PSA - look to refinance mortgage now

[ponyo]

Sometimes it's not all about me.

You have zero control over this virus and the economy right now. So you might as well make best of the situation and take advantage of opportunities caused by this disruption. That's what I plan on doing with the stock market. You can chose to look at things from glass half empty or half full. Your choice.

 

[obidamnkenobi]

Uhm, not seeing great rates. Checked my lender for refi (30 year fixed) and offered 4.375% :S. bankrate.com I get:
4.375%, 5.25%, 4.75% etc
Nope. Worse than last time I looked couple years ago!

 

[Vic]

Something to keep in mind is that these low rates are driving volume that exceeds many lenders' current capacities. Some lenders may choose to keep their rates slightly higher than competitive in order to hold their volumes down while they ramp up staffing. This will be especially true for lenders that were already at/near their full capacity. Other lenders may choose to get crazy for market share. So shop wisely and expect long processing times regardless.

 

[[DHT]Osiris]

Uhm, not seeing great rates. Checked my lender for refi (30 year fixed) and offered 4.375% :S. bankrate.com I get:
4.375%, 5.25%, 4.75% etc
Nope. Worse than last time I looked couple years ago!

Find a better lender. Penfed gave me 3.125%, back in november. As of right now they're citing a low of 2.875% for a 30-year fixed, 2.5% for 15-year fixed.

 

[zinfamous]

oh man, I just remembered that Mom started and finished her refi about a week ago, I think. I don't think she was able to grab one of the current rates.

 

[glenn1]

10 year bond at 0.71% as of this post.

10 year actually hit 0.66% intraday today. Mortgages are based more upon MBS (Mortgage Backed Security) rates which somewhat track 10-year rates but not exactly. Loan originators gotta bundle and sell those mortgages to Fanny Mae and Freddie Mac so what they're paying is the key factor for retail mortgage rates. Someone else pointed out correctly however that lenders may be capacity strained right now (due to staffing) so that might keep mortgage rates from cratering as much as Treasury debt does.

MBS Dashboard - MBS Prices, Treasuries and Analysis

View MBS prices and charts and follow the day's market activity with Micro News and Commentary.

www.mortgagenewsdaily.com

 

[s0me0nesmind1]

You have zero control over this virus and the economy right now. So you might as well make best of the situation and take advantage of opportunities caused by this disruption. That's what I plan on doing with the stock market. You can chose to look at things from glass half empty or half full. Your choice.

Yeah, but this is P&N...

So at some point, we have to use our amazing intellect to somehow link a massive global epidemic that was started in China on... <spins wheel>... TRUMP!

 

[[DHT]Osiris]

Yeah, but this is P&N...

So at some point, we have to use our amazing intellect to somehow link a massive global epidemic that was started in China on... <spins wheel>... TRUMP!

I don't think anyone is blaming COVID-19 on Trump. You can squarely lay the govt's response, and the next 1-4 years of the economy (assuming it fails as badly as I expect) on his feet though.

 

[glenn1]

You have zero control over this virus and the economy right now. So you might as well make best of the situation and take advantage of opportunities caused by this disruption. That's what I plan on doing with the stock market. You can chose to look at things from glass half empty or half full. Your choice.

From the glass half full category, if you have been longing to take a cruise somewhere the prices are cratering. Just saw a 9 day cruise to Maine and Atlantic Canada for under $400. That's basically less than the cost of hotel lodging for that long unless you're staying at some motel in Wuhan China in the heart of Coronavirus territory.

 

[Jhhnn]

From the glass half full category, if you have been longing to take a cruise somewhere the prices are cratering. Just saw a 9 day cruise to Maine and Atlantic Canada for under $400. That's basically less than the cost of hotel lodging for that long unless you're staying at some motel in Wuhan China in the heart of Coronavirus territory.

I wouldn't put it too far out. The cruise line may go broke & take your money with them.

 

[Jhhnn]

Yeah, but this is P&N...

So at some point, we have to use our amazing intellect to somehow link a massive global epidemic that was started in China on... <spins wheel>... TRUMP!

CV is just the last straw for markets over inflated by hot money from ill advised business/ investor class tax cuts. When you're rich enough & hooked in intimately with the system, you make money from market movement in either direction regardless of any intrinsic value.

 

[Svnla]

Darn, 3.29% for 30 years, lowest ever. Thinking about maybe time for a house? Lower rate after another Fed rate cut in the nearby future? Below 3%?

Around here, a decent house 2K sq ft with 3 beds and 2 baths is about $200K, so 20% down is $40K, then the mortgage amount is $160K and the monthly payment is about $700 (plus property tax but it is low here + insurance). A house for less than a 1 bed room apartment. Tempting.

