Refinance Mega Thread

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mega317
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Re: Refinance Mega Thread

Post by mega317 » Sat Mar 21, 2020 5:08 pm

FWIW we did find a notary and closed yesterday.
https://www.bogleheads.org/forum/viewtopic.php?t=6212

frankandbeans
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Re: Refinance Mega Thread

Post by frankandbeans » Sat Mar 21, 2020 5:24 pm

jco wrote:
Sat Mar 21, 2020 4:52 pm
frankandbeans wrote:
Sat Mar 21, 2020 2:46 pm
Thanks for the feedback! Monthly payment goes down about $300/mo (would go down about $500/mo if go through with refinance).
I'd still do it. I suspect the additional reduction in monthly payments is because your are also extending the loan term.

You can still refinance in the future if you wish, but I'd take 1 bird in hand rather than 2 in the bush.

I just closed a refi on 3/13. The rate was a bit higher than some others here have gotten because I locked a bit sooner. But with loan applications being cancelled, I'm glad I took the opportunity when I could. I can refi on 6 months if it makes sense, but I've already locked in with a better term than I previously had.
Thanks again—that’s definitely correct (higher payment due to shorter term) and the amount lines up with what the Mortgage Professor calculator says it should be, so no apparent funny business. I also checked with my original lender (who’s a friend) and he says they’re seeing a bit of this now because the banks are trying to stem the outflow of their existing loan portfolio due to refinances and to go for it.

il0kin
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Re: Refinance Mega Thread

Post by il0kin » Sun Mar 22, 2020 10:30 am

Notary came to our house yesterday and we closed on our 20 year 3.125% refinance.

My closing costs were not quite as favorable as some have posted (about $2000) but we plan to stay in the house for a long time and will recoup the closing costs in saved interest in under a year. Looking at the amortization table versus our 3.875 30 year gave me a big smile in these challenging times! We will save approximately $70,000 in interest and cut 6 years off the loan, if I recall correctly from earlier calculations.

Eyeski
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Re: Refinance Mega Thread

Post by Eyeski » Sun Mar 22, 2020 3:12 pm

Am I crazy to refinance right now?

I currently have a 30-year at 3.75% and am refinancing to a 15-year at 2.875% with no points. Cost of the loan is roughly 2k. Seems to be a good rate considering my loan amount is relatively low @ 188k and it is for a condo, which doesn't generate as good a rate as a house. I should break even in 12 months. My only concern is that once everything settles down and the demand for refinancing goes down, rates may drop even lower.

I'm supposed to sign everything in 2 days assuming we don't go on lockdown here in Utah.

booboo1234
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Re: Refinance Mega Thread

Post by booboo1234 » Sun Mar 22, 2020 7:59 pm

locked a 15 year with lenderfi a couple of weeks ago. if i wanted to change the term to a 20 or 30 year, would they give me the rates at the time of my lock? or the current rates ?

invest4
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Re: Refinance Mega Thread

Post by invest4 » Sun Mar 22, 2020 8:29 pm

Locked 30 year with no escrow last week. 1500 credit...estimate I will pay 1000 out the door (500 title fees + 500 appraisal). Gateway Capital Mortgage. Continue to be impressed with those who opt for 15 year. I find I really value the option to pay more if able or desired vs. fixed higher amount with the 15.

BruDude
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Re: Refinance Mega Thread

Post by BruDude » Tue Mar 24, 2020 12:14 pm

PenFed is back down to 3.125% on a 30-year fixed with 0 points today. 15-year rate is still high at 3%.

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LadyGeek
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Re: Refinance Mega Thread

Post by LadyGeek » Tue Mar 24, 2020 12:29 pm

For reference, I refinanced with PenFed in 2011 for 15 years @ 3.00% with 1 point. At the time, it was a rock-bottom rate.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

p_haze
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Re: Refinance Mega Thread

Post by p_haze » Tue Mar 24, 2020 12:56 pm

p_haze wrote:
Wed Feb 26, 2020 11:49 am
My experience so far with LoanDepot has been great. They were also rated highly in a couple of "best lenders" lists fwiw. Other reasons are that they do a ton more business than say LenderFi, USD 70 Billion vs. 3 Billion. And they have good JD Power satisfaction ratings. However, your concern about not knowing who they sell the mortgage to and how the loan service will be still stand. I decided that the offer was worth the risk.

I had a few of the lenders run the credit check, I think 4. From what I know, rate shopping within a certain period counts as a single inquiry. Everyone else, I just sent them the loan estimate and they told me whether they could beat it or not without a credit check.
I closed with loandepot today
Original terms: 3.75%, 30 year, ~27 years remaining, balance $665K
New terms: 3.125%, 20 year, closing costs of $330

Learnt that I missed < 3.0% 30 year rates which could have been better for flexibility..ah well.

nic3456
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Re: Refinance Mega Thread

Post by nic3456 » Tue Mar 24, 2020 2:14 pm

BruDude wrote:
Tue Mar 24, 2020 12:14 pm
PenFed is back down to 3.125% on a 30-year fixed with 0 points today. 15-year rate is still high at 3%.

Does Penfed have a 1% Origination fee for all refi’s? Have been trying to confirm but can’t get someone on phone

manuvns
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Re: Refinance Mega Thread

Post by manuvns » Tue Mar 24, 2020 2:27 pm

nic3456 wrote:
Tue Mar 24, 2020 2:14 pm
BruDude wrote:
Tue Mar 24, 2020 12:14 pm
PenFed is back down to 3.125% on a 30-year fixed with 0 points today. 15-year rate is still high at 3%.

Does Penfed have a 1% Origination fee for all refi’s? Have been trying to confirm but can’t get someone on phone
no origination fee , mostly points for rate reduction .

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hornet96
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Re: Refinance Mega Thread

Post by hornet96 » Tue Mar 24, 2020 2:51 pm

Supposed to finally close on my refi on 4/1 with Keystone Funding. True closing costs are around $1,800, most of which are title fees that I shopped around for and believe are pretty consistent across firms in my area. I'm not including transfer taxes/prepaid interest/prepaid escrows in this figure.

