Are you refinancing now?

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Topic Author
big bang
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Joined: Mon Jul 25, 2016 8:33 pm

Are you refinancing now?

Post by big bang » Sun Aug 11, 2019 12:00 pm

Hi all,
Where you are finding the lowest interest rates?
I am looking for a 30 year fixed mortgage hopefully close to 3.35 percent.
Thank you!
(1) save a lot, (2) select an asset allocation containing both stock and bond asset classes, (3) buy low cost, widely diversified funds, (4) allocate funds tax-efficiently, and (5) stay the course.

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fortfun
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Re: Are you refinancing now?

Post by fortfun » Sun Aug 11, 2019 6:27 pm

big bang wrote:
Sun Aug 11, 2019 12:00 pm
Hi all,
Where you are finding the lowest interest rates?
I am looking for a 30 year fixed mortgage hopefully close to 3.35 percent.
Thank you!
I see aimloan mentioned a lot. I've had good luck with provident funding too. Go with a reputable online company for best rates.

delamer
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Re: Are you refinancing now?

Post by delamer » Sun Aug 11, 2019 10:08 pm

When we refi-ed a few years ago, our credit union was offering the best rates.

Bronko
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Location: No matter where you go, there you are.....

Re: Are you refinancing now?

Post by Bronko » Mon Aug 12, 2019 12:13 pm

I just did 3.25 last week with Lakeview lending.
Never let a little bit of money get in the way of a real good time.

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unclescrooge
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Re: Are you refinancing now?

Post by unclescrooge » Mon Aug 12, 2019 12:22 pm

Bronko wrote:
Mon Aug 12, 2019 12:13 pm
I just did 3.25 last week with Lakeview lending.
What were the terms and cost?

Bronko
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Re: Are you refinancing now?

Post by Bronko » Mon Aug 12, 2019 12:26 pm

30 year IRRL. No lender fees. Standard title insurance and escrow.
Never let a little bit of money get in the way of a real good time.

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unclescrooge
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Re: Are you refinancing now?

Post by unclescrooge » Mon Aug 12, 2019 12:26 pm

I just got a 3% quote from PNC Bank for 7 year ARM, with cash out refi at NO cost (ie lender credits).

Of course, now my wife can't unfreeze her credit at Experian :oops:
Last edited by unclescrooge on Mon Aug 12, 2019 4:46 pm, edited 1 time in total.

BlueCable
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Re: Are you refinancing now?

Post by BlueCable » Mon Aug 12, 2019 12:41 pm

Just signed for a 15 year at 2.875% at a state-wide credit union.

Topic Author
big bang
Posts: 46
Joined: Mon Jul 25, 2016 8:33 pm

Re: Are you refinancing now?

Post by big bang » Mon Aug 12, 2019 1:29 pm

Bronko wrote:
Mon Aug 12, 2019 12:13 pm
I just did 3.25 last week with Lakeview lending.
Wow! This is great!
I will contact them.
Thank you!
(1) save a lot, (2) select an asset allocation containing both stock and bond asset classes, (3) buy low cost, widely diversified funds, (4) allocate funds tax-efficiently, and (5) stay the course.

seawolf21
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Re: Are you refinancing now?

Post by seawolf21 » Mon Aug 12, 2019 1:35 pm

Currently locked for a 15-year 3% no cost.

RobLyons
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Re: Are you refinancing now?

Post by RobLyons » Mon Aug 12, 2019 1:37 pm

Why do people refi to a 30 year? Is it to get lower payments? Cash out? Reduce current mortgage % and lower payments? Or are they in ARMs that are about to jump?
I don't understand the point.
I am looking to cut my 23 years remaining on a 30 year conventional to 15 years if it's not a huge jump in payment. Get rid of this debt..
"Great parenting sets the foundation for a better world"

chevca
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Re: Are you refinancing now?

Post by chevca » Mon Aug 12, 2019 1:41 pm

They may only be a year or two into the old 30 year mortgage. Not too big a deal to just extend it a little bit when you barely started anyway.

delamer
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Re: Are you refinancing now?

