Mortgage Rates today? Refi time or wait? - Page 3

aben8057 · 01-29-2009, 12:26 PM

4.875 with 0 points on a 30 year loan via Indymac with float down option

12own911 · 01-29-2009, 12:30 PM

That is the rate I was quoted with 1 point earlier... perhaps it has changed to lower number with point...

aben8057 · 01-29-2009, 12:52 PM

With a point your monthly payments will be lower HOWEVER a fee of 1% will be calculated to your total amount of loan.

So for example if you have a loan of 300K with 1 point, the band will apply a fee of 3K during close. The difference of you monthly payments may be $20 so in the length of the loan, it is not worth it..for me at least. The fee may also be 2%, 3% depends on the loan.

12own911 · 01-29-2009, 01:03 PM

I was told the point would be recouped within 2 years but my monthly would be lower... I am so a property virgin...

therotman · 01-29-2009, 01:41 PM

Quote:

Originally Posted by 12own911

I was told the point would be recouped within 2 years but my monthly would be lower... I am so a property virgin...

Depends on how much lower this point your are going to pay reduces your interest rate.

lin7310948 · 01-29-2009, 01:47 PM

closing tomorrow on a refinance....4.40 per cent for 15 years with no points and approximately 750 dollars closing costs.....wachovia and the best i have seen rate wise.rate was locked in about a month ago.

chuckw951 · 02-12-2009, 07:28 AM

Rates ticked down a bit. I get a call from the broker and the deal is back on without the extra fees. I didn't have to do another appraisel or pay more attorney's fees for settlement (except for a extra FedEx charge). Closed yesterday afternoon (5% 30 years no points). Hopefully the loan will fund. No one gets paid unless the deal goes through so I guess they are motivated to make it happen.

Quote:

Originally Posted by chuckw951

I take that back. We signed documents last week to close the deal...but then on Monday (1/26) the lender came back with additional conditions on the loan!

At the last minute they wanted to see proof that the homeowners insurance was paid for the year AND they wanted several of the documents resigned. The rate lock expired on 1/28. In Maryland there is a 3 day right of recision which means the deal wouldn't officially close until after the rate lock expired.

Soooo...in order to extend the rate lock they wanted $1000 cash + $300 "redraw fee." I think its a bunch of cr*p. Rates had gone up so they were looking for an excuse to kick back the loan and get more money.

I don't know, but I certainly wasn't going to come up with another $1300 to close the deal. The broker of course was not pleased and begged me to pay the money. I'm not buying a house, I'm just doing this to take advantage of a better rate. The broker told me that rates are going up and will not come back down, that I need to take this deal. Actually no, I don't. So the deal collapsed. I didn't lose too much, just the appraisal fee and a couple hundred to the settlement attorney.

So I'll watch the market and see if rates come back down under 5%. I am patient, I can wait.

MotoSook · 08:16 AM

Rates are testing a new low this week. Previous low on a 30 yr that I've been tracking was 4.875% w/ 0 points. Then they went up to over 5.5% last week. With the Treasury auction this week and the failed efforts by Geithner and Obama's stimulus package to stimulate the market, rates dipped to a slightly lower floor of 4.750% w/ zero points. Wachovia (Wells Fargo) is advertising 4.75% no points today.

If you can't get 4.75% today, be happy with 4.875...but don't settle for 5%...just my opinion.

Unless Washington does something differently, I think 4.75% may be about as low as it'll go. The housing market is starting to settle out, and foreclosures may be seeing a solution... Sales under contract saw an unexpected positive last week, and this week retail reported an unexpected positive. There are signs that the economy may be struggling to come back...

widebody911 · widebody911's Garage

I locked a couple (3?) weeks ago @ 5.00, but the rest of the process is dragging - the docs were supposed to be ready a week ago. Would it be unreasonable to ask for a downward rate adjustment?

MotoSook · 02-12-2009, 08:40 AM

I'm wondering that myself, Thom. Maybe one of the pro's will chime in. Rick?

chuckw951 · 02-12-2009, 08:43 AM

Quote:

Originally Posted by widebody911

I locked a couple (3?) weeks ago @ 5.00, but the rest of the process is dragging - the docs were supposed to be ready a week ago. Would it be unreasonable to ask for a downward rate adjustment?