30 year fixed
3.125% (locked in several weeks ago; lender agreed to extend lock at no charge due to backlog on their end)
No points
No origination fees

manatee2005
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Re: Refinance Mega Thread

Post by manatee2005 » Tue Mar 24, 2020 8:27 pm

Loan funded with lenderfi today.

booboo1234
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Re: Refinance Mega Thread

Post by booboo1234 » Wed Mar 25, 2020 9:02 am

manatee2005 wrote:
Tue Mar 24, 2020 8:27 pm
Loan funded with lenderfi today.
question... when did you get your rate lock disclosure. trying to figure out when i will be closing

jbell3124
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Re: Refinance Mega Thread

Post by jbell3124 » Wed Mar 25, 2020 9:15 pm

Closed with Lenderfi yesterday, 3/24. First initiated contact with them on 2/26. Smooth process throughout. 3% no cost refi on a 30-year. Would definitely use again based on this experience.

ig77
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Re: Refinance Mega Thread

Post by ig77 » Wed Mar 25, 2020 9:46 pm

Does anyone know when LenderFi will start accepting new applications? I'd like to start a new refi application and based on this thread it appears that LenderFi is the way to go? Any other lenders you guys recommend?

tlp77
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Re: Refinance Mega Thread

Post by tlp77 » Wed Mar 25, 2020 10:15 pm

After reading some previous comments I feel like I may be getting fleeced on fees for my refi that I just locked in.

Going from a 4.125% 30 year with Wells (2.5 years in) to a 3.25% 30 year with new lender. Loan amount is going from $252,000 to $259,250... 3k of that is going to replenish the Escrows and I should be getting a 1k or so check back for what is currently in with Wells.

Origination Costs are what stand out a bit to me as high... $4,388- includes 1% of loan amount ($2,593 "points"), Processing/Underwriting fee $1795 (getting a $750 credit back for this so really $1k~).

Thoughts?
Last edited by tlp77 on Wed Mar 25, 2020 10:39 pm, edited 3 times in total.

seawolf21
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Re: Refinance Mega Thread

Post by seawolf21 » Wed Mar 25, 2020 10:23 pm

ig77 wrote:
Wed Mar 25, 2020 9:46 pm
Does anyone know when LenderFi will start accepting new applications? I'd like to start a new refi application and based on this thread it appears that LenderFi is the way to go? Any other lenders you guys recommend?
tlp77 wrote:
Wed Mar 25, 2020 10:15 pm
After reading some previous comments I feel like I may be getting fleeced on my refi that I just locked in.

Going from a 4.125% 30 year with Wells (2.5 years in) to a 3.25% 30 year with new lender. Loan amount is going from $252,000 to $259,000... 3k of that is going to replenish the Escrows and I should be getting a 1k or so check back for what is currently in with Wells.

Origination Costs are what stand out a bit to me as high... $4,388- includes 1% of loan amount ($2,593 "points"), Processing/Underwriting fee $1795 (getting a $750 credit back for this so really $1k~).

Thoughts?
Take a look at mortgage professor if you haven't done so already.

AD3
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Re: Refinance Mega Thread

Post by AD3 » Wed Mar 25, 2020 11:43 pm

Loan Costs Borrower Paid at Closing Lender Credit
% of Loan Amount (Points)
02 Courier Fee/Overnight Fee $30.00
03 Document Preparation Fee-Orig $30.00
04 Processing Fee $595.00


01 Appraisal Fee $800.00
02 Credit Report Fee $47.00
03 Flood Certificate Fee to $6.00
04 Insurance Monitoring Fee $55.00
05 Tax Service Fee $84.00
06 Title-Endorsement Fee Bundled $50.00
07 Title-Escrow-Courier $75.00
08 Title-Escrow-Escrow/Atty Settlement Fee $475.00
09 Title-Escrow-Notary Fee $200.00
10 Title-Escrow-Recording Service Fee $14.00
11 Title-Lenders Title Insurance to $380.00

Total $1,647.00 Lender Credit Total $1,194.00


Recording Fees $290.00
Prepaid $266.51

Closing Cost $1,913.51
Lender Credits $1,484.00

Looking at my closing disclosure and wanted to see if these numbers look okay to everyone else? I got a 3.15% interest rate for 30yrs on a $105,000 loan amount. (playing to pay it off early). One interesting thing that I found were the appraisal fees was quoted as $800 but on the actual appraisal document that I was sent it states the cost as $525, so I'm most likely going to ask about that. Also when people here say they are getting no cost refinance is the closing cost being financed from the loan amount, because that's what I'm being offered as a no cost refinance?

thegoatfarmer
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Re: Refinance Mega Thread

Post by thegoatfarmer » Thu Mar 26, 2020 1:19 am

Long time lurker here, was hoping for some Boglehead perspective on my in progress refinance and a potential cash out.

Currently in a 30 year, 4.0% mortgage with ~$204K loan amount remaining. Originated in 2017, and paying PMI, though a reappraisal would get rid of that. Rate locked a 30 year, 3.0% refinance two weeks ago with $3300 in closing costs (rolled into loan). The closing costs seems high compared to others in this thread, but they're actually the most competitive I've found from local lenders -- I believe it is state specific requirements.

The refinance is a no-brainer -- I'll reduce my payment by ~$150/month, save $20K in interest over the term of the loan and closing costs will be paid back in about 20 months. We'll be in this house for at least five years.

The curveball here is we need a new roof, to the tune of about $20k. We've saved this amount up and were ready to sign a contract, but given the current economic situation (wife's job is stable, mine is less certain), have paused. We have a 9 month emergency fund on top of the money set aside for the roof without cutting any current discretionary spending.

Our appraisal came in very high, and we have plenty of equity in the house. Confirmed with the lender that a cash out refi as high as $50K is doable and will not affect the interest rate.