Post by delamer » Mon Aug 12, 2019 1:57 pm

RobLyons wrote:
Mon Aug 12, 2019 1:37 pm
Why do people refi to a 30 year? Is it to get lower payments? Cash out? Reduce current mortgage % and lower payments? Or are they in ARMs that are about to jump?
I don't understand the point.
I am looking to cut my 23 years remaining on a 30 year conventional to 15 years if it's not a huge jump in payment. Get rid of this debt..
To some extent, it is probably age dependent. A 30-year-old might be more focused on lowering the payment than the loan length. A 50-year-old might be more focused on shortening the loan length than reducing the payment.

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9-5 Suited
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Re: Are you refinancing now?

Post by 9-5 Suited » Mon Aug 12, 2019 2:01 pm

BlueCable wrote:
Mon Aug 12, 2019 12:41 pm
Just signed for a 15 year at 2.875% at a state-wide credit union.
Wow, this is fantastic. Exactly the loan terms I'm looking for. Did you have to pay any points to get that rate? What were the closing costs? Would be awesome to know the specific credit union if you'd be willing to share.

finfire
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Re: Are you refinancing now?

Post by finfire » Mon Aug 12, 2019 2:04 pm

Went from 30 to 15 year.

From 4.375 to 3.375.

BackOfTheNet
Posts: 206
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Re: Are you refinancing now?

Post by BackOfTheNet » Mon Aug 12, 2019 2:05 pm

Locked a 15 year fixed about a week ago. 3.25% with a $4,860 lender credit. Should cover all costs plus a bit towards prepaid items.

AZAttorney11
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Re: Are you refinancing now?

Post by AZAttorney11 » Mon Aug 12, 2019 2:13 pm

BackOfTheNet wrote:
Mon Aug 12, 2019 2:05 pm
Locked a 15 year fixed about a week ago. 3.25% with a $4,860 lender credit. Should cover all costs plus a bit towards prepaid items.
Solid. Mind sharing who the lender is?

BackOfTheNet
Posts: 206
Joined: Mon Nov 30, 2009 9:24 pm

Re: Are you refinancing now?

Post by BackOfTheNet » Mon Aug 12, 2019 2:14 pm

RobLyons wrote:
Mon Aug 12, 2019 1:37 pm
Why do people refi to a 30 year? Is it to get lower payments? Cash out? Reduce current mortgage % and lower payments? Or are they in ARMs that are about to jump?
I don't understand the point.
I am looking to cut my 23 years remaining on a 30 year conventional to 15 years if it's not a huge jump in payment. Get rid of this debt..
I think the better question is why would you NOT refinance to a 30 year if the rate is lower than your current loan (and closing costs make sense). Yes, you are back at a 30 year term but you could always pay extra so that you are done in 23 years. Lowering your interest rate saves money every month.

BackOfTheNet
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Re: Are you refinancing now?

Post by BackOfTheNet » Mon Aug 12, 2019 2:15 pm

AZAttorney11 wrote:
Mon Aug 12, 2019 2:13 pm
BackOfTheNet wrote:
Mon Aug 12, 2019 2:05 pm
Locked a 15 year fixed about a week ago. 3.25% with a $4,860 lender credit. Should cover all costs plus a bit towards prepaid items.
Solid. Mind sharing who the lender is?
LOFI direct. They seem fairly responsive so far but I've not closed yet.

BlueCable
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Re: Are you refinancing now?

Post by BlueCable » Mon Aug 12, 2019 6:37 pm

I had maybe $1300 in fees on a $250k loan, including a couple hundred of points.

I am in Iowa and this was a large credit union only in this and some surrounding states.

mariezzz
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Re: Are you refinancing now?

Post by mariezzz » Mon Aug 12, 2019 7:34 pm

Keep in mind - you can't just think of interest rate.
The interest rate depends on how much you're paying in certain fees.
If you go to aimloan.com and enter your info, they will lay out all the fees for you (look at guaranteed lender fee, guaranteed lender fee credit - the lower your interest rate, the lower your guaranteed lender fee credit), and you can compare how changing the interest rate changes the fees. Enter the relevant info, then a page with rates comes up. Click on the link "see more X-year rates", then click on 'details' for each rate you're interested in. Every lender is doing something similar, even if they don't make it so easy for you to see that.

"No cost" means you're rolling closing expenses into the refinance. That costs you - you pay for it over time.

Interest rates still aren't as low as they were in 2012. Still can't beat the rate I got then (taking into account the fees I paid).

