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Mortgage rates at all time low

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spidey07 said:
WTF! I was told over and over again by my broker you couldn't do piggy backs like that to avoid jumbo. Are you absolutely sure that's what happened?

This could be a game changer if you're right. Time to get on the horn tomorrow.
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I can ask them again but that's what they told me. They're not the type to make up stories. They could've paid cash but wanted to keep their money liquid for business expansion and mortgage rates are way lower than business loan rates.
 
Naustica said:
I can ask them again but that's what they told me. They're not the type to make up stories. They could've paid cash but wanted to keep their money liquid for business expansion and mortgage rates are way lower than business loan rates.
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Yes, that's why I'm financing as much as I can. If you get a chance confirm. I'm going to be calling around tomorrow as we're going to make an offer and I need this shit firmed up.
 
spidey07 said:
Yes. Always realize that your amortization tables will be reset so it may not be a good idea financially to refinance even if the rate is significantly lower. I'm at 6.5% and am not refinancing as I'm 8 years into the loan.

Now if I get the house I'm wanting to buy I will refinance just for the lower payment as then I'd be selling and I'd rather have the the lower monthly obligation paying two mortgages just for safety's sake.

What's really nice is the low rate on jumbo loans.
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Incorrect. You can always make extra principle payments and finish the mortgage at the same time and you will come out ahead. The only reason not to refinance is if you won't hold the mortgage long enough to recover the fees.
 
the DRIZZLE said:
Incorrect. You can always make extra principle payments and finish the mortgage at the same time and you will come out ahead. The only reason not to refinance is if you won't hold the mortgage long enough to recover the fees.
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That's the boat I'm in. I got a 15 year mortgage @ 4.75% 2 years ago....I'm married, but our second income is going to school debt. By the time we get student loans paid off, we should be able to pay the mortgage off in another 34 payments comfortably. We end up saving about $2200 in mortgage interest over 4-5 years if we refinance for 5 years 2.49%, but then we'd have to pay up $4100 in closing costs... By the time we "shorten" the loan to 5 years we'd be increasing our risk if one of us were to lose our job. After discussing it, we've decided to keep our existing mortgage and stick through it even though it'd be nice to drop the APR.
 
the DRIZZLE said:
Incorrect. You can always make extra principle payments and finish the mortgage at the same time and you will come out ahead. The only reason not to refinance is if you won't hold the mortgage long enough to recover the fees.
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Wow. Incorrect.

Let's see here. Make extra payment into mortage at 4.15 percent or make extra payments into the stock market that is historically much better than that?

I can refi with 250 bucks, but my amortization tables reset. Your "extra payment" won't outpace the market

Do the math. Paying extra into your house, when interest rates are this low is if fools bargain. Think long term.

Do the math. Trying to build wealth on your house is a bad, bad idea. This is where using debt wisely comes into play, and at these rate, you can use debt to build wealth.
 
spidey07 said:
Wow. Incorrect.

Let's see here. Make extra payment into mortage at 4.15 percent or make extra payments into the stock market that is historically much better than that?

I can refi with 250 bucks, but my amortization tables reset. Your "extra payment" won't outpace the market

Do the math. Paying extra into your house, when interest rates are this low is if fools bargain. Think long term.

Do the math. Trying to build wealth on your house is a bad, bad idea. This is where using debt wisely comes into play, and at these rate, you can use debt to build wealth.
Click to expand...

You aren't following what I'm saying. I'm not advocating paying a mortgage off early, or not paying it off early for that matter. I'm saying the amortization reset is irrelevant. You can make extra payments so that you are paying the same principal per month with a lower total payment by refinancing. If you don't believe me post some sample numbers and I'll prove it to you.
 
I wouldn't mind refinancing, but I have a few things to think about.

In 2005 we took out a $180K loan, 30 yr, fixed, 5.62% on a house we paid $335K. We owe $166K today. I wonder what the house is worth now? Zillow says $161K. That seems a little low. I was thinking more like $180K. Never-the-less, I'd have to fork over cash to keep from paying PMI and I'm not sure how much longer I'll be in this house. With me being 6 years already into this loan I'm already starting to see some principle being paid off and with a refi I'll be back to square one.
 
kY said:
Where is your home? 3.875 is my target rate.

The problem, though, is appraisals... not too many home sales in my area so not many homes to go by when the appraisal goes through.
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I'm in north Tx DFW area. I just happen to get a little lucky as soon as I heard rates dropped like a rock on Aug 10th I called my broker and got the rate locked in. I'm not sure exactly what I could get today but I know Aug 11th the rates went back up by .5%
 
Squisher said:
I wouldn't mind refinancing, but I have a few things to think about.