I'm thinking of taking some cash out to to fund the roofing project (between $10-20K), and have some peace of mind should our job situation changes due to Corona that we have a long-term emergency fund. Below is a table of the various proposals, including monthly payments, total loan costs and total interest:

Image

The way I look at it is -- worst case, I lose my job, but we can still put the new roof on and have a healthy emergency fund, while still reducing our monthly payment from what it is now (and with a lower total loan cost up to the $10K cash out option). Best case, both of our jobs are stable, we don't need to tap into the emergency fund, and I dump whatever sum of cash out I took right back into the mortgage once things settle down, putting me at the same trajectory should I have not taken the cash out (with a slightly higher monthly payment). Currently leaning towards the $10K cash out option, and funding the rest of the project from savings.

Am I missing anything here? Thanks all for your time.

nic3456
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Re: Refinance Mega Thread

Post by nic3456 » Thu Mar 26, 2020 9:42 am

What lender? All the ones I keep checking with are trying to add $ or higher rate with cash out (even though I’m only wanting like 30k)

thegoatfarmer
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Re: Refinance Mega Thread

Post by thegoatfarmer » Thu Mar 26, 2020 9:46 am

It’s a small local credit union in MA. They only accept regional customers AFAIK. If you’re really interested I can PM you, though their advertised rates for a 30y fixed are now 4.0%.

amindu
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Re: Refinance Mega Thread

Post by amindu » Thu Mar 26, 2020 10:15 am

jco wrote:
Sat Mar 21, 2020 2:39 pm
frankandbeans wrote:
Sat Mar 21, 2020 1:52 pm
Hoping to tap the brain trust for some advice here. I have 25.5 years left on my $630k mortgage at 3.75. I am currently locked with LenderFi at 3.125/30 with 0 cost, with an expiration date of April 2.

Chase currently holds the note and services the loan. (I've been extremely happy with them--great communication, and they waived escrow last year with no cost or hassle.) They presumably noticed the hard pulls or payoff quote request and just contacted me to offer me a no-refi rate reduction to 2.875. Not a refi, just a straight-up rate reduction. It seems as easy as clicking a button to accept an offer.

I'm inclined to take it for the following reasons. Appreciate folks telling me if my thinking makes sense or if I'm missing or improperly weighing a factor:

--2.875 is lower than 3.125
--Was planning to pay off loan within current time frame anyway, so extra 4.5 years isn't a meaningful benefit
--Concerned about whether LenderFi can close, given how slammed they are and troubles I have read about of folks obtaining a notary
--Happy with Chase and not having to deal with hassles of refi, closing, and dealing with another servicer
--My understanding is that I can cancel prior to close and am not on the hook for any costs

Appreciate any thoughts from folks. Hope everyone is staying healthy and safe.
Sounds like an excellent opportunity in an uncertain time. It seems like there is a lot of upside. The only downside may be that your monthly payment doesn't decrease? I would take the Chase offer in a heart beat.
Do you have a number to that department? My loan is with chase as well and when i brought up this program to their mortgage department they kept telling me that they are not offering anything like this. Thanks

seawolf21
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Re: Refinance Mega Thread

Post by seawolf21 » Thu Mar 26, 2020 11:13 am

AD3 wrote:
Wed Mar 25, 2020 11:43 pm
Loan Costs Borrower Paid at Closing Lender Credit
% of Loan Amount (Points)
02 Courier Fee/Overnight Fee $30.00
03 Document Preparation Fee-Orig $30.00
04 Processing Fee $595.00


01 Appraisal Fee $800.00
02 Credit Report Fee $47.00
03 Flood Certificate Fee to $6.00
04 Insurance Monitoring Fee $55.00
05 Tax Service Fee $84.00
06 Title-Endorsement Fee Bundled $50.00
07 Title-Escrow-Courier $75.00
08 Title-Escrow-Escrow/Atty Settlement Fee $475.00
09 Title-Escrow-Notary Fee $200.00
10 Title-Escrow-Recording Service Fee $14.00
11 Title-Lenders Title Insurance to $380.00

Total $1,647.00 Lender Credit Total $1,194.00


Recording Fees $290.00
Prepaid $266.51

Closing Cost $1,913.51
Lender Credits $1,484.00

Looking at my closing disclosure and wanted to see if these numbers look okay to everyone else? I got a 3.15% interest rate for 30yrs on a $105,000 loan amount. (playing to pay it off early). One interesting thing that I found were the appraisal fees was quoted as $800 but on the actual appraisal document that I was sent it states the cost as $525, so I'm most likely going to ask about that. Also when people here say they are getting no cost refinance is the closing cost being financed from the loan amount, because that's what I'm being offered as a no cost refinance?
"No cost" is not closing cost being folded into the new loan principal. "No cost" is the closing cost is offset (or closely offset) by the Lender Credit. The "cost" of a "no-cost" is you are taking an otherwise higher interest rate.

In your example, you are paying out $400 for this transaction which is close to "no-cost."

frankandbeans
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Re: Refinance Mega Thread

Post by frankandbeans » Thu Mar 26, 2020 1:44 pm

amindu wrote:
Thu Mar 26, 2020 10:15 am
jco wrote:
Sat Mar 21, 2020 2:39 pm
frankandbeans wrote:
Sat Mar 21, 2020 1:52 pm
Hoping to tap the brain trust for some advice here. I have 25.5 years left on my $630k mortgage at 3.75. I am currently locked with LenderFi at 3.125/30 with 0 cost, with an expiration date of April 2.

Chase currently holds the note and services the loan. (I've been extremely happy with them--great communication, and they waived escrow last year with no cost or hassle.) They presumably noticed the hard pulls or payoff quote request and just contacted me to offer me a no-refi rate reduction to 2.875. Not a refi, just a straight-up rate reduction. It seems as easy as clicking a button to accept an offer.