Pessimist55
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Re: Are you refinancing now?

Post by Pessimist55 » Mon Aug 12, 2019 11:55 pm

seawolf21 wrote:
Mon Aug 12, 2019 1:35 pm
Currently locked for a 15-year 3% no cost.


Can you share name.of the Lender

rascott
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Re: Are you refinancing now?

Post by rascott » Tue Aug 13, 2019 12:34 am

MBS had not come close to keeping up with the rally of 10 year Treas. The market takes a while to adjust to quick moves and MBS traders don't think it will stick.

If the 10 yr stays where it is, mortgage rates will drop further, eventually. If the 10 yr goes back up in yield, mortgage rates will still stay roughly where they are.


Bottom line...I would not lock a loan right now. I'm waiting,

lotusflower
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Re: Are you refinancing now?

Post by lotusflower » Tue Aug 13, 2019 12:43 am

RobLyons wrote:
Mon Aug 12, 2019 1:37 pm
Why do people refi to a 30 year?
You can always pay more principal but you can never pay less than the minimum amortized payment without putting your house at risk. So getting a 30-year if you could afford a 15- is a bit of an insurance policy. Maybe it's expensive insurance and it would be better to fatten up your emergency fund, but it all depends on how secure your job is, etc. When I refinanced last time, I didn't have a great emergency fund and I slept better at night with a much lower required payment.

rascott
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Re: Are you refinancing now?

Post by rascott » Tue Aug 13, 2019 12:54 am

lotusflower wrote:
Tue Aug 13, 2019 12:43 am
RobLyons wrote:
Mon Aug 12, 2019 1:37 pm
Why do people refi to a 30 year?
You can always pay more principal but you can never pay less than the minimum amortized payment without putting your house at risk. So getting a 30-year if you could afford a 15- is a bit of an insurance policy. Maybe it's expensive insurance and it would be better to fatten up your emergency fund, but it all depends on how secure your job is, etc. When I refinanced last time, I didn't have a great emergency fund and I slept better at night with a much lower required payment.


Doing an ARM of some sort is often the best financial answer. The lower rate of a 15 yr on a 30 year payment, and you just take the interest rate risk yourself. They all now have caps on interest rate hikes, so the tail risk isn't high. And high mtg rates means higher inflation, which should mean your home is going up in nominal price, which has no cap....and ones income would be as well

5/5 ARM is a great product, for example.

Or you can buy insurance (fixed rates)

mcdb84
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Re: Are you refinancing now?

Post by mcdb84 » Tue Aug 13, 2019 1:04 am

Went on Zillow and found BNC National Bank and will be closing and signing final docs tomorrow on a VA 30-year cash out refi @3.125% with a $1000.00 lender credit.

Closed in 45 days. I've done five (5) VA refi's since I purchased my home in 2014. This one was a little longer, but since I was doing a VA cash out, I had to get an appraisal and pest inspection.

I am also disabled vet so no funding fee was paid.

RobLyons
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Re: Are you refinancing now?

Post by RobLyons » Tue Aug 13, 2019 7:31 am

BackOfTheNet wrote:
Mon Aug 12, 2019 2:14 pm
RobLyons wrote:
Mon Aug 12, 2019 1:37 pm
Why do people refi to a 30 year? Is it to get lower payments? Cash out? Reduce current mortgage % and lower payments? Or are they in ARMs that are about to jump?
I don't understand the point.
I am looking to cut my 23 years remaining on a 30 year conventional to 15 years if it's not a huge jump in payment. Get rid of this debt..
I think the better question is why would you NOT refinance to a 30 year if the rate is lower than your current loan (and closing costs make sense). Yes, you are back at a 30 year term but you could always pay extra so that you are done in 23 years. Lowering your interest rate saves money every month.

I guess since I have a 3.5% 30 year I never saw refinancing to get a lower rate as an option.. Rates (that I have seen) haven't been below this too much since I purchased in 2012.

For me, saving a quarter point isn't as risky psychologically as putting myself into another 30 year. I could potentially get lazy and pay the minimum and not pay off my house until I'm nearly 70.. vs refi to a 15 and be done by 53.

For me that means delaying retirement. Just my thought process.. But I see your point too.
"Great parenting sets the foundation for a better world"

Bacchus01
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Re: Are you refinancing now?

