Rates have dropped again and I am moving to 2.5% third year in a row. Anybody taking advantage of the rates? I will save almost 400 monthly. Hopefully a little of that can go to the bike fund 
Refinancing
- Thread starter CBJ
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Jeebus. 2.5%? Term?
15y fixed? 5-year ARM?
Just checked our credit union and it's at 3.75% for a 30y fixed!!
We refi'd earlier in the year at 3.875 so it'll take rates dropping quite a bit before we refinance (again). Each time it's made sense (2 refi's now) and we were breaking even ~10months after each one, but this is getting a bit ridiculous...
Just checked our credit union and it's at 3.75% for a 30y fixed!!
We refi'd earlier in the year at 3.875 so it'll take rates dropping quite a bit before we refinance (again). Each time it's made sense (2 refi's now) and we were breaking even ~10months after each one, but this is getting a bit ridiculous...
Fvck. Just checked our bank. 3.199 for 15 year conforming, 3.81 for 30. Damn.15y fixed? 5-year ARM?
Just checked our credit union and it's at 3.75% for a 30y fixed!!
Man, I'm at 5.0 30y fixed for the house in UT. But may be selling it within the next 1-2 years (don't live there, just can't afford to sell it). To refi or not when you may only hold for a short time, hmmm, interesting question.
And a year ago they said the rates bottomed! A year ago they said we should all buy houses, now now now! A year ago they said there's no possible way they could go any lower!
It's a 5 year arm I am going for. Plan to get a bigger place in 5 years.
we're in the process of getting 3.99% for a 30 yr fixed, hopefully we'll close next week
Is everybody factoring the short and long term costs here? Anybody can say they have a certain rate, but what are your costs to get that rate? Banks don't do loans for free.
I wish when you guys post these refi's you'd post that info too.
I wish when you guys post these refi's you'd post that info too.
Our out-of-pocket costs were only ~$900. We qualified for the no-appraisal refi through Fannie Mae, which saved us ~$500 *and* meant that we didn't have to hold our breath hoping that our appraisal came back with enough equity. We didn't pay any points to get the 3.875 either, and the local credit union keeps local servicing so we don't have to worry about our loan sold off to someone else.
The ~$270/month that we're saving compared to our original mortgage back in '07 is getting dumped into a nice moderate bond fund in a Roth IRA (currently paying 4.4% ttm) in the theory that over the next 30 years returns will be higher than the mortgage that we're paying.
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Pretty much this. Except that we're with USBank and our cost IIRC was 500. Went from a 30 year fixed @ 4.375 to a 15 year at 3.5. It was pretty much a no brainer.
I was looking to refinance with the bank I have my mortgage at, and after looking at closing costs vs. what I'd be saving monthly, it wouldn't actually save me any money until about 3 years later. Add the hassles of actually refinancing and I'd rather not bother. Not to mention I'm afraid of what the appraisal might value my house at.
I have to pay 1760 to refinance so it will take 5 month before the savings kicks in.
Ask around, and see if your loan is held through either Fannie or Freddie. We checked with our current bank (WF) and for their "easy no-appraisal refi" it was more expensive *and* the rate was ~0.25% higher. We cold-called a few other places and the credit union had information on a government program that allowed us to skip the appraisal. Off the top of my head the requirements were: current loan had to have originated before sometime in '09, and something with regards to equity requirements. Basically since Fannie Mae was already backing the loan, they were making it easier to slide into a new loan at a lower rate (even if you changed lenders, which was shocking to me). Our current bank and another local bank had no idea that the program even existed... There is some information on it here.
I was looking to refinance with the bank I have my mortgage at, and after looking at closing costs vs. what I'd be saving monthly, it wouldn't actually save me any money until about 3 years later. Add the hassles of actually refinancing and I'd rather not bother. Not to mention I'm afraid of what the appraisal might value my house at.
^^^^Btw, that link has links for checking both Fannie Mae and Freddie Mac's websites to see if they hold your loan...