I'm inclined to take it for the following reasons. Appreciate folks telling me if my thinking makes sense or if I'm missing or improperly weighing a factor:

--2.875 is lower than 3.125
--Was planning to pay off loan within current time frame anyway, so extra 4.5 years isn't a meaningful benefit
--Concerned about whether LenderFi can close, given how slammed they are and troubles I have read about of folks obtaining a notary
--Happy with Chase and not having to deal with hassles of refi, closing, and dealing with another servicer
--My understanding is that I can cancel prior to close and am not on the hook for any costs

Appreciate any thoughts from folks. Hope everyone is staying healthy and safe.
Sounds like an excellent opportunity in an uncertain time. It seems like there is a lot of upside. The only downside may be that your monthly payment doesn't decrease? I would take the Chase offer in a heart beat.
Do you have a number to that department? My loan is with chase as well and when i brought up this program to their mortgage department they kept telling me that they are not offering anything like this. Thanks
The letter said to call 866-836-4834, which seemed to go through to the main Chase Home Loans department. I chose the menu option for “refinance” and the guy I spoke with was fully aware of the program. They said I would receive a FedEx to sign and return and sure enough, it was here two days later.

They have confirmed that they received the paperwork and my loan will switch over to the new, lower interest rate effective April 1, and I canceled the refinance.

One thing to note—Chase both services and actually owns my loan—they never sold it to Fannie/Freddie/etc. I think that gives them more flexibility to offer deals like this.

manatee2005
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Re: Refinance Mega Thread

Post by manatee2005 » Thu Mar 26, 2020 1:53 pm

booboo1234 wrote:
Wed Mar 25, 2020 9:02 am
manatee2005 wrote:
Tue Mar 24, 2020 8:27 pm
Loan funded with lenderfi today.
question... when did you get your rate lock disclosure. trying to figure out when i will be closing
I applied and signed on March 2.

leviathan
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Joined: Tue Jul 09, 2019 3:03 pm

Re: Refinance Mega Thread

Post by leviathan » Thu Mar 26, 2020 2:03 pm

AD3 wrote:
Wed Mar 25, 2020 11:43 pm
Loan Costs Borrower Paid at Closing Lender Credit
% of Loan Amount (Points)
02 Courier Fee/Overnight Fee $30.00
03 Document Preparation Fee-Orig $30.00
04 Processing Fee $595.00


01 Appraisal Fee $800.00
02 Credit Report Fee $47.00
03 Flood Certificate Fee to $6.00
04 Insurance Monitoring Fee $55.00
05 Tax Service Fee $84.00
06 Title-Endorsement Fee Bundled $50.00
07 Title-Escrow-Courier $75.00
08 Title-Escrow-Escrow/Atty Settlement Fee $475.00
09 Title-Escrow-Notary Fee $200.00
10 Title-Escrow-Recording Service Fee $14.00
11 Title-Lenders Title Insurance to $380.00

Total $1,647.00 Lender Credit Total $1,194.00


Recording Fees $290.00
Prepaid $266.51

Closing Cost $1,913.51
Lender Credits $1,484.00

Looking at my closing disclosure and wanted to see if these numbers look okay to everyone else? I got a 3.15% interest rate for 30yrs on a $105,000 loan amount. (playing to pay it off early). One interesting thing that I found were the appraisal fees was quoted as $800 but on the actual appraisal document that I was sent it states the cost as $525, so I'm most likely going to ask about that. Also when people here say they are getting no cost refinance is the closing cost being financed from the loan amount, because that's what I'm being offered as a no cost refinance?
In my analysis, your total closing cost is $3397.51. Because of the lender credit $1484.00, the "effective" cost is $1913.51, which is about 1.9% of the loan amount.

Mpb17
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Re: Refinance Mega Thread

Post by Mpb17 » Thu Mar 26, 2020 2:26 pm

I tried that Chase # as I have a chase loan and am going through a refi right now with a small local bank. I don’t have any offers to reduce rate unfortunately. Any idea how to trigger one of these offers?

I would rather not have to go through an in person refi closing at the moment.

AD3
Posts: 51
Joined: Tue Apr 04, 2017 11:05 pm

Re: Refinance Mega Thread

Post by AD3 » Thu Mar 26, 2020 2:40 pm

leviathan wrote:
Thu Mar 26, 2020 2:03 pm
AD3 wrote:
Wed Mar 25, 2020 11:43 pm
Loan Costs Borrower Paid at Closing Lender Credit
% of Loan Amount (Points)
02 Courier Fee/Overnight Fee $30.00
03 Document Preparation Fee-Orig $30.00
04 Processing Fee $595.00


01 Appraisal Fee $800.00
02 Credit Report Fee $47.00
03 Flood Certificate Fee to $6.00
04 Insurance Monitoring Fee $55.00
05 Tax Service Fee $84.00
06 Title-Endorsement Fee Bundled $50.00
07 Title-Escrow-Courier $75.00
08 Title-Escrow-Escrow/Atty Settlement Fee $475.00
09 Title-Escrow-Notary Fee $200.00
10 Title-Escrow-Recording Service Fee $14.00
11 Title-Lenders Title Insurance to $380.00

Total $1,647.00 Lender Credit Total $1,194.00


Recording Fees $290.00
Prepaid $266.51

Closing Cost $1,913.51
Lender Credits $1,484.00

Looking at my closing disclosure and wanted to see if these numbers look okay to everyone else? I got a 3.15% interest rate for 30yrs on a $105,000 loan amount. (playing to pay it off early). One interesting thing that I found were the appraisal fees was quoted as $800 but on the actual appraisal document that I was sent it states the cost as $525, so I'm most likely going to ask about that. Also when people here say they are getting no cost refinance is the closing cost being financed from the loan amount, because that's what I'm being offered as a no cost refinance?
In my analysis, your total closing cost is $3397.51. Because of the lender credit $1484.00, the "effective" cost is $1913.51, which is about 1.9% of the loan amount.
My old loan was at 5.875%, it seems that I can breakeven on the closing in 5 months. I wasn't able to get a lower interest rate on the property at 30 yrs. Does this seem like a decent/good deal?

leviathan
Posts: 7
Joined: Tue Jul 09, 2019 3:03 pm

Re: Refinance Mega Thread

Post by leviathan » Thu Mar 26, 2020 2:52 pm

AD3 wrote:
Thu Mar 26, 2020 2:40 pm
leviathan wrote:
Thu Mar 26, 2020 2:03 pm
AD3 wrote:
Wed Mar 25, 2020 11:43 pm
Loan Costs Borrower Paid at Closing Lender Credit
% of Loan Amount (Points)
02 Courier Fee/Overnight Fee $30.00
03 Document Preparation Fee-Orig $30.00
04 Processing Fee $595.00


