm

I noticed that the Penfed 5/5 ARM Jumbo is 3.375% though the closing costs might not make it a great deal. I'm not sure if they do the closing costs promos any longer.

Topic Author
huai
Posts: 25
Joined: Mon Jul 24, 2017 9:11 am

Re: Refi at this rate?

Post by huai » Fri Jul 05, 2019 3:24 pm

I’ve owned 4 houses and in each one I thought I would stay for 30 years but ended up moving within 5-7, so that’s my horizon.

penfed deals come with about 5 k in closing costs so not very attractive. Decided to hit the big 4 (BofA, Citi, wells, chase) private client groups to see if they can help based on the relationship mortgage thread if I move my investment accounts over

Anyone know any regional Fl banks that offer relationship based discounts?

HEDGEFUNDIE
Posts: 2791
Joined: Sun Oct 22, 2017 2:06 pm

Re: Refi at this rate?

Post by HEDGEFUNDIE » Fri Jul 05, 2019 4:00 pm

huai wrote:
Fri Jul 05, 2019 3:24 pm
I’ve owned 4 houses and in each one I thought I would stay for 30 years but ended up moving within 5-7, so that’s my horizon.

penfed deals come with about 5 k in closing costs so not very attractive. Decided to hit the big 4 (BofA, Citi, wells, chase) private client groups to see if they can help based on the relationship mortgage thread if I move my investment accounts over

Anyone know any regional Fl banks that offer relationship based discounts?
First Republic is in FL and I just closed a 5/1 ARM with them at 2.65%

JoeJohnson
Posts: 391
Joined: Wed Jun 08, 2011 2:34 pm

Re: Refi at this rate?

Post by JoeJohnson » Fri Jul 05, 2019 5:12 pm

DEBTINATOR wrote:
Fri Jul 05, 2019 12:19 pm
No, I wouldn’t.

I just did a 30yr at 3.5%.

All that interest rate risk for 0.06%? Pass!

Search for the relationship mortgage thread.
Rates are very location dependent. We are in process of 3.5% for 30yr as well, but ARMs are actually more here, not less.

The general trend in my locale is local credit unions can do better than anybody. Also check better.com

DEBTINATOR
Posts: 100
Joined: Thu Oct 20, 2011 8:05 pm

Re: Refi at this rate?

Post by DEBTINATOR » Sat Jul 06, 2019 3:24 am

mervinj7 wrote:
Fri Jul 05, 2019 1:43 pm
DEBTINATOR wrote:
Fri Jul 05, 2019 12:19 pm
No, I wouldn’t.

I just did a 30yr at 3.5%.

All that interest rate risk for 0.06%? Pass!

Search for the relationship mortgage thread.
30 year refinance for 3.5%? If so, which bank was that?
Yes. BofA

SovereignInvestor
Posts: 351
Joined: Mon Aug 20, 2018 4:41 pm

Re: Refi at this rate?

Post by SovereignInvestor » Sat Jul 06, 2019 6:26 am

What region are you in? My local credit union is offering 2.25% for 5/1 ARM. 2.125% for LTV under 75%.

Topic Author
huai
Posts: 25
Joined: Mon Jul 24, 2017 9:11 am

Re: Refi at this rate?

Post by huai » Sat Jul 06, 2019 10:12 am

SovereignInvestor wrote:
Sat Jul 06, 2019 6:26 am
What region are you in? My local credit union is offering 2.25% for 5/1 ARM. 2.125% for LTV under 75%.
Wow those are good rates. Which CU?

I am in FL. First republic doesn’t cover my city so still waiting their quote. Best so far is from fifth third bank

10/1 -3.500%
7/1 - 3.375%
5/1 - 3.250%

All without closing costs. Big banks are willing to match and give a relationship discount on top for an additional .250 off, so probably going that way.

How much premium do you all place on the ARM lock-in term? Would you go down a quarter point APR but lose a 5 years on the rate?

Topic Author
huai
Posts: 25
Joined: Mon Jul 24, 2017 9:11 am

Re: Refi at this rate?

Post by huai » Sat Jul 06, 2019 10:13 am

huai wrote:
Sat Jul 06, 2019 10:12 am
SovereignInvestor wrote:
Sat Jul 06, 2019 6:26 am
What region are you in? My local credit union is offering 2.25% for 5/1 ARM. 2.125% for LTV under 75%.
Wow those are good rates. Which CU?

I am in FL. First republic doesn’t cover my city so still waiting their quote. Best so far is from fifth third bank

10/1 -3.500%
7/1 - 3.375%
5/1 - 3.250%

All without closing costs. Big banks are willing to match and give a relationship discount on top for an additional .250 off, so probably going that way.