Edit2: Also, you don't have to stay with your current bank to get a no-appraisal refi as long as your loan is held by Fannie Mae/Freddie Mac. Ours was cheaper *and* we got a lower rate by switching to a Credit Union.
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When my wife and I first married, she had a horrible loan (something like 30yr @ 10%). She and her ex got into trouble, fell behind, and I had the fun of getting us back on track. After about 2 years, we re-fied at 5.875% for 15years. It's great to see our balance chunk down now, though at times, I wonder if we should re-fi again at the lower rates, and if they'd offer a 5yr loan.
Seeing the light at the end of the mortgage tunnel is a wonderful thing, either way......
Seeing the light at the end of the mortgage tunnel is a wonderful thing, either way......
I know I could go through all that to save money, but my mortgage is through a small, local bank that's been in business for over 150yrs and has been nothing but helpful and friendly every time I dealt with them. I simply cut a check every month and there's never any bull**** attached. There's some intrinsic value for peace of mind in my book.
Again, this was my experience as well. I had called around but nobody was matching the rate US Bank was offering, a couple were close, but nobody beat or matched. US bank knocked off a couple points because they already held our note and we do all of our regular banking with them. We actually never even stepped foot in the bank when we re-fied. Did everything over the phone, no appraisal, and a notary came to our house when we signed. Easy-peasy. I was unaware until after the fact that we could have switched lenders if we had wanted to under that program, which I might have been tempted to do since US Bank had kind of pissed me off in regards to my motorcycle loan, but financially were still coming out ahead. IIRC were saving something like 26000 over the life of the loan.
It was the *exact* opposite experience with Wells Fargo... They not only had a higher published rate, but wanted 1/8th point above that because of their "easy refi" program (same program we got at the new credit union). Basically they were counting on us not going through the hassle of changing banks just for $25-30/month for the next 30 years.
were bringing about $2500 in closing costs to save about $300/month dropping 1.125%, and some PMI costs.
we got killed on our appraisal, still sort of pissed about it, but what can you do.
we got killed on our appraisal, still sort of pissed about it, but what can you do.
You should at least check with them and see if they'll hook a brutha' up. Talk to somebody in-person.
We just refi'd and are saving $400 a month too! Holla!
Making an appointment to talk to them next Friday during my day off. They were hesitant to give me the loan in the first place (young, not a lot saved, sole name on the loan)........and it's been 2 years as of 4/20 with not a single missed/late payment and still perfect credit, so I've likely become less of a "risk".
We'll see how it goes.
Just make sure they do not find your Ridemonkey alias.
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dont be afraid to shop around either. we really liked our credit union too, but it was going to cost us more to refi with them and for a higher rate, so...
But if you ever fell on hard times, that credit union would be the first to re-work your loan and the last to ever even think of foreclosing.
Hence my hesitation to leave a small, local bank that's been around forever and is full of helpful and friendly people that actually seem to care just to save a few bucks.
maybe
Uh..... unless of course that small bank just sold the loan to Fannie/Freddie (who packages them into MBSs and sells them to Wall St) and retained local servicing. F&F are backing 90% of loans made today, which means that while you cut your check to your local Credit Union every month, you actually owe Fannie or Freddie money. THEY would be the ones who had final say over foreclosing or re-working your loan...
Also, we went from a big national bank (WF) *to* a local credit union because the rates and closing costs were so much lower. If this local credit union is too expensive, shop around and find one that isn't. They're *all* playing with the exact same costs (ie, what F&F will buy the loan for, various fees, etc), and so there should be at least a couple in your area that will offer you a deal. We've got a choice of probably 15+ different banks (maybe half local?) and credit unions out here, and so it was easy enough to compare rates to each and see who had the best deal. I'm also seeing that several credit unions (and a local bank) are offering 3.75% 30y fixed w/ no points and 3.0% for a 15y, and one even has the 15y at 2.875.
I'm thinking about a Re-fi, Daughter Starts College in the Fall, and I need a New roof so Time to take out a little extra Cash . Only have 8 years left on my current mortgage.