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-   -   Refi Now, Or Wait? (http://forums.pelicanparts.com/off-topic-discussions/450326-refi-now-wait.html)

onewhippedpuppy 01-08-2009 10:51 AM

Refi Now, Or Wait?
 
What does the braintrust think? My bank has offered to refinance my 20-fixed at 5.75% down to 5%, it would save me about $120/month. Fee is $700. It's a total no-brainer, but I'll wait if rates are projected to drop further. Anyone have an informed opinion?

Carrerax 01-08-2009 10:58 AM

I just got 4.875 fixed on a 20 with no points. Closing cost were $250. My bank will always refi for $250. If you are new it is $450. I went from a 30 year to a 20 year for about $50 month. I looked into this a few days ago and decided that I would do it if they went below 5%. On Tuesday the best I could get w/0 points was 5.25 and the next morning (Wed) they emailed me with the 4.875 and she said to jump on it and I did. Im pretty happy about it. Even if they go down a bit I can refi fr cheap or just sit tight. When you get much under 5% the difference isnt that huge.
Disclaimer, Im a financial idiot........

onewhippedpuppy 01-08-2009 10:59 AM

Damn, I thought I was getting a good deal for $750. At least I don't pay PMI.

Carrerax 01-08-2009 11:03 AM

$750 is good!

RANDY P 01-08-2009 11:39 AM

take it. the skipped payment will pay for that. it really is a good deal.

Aurel 01-08-2009 12:31 PM

I just locked a 30yr fixed 4.99% rate with no points, and the bank fee is $199, but the total cost is ~$2,400 rolled in the new mortgage. Saving over $300/month, I break even in eight months. When you guys talks about $250-$750 closing costs, is that absolutely all it costs you? From this perspective, I am paying a lot, but I am in NJ, and got several similar quotes.

911Rob 01-08-2009 12:31 PM

You get 5% interest FIXED for 20 years? That's virtually free money!

Aurel 01-08-2009 12:35 PM

Quote:

Originally Posted by 911Rob (Post 4405452)
You get 5% interest FIXED for 20 years? That's virtually free money!

Yeah, virtually free, soon to be worth nothing money ;).

Axeman 01-08-2009 12:56 PM

Just skip 3 months payment, then ask for a government bailout. They'll let you stay in your house for a lot less than you owe on it. Seems it works for everyone else, especially on Wall Street! ;)

rexav8r 01-08-2009 01:04 PM

Check web sites too. Every day.

Just closed on a Web Only ("For a Few Hours Today") special through Wells Fargo, got 4.75 fixed for 30 years. No pts.

widebody911 01-08-2009 01:33 PM

I called my current mortgage co - the late Washington Mutual - and the ESL dropout I ended up with in the call queue quoted me 5.5/30-year and 4.75/15-year I'd also have to pay a $300 app fee up-front with a credit card.

RANDY P 01-08-2009 01:44 PM

everyone just do it when it makes sense.

By the time you realize it's a good deal it's too late. The indices aren't following historic tracking methods.

If it's a free loan you can always refi again if it goes down, not like your balance is going up.

rjp

Drdogface 01-08-2009 05:21 PM

Check bankrate.com for a 15 year fixed. You can get 4.5% and save a bundle !

Hugh R 01-08-2009 06:11 PM

Don't go back to a 30 year, you'll begin paying lots of interest again. You pay interest at the beginning of the loan, and principal at the end. If you have say a 30 with 25 left to go, go with a 20 or 25. Otherwise, you'll just be paying lots of interest.

HardDrive 01-08-2009 06:36 PM

Can you guys name some banks here?

Neilk 01-08-2009 06:58 PM

Quote:

Originally Posted by rexav8r (Post 4405549)
Check web sites too. Every day.

Just closed on a Web Only ("For a Few Hours Today") special through Wells Fargo, got 4.75 fixed for 30 years. No pts.

