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?
Cash Call | Ripoff Report | Complaints Reviews Scams Lawsuits Frauds Reported
Consumer complaints about Cashcall

Yeah, that is what concerns me... :(

I've re-fi'd with them once before. No issues, and no surprises. Yes its probably the same company.

I noticed most of those complaints are from people with small loans... not mortgages.

Pay day loans are by nature high interest rate, high risk as well. People who take out the pay day loans usually don't have credit cards anymore. Cashcall closed my loan yesterday, and I only paid $36.63 total fees. They will sell the note to CITI within a week or so.

Just refinanced again:
200K
30 yr
0 points
3.25%

I gave a call to Cashcall yesterday. They quoted me 3.625% for a 30-year fixed jumbo with no points.

I'm in an FHA 30 yr. fixed in my current house. I so want to refi, but they've doubled the MIP since I closed on this loan and the new MIP rates apply to refi'ed FHA loans. So I could go down more than a rate point and still pay more because of the new MIP. Not worth it. If these rates last long enough for me to get into the equity position, we can refi to a 15 yr. loan, drop the MIP and our payments will be the same as we're paying now, because we pay extra every month.

Yeah, I've held out on refi-ing due to lack of favorable LTV ratio. We're only a couple years into our loan, and while we put down 20% at initial purchase, the market has fallen faster than that percentage. Only now is my home value coming back to around that 80% LTV ratio which would allow me to skip out on PMI, which is why I'm finally looking to refi.

We bought in '99, financed 80% of the price. Thankfully we just appraised at 35% over what we paid. We were able to refi at 3.5% last month, turning our 30-year into a 15-year, and are still paying less per month than what we were (the rate we got in '99 was 6.375%).

Now's a good time to refi if you can do it!

Take the difference of what you were paying and consider plowing it back into the loan. I had 7 years on my loan when I re-fi'd at 3.15% for a ten year. I'm taking the $500/month difference and plowing it back in to pay off in six years. You'd be surprised how much money you will save over the life of the loan, including the mortgage tax deduction.

We refi'd a few months ago. Rate went from 6.5% to 3.125%. Same payment (plus like $45 per month) and our loan went from 26 years to 15. I'm paying the extra priciple to drop it to 10 years.

I ran the calculations and found that if we refi right now, and continue to pay the same amount that we currently do (I throw in an extra 2 payments per year), we'd have the house paid off in about 15 or 16 years. Instead of the 27 we currently still have to go.

Where'd you get that from?

Northpointe Bank MI

Mortgage and Full Service Bank | Best Rates Trusted Service | Northpointe Bank

Anyone know how long fla PMI lasts ?

the house next door had a fire and was abandon
the bank BoA willnot even admit they own the house
as the PMI is paying them so no foreclosure until that runs out

I would like buy and bulldose the property
but can't get any data on when the PMI runs out
house is going on 5 years empty striped and burned
so rebuilding is not really going to happen

Interesting. You'd think the PMI insurer would wish to coordinate benefits with the property (P&L) insurer. It actually surprises me the PMI insurer is paying anything at all when the claim should have been with the P&L insurer.

Perhaps they were paying before the fire damage.

yes abandon first
then kids got in and set the fire
then scavengers hit got the a/c and copper pipes

really sucks that BoA will not admit anything
I have tryed but they just stonewall
yard guys say BoA is paying them
as do the few inspector /appraisers who have come by
but BoA says not their property !!!!! yet