Post by Bacchus01 » Tue Aug 13, 2019 7:36 am

unclescrooge wrote:
Mon Aug 12, 2019 12:26 pm
I just got a 3% quote from PNC Bank for 7 year ARM, with cash out refi at NO cost (ie lender credits).

Of course, now my wife can't unfreeze her credit at Experian :oops:
I would do that in a heartbeat. I'd like to cash-out refinance.

Bacchus01
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Re: Are you refinancing now?

Post by Bacchus01 » Tue Aug 13, 2019 7:37 am

RobLyons wrote:
Mon Aug 12, 2019 1:37 pm
Why do people refi to a 30 year? Is it to get lower payments? Cash out? Reduce current mortgage % and lower payments? Or are they in ARMs that are about to jump?
I don't understand the point.
I am looking to cut my 23 years remaining on a 30 year conventional to 15 years if it's not a huge jump in payment. Get rid of this debt..
Flexibility. You can always pay early on a 30 year. It's difficult to pay late on a 15 year. If the spread is not that much, a 30 with flexibility is a big deal.

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F150HD
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Re: Are you refinancing now?

Post by F150HD » Tue Aug 13, 2019 8:13 am

big bang wrote:
Mon Aug 12, 2019 1:29 pm
Bronko wrote:
Mon Aug 12, 2019 12:13 pm
I just did 3.25 last week with Lakeview lending.
Wow! This is great!
I will contact them.
Thank you!
Hmmm....
-
Image

classicindexer
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Re: Are you refinancing now?

Post by classicindexer » Tue Aug 13, 2019 8:13 am

Bacchus01 wrote:
Tue Aug 13, 2019 7:37 am
RobLyons wrote:
Mon Aug 12, 2019 1:37 pm
Why do people refi to a 30 year? Is it to get lower payments? Cash out? Reduce current mortgage % and lower payments? Or are they in ARMs that are about to jump?
I don't understand the point.
I am looking to cut my 23 years remaining on a 30 year conventional to 15 years if it's not a huge jump in payment. Get rid of this debt..
Flexibility. You can always pay early on a 30 year. It's difficult to pay late on a 15 year. If the spread is not that much, a 30 with flexibility is a big deal.
Yes you can pay more on a 30 year, but you typically would have to pay the 30 year like a 15 year right away on a new loan.

For a 200K loan 3.0% 15 YR ($1381.16/mo) vs. 3.5% 30 YR ($898.09/mo), paying the $1381/mon on a 30YR would take about 15 3/4 years instead of 15. Of course if you don't pay the 30 like a 15 year right away it will take much longer to pay off.

I have a 25 year mortgage right now (was a refi from a 30 year) and never paid extra on it. To try to pay it off now in 15 years would result in having to pay $685 more a month vs. a 15 year refi w/lower interest rate would have been only an extra $350 a month payment vs. the 25 year.

seawolf21
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Re: Are you refinancing now?

Post by seawolf21 » Tue Aug 13, 2019 11:20 am

Pessimist55 wrote:
Mon Aug 12, 2019 11:55 pm
seawolf21 wrote:
Mon Aug 12, 2019 1:35 pm
Currently locked for a 15-year 3% no cost.


Can you share name.of the Lender
Go to better.com to get a loan estimate. Then go to mortgage professor to get the best quote. If price is lower than better, obtain a loan estimate and send to better.com for their best price guarantee.

Ignis
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Re: Are you refinancing now?

Post by Ignis » Tue Aug 13, 2019 2:08 pm

Tag for later.

Bronko
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Re: Are you refinancing now?

Post by Bronko » Tue Aug 13, 2019 2:28 pm

F150HD wrote:
Tue Aug 13, 2019 8:13 am
big bang wrote:
Mon Aug 12, 2019 1:29 pm
Bronko wrote:
Mon Aug 12, 2019 12:13 pm
I just did 3.25 last week with Lakeview lending.
Wow! This is great!
I will contact them.
Thank you!
Hmmm....
-
Image
Yup. I'm not selling for them. They happened to hold my loan and contacted me for a refi. I gave them a shot and they came through. I'd shop around also if it wasn't them asking me to do it.
Never let a little bit of money get in the way of a real good time.