Unless you have a float down provision or your lock expires and you relock, then I think a lock is a lock. Perhaps get a written copy of the lock from the lender and see what it says.

einreb · 02-12-2009, 08:44 AM

Quote:

Originally Posted by widebody911

I locked a couple (3?) weeks ago @ 5.00, but the rest of the process is dragging - the docs were supposed to be ready a week ago. Would it be unreasonable to ask for a downward rate adjustment?

I was (is?) in the same boat. Doesn't hurt to ask?

I 'locked' a 30 year 5% with $250 out of pocket from Wells Fargo in late December and was told to expect to close late January... just now given a closing date of 2/18. Everything was slower than expected.

MotoSook · 02-12-2009, 08:45 AM

Bernie...your lock should have expired...did you relock at a lower rate?

Zeke · 02-12-2009, 08:59 AM

Quote:

Originally Posted by lin7310948

closing tomorrow on a refinance....4.40 per cent for 15 years with no points and approximately 750 dollars closing costs.....wachovia and the best i have seen rate wise.rate was locked in about a month ago.

Congrats. That's a hell of a deal. I got a 4.375 last time the rates dipped (5-6 years ago) and I didn't think anyone would ever see the day.

einreb · 02-12-2009, 09:40 AM

Quote:

Originally Posted by Souk

Bernie...your lock should have expired...did you relock at a lower rate?

I think it was a 60 day lock.... good till 2/21 or thereabouts. I could have done 4.875 with $1200 in 'closing costs' (not points), but took the 5% and less out of pocket.

One amusing note... the 'appraisal' came back at about 10% higher than my place could be sold for... but almost exactly 80% LTV if you figure in the refi plus the HELOC second I have (0 balance). Same old games.

MotoSook · 02-12-2009, 12:29 PM

Sounds good Bernie. If things fall through, I know a couple guys (and you know one of them) in the Chicago market that can make things happen fast and easy...and maybe more advantageous for you.

cantdrv55 · 02-12-2009, 01:20 PM

I just signed on for a 5% on a 30 fixed. I lost out on a 4.875% a few weeks ago due to property value appraisal. Seems my neighbor 4 houses up is going through a foreclosure. Now my loan-to-value is getting really close to 80%.

einreb · 02-12-2009, 01:35 PM

Quote:

Originally Posted by Souk

Sounds good Bernie. If things fall through, I know a couple guys (and you know one of them) in the Chicago market that can make things happen fast and easy...and maybe more advantageous for you.

Since we have a HELOC as a second there was going to be a little extra hassle to get the HELOC signed off to a new first. Going through the same lender was advantageous in this case since they had a 'program' in place.

I gotta admit... part of me just wanted to do some extra tax loss harvesting and pay the fucher off. I'm hoping that locking in a little debt at an historically low rate and letting inflation eat it is the way to go.

MotoSook · 01:51 PM

We have a second with Bank A, our primary with Bank B, and Bank C is rolling it all into one mortgage with minimal out of pocket and close to $400/mo savings. I was worried the second mortgage might be an issue, but it hasn't been, and since we started the ball rolling with a request for appraisal and Bank C ran the credit report right away...we should close in 2-3 weeks. There was miscommunication about a lock a few weeks back. I thought we had a lock at 4.875, but we didn't get it....you can imagine what I was going through when the rates went high last week. But it all worked out as I was able to lock in the same rate a couple of days ago.

(It's nice to be able to call the people makiing the decision on the loan...or walk into their office. If anyone in the Chicago market is looking for a good outfit to help them with their refi...shoot me a PM.)

I've been wrestling with juggling debt to take advantage of the current state of the economy too....and I'm going to try and make the best of it. I want to be say come retirement time that the decisions we made today were the some of the best we ever made...despite losing my arse from my 401K the last 6 months.

therotman · 02-12-2009, 02:08 PM

Quote:

Originally Posted by widebody911

I locked a couple (3?) weeks ago @ 5.00, but the rest of the process is dragging - the docs were supposed to be ready a week ago. Would it be unreasonable to ask for a downward rate adjustment?

Quote:

Originally Posted by chuckw951

Unless you have a float down provision or your lock expires and you relock, then I think a lock is a lock. Perhaps get a written copy of the lock from the lender and see what it says.

Your potential lender may be willing to charge you a float down fee instead, which would be cheaper that paying typical points to buy down the loan but still costly to you.

I would see what other banks can get you now that rates are down- it's amazing what your potential lender is willing to match when you find a better deal out there.