Mortgage rates headed down - time to refi?

[REWahoo]

That's the $64,000 question. Or, $1,500 question, Or $4,000.

Here's one data point: DD#2 is refinancing with Pentagon. 30 yr conventional, under $100k. She was quoted ~$1,800.

 

[Nords]

In a falling interest rate environment, you can call your current lender and they may be willing to do a rate modification to keep your business.

Every time I've tried this with NFCU they've laughed heartily. However I've never threatened to decamp to PenFed before.

We have had luck with asking the title company to "re-issue the policy" (the magic phrase) instead of doing it all over again. This works best when the title company notices that you've been a repeat customer during your serial refinancings.

 

[saluki9]

When someone says "no closing costs" is that the fees/etc. charged by Penfed/CU/bank ? Or are you just rolling this into the loan?

-CC

In my case I'm doing it through a broker. He get's a 1.25% commission ($5K in my case) from the lender for placing the loan. Closing costs would be around $1800 here in IL and he will pay this for me out of his commission.

so no, it's not being rolled into the loan.

 

[cardude]

Another data point on closing costs:

Just got off the phone with a PenFed rep, and closing costs for a 453K refi would be $1894. This is in Texas.

 

[brewer12345]

Another data point: Pen Fed quoted me $1300 even on a 178k loan in NJ. They indicated that they would waive escrows for loans with at least 25% equity in the property.

 

[clifp]

I think today is the last day for me to rescind my Pen Fed HEL @4.99. How many people think it will drop to 4.5% within 2 months?

 

[cardude]

I think today is the last day for me to rescind my Pen Fed HEL @4.99. How many people think it will drop to 4.5% within 2 months?

I think it could happen. I asked the PenFed rep jokingly what his crystal ball said rates would do, and he laughed and said they had no clue, but then he went on to say that they thought the Fed would lower rates again so he said he saw how rates could drop some more.

I'm being greedy, but I'm waiting on the 15 year fixed non-conforming to drop to 4.5%..........

 

[retiringby50]

I was in my local Federal Credit Union about an hour ago and the digital screen on the wall behind the teller showed a 15 yr fixed conventional rate of 4.375 and a 30 yr at 5.175! Yowza!!!

Wow, that is low. Our house is 30 years at 6% and our rental is 30 years at 6.125%. We still have about 25 years to go. I'm working as a contractor with very little hours, but DH has a regular full time job. Wonder if they are very stringent now on how we can qualify. Hmmm.

 

[Nords]

I'm working as a contractor with very little hours, but DH has a regular full time job. Wonder if they are very stringent now on how we can qualify. Hmmm.

My PILs, both retired for over a decade, were able to get a 30-year mortgage of at least $225K in their 70s.

Of course this was early 2007 at the top of the easy-credit bubble. But you might want to run the numbers past a credit union.

 

[SecondCor521]

Another data point: Pen Fed quoted me $1300 even on a 178k loan in NJ. They indicated that they would waive escrows for loans with at least 25% equity in the property.

Penfed quoted me $1,400 on a $170K loan in Idaho. I checked with my favorite local title company and their estimate was $1,325, and that's including about a $400 refund on my title policy from my current loan (which is only about 13 months old, but oh well...).

So I think they're fairly accurate.

I'm probably going to put in an app at PenFed tonight for the 15 year fixed. If the rates drop in the next week or so I'm hoping I can cancel app #1 and apply again. This will cost me a hard credit inquiry, but that's probably worth it.

The only thing I'm trying to decide is whether or not to go for the 80% LTV with escrow or the 75% with no escrow. Think I'll wait on the appraisal to decide.

2Cor521

 

[brewer12345]

Cor, FWIW, I am pretty sure that Pen Fed will let you float on the rate if you don't want to lock right now. Wouldn't hurt to ask.

I don't plan on lifting a finger unless I can do 4.5% or less on the 5/5 ARM or maybe another 15 year fixed.

 

[twaddle]

Treasury yields are amazingly low, but they started to creep up a bit EOD. My crystal ball says rates will go up tomorrow. I locked the 15-year fixed at 4.625%.

Edit: FWIW, I talked to a PenFed rep on the phone to get a better handle on the fees.

They listed about $1700 in fees on my good faith estimate, but of those I will only get hit with about $700 in title insurance.

They pay most fees at closing. One is conditional on using their preferred provider: settlement/closing fee.

 

[SecondCor521]

Cor, FWIW, I am pretty sure that Pen Fed will let you float on the rate if you don't want to lock right now. Wouldn't hurt to ask.

I don't plan on lifting a finger unless I can do 4.5% or less on the 5/5 ARM or maybe another 15 year fixed.

I'm sure they would. Personally, I'm thinking very strongly about the 4.625 15 year fixed at zero points. I'll take it and run, I'm not greedy.