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

Re: Are you refinancing now?

Post by Bacchus01 » Tue Aug 13, 2019 7:29 pm

classicindexer wrote:
Tue Aug 13, 2019 8:13 am
Bacchus01 wrote:
Tue Aug 13, 2019 7:37 am
RobLyons wrote:
Mon Aug 12, 2019 1:37 pm
Why do people refi to a 30 year? Is it to get lower payments? Cash out? Reduce current mortgage % and lower payments? Or are they in ARMs that are about to jump?
I don't understand the point.
I am looking to cut my 23 years remaining on a 30 year conventional to 15 years if it's not a huge jump in payment. Get rid of this debt..
Flexibility. You can always pay early on a 30 year. It's difficult to pay late on a 15 year. If the spread is not that much, a 30 with flexibility is a big deal.
Yes you can pay more on a 30 year, but you typically would have to pay the 30 year like a 15 year right away on a new loan.

For a 200K loan 3.0% 15 YR ($1381.16/mo) vs. 3.5% 30 YR ($898.09/mo), paying the $1381/mon on a 30YR would take about 15 3/4 years instead of 15. Of course if you don't pay the 30 like a 15 year right away it will take much longer to pay off.

I have a 25 year mortgage right now (was a refi from a 30 year) and never paid extra on it. To try to pay it off now in 15 years would result in having to pay $685 more a month vs. a 15 year refi w/lower interest rate would have been only an extra $350 a month payment vs. the 25 year.
What’s your point? I said flexibility. I didn’t say anything about matching the timeline. Flexibility is worth a LOT to me.

Your interest expense in year one is virtually identical.

BTW, I have three mortgages. 2 15s and a 20. Why? Because at the time I got them the spread between 15 and 30 was about 1%. Now? It’s really not worth it in my book.

Hope
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Re: Are you refinancing now?

Post by Hope » Tue Aug 13, 2019 10:27 pm

BlueCable wrote:
Mon Aug 12, 2019 12:41 pm
Just signed for a 15 year at 2.875% at a state-wide credit union.
Thats an amazing rate.
seawolf21 wrote:
Mon Aug 12, 2019 1:35 pm
Currently locked for a 15-year 3% no cost.
Wow, Can you please share the lender name? Would love this rate.

Pessimist55
Posts: 50
Joined: Thu May 14, 2015 12:16 am

Re: Are you refinancing now?

Post by Pessimist55 » Tue Aug 13, 2019 11:42 pm

I don't get why better needs to do a soft inquiry for a basic rate quote
Too invasive for me
seawolf21 wrote:
Tue Aug 13, 2019 11:20 am
Pessimist55 wrote:
Mon Aug 12, 2019 11:55 pm
seawolf21 wrote:
Mon Aug 12, 2019 1:35 pm
Currently locked for a 15-year 3% no cost.


Can you share name.of the Lender
Go to better.com to get a loan estimate. Then go to mortgage professor to get the best quote. If price is lower than better, obtain a loan estimate and send to better.com for their best price guarantee.

tesuzuki2002
Posts: 766
Joined: Fri Dec 11, 2015 12:40 pm

Re: Are you refinancing now?

Post by tesuzuki2002 » Wed Aug 14, 2019 12:52 am

no Refi. Mortgage is paid off!

seawolf21
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Joined: Tue Aug 05, 2014 7:33 am

Re: Are you refinancing now?

Post by seawolf21 » Wed Aug 14, 2019 2:06 am

Pessimist55 wrote:
Tue Aug 13, 2019 11:42 pm
I don't get why better needs to do a soft inquiry for a basic rate quote
Too invasive for me
seawolf21 wrote:
Tue Aug 13, 2019 11:20 am
Pessimist55 wrote:
Mon Aug 12, 2019 11:55 pm
seawolf21 wrote:
Mon Aug 12, 2019 1:35 pm
Currently locked for a 15-year 3% no cost.


Can you share name.of the Lender
Go to better.com to get a loan estimate. Then go to mortgage professor to get the best quote. If price is lower than better, obtain a loan estimate and send to better.com for their best price guarantee.
Some folks here use mint/personal capital while others are not comfortable with it. The choice is entirely up to you.

RobLyons
Posts: 430
Joined: Tue Oct 31, 2017 12:55 pm

Re: Are you refinancing now?