How much premium do you all place on the ARM lock-in term? Would you go down a quarter point APR but lose a 5 years on the rate guarantee?

HEDGEFUNDIE
Posts: 2791
Joined: Sun Oct 22, 2017 2:06 pm

Re: Refi at this rate?

Post by HEDGEFUNDIE » Sat Jul 06, 2019 10:26 am

huai wrote:
Sat Jul 06, 2019 10:12 am
SovereignInvestor wrote:
Sat Jul 06, 2019 6:26 am
What region are you in? My local credit union is offering 2.25% for 5/1 ARM. 2.125% for LTV under 75%.
Wow those are good rates. Which CU?

I am in FL. First republic doesn’t cover my city so still waiting their quote. Best so far is from fifth third bank

10/1 -3.500%
7/1 - 3.375%
5/1 - 3.250%

All without closing costs. Big banks are willing to match and give a relationship discount on top for an additional .250 off, so probably going that way.

How much premium do you all place on the ARM lock-in term? Would you go down a quarter point APR but lose a 5 years on the rate?
Try Raymond James

https://www.raymondjames.com/mortgagerates

Topic Author
huai
Posts: 25
Joined: Mon Jul 24, 2017 9:11 am

Re: Refi at this rate?

Post by huai » Sat Jul 06, 2019 10:34 am

Waiting for RJ quote with no closing costs ... they are all manual so takes 3 days. I have a feeling by the time they add in closing costs offset they will be at or worse than the rate I got above (with relationship bonus)
Last edited by huai on Sat Jul 06, 2019 10:36 am, edited 1 time in total.

finite_difference
Posts: 1374
Joined: Thu Jul 09, 2015 7:00 pm

Re: Refi at this rate?

Post by finite_difference » Sat Jul 06, 2019 10:34 am

DEBTINATOR wrote:
Sat Jul 06, 2019 3:24 am
mervinj7 wrote:
Fri Jul 05, 2019 1:43 pm
DEBTINATOR wrote:
Fri Jul 05, 2019 12:19 pm
No, I wouldn’t.

I just did a 30yr at 3.5%.

All that interest rate risk for 0.06%? Pass!

Search for the relationship mortgage thread.
30 year refinance for 3.5%? If so, which bank was that?
Yes. BofA
Was it a no cost refi? Otherwise how much did you pay for points?
The most precious gift we can offer anyone is our attention. - Thich Nhat Hanh

Bacchus01
Posts: 2888
Joined: Mon Dec 24, 2012 9:35 pm

Re: Refi at this rate?

Post by Bacchus01 » Sat Jul 06, 2019 10:57 am

huai wrote:
Fri Jul 05, 2019 11:41 am
800 k property
600 k purchase mortgage taken out last year as 10/1 at 3.875
Current payoff balance is 585

I have an opportunity to refi at the moment to a 5/1 at 3.44 with about $1k in fees. Saves me $150/month for next 5 years but also shortens my lock from 9 more years to 5. Break even for closing costs is 7 months.

Would you take the deal?

Right now I pay an extra 3k per year towards principal, if I keep payment the same it will be an extra 4800
In my opinion, ARMs are just not a good deal right now. Stick to 15 or 30 fixed. The spread on ARMs needs to be a lot bigger to be worth the risk.

Topic Author
huai
Posts: 25
Joined: Mon Jul 24, 2017 9:11 am

Re: Refi at this rate?

Post by huai » Sat Jul 06, 2019 11:03 am

I don’t plan to owe this mortgage in 10 years one way or another :)

brianH
Posts: 272
Joined: Wed Aug 12, 2009 12:21 pm

Re: Refi at this rate?

Post by brianH » Sat Jul 06, 2019 1:32 pm

What is everyone's balance on the mortgage or percentage paid?

I'm looking to refi, but only have about 9 years left on a original 30 year (opened 1 year ago.) Most of my quotes for refinance aren't much lower than 4, while my current rate is 4.3. I'm wondering if higher balances give the lower rates.

McGilicutty
Posts: 185
Joined: Tue Dec 13, 2016 5:24 pm

Re: Refi at this rate?

Post by McGilicutty » Sat Jul 06, 2019 1:55 pm

brianH wrote:
Sat Jul 06, 2019 1:32 pm
What is everyone's balance on the mortgage or percentage paid?

I'm looking to refi, but only have about 9 years left on a original 30 year (opened 1 year ago.) Most of my quotes for refinance aren't much lower than 4, while my current rate is 4.3. I'm wondering if higher balances give the lower rates.
I had a mortgage balance of a little over $100K at 4.5%. I was able to refinance it to a 15-year at 3.25% with $2500 in closing costs using a local bank. I called around to some of the outfits advertising on the Internet, but none of them gave me a quote for less than 4% for a 15-year refi.