Dude!!! How did you find that deal? I think I might wait for the Obama to enter office at this point to see what kind of crazy stimulus pack he might announce.

therotman 01-08-2009 08:38 PM

The $700 fee is made-up, kinda like when you go to a car rental place and they tell you how much the "upgrades"are. They are just trying to get what they think they can.

Tell them you will pay $200 and they just make take you up on it or at least give you a counteroffer.

RoninLB 01-08-2009 10:05 PM

afai know, jumbos are a different game getting a lower rate?

can anyone comment?

right now I'm in at 6.75% 30year.

I got the mortgage this past summer when banks were tighter than a crabs ass and that's water tight.

HardDrive 01-08-2009 10:53 PM

I believe the current limit for 'conforming' loans is $625,000. Rates for jumbos are a least a point higher.

RoninLB 01-08-2009 11:22 PM

It better be lower for the lower style mortgage.

I'm in for a $550k mortgage as a jumbo.

My bride manages this crap so my numbers may be a tad off. I'll check when I take her to the Good & Plenty choo choo in the am.

We did have to pay the higher rate. That much I know.

thx

ikarcuaso 01-08-2009 11:43 PM

Quote:

Originally Posted by RoninLB (Post 4406699)
It better be lower for the lower style mortgage.

I'm in for a $550k mortgage as a jumbo.

My bride manages this crap so my numbers may be a tad off. I'll check when I take her to the Good & Plenty choo choo in the am.

We did have to pay the higher rate. That much I know.

thx

Conforming limits up to $625k apply only to 59 designated high-cost areas, but your area appears covered. Based on that, you s/b able to save a large chunk on you monthly. I'd start by checking with a lender to see what's avail to you.

widebody911 01-09-2009 06:04 AM

I found 4.99 through quickenloans.com - thinking about pulling the trigger.

I was doing some research, and it seems that since I only owe $132k, my loan is 'non-conforming' which seems to make things difficult - WTF?

Aurel 01-09-2009 06:11 AM

Quote:

Originally Posted by widebody911 (Post 4406986)
I found 4.99 through quickenloans.com - thinking about pulling the trigger.

I was doing some research, and it seems that since I only owe $132k, my loan is 'non-conforming' which seems to make things difficult - WTF?

Huh, are you sure? Usually, non-conforming is when the loan amount is higher than $417,000, not too little...Unless your LTV ratio is upside down maybe?

widebody911 01-09-2009 06:17 AM

Quote:

Originally Posted by Aurel (Post 4407007)
Huh, are you sure? Usually, non-conforming is when the loan amount is higher than $417,000, not too little...Unless your LTV ratio is upside down maybe?

http://www.bankrate.com/brm/rate/mtgRsearch_product.asp?params=132000.00,CA,54&refi =1&product=0&pct=0&points=6

NOTE: The amount you have entered is below $165,000, the minimum amount for a conventional loan (for definitions, use our glossary). The quote that you are about to see is based on a loan amount within the range of $165,000 to $474,950. Since the amount you have entered is not within that range, the rates, points, fees and terms of your loan may vary from those quoted. Please call the lenders directly to discuss available options and details.

therotman 01-09-2009 07:16 AM

Quote:

Originally Posted by widebody911 (Post 4407017)
http://www.bankrate.com/brm/rate/mtgRsearch_product.asp?params=132000.00,CA,54&refi =1&product=0&pct=0&points=6

NOTE: The amount you have entered is below $165,000, the minimum amount for a conventional loan (for definitions, use our glossary). The quote that you are about to see is based on a loan amount within the range of $165,000 to $474,950. Since the amount you have entered is not within that range, the rates, points, fees and terms of your loan may vary from those quoted. Please call the lenders directly to discuss available options and details.



That's just guidelines for that lender then- fannie mae would still purchase the loan and consider it conforming.

Some lenders don't like to give out small first mortgages, although I usually see the minimum amount at $100k



I haven't had a job or seen any loans since 2007 though so what do i know!?

rexav8r 01-09-2009 07:17 AM

Neilk: Like Ronin, the spousal unit is the one who does all this stuff, she's very good and more importantly, she's got the opportunity to take the time it needs.

