Re-Fi 3.15%
 

They advertise lower, like 2.99% but you have to have a loan of $300K or more. I have an outstanding loan amount of under $200K, they suggested, that I borrow $300K and immediately pay back $100K, but the loan payments would be based on the $300K monthly, I'd just pay it off sooner. A few of my investments pay better than 2.99% so I'll stick with the slightly higher interest rate. Its a ten year note, that I will be paying off in about 6 years, by applying monthly savings on the Re-Fi back into the note. I did this last year and went from 4.625% to 3.75% and now 3.15% APR and APY. No closing costs, no escrow, no appraisal, only a $150 termination fee on my old loan. I think my parents paid that kind of rate 50 years ago.

If you're doing OK in this economy, and not underwater on your house (mine is easily worth 3X what I bought it for 15 years ago) some things can be good.

BTW, they told me my credit score is 840.

That's impressive. No issues at all with my current situation but I'd jump at that.

We paid off our last 84k in august. Seeing these rates makes us want to lock in a beach or mountain house now. If anything we will get some of our interest deduction back. I just like not owing anything to anybody.

I'm just starting this process right now and have only talked with Wells Fargo, but I'm able to get a 3.85 20 year fixed. I'm hoping to find something even better though. And that rate is with a score of 705 with a bankruptcy 18 months ago.

Sean, the interest deduction isn't that great, you've got to spend $1 in interest to recoup no more than 32 cents in write offs. But at least the gubmit is "subsidizing" your note to some extent. I doubt you can get that rate on a 2nd home.

Looking at doing the same thing on my place.

Signing the papers on the Re-Fi in about 1/2 hour. The appraisal came in at $750K which I think is optimistic, the appraiser had a hard time valuing the property since I have 18 acres in an area of one acre and 1/8 acre properties. Considering we bought it for $330K 14 years ago, I feel pretty good. Drops our payments by about $400/month IF we do the ten year note. We're going to plow the savings back into early payoff, like we did the last time we RE-FI'd. Looking at a six year payoff to burn the mortgage. I hope to "retire" in seven years. This will save me about $30K over the life of the loan, at six years, that is like not paying for a new mid-range car.

My total closing costs are $36.63. My credit score wasn't as high as I thought it would be 829 averaged over all three credit rating bureaus.

Great if you need to refi an existing mortgage!

Not so sure about rushing out to get a second home on the beach. Once the interest rates go up again, the home prices will adjust down accordingly. These rates are the only reason the housing market hasn't tanked completely.

It is all in the monthly payment in the US. I'd rather have a smaller principal (less debt) with a higher interest rate than the other way around. Principal is also very important when it is time to sell ...

Cheers,

George

IF the $$ tanks hard and inflation skyrockets and wages follow the people in debt with OLD debt will be sitting pretty.

I would prefer not to owe or have "old math" dept.

Hugh,

Who're you using? I'm looking to re-fi (was just talking to Mrs. Noah not 15 min ago).

I'm refinancing @4.15% w/ Wells Fargo for 30 years fixed and they told me that I could refinance at the same rate on a second home but, would have to put 20% downn. Had to pay $500 up front with no appraisal. If interest rates drop more, I can refinace again with no appraisal,just pay $500. Btw, I'll be saving tens about $$60Kover the life of the loan.

Noah, I'm using cashcall. No fees, they waive them all except in my case $36.63. That is it.

How is it that back when I bought my first house and I had very little money, I got a great deal on a home loan at 12.5% for a 30 year loan. The standard rates were 15%. Now I have a little money and no debt and the interest rates on a 25K CD are .55%

I miss Jimmy Carter. I want interest rates at 15% again! Of course I want 50 cents a gallon gas as well.

Better $30K home loan at 12.5% than $300K at 3%

rjp

PS in this day and age note that the reason many beachfront properties are tanking in value is the fact there is no financing available for them.

When the private money lenders (Lehman Brothers, Indymac etc.) died leaving only Fannie and Freddie no one was around to offer financing on high risk condos, beachfront so on and so on.

In that case the only thing was cash up front. I know people who bought oceanside condos in HI under $40K because it's so bad right now.

Moral of the story is: If you want to buy one of these properties (say cash out your primary to pay for it) be sure you can hold on to it for awhile - it will take a while to sell it.

rjp

I did some investigating this AM, and the best I could do was 3.62 on a 20-year; there were lower rates, but I'd have to buy them. I owe $129k, my FICO is 813-819 depending on who you ask.

yep. and if the economy continues at ~2% inflation then people with 3% loans will still pay. . .about 50% more than inflation, to rent that money.

and of course if one is in a 30% tax bracket, that pretty much washes.

From what I've read, and seen, the Fed is focused on producing ~2% inflation (new dollars) for the foreseeable future. ..regardless of output. Looking to push an outcome of (relatively) cheaper US goods and services, I suspect.

Hugh, I looked up cashcall and get two websites, are you using the one in Anaheim CA.?

Hugh, is that company the same as the one doing payday loans?
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Yeah, that is what concerns me... :(