You might want to try your local banks/credit unions if you haven't done so already.

Bacchus01
Posts: 2888
Joined: Mon Dec 24, 2012 9:35 pm

Re: Refi at this rate?

Post by Bacchus01 » Sat Jul 06, 2019 10:59 pm

brianH wrote:
Sat Jul 06, 2019 1:32 pm
What is everyone's balance on the mortgage or percentage paid?

I'm looking to refi, but only have about 9 years left on a original 30 year (opened 1 year ago.) Most of my quotes for refinance aren't much lower than 4, while my current rate is 4.3. I'm wondering if higher balances give the lower rates.
I’d youre paying down principal that fast, why do you even care about the rate?

DEBTINATOR
Posts: 100
Joined: Thu Oct 20, 2011 8:05 pm

Re: Refi at this rate?

Post by DEBTINATOR » Sun Jul 07, 2019 1:30 am

finite_difference wrote:
Sat Jul 06, 2019 10:34 am
DEBTINATOR wrote:
Sat Jul 06, 2019 3:24 am
mervinj7 wrote:
Fri Jul 05, 2019 1:43 pm
DEBTINATOR wrote:
Fri Jul 05, 2019 12:19 pm
No, I wouldn’t.

I just did a 30yr at 3.5%.

All that interest rate risk for 0.06%? Pass!

Search for the relationship mortgage thread.
30 year refinance for 3.5%? If so, which bank was that?
Yes. BofA
Was it a no cost refi? Otherwise how much did you pay for points?
Almost, about $800 out of pocket after lender credits. Breakeven in 2mos.

brianH
Posts: 272
Joined: Wed Aug 12, 2009 12:21 pm

Re: Refi at this rate?

Post by brianH » Sun Jul 07, 2019 6:36 am

Bacchus01 wrote:
Sat Jul 06, 2019 10:59 pm
I’d youre paying down principal that fast, why do you even care about the rate?
I will slow down now. A chunk of that was from the sale of our previous house, which we did after purchasing the new one. I may not keep a 15 for the full term, but it would be nice to have some flexibility in the monthly payment if I need it.

After some research, the best advertised rate I found (haven't negotiated with online banks yet) was at a local credit union: 15 year, 3.375% with about $2900 in closing costs. That would put breakeven at around 2-3 years, given my current balance. That just might be worth it.

finite_difference
Posts: 1374
Joined: Thu Jul 09, 2015 7:00 pm

Re: Refi at this rate?

Post by finite_difference » Sun Jul 07, 2019 12:15 pm

DEBTINATOR wrote:
Sun Jul 07, 2019 1:30 am
finite_difference wrote:
Sat Jul 06, 2019 10:34 am
DEBTINATOR wrote:
Sat Jul 06, 2019 3:24 am
mervinj7 wrote:
Fri Jul 05, 2019 1:43 pm
DEBTINATOR wrote:
Fri Jul 05, 2019 12:19 pm
No, I wouldn’t.

I just did a 30yr at 3.5%.

All that interest rate risk for 0.06%? Pass!

Search for the relationship mortgage thread.
30 year refinance for 3.5%? If so, which bank was that?
Yes. BofA
Was it a no cost refi? Otherwise how much did you pay for points?
Almost, about $800 out of pocket after lender credits. Breakeven in 2mos.
That’s pretty good.

The refi saved you $400/month in interest?

I have 3.625% so the break even would take years. Going to wait to see if the Fed drops rates.
The most precious gift we can offer anyone is our attention. - Thich Nhat Hanh

SovereignInvestor
Posts: 351
Joined: Mon Aug 20, 2018 4:41 pm

Re: Refi at this rate?

Post by SovereignInvestor » Thu Jul 11, 2019 7:52 am

huai wrote:
Sat Jul 06, 2019 10:12 am
SovereignInvestor wrote:
Sat Jul 06, 2019 6:26 am
What region are you in? My local credit union is offering 2.25% for 5/1 ARM. 2.125% for LTV under 75%.
Wow those are good rates. Which CU?

I am in FL. First republic doesn’t cover my city so still waiting their quote. Best so far is from fifth third bank

10/1 -3.500%
7/1 - 3.375%
5/1 - 3.250%

All without closing costs. Big banks are willing to match and give a relationship discount on top for an additional .250 off, so probably going that way.

How much premium do you all place on the ARM lock-in term? Would you go down a quarter point APR but lose a 5 years on the rate?
Teachers FCU. It's NY based unfortunately I think they only lend in NY.

Just locked 7/1 ARM at 2.375%. 5/1 is 2.125% and 10/1 is 2.625%.

