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To the person who got a 4.75% 30 year morgage

JEDI

JEDI

Lifer
I read a few days ago about someone mentioning that he got a 4.75% 30 year morgage. But i forgot his name. (damn it for not PMing then and there)

Anyway, who was it with? got a link? THX
 
IF you have a good credit score... that is going rate at my bank... Bank of Oklahoma and many other banks accross the nation.
 
I got 5.875% for a 15 and that was absolutely amazing IMO. Hard to imagine < 5% for 30 years. That would be cool.
 
Originally posted by: blahblah
Maybe they work at the bank.

Usually that's one of the perks for working at a financial institution.
Click to expand...

There's only 2 reasons why I'm continuing to work for my bank:
1) Hundreds of stock options which I won't get for around 3-4 years.
2) Very good mortgage offers and incentives which I'll take advantage of one of these days.
 
That's unreal. Either paid down a ton of points, knew somebody really high up, or is mistaken.

I haven't even seen 5 year ARM rates that low.
 
Originally posted by: RossMAN
Originally posted by: blahblah
Maybe they work at the bank.

Usually that's one of the perks for working at a financial institution.
Click to expand...

There's only 2 reasons why I'm continuing to work for my bank:
1) Hundreds of stock options which I won't get for around 3-4 years.
2) Very good mortgage offers and incentives which I'll take advantage of one of these days.
Click to expand...


3) Unsurpassed opportunities for embezzling to pay for Hot Deals.
 
The FNMA/FHLMC "A" 30 year fixed is currently running around 5.5% at par. While I don't have a crystal ball, I believe it to be EXTREMELY unlikely that the 30 year fixed will ever drop below 5%. Hey, it may happen, but there will come a point where the rates would get too low for banks to make a profit from them.

The 3/1, 5/1, and 7/1 30 year ARMs are all running below 5%. Those are not fixed rates and with rates currently at historic lows, it is a certainty that rates with be higher after the 3, 5, or 7 year fixed period is over. I strongly suggest that people who plan to be in their home longer than the fixed rate period NOT get an ARM.

The deal linked from the search is a "streamline" loan for existing Wells Fargo customers only. These are "rate and term" first mortgage refinances for rate and/or term reduction only. No cash-out is allowed, except for the payment of some non-recurring closing costs.
What is a "cash-out" loan? Starting 1/1/03, FNMA and FHLMC redefined a cash-out refinance to include the payment of ANY non purchase money 2nd mortgage or HELOC, in addition to the usual debt consolidation or home improvement purposes. Also, they upped the fee for cash-out loans to 0.5% if the LTV is between 70% and 80% and to 0.75% if the LTV is between 80% and 90%. Cash out first mortgage refinanaces are not available from FNMA/FHLMC above 90% LTV. Just FYI.

Vic's tips on mortgage refinancing: 🙂
- Reamortizing your term out another 30 years to save a few dollars a month does not make sense. Some people are so concerned about when they will recoup the closing costs that they forget that they are adding years back onto their mortgage. If you can afford your current payment and your interest in the home is long-term, look into a term reduction.
- Low interest rates are great. But don't forget that every dollar of interest saved is a dollar you won't be able to deduct from your income taxes in the future.
 
Originally posted by: Vic


Vic's tips on mortgage refinancing: 🙂
- Reamortizing your term out another 30 years to save a few dollars a month does not make sense. Some people are so concerned about when they will recoup the closing costs that they forget that they are adding years back onto their mortgage. If you can afford your current payment and your interest in the home is long-term, look into a term reduction.
- Low interest rates are great. But don't forget that every dollar of interest saved is a dollar you won't be able to deduct from your income taxes in the future.
Click to expand...
Ahh..the morgage tax deduction myth. the govt gives you $4700 as the standard tax deduction. you have to have deductions above that inorder to claim more. my morgage interest is $6700 last year ($124k left on loan, 5.5%, 15yr morgage, 14 years left). so you only really get $2k (6700-4700) benefit for having a morgage. the reason you primary reason to buy a house should not be the morgagge deduction, but rather owning your own place to live.

ok sure, you have to add property tax. for me it's $1800. But i'm paying $1800 to get back 500? (someone in the 27% tax bracket-> 1800 x .27 = 500). again, the main reason for owning a home is not the tax deduction, because it's "GREAT" tax benefits are a myth.
 
I just locked in last week for a 30yr at 5.75%. How did you get a whole point lower? My credit and my wife's is very good and we are putting a big down payment down.
 
Originally posted by: XFILE
Originally posted by: Vic


Vic's tips on mortgage refinancing: 🙂
- Reamortizing your term out another 30 years to save a few dollars a month does not make sense. Some people are so concerned about when they will recoup the closing costs that they forget that they are adding years back onto their mortgage. If you can afford your current payment and your interest in the home is long-term, look into a term reduction.
- Low interest rates are great. But don't forget that every dollar of interest saved is a dollar you won't be able to deduct from your income taxes in the future.
Click to expand...
Ahh..the morgage tax deduction myth. the govt gives you $4700 as the standard tax deduction. you have to have deductions above that inorder to claim more. my morgage interest is $6700 last year ($124k left on loan, 5.5%, 15yr morgage, 14 years left). so you only really get $2k (6700-4700) benefit for having a morgage. the reason you primary reason to buy a house should not be the morgagge deduction, but rather owning your own place to live.

ok sure, you have to add property tax. for me it's $1800. But i'm paying $1800 to get back 500? (someone in the 27% tax bracket-> 1800 x .27 = 500). again, the main reason for owning a home is not the tax deduction, because it's "GREAT" tax benefits are a myth.
Click to expand...

The point to owning a home is to keep some of the money you would be flushing down the drain as rent. The great tax benefit is quite nice because most people ignore it until it's tax time, then are pleased when they get more back (plus many of us are in the 38% bracket). I know my return this year is much bigger than last year due to a full year of homeownership.

Your not comparing the benefits of a mortgage to the most common alternative, renting. In renting all the payments are gone forever. As long as your payments are similar, buying a house is a much better situation for most...

P.S. Just wait and see if the tax credit plan goes through for lower income buyers, this would give first time buyers a several thousand dollar credit to use in the purchase of a home. There was info in an article on it in my local paper yesterday. This would turn home buying into a great deal for even more people. Who knows if it will get passed in these tight budget times.....

 
Originally posted by: Skoorb
I got approved this morning at 3 1/4 for a 90 year mortgage 😀
Click to expand...

you got robbed, i just did a balance transfer onto my discover card at 0% for the next 40 years. my only payments are to the principal
 
Originally posted by: Ameesh
Originally posted by: Skoorb
I got approved this morning at 3 1/4 for a 90 year mortgage 😀
Click to expand...

you got robbed, i just did a balance transfer onto my discover card at 0% for the next 40 years. my only payments are to the principal
Click to expand...

The downside to this is after the AT effect hit discover and we all transferred our mortgages to the 0% for 40 offer, they'd go bankrupt. Then we'd end up in court and it'd get ugly.... 😉😀😛:Q🙂
 
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