01 Appraisal Fee $800.00
02 Credit Report Fee $47.00
03 Flood Certificate Fee to $6.00
04 Insurance Monitoring Fee $55.00
05 Tax Service Fee $84.00
06 Title-Endorsement Fee Bundled $50.00
07 Title-Escrow-Courier $75.00
08 Title-Escrow-Escrow/Atty Settlement Fee $475.00
09 Title-Escrow-Notary Fee $200.00
10 Title-Escrow-Recording Service Fee $14.00
11 Title-Lenders Title Insurance to $380.00

Total $1,647.00 Lender Credit Total $1,194.00


Recording Fees $290.00
Prepaid $266.51

Closing Cost $1,913.51
Lender Credits $1,484.00

Looking at my closing disclosure and wanted to see if these numbers look okay to everyone else? I got a 3.15% interest rate for 30yrs on a $105,000 loan amount. (playing to pay it off early). One interesting thing that I found were the appraisal fees was quoted as $800 but on the actual appraisal document that I was sent it states the cost as $525, so I'm most likely going to ask about that. Also when people here say they are getting no cost refinance is the closing cost being financed from the loan amount, because that's what I'm being offered as a no cost refinance?
In my analysis, your total closing cost is $3397.51. Because of the lender credit $1484.00, the "effective" cost is $1913.51, which is about 1.9% of the loan amount.
My old loan was at 5.875%, it seems that I can breakeven on the closing in 5 months. I wasn't able to get a lower interest rate on the property at 30 yrs. Does this seem like a decent/good deal?
Compared to the size of the loan, fees seem excessive. The interest rate is good but the number seems odd. Usually, it goes like 3%, 3.125%, 3.25%. There seem a lot of junk fees (e.g. Recording Fees etc ...). Definitely ask for adjustment in appraisal fee. Also ask about re-issue rate of title insurance etc ..

frankandbeans
Posts: 44
Joined: Wed Feb 06, 2019 10:55 am

Re: Refinance Mega Thread

Post by frankandbeans » Thu Mar 26, 2020 3:11 pm

Mpb17 wrote:
Thu Mar 26, 2020 2:26 pm
I tried that Chase # as I have a chase loan and am going through a refi right now with a small local bank. I don’t have any offers to reduce rate unfortunately. Any idea how to trigger one of these offers?

I would rather not have to go through an in person refi closing at the moment.
I don't know for sure. Two things I did, in addition to going forward with the refinance: (1) I did submit a refinance application to Chase earlier in the month, but didn't move forward because rates were spiking by the time they called and I was sure they wouldn't be able to match LenderFi, and (2) just a day or two before getting the offer, I requested a payoff quote on the website.

But I have no idea if either/both of those actions generated the offer or if the computer algorithm gods just liked something about my loan/LTV/credit profile.

AD3
Posts: 51
Joined: Tue Apr 04, 2017 11:05 pm

Re: Refinance Mega Thread

Post by AD3 » Thu Mar 26, 2020 3:18 pm

leviathan wrote:
Thu Mar 26, 2020 2:52 pm
AD3 wrote:
Thu Mar 26, 2020 2:40 pm
leviathan wrote:
Thu Mar 26, 2020 2:03 pm
AD3 wrote:
Wed Mar 25, 2020 11:43 pm
Loan Costs Borrower Paid at Closing Lender Credit
% of Loan Amount (Points)
02 Courier Fee/Overnight Fee $30.00
03 Document Preparation Fee-Orig $30.00
04 Processing Fee $595.00


01 Appraisal Fee $800.00
02 Credit Report Fee $47.00
03 Flood Certificate Fee to $6.00
04 Insurance Monitoring Fee $55.00
05 Tax Service Fee $84.00
06 Title-Endorsement Fee Bundled $50.00
07 Title-Escrow-Courier $75.00
08 Title-Escrow-Escrow/Atty Settlement Fee $475.00
09 Title-Escrow-Notary Fee $200.00
10 Title-Escrow-Recording Service Fee $14.00
11 Title-Lenders Title Insurance to $380.00

Total $1,647.00 Lender Credit Total $1,194.00


Recording Fees $290.00
Prepaid $266.51

Closing Cost $1,913.51
Lender Credits $1,484.00

Looking at my closing disclosure and wanted to see if these numbers look okay to everyone else? I got a 3.15% interest rate for 30yrs on a $105,000 loan amount. (playing to pay it off early). One interesting thing that I found were the appraisal fees was quoted as $800 but on the actual appraisal document that I was sent it states the cost as $525, so I'm most likely going to ask about that. Also when people here say they are getting no cost refinance is the closing cost being financed from the loan amount, because that's what I'm being offered as a no cost refinance?
In my analysis, your total closing cost is $3397.51. Because of the lender credit $1484.00, the "effective" cost is $1913.51, which is about 1.9% of the loan amount.
My old loan was at 5.875%, it seems that I can breakeven on the closing in 5 months. I wasn't able to get a lower interest rate on the property at 30 yrs. Does this seem like a decent/good deal?
Compared to the size of the loan, fees seem excessive. The interest rate is good but the number seems odd. Usually, it goes like 3%, 3.125%, 3.25%. There seem a lot of junk fees (e.g. Recording Fees etc ...). Definitely ask for adjustment in appraisal fee. Also ask about re-issue rate of title insurance etc ..
Thank you for the information, but I got a lender credit on the recording fee and title fees, they did not provide a lender credit on the origination charges or the appraisal fee, credit report fee, flood fee, insurance monitoring, and tax services.

squinchy
Posts: 3
Joined: Thu Apr 09, 2015 11:26 am

Re: Refinance Mega Thread

Post by squinchy » Thu Mar 26, 2020 4:31 pm

frankandbeans wrote:
Thu Mar 26, 2020 1:44 pm
The letter said to call 866-836-4834, which seemed to go through to the main Chase Home Loans department. I chose the menu option for “refinance” and the guy I spoke with was fully aware of the program. They said I would receive a FedEx to sign and return and sure enough, it was here two days later.

