30 yr fixed
4.75% .625 pts (1% origination fee + ~$1800 in fees)
The fees might actually come down to about ~$1500 (escrow fee may be lower than what they have stated).
Altogether, the numbers made sense for me. With the previous mortgage, I've been prepaying (ARM at 4.75%, adjusting in two years), but I'll hold onto this one for quite awhile and stick with minimum payments.
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Navy Fed CU
15 yr fixed
4.25% 1.875 pts
4.625% no pts
30 yr fixed
4.75% 2.875 pts
5.125% no pts
The rates with discount pts yield the lowest APR. But if you're not staying very long in the house you might not want to pay the points. Since I plan to stay here forever and I can't imagine ever getting a significantly lower (if lower at all) rate to refi again, I'm going with the 4.25 15 yr fixed; lowered from my current 6% 30 yr (with 17 yrs remaining after some paid down principal). Sweet deal.
My primary residence mortgage is currently held by Chase. 30 year fixed @ 5.875%. I have about 14 years left to pay. I am also a member of NFCU, as well as USAA, and Pen Fed CU. I truly believe the interest rates are going to come down significantly more than they are now. I'm looking for something around 3-3.5% on a 15 year fixed SOON!
My primary residence mortgage is currently held by Chase. 30 year fixed @ 5.875%. I have about 14 years left to pay. I am also a member of NFCU, as well as USAA, and Pen Fed CU. I truly believe the interest rates are going to come down significantly more than they are now. I'm looking for something around 3-3.5% on a 15 year fixed SOON!
Mike
Kind of off-topic but I fully expect my HELOC with PENFED to drop to eiither 3.5 or 3.0% on 12/16/08 (currently 4.5%). It is interest only and the funds to pay it off, if so inclined or rate goes up quickly, are earning 6.25% at same CU.
__________________ Proud Vietnam Veteran: Cu Chi 66, 1 Bde, 25ID & Pleiku 66-67 41st Sig Bn 1st STRATCOM - Army Retired Jun 1979.
By pushing rates down, you keep home prices from falling. However, the falling home prices are coming down from ridiculous levels anyhow. I would rather see the free market work itself out, let rates stay where they are and let the home prices fall to a more realistic level.
Making money easy as before only encouraged an upward spiral of prices, much like a feeding frenzy into a ponzi scheme.
When will the government learn low rates got us into this situation, maybe higher rates will get us out?
If one owes more than 100% of mortgage because of this, can they get those rates mentioned above? I have a 30 yr fixed at 5.75% with 28 years left... but the 280k price tag which is going to be refinanced is about 20k more than house will be appraised for.
__________________ Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
When will the government learn low rates got us into this situation, maybe higher rates will get us out?
It's not just low rates that got us into it.
It was a combination of low rates, careless lending practices and reckless products like nothing-down, interest only ARMs.
If they stuck to more "conventional" funding of fixed-rate mortgages for decent credit risks, much of this wouldn't happen. Yes, home prices would have risen some because most people define what they can "afford" in terms of monthly payment rather than price... but it wouldn't have been nearly the toxic mess that occurred in the last several years.
__________________ "Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
It was a combination of low rates, careless lending practices and reckless products like nothing-down, interest only ARMs.
If they stuck to more "conventional" funding of fixed-rate mortgages for decent credit risks, much of this wouldn't happen. Yes, home prices would have risen some because most people define what they can "afford" in terms of monthly payment rather than price... but it wouldn't have been nearly the toxic mess that occurred in the last several years.
Yes, I agree.
My off topic point was that high rates
a) would make people want to borrow less
b) would probably give the banks more money to lend (people likely to invest in cash because it pays higher)
c) people already in trouble would have their situations get wrecked quickly (and fixed quickly)?
IMO keeping rates low for such a prolonged amount of time is delaying a further crash, not preventing a crash.
__________________ Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
It was a combination of low rates, careless lending practices and reckless products like nothing-down, interest only ARMs.
The mortgages were just part of the problem-- the real problem was all the stooopid credit default swaps that were written on these mortgages without any reserves to pay the claims. That's what blew up the system. I think we could have handled the amount of foreclosures if that's all there was to it.
I got a call today from the mortgage guy my wife uses for her clients. rate was 5.0 with 1 point for a 30 yr or 5.125 @ 0
I'm seeing those rates at NFCU, but they also added on a "1% loan origination fee". By the time all the junk fees are added in we'd be at the equivalent of 5.375%-- what we have now.
Can you pick up one of your mortgage guy's loans for me too please?
__________________ *
* For more info see "About Me" in my profile.
Looks like rates went down more today. The BECU loan I locked at 4.75% (APR 5.0) is now available at 4.5% (APR 4.78) and other sites also show a drop (penfed finally went down).
The only difference regarding my loan at BECU is the point spread. I had .625 and now it's 1.0. But 1.0 might not be the actual points, since the day I locked, the quote showed .875 but for whatever reason I got .625. I didn't both to ask why there was a difference, just considered myself lucky.
And for those that prefer to pay less in closing costs/fees, you can get a 30 year fixed at 5.0% with -1.125 points to cover the origination fee. According to their quote, this results in about $1100 in fees, which is cheaper than anywhere else I've been able to find, except maybe NFCU, but I don't qualify for membership there.
Quote:
low rates got us into this situation, maybe higher rates will get us out?
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