 

[Vic]

10 year actually hit 0.66% intraday today. Mortgages are based more upon MBS (Mortgage Backed Security) rates which somewhat track 10-year rates but not exactly. Loan originators gotta bundle and sell those mortgages to Fanny Mae and Freddie Mac so what they're paying is the key factor for retail mortgage rates. Someone else pointed out correctly however that lenders may be capacity strained right now (due to staffing) so that might keep mortgage rates from cratering as much as Treasury debt does.

MBS Dashboard - MBS Prices, Treasuries and Analysis

View MBS prices and charts and follow the day's market activity with Micro News and Commentary.

www.mortgagenewsdaily.com

I was that 'someone else.'

 

[Mr.IncrediblyBored]

What are your thoughts on cash-out refinance for 3.25%? About 70% loan-to-value. About to close on it and I'm seeing all these posts about rates still dropping. I'm getting cold feed and about to pull out and wait.

 

[Jhhnn]

I'm at 3.4% right now on one of those 10-fixed, 5-variable, 15 fixed, 3 years in.

I guess it makes sense to look as I was planning to start thinking about it after another 2 years. ...I did just refinance my car a month ago...damn it! and I'm also sending money to new kitchen stuff, so I'm not sure if I'll want to spend the cash on a refinance, if I can't get one without fees..

Lots of lenders offer no money up front just sign here refi deals. The fees go onto the loan amount.

 

[Thump553]

What are your thoughts on cash-out refinance for 3.25%? About 70% loan-to-value. About to close on it and I'm seeing all these posts about rates still dropping. I'm getting cold feed and about to pull out and wait.

Depends on your closing costs and fees, but if they are minimal or reasonable, I'd go with that. Too many people focus on the interest rate instead of the total cost. A good rule of thumb is that 3% is more or less the rock bottom for mortgage rates (unless heavily subsidized by points or the like).

 

[Thump553]

Just did some research on my current adjustable. The formula is the one year LIBOR plus 2.25% rounded to the nearest 1/8 percent. The currect LIBOR is 1.38% (and probably headed down) so it looks like I'm looking at a new rate in the 3.5 to 3.75% range for the next year.

I'll still investigate refinancing but I'm more inclined to stick with what I have and prepay it more aggressively.

 

[blackangst1]

Navy Federal has standard conventional at 2.553% APR 10-30 year

 

[glenn1]

Checked with my originator today and rates have actually ticked up from the 2.875%/20 and 3.0%/25 I was quoted and locked in. High demand and relative lack of capacity to process is meaning mortgage rates have basically completely de-coupled from Treasury debt rates like the 10-year T-Note.

 

[TheVrolok]

Checked with my originator today and rates have actually ticked up from the 2.875%/20 and 3.0%/25 I was quoted and locked in. High demand and relative lack of capacity to process is meaning mortgage rates have basically completely de-coupled from Treasury debt rates like the 10-year T-Note.

Really really nice rates. That's awesome.

I got 3.1/20 with 4500 in closing and rolled in, 450 appraisal out of pocket. Break even in 14 months. Obviously significant interest savings over my current 4.5/30.

I'll take it.

 

[Dulanic]

Uhm, not seeing great rates. Checked my lender for refi (30 year fixed) and offered 4.375% :S. bankrate.com I get:
4.375%, 5.25%, 4.75% etc
Nope. Worse than last time I looked couple years ago!

Looking in the wrong areas, you can get MUCH lower than that, unless your credit sucks.

 

[Dulanic]

Checked with my originator today and rates have actually ticked up from the 2.875%/20 and 3.0%/25 I was quoted and locked in. High demand and relative lack of capacity to process is meaning mortgage rates have basically completely de-coupled from Treasury debt rates like the 10-year T-Note.

Yeah I am still locked /w one lender and have another monitoring the market for me. They just have too much demand so they are all jacking rates now to make more money for themselves and slow down demand. I'm thinking these low rates will be around for another week and it's looking likes feds will drop rates again soon. If that happens and rates go down more, I switch lenders and all I am out is the $27 I paid for the credit report.

 

[Mandres]

Navy Federal has standard conventional at 2.553% APR 10-30 year

Wow, I see that too. I'm going to make some inquiries this week.

 

[glenn1]

Wow, I see that too. I'm going to make some inquiries this week.

Looks like that rate may require you to pay discount points but obviously look into any options you can find!

 

[s0me0nesmind1]

Checked with my originator today and rates have actually ticked up from the 2.875%/20 and 3.0%/25 I was quoted and locked in. High demand and relative lack of capacity to process is meaning mortgage rates have basically completely de-coupled from Treasury debt rates like the 10-year T-Note.

Yeah I believe that.

The problem is (similar to the markets) - this pandemic isn't a 1 or 2 week thing.

I suspect if anything rates might get even lower once we get off the initial kick of things.