They have confirmed that they received the paperwork and my loan will switch over to the new, lower interest rate effective April 1, and I canceled the refinance.

One thing to note—Chase both services and actually owns my loan—they never sold it to Fannie/Freddie/etc. I think that gives them more flexibility to offer deals like this.
I got this offer too. Current mortgage is with Chase, 30 yr fixed at 3.25%, $895K remaining. I'm in the process of refi with Bank of America, and like the other poster I assume the Chase offer was triggered by BofA's payoff amount request, or credit inquiries.

Chase's offer is 3.0%, however, BofA still beats it at 2.75% (includes 0.25% relationship discount for bringing $500K IRA over to Merrill).

YoungSisyphus
Posts: 34
Joined: Mon Sep 24, 2018 7:35 am

Re: Refinance Mega Thread

Post by YoungSisyphus » Thu Mar 26, 2020 5:24 pm

This is my first home purchase, and now my first re-finance. Does this seem fair? They are also waiving the appraisal / inspection. This would drop me from the current 4.05% and save a ton over the lifetime of the loan. However, not sure about the loan costs. $3,097 seems high for a re-finance?


Rate is 3% fixed 30/yr
Loan amount - $228k
Existing loan is - $222k (adds 6k from the below – loan costs + prepayments)
Loan costs:
• Origination fee - $1,499
• Attorney Doc prep - $150
• Credit report - $22
• Flood Cert - $7
• Title – Lender Title insurance - $766
• Title – settlement fee - $450
• Title – tax certificate - $55
• Title Endorsements - $145
Total loan costs ($3097)
Additionally, $4,675 in prepayments (insurance, taxes, etc) that would be offset by existing escrow

Bogle_Bro
Posts: 105
Joined: Sat Mar 31, 2018 11:43 am
Location: Frisco Texas, Mortgage Banker & Attorney

Re: Refinance Mega Thread

Post by Bogle_Bro » Thu Mar 26, 2020 7:07 pm

YoungSisyphus wrote:
Thu Mar 26, 2020 5:24 pm
This is my first home purchase, and now my first re-finance. Does this seem fair? They are also waiving the appraisal / inspection. This would drop me from the current 4.05% and save a ton over the lifetime of the loan. However, not sure about the loan costs. $3,097 seems high for a re-finance?


Rate is 3% fixed 30/yr
Loan amount - $228k
Existing loan is - $222k (adds 6k from the below – loan costs + prepayments)
Loan costs:
• Origination fee - $1,499
• Attorney Doc prep - $150
• Credit report - $22
• Flood Cert - $7
• Title – Lender Title insurance - $766
• Title – settlement fee - $450
• Title – tax certificate - $55
• Title Endorsements - $145
Total loan costs ($3097)
Additionally, $4,675 in prepayments (insurance, taxes, etc) that would be offset by existing escrow
Rounding here, but paying 1.5% in total fees to save 1% annually is a pretty good deal.

mervinj7
Posts: 1320
Joined: Thu Mar 27, 2014 3:10 pm

Re: Refinance Mega Thread

Post by mervinj7 » Thu Mar 26, 2020 10:21 pm

Bandit390 wrote:
Fri Mar 20, 2020 4:07 pm
mervinj7 wrote:
Fri Mar 20, 2020 2:05 pm
Just got a call from LoanDepot that my refinance application is getting cancelled and my appraisal fee is getting refunded. They are doing this for all refinances in my county due to the shelter-in-place restrictions. Just a heads-up.

Maybe that will speed mine up. lol

My appraisal was Tuesday and I got a call yesterday with more questions about completing my application.
Just an update. Although my LoanDepot application got cancelled, I also had a rate lock with BofA. Yesterday, they were able to send the appraiser to the house. Apparently, it still counts an essential service in the Bay Area. He wore gloves and a mask and so did I. I opened all doors for him and gave him a floorplan so he didn't have to retake measurements. Took less than 10 minutes to photograph our 3,000 sq ft home. Onwards to closing. Keeping my fingers crossed.

ig77
Posts: 26
Joined: Fri Dec 22, 2017 9:46 am

Re: Refinance Mega Thread

Post by ig77 » Fri Mar 27, 2020 5:47 am

Which lenders/banks are accepting applications for re-fi now? I'm currently on a 4.25% rate on a 30 year mortgage and would like to refinance to a 15 year. Hoping for a no cost closing with a target rate of less than 3%

Any recommendations? I live in IL.

SirWalter
Posts: 3
Joined: Sun Jun 30, 2019 7:26 pm

Re: Refinance Mega Thread

Post by SirWalter » Fri Mar 27, 2020 8:46 am

ig77 wrote:
Fri Mar 27, 2020 5:47 am
Which lenders/banks are accepting applications for re-fi now? I'm currently on a 4.25% rate on a 30 year mortgage and would like to refinance to a 15 year. Hoping for a no cost closing with a target rate of less than 3%

Any recommendations? I live in IL.
Be patient. Rates will be coming down as mortgage departments are able to work through the mountainous backlog of work created several weeks ago. As has been mentioned in this thread, the quick rise in rates was somewhat artificial, not a reflection of any real market conditions, but intended to temporarily reduce demand.

We applied when a 15 year was at historically low 2.75% and watched rates rise quickly to almost 3.5% before our application could even be looked at. We have been in a holding pattern for about a week waiting for rates to come down. We just got a call last night from the loan officer at our local credit union where we have been members for 25 years and he offered to lock us at 2.75% even thought he advertised rate is still at 3.125. He said their management told them to get the long-time loyal customers taken care of first. This is in Dane County, WI, btw.

I would not be surprised to see rates even go lower than 2.75 for a little while. Get your paperwork done and all documents provided and then just wait. That is my suggestion.

ig77
Posts: 26
Joined: Fri Dec 22, 2017 9:46 am

Re: Refinance Mega Thread

Post by ig77 » Fri Mar 27, 2020 9:15 am

SirWalter wrote:
Fri Mar 27, 2020 8:46 am
Be patient. Rates will be coming down as mortgage departments are able to work through the mountainous backlog of work created several weeks ago. As has been mentioned in this thread, the quick rise in rates was somewhat artificial, not a reflection of any real market conditions, but intended to temporarily reduce demand.

