Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 11-09-2011, 11:20 AM   #21
Thinks s/he gets paid by the post
Bimmerbill's Avatar
 
Join Date: Jan 2006
Posts: 1,631
I called USAA and to get the 3.825 rate it involved a lot of points! VA loan points were cheaper, but the VA loan fee was high.
__________________

__________________
Bimmerbill is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-09-2011, 11:31 AM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Looks like Navy Fed is offering 3.875% for 1.875 points, or .875 pointd for a .25% increase in the rate. They offer to eat up to $2500 in closing costs.
__________________

__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 11-09-2011, 11:43 AM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,615
Quote:
Originally Posted by Bimmerbill View Post
I called USAA and to get the 3.825 rate it involved a lot of points! VA loan points were cheaper, but the VA loan fee was high.
If you haven't done it, I'd recommend that you go to the USAA web site and use their mortgage calculator to see your options. At least for me, that's much better than doing this kind of thing by phone. It takes about 2 minutes and you can check out the various point/APR combinations for 30 year fixed, 15 year fixed, 5-1 ARM, etc. You can expand the options to see the difference in monthly payments, etc. Be sure to take a look at that--at these rate levels, a .25% difference in APR equates to about $13 per month in payments for each 100K borrowed. It might make sense to pay the points if you plan to keep the house (and the mortgage) a long time, but if you'll be selling in a few years it's probably advantageous to take the higher rate loan.

Along the same lines, maybe back up a step and see if the costs you'll incur (points and settlement costs, etc) even make it worthwhile for you to refinance given the amount of time you plan to be paying this mortgage.

Any points can be included in the loan amount, if that makes things easier regarding money required at the closing of the loan. It's still money that you owe, but at least you don't need dollar bills when you sign the papers.
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is offline   Reply With Quote
Old 11-10-2011, 09:47 AM   #24
Thinks s/he gets paid by the post
Bimmerbill's Avatar
 
Join Date: Jan 2006
Posts: 1,631
Well, my goal is to get a lower payment since I need some cash to recover from my recent divorce. I'd like to move closer to work, but that may not be possible due to child custody issues.

I am not sure what USAA was talking about when I spoke to them. The rep said something about 9 points and I said I've never seen a loan with 9 points. That was to get the rate 3.825.

I'll check out Navy Fed again though, thanks!
__________________
Bimmerbill is offline   Reply With Quote
Old 11-10-2011, 10:35 AM   #25
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,615
Quote:
Originally Posted by Bimmerbill View Post
I am not sure what USAA was talking about when I spoke to them. The rep said something about 9 points and I said I've never seen a loan with 9 points. That was to get the rate 3.825.
bimmerbill,
For your reference, today at USAA:
30 Yr fixed rate 3.875% (APR = 4.138%), costs 2 points, monthly P&I per $100K borrowed = $771
30 Yr fixed rate 4.250% (APR = 4.388%). costs 0.5 points, monthly P&I per $100K borrowed = $793

15 yr fixed rate 3.25% (APR = 3.598%), costs 1.25 points, monthly P&I per 100K borrowed = $ 1005
15 yr fixed rate 3.625% (APR = 3.791%), costs 0.0 points, monthly P&I per 100K borrowed = $1024.

Of course the web site has many other options of points/rates, as well as the rates and caps for 5/1 ARMs.
When comparing rates, it's useful to use APRs rather than the "interest rate".
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is offline   Reply With Quote
Old 11-10-2011, 10:46 AM   #26
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Quote:
Originally Posted by samclem View Post
When comparing rates, it's useful to use APRs rather than the "interest rate".
Only for fixed rate loans. APRs for ARMs are effectively meaningless and one should look at a combination of the initial rate and what the rate could be upon reset.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 11-10-2011, 11:15 AM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,615
Quote:
Originally Posted by brewer12345 View Post
Only for fixed rate loans. APRs for ARMs are effectively meaningless and one should look at a combination of the initial rate and what the rate could be upon reset.
Right, I should have said that. With ARMs it's all about the caps, reset schedules, and how long you plan to keep the house--or at least the mortgage.
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is offline   Reply With Quote
Old 11-14-2011, 01:56 PM   #28
Thinks s/he gets paid by the post
Bimmerbill's Avatar
 
Join Date: Jan 2006
Posts: 1,631
You know, I saw the same rates listed on the USAA page, but when I called they wanted crazy points to get to 3.8.

On a side note, how close are Credit Karma credit scores to the real deal? The USAA rep asked me my credit score and when I logged in to Credit Karma I realized I had under reported my score by 60 or so points.
__________________
Bimmerbill is offline   Reply With Quote
Old 11-14-2011, 01:57 PM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Mine were pretty close. Credit Karma was a bit lower than my actual scores.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 11-14-2011, 01:58 PM   #30
Thinks s/he gets paid by the post
Bimmerbill's Avatar
 
Join Date: Jan 2006
Posts: 1,631
Cool, thanks for the info. I think I will call USAA again and see what the deal is.
__________________
Bimmerbill is offline   Reply With Quote
Old 11-14-2011, 05:07 PM   #31
Full time employment: Posting here.
dtbach's Avatar
 
Join Date: Apr 2011
Location: Madison
Posts: 752
I'm doing a refi of a 15yr @ 5.25 to a 10 yr @ 3.125 plus taking out 10K in cash to buy a new car next year. Had 9 years left on the 15 so no big deal. Monthly bill should go down about $280 from the previous.
__________________
Wild Bill shoulda taken more out of his IRA when he could have. . . .
dtbach is offline   Reply With Quote
Old 11-14-2011, 07:36 PM   #32
Full time employment: Posting here.
ohyes's Avatar
 
Join Date: Sep 2010
Posts: 649
We are re-financing--just have to sign those final papers when they ready. Our credit score was 13 points higher than shown on Credit Karma at the last update.
__________________
ohyes is offline   Reply With Quote
Old 11-14-2011, 07:40 PM   #33
Dryer sheet aficionado
 
Join Date: Nov 2011
Posts: 48
I check wholesale mortgage rates before I rate shop. Being a retail customer I expect a mark-up. Typically the best quotes have been around 0.625% above wholesale, which I am happy with. I always opt for no closing costs, no points, no pre-payment penalties, no escrow for taxes or insurance. Conforming loan, excellent credit, LTV <= 80%. Google will get you a site providing daily wholesale data on a variety of products.

T
__________________
Tif7 is offline   Reply With Quote
Old 11-15-2011, 02:30 PM   #34
Thinks s/he gets paid by the post
Bimmerbill's Avatar
 
Join Date: Jan 2006
Posts: 1,631
I used mortagemarvel.com and found a few good prospects. Anyone heard of aimloan.com? Seems to be a direct broker?
__________________
Bimmerbill is offline   Reply With Quote
Old 11-15-2011, 02:33 PM   #35
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Quote:
Originally Posted by Bimmerbill View Post
I used mortagemarvel.com and found a few good prospects. Anyone heard of aimloan.com? Seems to be a direct broker?
If you look at the fatwallet finance forum they have a whole humongous thread on mortgages. Do a quick search and you will get an idea as to whether they are a mess or not.
__________________

__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
9-9-9 tax plan: Good for ER types? samclem FIRE Related Public Policy 73 10-07-2011 03:28 PM
Looking for a good reward credit card Texas Proud FIRE and Money 19 09-08-2011 10:12 AM

 

 
All times are GMT -6. The time now is 05:30 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.