Post by RobLyons » Wed Aug 14, 2019 8:05 am

seawolf21 wrote:
Tue Aug 13, 2019 11:20 am
Pessimist55 wrote:
Mon Aug 12, 2019 11:55 pm
seawolf21 wrote:
Mon Aug 12, 2019 1:35 pm
Currently locked for a 15-year 3% no cost.


Can you share name.of the Lender
Go to better.com to get a loan estimate. Then go to mortgage professor to get the best quote. If price is lower than better, obtain a loan estimate and send to better.com for their best price guarantee.

Better.com not yet available in Massachusetts :thumbsdown
"Great parenting sets the foundation for a better world"

Ultrarunner
Posts: 5
Joined: Fri Jan 25, 2019 10:24 pm

Re: Are you refinancing now?

Post by Ultrarunner » Wed Aug 14, 2019 8:11 am

Refinancing from a 30yr at 4.5% (just done in February) to a 20yr at 3.85% with $4800 in credits (better.com) to pay closing costs.

I had been making extra principal payments to get the 30 to 20 but this accomplished that for $350/month less.

Ultrarunner
Posts: 5
Joined: Fri Jan 25, 2019 10:24 pm

Re: Are you refinancing now?

Post by Ultrarunner » Wed Aug 14, 2019 8:14 am

Pessimist55 wrote:
Tue Aug 13, 2019 11:42 pm
I don't get why better needs to do a soft inquiry for a basic rate quote
Too invasive for me
Just go to better.com and click on view rates then click custom. You can change the loan amount too. That gives rates without logging in.

tbone555
Posts: 53
Joined: Thu Apr 13, 2017 1:28 pm

Re: Are you refinancing now?

Post by tbone555 » Wed Aug 14, 2019 8:18 am

RobLyons wrote:
Mon Aug 12, 2019 1:37 pm
Why do people refi to a 30 year? Is it to get lower payments? Cash out? Reduce current mortgage % and lower payments? Or are they in ARMs that are about to jump?
I don't understand the point.
I am looking to cut my 23 years remaining on a 30 year conventional to 15 years if it's not a huge jump in payment. Get rid of this debt..
I'm refinancing my 30-year mortgage with 27 years left. It saves $230 a month. I will pay the $230 toward principle each month. New mortgage will finish about same time as old mortgage and I will save $100k in interest.

Luke Duke
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Location: Texas

Re: Are you refinancing now?

Post by Luke Duke » Wed Aug 14, 2019 8:28 am

BackOfTheNet wrote:
Mon Aug 12, 2019 2:14 pm
RobLyons wrote:
Mon Aug 12, 2019 1:37 pm
Why do people refi to a 30 year? Is it to get lower payments? Cash out? Reduce current mortgage % and lower payments? Or are they in ARMs that are about to jump?
I don't understand the point.
I am looking to cut my 23 years remaining on a 30 year conventional to 15 years if it's not a huge jump in payment. Get rid of this debt..
I think the better question is why would you NOT refinance to a 30 year if the rate is lower than your current loan (and closing costs make sense). Yes, you are back at a 30 year term but you could always pay extra so that you are done in 23 years. Lowering your interest rate saves money every month.
Exactly. I refied from a 30 to another 30 and kept making the same payment. Then a few years later I refied again into a 15 @ 2.99%. My principal & interest payments have remained about the same while knocking years off my mortgage. Unfortunately I can't say the same about my property taxes.

RobLyons
Posts: 430
Joined: Tue Oct 31, 2017 12:55 pm

Re: Are you refinancing now?

Post by RobLyons » Wed Aug 14, 2019 8:40 am

tbone555 wrote:
Wed Aug 14, 2019 8:18 am
RobLyons wrote:
Mon Aug 12, 2019 1:37 pm
Why do people refi to a 30 year? Is it to get lower payments? Cash out? Reduce current mortgage % and lower payments? Or are they in ARMs that are about to jump?
I don't understand the point.
I am looking to cut my 23 years remaining on a 30 year conventional to 15 years if it's not a huge jump in payment. Get rid of this debt..
I'm refinancing my 30-year mortgage with 27 years left. It saves $230 a month. I will pay the $230 toward principle each month. New mortgage will finish about same time as old mortgage and I will save $100k in interest.