In 2005 we took out a $180K loan, 30 yr, fixed, 5.62% on a house we paid $335K. We owe $166K today. I wonder what the house is worth now? Zillow says $161K. That seems a little low. I was thinking more like $180K. Never-the-less, I'd have to fork over cash to keep from paying PMI and I'm not sure how much longer I'll be in this house. With me being 6 years already into this loan I'm already starting to see some principle being paid off and with a refi I'll be back to square one.
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Your monthly amount due would drop, so if you kept paying at the same rate, the difference would go to the principle. This of course assumes you have a regular loan and not one that won't apply extra payments to the principle.
 
spidey07 said:
Yes. Always realize that your amortization tables will be reset so it may not be a good idea financially to refinance even if the rate is significantly lower. I'm at 6.5% and am not refinancing as I'm 8 years into the loan.

Now if I get the house I'm wanting to buy I will refinance just for the lower payment as then I'd be selling and I'd rather have the the lower monthly obligation paying two mortgages just for safety's sake.

What's really nice is the low rate on jumbo loans.
Click to expand...

There's no reason you can't turn a 30 year into a 22 year loan, the bank won't care as it adjusts the terms in their favor not yours. And as long as your loan has no prepayment penalty you could just pay extra principle each month to turn a 30 year into a 22 year anyway.

The only reason you wouldn't want to refinance (besides the hassle or appraisal issues) is if your loan was already almost paid off and the closing costs wouldn't break even before it ended.

In other words, the loan term is only pushed out if you want it to be.
 
Svnla said:
I just checked around a bit. Look like the new low rate is not down the pipeline yet. Most of the rates were still the same as a couple days ago.
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Many lenders are actually already swamped with applications and thus don't have the incentive to lower their rates immediately. Or at least that is what I was reading.
 
Eli said:
Mannn.. I hope they stay down for another year or so!

10 months and counting until we move back to Portland. Save, save, save!
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I remember hearing recently the fed is practically guaranteeing rates are staying down until 2013 at the earliest. Doesn't seem like the economy is getting better anytime soon either, so I just can't see how the market is going to improve anytime soon. Even if it does, it just can't cycle into another bubble. Unthinkable.

Now might be a good time to buy. 5 years from now, probably just as good.
 
I received a call from WF to refi through the HARP program. I do need the appraisal and believe I am within the 125%. The rate they offered me was 4.875% and I am currently at 5.875%. Yeah it's down but, I thought it would be lower. Does the rate seem a bit high? I thought I would be offered at least 4.5% or lower. Their website says today's rates are at 4.25%.

My question is, what is currently a good rate?
 
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Damn, I've already refinanced 2 times over the last 4 years when everyone stated they were the lowest they would get lol. Each time I've saved over a point, but it's starting to feel like a lot of paperwork, and each time we do it the loan resets back to 30 years. The lower payments are nice though.

I've never been with a bank that just does a quick and easy refinance either. They all require tons of paperwork, closing costs and it takes 2 months to finalize. I don't feel like going through that again. I think I'm at 4.75 now with a 30 year loan, we started at 6.85 when we bought. So it wouldn't even be a point drop this time.
 
spidey07 said:
Wow. Incorrect.

Let's see here. Make extra payment into mortage at 4.15 percent or make extra payments into the stock market that is historically much better than that?

I can refi with 250 bucks, but my amortization tables reset. Your "extra payment" won't outpace the market

Do the math. Paying extra into your house, when interest rates are this low is if fools bargain. Think long term.

Do the math. Trying to build wealth on your house is a bad, bad idea. This is where using debt wisely comes into play, and at these rate, you can use debt to build wealth.
Click to expand...

Any suggestions on one ETF or ticker symbol that will outperform 4.15% where I can put into instead of extra payments to the house?
 
Saint Nick said:
So, is there any hope for someone without a down payment to buy a house? Otherwise, I guess I'll just keep on saving...
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my credit union (navy federal) has a 100% financing with nothing down. it is at a slightly higher rate and you have to pay like 1.75 point towards the closing costs. there is no PMI either.

i actually did the paper work yesterday with the credit union on the phone because my wife and I are looking to get preapproved for $400k and that was the preapproval loan he had for us. it was at 5.125% and would be like $2100 or so (mortage only not taxes) per month on the payment.

however, if we do the 5% down it would eliminate that rate and would be below 5, I believe 4.875 or something, but we'd have to cover the closing costs and what not. but we don't have enough saved for 5% down and to cover the estimated closing costs, so that is why for the preapproval we went w/the other one.

he said it's not final at all and if we actually put a bid in, then we can go for another loan, especially if we negotiate and the seller pays for closing costs.

and this is if we paid $400k for a house. we're looking at ones right now that are $350k.

EDIT:

and this is not an FHA loan, this is regular old fixed 30 year.
 
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evident said:
dang, i thought i got a deal when my mortage from last year is 4.25%
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I bought a house in 2008 after prices had dropped, mortgage rates were "low" (lol 6% with a point) and the Government was giving $7.5k interest free loans to encourage new home buyers. I thought I was a genious buying at the perfect time.

Now I'm $40k upside down on the mortgage, rates are about half what I got (and I can't refi b/c of that whole upside down thing), and I'm paying back my interest free loan while everyone else got their incentive cash free and clear.

Woohoo me!
 
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