Mortgage rates headed down - time to refi? - Page 3

bayfritz · 01-23-2008, 12:38 PM

Quote:

Originally Posted by saluki9

I just pulled the trigger today to refi my 30 year. Got 5.5% with no closing costs (or anything out of pocket)

I also pulled the triggger on 5.375% REFI with NFCU on a 30 year fixed with no C/C. Also payed the extra to re-lock one time in 30 days if the rates decide to dip even lower.

SecondCor521 · 01-23-2008, 12:57 PM

Quote:

Originally Posted by R Wood

PENFED has 4.99% on HEL 15 year Zero Closing Costs. Membership, if not otherwise qualified, cost $20.

The 4.99% deal at Penfed is a max of 10 years, not 15.

The 15 year rate on the HEL is 5.99% at the moment.

2Cor521

SecondCor521 · 01-23-2008, 01:07 PM

One other thought I had on this subject.

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. I did this successfully once before with USAA, I believe it was. They send you a few pieces of paper, you sign and send back, and you get a lower rate without a refi.

2Cor521
Looking hard at that PenFed 15 year note...

jblack · 01-23-2008, 01:10 PM

Quote:

Originally Posted by twaddle

This is from the PenFed link I gave above:

No Closing Costs: Fees not covered include, but are not limited to, title costs, recording fees, survey or pest inspection costs, escrow reserves and interest due until first payment. Pentagon Federal Credit Union to pay settlement fee only if the loan is closed by our preferred provider. If the loan is withdrawn or does not close, all third-party fees incurred will become the responsibility of the applicant. Other terms and conditions may apply, please contact a mortgage representative for details. Different terms and conditions may apply in Puerto Rico.

Quote:

Originally Posted by theHundt

My assumption was that most of those fees are associated with a home purchase and not a refinance. What if any of those things would be required by a refi?

Forgive my ignorance here, I have never done a refinance before.

I'm in the same boat. In a typical refinance should the only associated costs be for the loan paperwork & due dilligence?

I'm sitting on a 30yr 6.5% with 24yrs left. DW and I are unsure if we're going to stay or move within the next 3-5 years. If closing costs are minimal it would make sense to refi, otherwise not.

brewer12345 · 01-23-2008, 01:12 PM

Quote:

Originally Posted by jblack

I'm in the same boat. In a typical refinance should the only associated costs be for the loan paperwork & due dilligence?

I'm sitting on a 30yr 6.5% with 24yrs left. DW and I are unsure if we're going to stay or move within the next 3-5 years. If closing costs are minimal it would make sense to refi, otherwise not.

Title insurance, recording fees, mortgage tax (if any), attorney's fees, fee fees, etc. Depends on the lender and your location.

SecondCor521 · 01-23-2008, 01:18 PM

Quote:

Originally Posted by brewer12345

A helpful calculator: Mortgage Refinance Calculator: Refinancing One FRM Into Another FRM

Whole site is very useful, in fact.

Minor "feature" of this calculator: The number of years you plan to stay in the house (first box) must be equal to or less than the length of the new mortgage. Otherwise, you get a bunch of zeros at the bottom of the analysis.

2Cor521

cardude · 01-23-2008, 01:24 PM

15-Year Fixed Jumbo Loan
Rate Apr
4.7500.000 4.750
4.6250.375 4.681
4.5000.875 4.632
10-Year Fixed Jumbo Loan
4.8750.000 4.875
4.7500.125 4.777
4.6250.625 4.760

Is it normal for the 15 year fixed to be less than the 10 year? This is from the Pen Fed website..........

CCdaCE · 01-23-2008, 01:28 PM

Quote:

Originally Posted by brewer12345

Title insurance, recording fees, mortgage tax (if any), attorney's fees, fee fees, etc. Depends on the lender and your location.

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

The last house we bought was several thousand in fees. Mostly paid by the seller (which also varies by the deal/region). Chase guesses $4,000. Others guess $1,500. What's a good way to estimate this? Anyone have a reliable way to figure this out. Call the title company?

Quote:

Originally Posted by JohnDoe

Why get an ARM?

Pen Fed has 15yr fixed at 4.625 with zero points!

$1500 closing.

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

brewer12345 · 01-23-2008, 01:31 PM

Quote:

Originally Posted by CCdaCE

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

The last house I bought was several thousand. Chase guesses $4,000. Others guess $1,500. What's a good way to estimate this? Anyone have a reliable way to figure this out. Call the title company?

-CC

For a sanity check, you can go to e-loan and stick in your particulars. They guarantee closing costs will be accurate or they will eat the difference (or at least they used to), so you get a firm number rather than an animal, vegetable, or mineral estimate.

CCdaCE · 01-23-2008, 01:32 PM

Thanks brewer.

-CC

REWahoo · 01-23-2008, 01:33 PM

Quote:

Originally Posted by CCdaCE

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 · 01-23-2008, 01:36 PM

Quote:

Originally Posted by SecondCor521

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 · 01-23-2008, 01:47 PM

Quote:

Originally Posted by CCdaCE

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 · 01-23-2008, 02:10 PM

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 · 01-23-2008, 02:16 PM

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 · 01-23-2008, 02:44 PM

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 · 01-23-2008, 02:55 PM

Quote:

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 · 01-23-2008, 03:01 PM

Quote:

Originally Posted by martyb

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 · 01-23-2008, 03:13 PM

Quote:

Originally Posted by retiringby50

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.

01-23-2008, 01:07 PM	#43
SecondCor521 Thinks s/he gets paid by the post Join Date: Jun 2006 Location: Boise Posts: 1,331	One other thought I had on this subject. 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. I did this successfully once before with USAA, I believe it was. They send you a few pieces of paper, you sign and send back, and you get a lower rate without a refi. 2Cor521 Looking hard at that PenFed 15 year note... __________________ "At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.

01-23-2008, 01:32 PM	#50
CCdaCE Full time employment: Posting here. Join Date: Apr 2006 Posts: 579	Thanks brewer. -CC __________________ "There's those thinkin' more or less, less is more, but if less is more, how you keepin' score? It means for every point you make, your level drops. Kinda like you're startin' from the top..." "Society" - Eddie Vedder

01-23-2008, 02:16 PM	#55
brewer12345 Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Mar 2003 Posts: 9,227	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. __________________ “When you realize that you are one of the rare few who observe moral principles in their relationships with others, there is a temptation to sink into amorality, not out of conviction or pleasure but simply to avoid further pain, because there is no greater suffering than being an angel in hell, whereas a devil feels at home wherever he goes.” – Martin Page, How I Became Stupid

01-23-2008, 01:24 PM	#47
cardude Recycles dryer sheets Join Date: Feb 2006 Posts: 115	15-Year Fixed Jumbo Loan Rate Apr 4.7500.000 4.750 4.6250.375 4.681 4.5000.875 4.632 10-Year Fixed Jumbo Loan 4.8750.000 4.875 4.7500.125 4.777 4.6250.625 4.760 Is it normal for the 15 year fixed to be less than the 10 year? This is from the Pen Fed website..........

01-23-2008, 02:10 PM	#54
cardude Recycles dryer sheets Join Date: Feb 2006 Posts: 115	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.

01-23-2008, 02:44 PM	#56
clifp Thinks s/he gets paid by the post Join Date: Oct 2006 Posts: 2,139	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?