(Me, I'd just be surfing Porsche for sale ads)

Like I said. She was keeping a close watch on several sites, Navy Federal Credit Union and Wells Fargo were two of them. She found the 4.75 as a web-only special listed as 'for a few hours today, contact your agent and lock in this rate.'

therotman 01-09-2009 07:27 AM

Quote:

Originally Posted by RoninLB (Post 4406699)
It better be lower for the lower style mortgage.

I'm in for a $550k mortgage as a jumbo.

My bride manages this crap so my numbers may be a tad off. I'll check when I take her to the Good & Plenty choo choo in the am.

We did have to pay the higher rate. That much I know.

thx


When did you get your jumbo loan? They just changed these numbers last year.

turbo6bar 01-09-2009 07:28 AM

Penny pinchers, take it while the gettin's good. On $200k in principal, going from 5% to 4.75% equals monthly savings of $30. Rates are being pushed lower by artificial forces. Those forces can go away as quickly as they emerged.

onewhippedpuppy 01-09-2009 12:00 PM

Thanks for the advice guys, they're prepping the papers now. 20 year fixed at 5%, too good to pass up. I won't complain about an extra $130/month.

krichard 01-09-2009 12:23 PM

pulled the trigger today as well. 15 year fixed at 4.375% with .25 points. Too good to pass up.

RANDY P 01-09-2009 01:05 PM

Quote:

Originally Posted by widebody911 (Post 4407017)
http://www.bankrate.com/brm/rate/mtgRsearch_product.asp?params=132000.00,CA,54&refi =1&product=0&pct=0&points=6

NOTE: The amount you have entered is below $165,000, the minimum amount for a conventional loan (for definitions, use our glossary). The quote that you are about to see is based on a loan amount within the range of $165,000 to $474,950. Since the amount you have entered is not within that range, the rates, points, fees and terms of your loan may vary from those quoted. Please call the lenders directly to discuss available options and details.

LOL. Just a reason to charge you more. The loan is so small they can't make any money..

rjp

gr8fl4porsche 01-09-2009 01:25 PM

Started the process today, 25-30 years $200k loan, good credit, no points, 5%

20 years 4.875%

RoninLB 01-09-2009 09:53 PM

Quote:

Originally Posted by ikarcuaso (Post 4406710)

Conforming limits up to $625k apply only to 59 designated high-cost areas, but your area appears covered.


from your site
"The exceptions are properties in Alaska, Hawaii, Guam, and the Virgin Islands, where that range is 50 percent higher ($625,500 to $938,250). The 2009
conforming loan limit of $417,000 is in place everywhere else. Loan limits for 2-4 unit properties are proportional to the 1-unit limit.

well the $625k is the max amount of their loan, not the conventional loan limit.

thx anyway.




So far I've found the jumbos down a little but still over 6%. I'm in at 6.75%

the bride also said that the new mortgage paperwork is like that at initial closing.. meaning lawyers etc and fees around $2,500.

RoninLB 01-09-2009 10:02 PM

Quote:

Originally Posted by therotman (Post 4407161)


"I'm in for a $550k mortgage as a jumbo."

When did you get your jumbo loan? They just changed these numbers last year.


Around June of 2008 was when the 90 day contract started. The $417k conforming loan was raised from about $410k


I may be stuck with 6.75% ?

ikarcuaso 01-09-2009 10:15 PM

Quote:

Originally Posted by RoninLB (Post 4408592)
from your site
well the $625k is the max amount of their loan, not the conventional loan limit.

$625k is the max for a conforming loan in your area (is that the same as "conventional"?)

If you refi $550k, you s/b able to do it as a conforming loan, not a jumbo loan. On bankrate.com, they show a 30-year fixed conforming loan at 5.13%

I've been shopping myself. Depending if I want to pay points (and how many) or not, I could get a 30-year $500K+ loan below 5.00% fixed.


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