OK so your answer is lower %... got that..

But taking that $230 and investing it monthly would yield much better results over 27 years..
5% return = $151,000
8% return = $242,000
10% return = $337,000
"Great parenting sets the foundation for a better world"

bg5
Posts: 90
Joined: Mon Jan 15, 2018 11:07 am

Re: Are you refinancing now?

Post by bg5 » Wed Aug 14, 2019 8:45 am

Is there a general rule of thumb on refinancing? I have a 30 year @ 4.375% with 27 years left. I owe 236k on a home valued at 500k. There are 15 year at 2.87%. Should i go from 30 year to 15?

tbone555
Posts: 53
Joined: Thu Apr 13, 2017 1:28 pm

Re: Are you refinancing now?

Post by tbone555 » Wed Aug 14, 2019 8:45 am

RobLyons wrote:
Wed Aug 14, 2019 8:40 am
tbone555 wrote:
Wed Aug 14, 2019 8:18 am
RobLyons wrote:
Mon Aug 12, 2019 1:37 pm
Why do people refi to a 30 year? Is it to get lower payments? Cash out? Reduce current mortgage % and lower payments? Or are they in ARMs that are about to jump?
I don't understand the point.
I am looking to cut my 23 years remaining on a 30 year conventional to 15 years if it's not a huge jump in payment. Get rid of this debt..
I'm refinancing my 30-year mortgage with 27 years left. It saves $230 a month. I will pay the $230 toward principle each month. New mortgage will finish about same time as old mortgage and I will save $100k in interest.

OK so your answer is lower %... got that..

But taking that $230 and investing it monthly would yield much better results over 27 years..
5% return = $151,000
8% return = $242,000
10% return = $337,000
And that is probably what I will do, but I wanted to make the point that it could effectively be a 27-year mortgage refinance if I choose to use the savings to pay down principle.

tbone555
Posts: 53
Joined: Thu Apr 13, 2017 1:28 pm

Re: Are you refinancing now?

Post by tbone555 » Wed Aug 14, 2019 8:48 am

bg5 wrote:
Wed Aug 14, 2019 8:45 am
Is there a general rule of thumb on refinancing? I have a 30 year @ 4.375% with 27 years left. I owe 236k on a home valued at 500k. There are 15 year at 2.87%. Should i go from 30 year to 15?
Personal choice. Would doing a 30-year lower costs enough to Max out a 401k for instance? See my post about paying principle with the savings.

RobLyons
Posts: 430
Joined: Tue Oct 31, 2017 12:55 pm

Re: Are you refinancing now?

Post by RobLyons » Wed Aug 14, 2019 9:15 am

bg5 wrote:
Wed Aug 14, 2019 8:45 am
Is there a general rule of thumb on refinancing? I have a 30 year @ 4.375% with 27 years left. I owe 236k on a home valued at 500k. There are 15 year at 2.87%. Should i go from 30 year to 15?

What lender? That's a great rate. I haven't seen anything in the 2s, maybe I'm not looking in the right areas..
"Great parenting sets the foundation for a better world"

jharkin
Posts: 2324
Joined: Mon Mar 28, 2016 7:14 am
Location: Boston suburbs

Re: Are you refinancing now?

Post by jharkin » Wed Aug 14, 2019 11:03 am

lotusflower wrote:
Tue Aug 13, 2019 12:43 am
RobLyons wrote:
Mon Aug 12, 2019 1:37 pm
Why do people refi to a 30 year?
You can always pay more principal but you can never pay less than the minimum amortized payment without putting your house at risk. So getting a 30-year if you could afford a 15- is a bit of an insurance policy. Maybe it's expensive insurance and it would be better to fatten up your emergency fund, but it all depends on how secure your job is, etc. When I refinanced last time, I didn't have a great emergency fund and I slept better at night with a much lower required payment.
+1 and spreads between 15 and 30 are so low right now it doesnt seem worth the extra risk to me.

Add the above comment that a lot of people are refi only a couple years into a 30.

OR you might strongly suspect you will move long before the 30 years is up and just payoff the balance at sale so not a lot of incentive to paying it down aggressively when rates are this low historically and there is a good chance a blended investment portfolio will return more than the loan costs.

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