We applied when a 15 year was at historically low 2.75% and watched rates rise quickly to almost 3.5% before our application could even be looked at. We have been in a holding pattern for about a week waiting for rates to come down. We just got a call last night from the loan officer at our local credit union where we have been members for 25 years and he offered to lock us at 2.75% even thought he advertised rate is still at 3.125. He said their management told them to get the long-time loyal customers taken care of first. This is in Dane County, WI, btw.

I would not be surprised to see rates even go lower than 2.75 for a little while. Get your paperwork done and all documents provided and then just wait. That is my suggestion.
Sounds good. I'll monitor the rates and wait for them to go down. What do I need to do now to be ready to pull the trigger? Should I start getting in touch with the lenders to get the paperwork ready? Which lenders should i start talking to?

Sorry for the newbie question.

Afty
Posts: 1174
Joined: Sun Sep 07, 2014 5:31 pm

Re: Refinance Mega Thread

Post by Afty » Fri Mar 27, 2020 11:51 am

I’ve been going through a refinance from a 30 year at 3.625% to 15 year at 2.5% (really 2.75% with 0.25% rate reduction for asset transfer). Today I received out of the blue an offer from our current lender to reduce the rate (not refinance) on our existing mortgage to 2.875%. This is very tempting. Are there any gotchas I should be on the lookout for in the rate reduction offer?

frankandbeans
Posts: 44
Joined: Wed Feb 06, 2019 10:55 am

Re: Refinance Mega Thread

Post by frankandbeans » Fri Mar 27, 2020 1:09 pm

Afty wrote:
Fri Mar 27, 2020 11:51 am
I’ve been going through a refinance from a 30 year at 3.625% to 15 year at 2.5% (really 2.75% with 0.25% rate reduction for asset transfer). Today I received out of the blue an offer from our current lender to reduce the rate (not refinance) on our existing mortgage to 2.875%. This is very tempting. Are there any gotchas I should be on the lookout for in the rate reduction offer?
if you read above, two of us got this offer from Chase. Assuming you're talking about the same offer--straight-up loan modification to reduce interest rate, no change in term, no refi or fees, with an effective date of the new payment May 1--I found no catches, and took it.

lepa71
Posts: 302
Joined: Sat Mar 05, 2016 5:12 pm

Re: Refinance Mega Thread

Post by lepa71 » Fri Mar 27, 2020 1:14 pm

Is there a fee if I want to request a payout quote?
Thanks

frankandbeans
Posts: 44
Joined: Wed Feb 06, 2019 10:55 am

Re: Refinance Mega Thread

Post by frankandbeans » Fri Mar 27, 2020 1:16 pm

lepa71 wrote:
Fri Mar 27, 2020 1:14 pm
Is there a fee if I want to request a payout quote?
Thanks
No fee to request one, just a varying degree of hassle depending on your bank. One of my banks (Chase) lets me do it online and provides it instantly; the other (US Bank) requires me to call and then they'll process the request and send it within a day or two.

Afty
Posts: 1174
Joined: Sun Sep 07, 2014 5:31 pm

Re: Refinance Mega Thread

Post by Afty » Fri Mar 27, 2020 1:18 pm

frankandbeans wrote:
Fri Mar 27, 2020 1:09 pm
Afty wrote:
Fri Mar 27, 2020 11:51 am
I’ve been going through a refinance from a 30 year at 3.625% to 15 year at 2.5% (really 2.75% with 0.25% rate reduction for asset transfer). Today I received out of the blue an offer from our current lender to reduce the rate (not refinance) on our existing mortgage to 2.875%. This is very tempting. Are there any gotchas I should be on the lookout for in the rate reduction offer?
if you read above, two of us got this offer from Chase. Assuming you're talking about the same offer--straight-up loan modification to reduce interest rate, no change in term, no refi or fees, with an effective date of the new payment May 1--I found no catches, and took it.
Thanks for the pointer, I hadn't seen the posts above. This is Chase in my case as well. They initially sent an offer for 3.5% maybe 2 weeks ago. Then yesterday they sent this one for 2.875%. I will probably take it unless my refinance can go significantly lower.

as9
Posts: 83
Joined: Mon Jan 27, 2020 9:26 am

Re: Refinance Mega Thread

Post by as9 » Fri Mar 27, 2020 1:32 pm

Afty wrote:
Fri Mar 27, 2020 1:18 pm
frankandbeans wrote:
Fri Mar 27, 2020 1:09 pm
Afty wrote:
Fri Mar 27, 2020 11:51 am
I’ve been going through a refinance from a 30 year at 3.625% to 15 year at 2.5% (really 2.75% with 0.25% rate reduction for asset transfer). Today I received out of the blue an offer from our current lender to reduce the rate (not refinance) on our existing mortgage to 2.875%. This is very tempting. Are there any gotchas I should be on the lookout for in the rate reduction offer?
if you read above, two of us got this offer from Chase. Assuming you're talking about the same offer--straight-up loan modification to reduce interest rate, no change in term, no refi or fees, with an effective date of the new payment May 1--I found no catches, and took it.
Thanks for the pointer, I hadn't seen the posts above. This is Chase in my case as well. They initially sent an offer for 3.5% maybe 2 weeks ago. Then yesterday they sent this one for 2.875%. I will probably take it unless my refinance can go significantly lower.
A 30 year at 2.875 while keeping the same term and not needing to do anything? I'd take that immediately and then go make a celebration cocktail.

lepa71
Posts: 302
Joined: Sat Mar 05, 2016 5:12 pm

Re: Refinance Mega Thread

Post by lepa71 » Fri Mar 27, 2020 1:40 pm

Afty wrote:
Fri Mar 27, 2020 1:18 pm
frankandbeans wrote:
Fri Mar 27, 2020 1:09 pm
Afty wrote:
Fri Mar 27, 2020 11:51 am
I’ve been going through a refinance from a 30 year at 3.625% to 15 year at 2.5% (really 2.75% with 0.25% rate reduction for asset transfer). Today I received out of the blue an offer from our current lender to reduce the rate (not refinance) on our existing mortgage to 2.875%. This is very tempting. Are there any gotchas I should be on the lookout for in the rate reduction offer?
if you read above, two of us got this offer from Chase. Assuming you're talking about the same offer--straight-up loan modification to reduce interest rate, no change in term, no refi or fees, with an effective date of the new payment May 1--I found no catches, and took it.
Thanks for the pointer, I hadn't seen the posts above. This is Chase in my case as well. They initially sent an offer for 3.5% maybe 2 weeks ago. Then yesterday they sent this one for 2.875%. I will probably take it unless my refinance can go significantly lower.
Just to make sure that that still no pre-payment penalties and any escrow changes. Other than that go for it.