ETA: Actually, their FAQ says I can't float on a refi, I either have to lock at time of app or purchase (way overpriced IMHO) rate protection.

2Cor521

 

[Darryl]

Finished the app with Penfed about 30 minutes ago 4.625% 15 yr fixed zero points under $1200 quoted for costs and I checked the little box to skip the escrow so I can pay my own taxes and insurance rather than give them the interest free loan (brought up in a previous thread) thanks guys!!!! Woohoo This is a nice move from the 5.75 I was paying.

 

[rs0460a]

Something you USED to have??

Yes ...

Had three of them (so far) in my "lifetime" ...

1975 - 25 years @ 10% (sold/traded up in '79)
1979 - 20 years @ 10% (paid off in 15 years)
1994 - 30 years @ 6.875% (paid off in 5.5 years - lot of LBYM on that one, but saved over $150k in foregone interest)

Not to be debate which is better (mortgage vs. no mortgage), but I'm sure glad I don't have one currently. Just thought I'd let the "youngsters" see what rates were in the distant past...

- Ron

 

[SecondCor521]

Every time I've tried this with NFCU they've laughed heartily. However I've never threatened to decamp to PenFed before.

We have had luck with asking the title company to "re-issue the policy" (the magic phrase) instead of doing it all over again. This works best when the title company notices that you've been a repeat customer during your serial refinancings.

Well, I asked USAA today and they didn't laugh heartily, but they also said they weren't doing it this time around. Fine by me.

On title insurance I think there may be a double benefit - you can ask for the reissue rate (if your current title insurance policy is relatively new?) and get a refund on the previous title policy (because they only insured for a short period of time?). I plan to try both tricks.

I'm probably going to put in an app at PenFed tonight for the 15 year fixed. If the rates drop in the next week or so I'm hoping I can cancel app #1 and apply again. This will cost me a hard credit inquiry, but that's probably worth it.

The only thing I'm trying to decide is whether or not to go for the 80% LTV with escrow or the 75% with no escrow. Think I'll wait on the appraisal to decide.

I poked around and I think there'd be some glitch in canceling and restarting, so I don't think I'll do that. I did find a ratewatch link where Penfed will email you if their rates drop to a certain rate/point combo. I signed up to let me know if it drops to 4.5 or 4.375.

I applied tonight and asked for 80% LTV and no escrow, even though someone at Penfed said you need 75% LTV to avoid escrow. Will see what they say.

2Cor521

 

[JohnDoe]

Can you easily login to your account with Pen Fed and check your balances?
Do you have to pay the $20 membership fee every year or only once when you take out the mortgage?

 

[REWahoo]

Can you easily login to your account with Pen Fed and check your balances?

I don't have a mortgage with PenFed, but I do have a CC with them. Although not the most sophisticated interface I've seen, I can check my balances online and transfer money from my savings account to the CC account.

Do you have to pay the $20 membership fee every year or only once when you take out the mortgage?

It's a one-time fee to become a member of the CU.

 

[JohnDoe]

1/2 point jump in 1 day...15 yr fixed is 5.125

Oh well. Guess I'm back to waiting.

Do you have to be a member to start an application online?

 

[brewer12345]

1/2 point jump in 1 day...15 yr fixed is 5.125

Oh well. Guess I'm back to waiting.

Do you have to be a member to start an application online?

Why not join and put $10 into a "share account" (checking)? That way you are ready to jump.

 

[JPatrick]

1/2 point jump in 1 day...15 yr fixed is 5.125

Oh well. Guess I'm back to waiting.

Do you have to be a member to start an application online?

I noticed USAA took a significant jump as well

 

[jblack]

1/2 point jump in 1 day...15 yr fixed is 5.125

Oh well. Guess I'm back to waiting.

Do you have to be a member to start an application online?

Happened in the last 30 min. Earlier this morning was still at 4.625

Grrrr....I missed the boat, too

 

[GatorBuzz]

Yeah, just called PenFed and they quoted me 5.125. To those who struck yesterday while the iron was still hot, congrats!

 

[twaddle]

My crystal ball says rates will go up tomorrow. I locked the 15-year fixed at 4.625%.

If you missed the low rates, maybe I could interest you in my crystal ball.

The 10-year treasury went from 3.3% yesterday to 3.63% today. I think you'll have to wait for the stock market to tank again before we see rates pushed that low again. (Which might not be a long wait.)

 

[JPatrick]

If you missed the low rates, maybe I could interest you in my crystal ball.

The 10-year treasury went from 3.3% yesterday to 3.63% today. I think you'll have to wait for the stock market to tank again before we see rates pushed that low again. (Which might not be a long wait.)

This is probably just the first inning of this ballgame.
Give it a few months and those rates may be a lot lower.

What would prevent that would be a renewed roaring economy and a ripping new bull market, in which case who cares about a refi?