That's for under 75% LTV....if at 75-80% LTV..rates are 1/8 pt higher.

Topic Author
huai
Posts: 25
Joined: Mon Jul 24, 2017 9:11 am

Re: Refi at this rate?

Post by huai » Mon Jul 15, 2019 12:01 pm

Thank you for the tip on Teachers FCU 1 very attractive rates but unfortunately they don’t offer closing cost credit in exchange for higher rates on jumbo loans

rascott
Posts: 275
Joined: Wed Apr 15, 2015 10:53 am

Re: Refi at this rate?

Post by rascott » Mon Jul 15, 2019 12:15 pm

huai wrote:
Fri Jul 05, 2019 11:41 am
800 k property
600 k purchase mortgage taken out last year as 10/1 at 3.875
Current payoff balance is 585

I have an opportunity to refi at the moment to a 5/1 at 3.44 with about $1k in fees. Saves me $150/month for next 5 years but also shortens my lock from 9 more years to 5. Break even for closing costs is 7 months.

Would you take the deal?

Right now I pay an extra 3k per year towards principal, if I keep payment the same it will be an extra 4800

I would not take out an ARM right now. If Fed cuts as expected those ARM rates will drop.

Right now the savings of an ARM vs Fixed is not worth the interest rate risk. I'd look again later this year.

rascott
Posts: 275
Joined: Wed Apr 15, 2015 10:53 am

Re: Refi at this rate?

Post by rascott » Mon Jul 15, 2019 12:17 pm

SovereignInvestor wrote:
Thu Jul 11, 2019 7:52 am
huai wrote:
Sat Jul 06, 2019 10:12 am
SovereignInvestor wrote:
Sat Jul 06, 2019 6:26 am
What region are you in? My local credit union is offering 2.25% for 5/1 ARM. 2.125% for LTV under 75%.
Wow those are good rates. Which CU?

I am in FL. First republic doesn’t cover my city so still waiting their quote. Best so far is from fifth third bank

10/1 -3.500%
7/1 - 3.375%
5/1 - 3.250%

All without closing costs. Big banks are willing to match and give a relationship discount on top for an additional .250 off, so probably going that way.

How much premium do you all place on the ARM lock-in term? Would you go down a quarter point APR but lose a 5 years on the rate?
Teachers FCU. It's NY based unfortunately I think they only lend in NY.

Just locked 7/1 ARM at 2.375%. 5/1 is 2.125% and 10/1 is 2.625%.

That's for under 75% LTV....if at 75-80% LTV..rates are 1/8 pt higher.

Those are crazy good, well below market rates.

Topic Author
huai
Posts: 25
Joined: Mon Jul 24, 2017 9:11 am

Re: Refi at this rate?

Post by huai » Mon Jul 15, 2019 1:00 pm

They went up by about .2 pts since the other poster posted, but still crazy good as you say. They in fact cover all 50 states, but the catch is for jumbo loans they don't give an option to drive up the rate to avoid closing costs. I have no interest to shell out $12k to shave off a point of interest given that I'm not trying to catch a falling knife.

Has anyone had luck getting a big bank to match rate & terms and THEN adjust up to give credit for closing costs?

SovereignInvestor
Posts: 351
Joined: Mon Aug 20, 2018 4:41 pm

Re: Refi at this rate?

Post by SovereignInvestor » Mon Jul 15, 2019 4:40 pm

Yeah what's crazy about TFCU is they keep same ARM rate all month so July rate is what I cited but if rates fall by end of month on market like 10Y yield..I'd wait until August for new lower rate..if rates rise then just lock in july rate. Not only is rate so low but they hold it for entire month to give you some hinsight benefit. I didn't lock in June for that reason because by late June the market rates were lower than June 1.

Realized can't look a gift horse and not take it so didn't wait until end of July to lock that. There's other NY CU's offering 3% or lower for ARMs.

Topic Author
huai
Posts: 25
Joined: Mon Jul 24, 2017 9:11 am

Re: Refi at this rate?

Post by huai » Mon Jul 15, 2019 4:58 pm

What are those other CUs?

SovereignInvestor
Posts: 351
Joined: Mon Aug 20, 2018 4:41 pm

Re: Refi at this rate?

Post by SovereignInvestor » Mon Jul 15, 2019 5:16 pm

TFCU, Island FCU, Suffolk FCU.

Topic Author
huai
Posts: 25
Joined: Mon Jul 24, 2017 9:11 am

Re: Refi at this rate?

Post by huai » Thu Jul 18, 2019 8:07 pm

Ok down to my final offer - 3.250 for a 10/1 or 3.625 for a 30 y fixed?
Thoughts?

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