In 2009 I got an offer from Chase to convert my negative amortization investment property mortgage to 5% 30 years with forgiveness of $74K principal. I was shocked and ignored the 1st 2 offers but then called them and they confirmed it. I took it and my CPA was very confused about how to handle it at tax time. To this day I still fill like something was fishy but I don't care.

weirdsong1
Posts: 11
Joined: Thu Mar 12, 2020 9:39 am

Re: Refinance Mega Thread

Post by weirdsong1 » Fri Mar 27, 2020 4:49 pm

as9 wrote:
Fri Mar 27, 2020 1:32 pm
Afty wrote:
Fri Mar 27, 2020 1:18 pm
frankandbeans wrote:
Fri Mar 27, 2020 1:09 pm
Afty wrote:
Fri Mar 27, 2020 11:51 am
I’ve been going through a refinance from a 30 year at 3.625% to 15 year at 2.5% (really 2.75% with 0.25% rate reduction for asset transfer). Today I received out of the blue an offer from our current lender to reduce the rate (not refinance) on our existing mortgage to 2.875%. This is very tempting. Are there any gotchas I should be on the lookout for in the rate reduction offer?
if you read above, two of us got this offer from Chase. Assuming you're talking about the same offer--straight-up loan modification to reduce interest rate, no change in term, no refi or fees, with an effective date of the new payment May 1--I found no catches, and took it.
Thanks for the pointer, I hadn't seen the posts above. This is Chase in my case as well. They initially sent an offer for 3.5% maybe 2 weeks ago. Then yesterday they sent this one for 2.875%. I will probably take it unless my refinance can go significantly lower.
A 30 year at 2.875 while keeping the same term and not needing to do anything? I'd take that immediately and then go make a celebration cocktail.
Precisely. What a gift. I've been trying to re-fiance since February when the rates really started the move. Was unable to lock (through no fault of my own) before rates jumped back up. Finally they've ticked back down again and I've been lucky enough to lock in 2.875% for 30 years. Though one wonders if they aren't going to continue to fall. Nevertheless, I'm enjoying that celebratory cocktail right now...even if it costs me $2200.

This couldn't come at a better time, because I'm in the arts world and paychecks are about to become scarce.

jolmscheid
Posts: 10
Joined: Fri Feb 24, 2017 1:22 pm

Re: Refinance Mega Thread

Post by jolmscheid » Fri Mar 27, 2020 6:06 pm

Where are you seeing/getting 2.875% rates? The best I am seeing is 3.125 for a 15 yr refinance. Is there a site that best monitors available rates?

neoptolemus412
Posts: 159
Joined: Sun Jul 28, 2013 3:54 pm

Re: Refinance Mega Thread

Post by neoptolemus412 » Fri Mar 27, 2020 6:51 pm

SirWalter wrote:
Fri Mar 27, 2020 8:46 am
ig77 wrote:
Fri Mar 27, 2020 5:47 am
Which lenders/banks are accepting applications for re-fi now? I'm currently on a 4.25% rate on a 30 year mortgage and would like to refinance to a 15 year. Hoping for a no cost closing with a target rate of less than 3%

Any recommendations? I live in IL.
Be patient. Rates will be coming down as mortgage departments are able to work through the mountainous backlog of work created several weeks ago. As has been mentioned in this thread, the quick rise in rates was somewhat artificial, not a reflection of any real market conditions, but intended to temporarily reduce demand.

We applied when a 15 year was at historically low 2.75% and watched rates rise quickly to almost 3.5% before our application could even be looked at. We have been in a holding pattern for about a week waiting for rates to come down. We just got a call last night from the loan officer at our local credit union where we have been members for 25 years and he offered to lock us at 2.75% even thought he advertised rate is still at 3.125. He said their management told them to get the long-time loyal customers taken care of first. This is in Dane County, WI, btw.

I would not be surprised to see rates even go lower than 2.75 for a little while. Get your paperwork done and all documents provided and then just wait. That is my suggestion.
Rates lowered this week. The fed is buying MBS and it’s driving down rates. However, rates don’t mean much if you can’t close on a refi/mortgage.

I will say that I’ve heard anecdotally in the industry that investors are requiring lenders underwriting standards be tightened. Tighter credit. Appraisals required. Income verification 24 hours prior to closing. Expecting cash reserves of 6 months for those using gifts. Strong cash positions for self employed folks.

Rates may lower, but the period to strike a month ago may have been the best time for many to get a refi locked in at higher appraisals with lower underwriting standards. No way values the rest of the year will be higher and/or income for most will be more certain.

By May, it’ll be interesting to see what the refi market looks like as we’ll have a better picture of the Entire market.

weirdsong1
Posts: 11
Joined: Thu Mar 12, 2020 9:39 am

Re: Refinance Mega Thread

Post by weirdsong1 » Sat Mar 28, 2020 10:38 am

jolmscheid wrote:
Fri Mar 27, 2020 6:06 pm
Where are you seeing/getting 2.875% rates? The best I am seeing is 3.125 for a 15 yr refinance. Is there a site that best monitors available rates?
I am refinancing through my local credit union (imcu.com). I've always found credit unions (at least most) much more generous with rates. Obviously zip code probably matters on this front, but during the process I've scoured all the local CUs in my area and found rates that tended be much lower than the national average. YMMV of course.

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