Useful Links

theHundt · 01-22-2008, 04:16 PM

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.

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 If the loan is withdrawn or does not close, all third-party fees incurred will become the responsibility of the applicant.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.

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

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..........

jazz4cash · 01-22-2008, 04:21 PM

When I saw this thread, I double checked something I noticed yesterday and these have dropped .125 since then

15 yr Conforming (80% LTV)
4.375 w/ .5 pts (apr=4.563)
4.50 w/ NO pts (apr=4.613)

There is .75 pt orgination fee or .25 pt interest rate surcharge

.............Im goin to dinkytown!

martyb · 01-22-2008, 04:58 PM

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!!! Unfortunately, I'm in the getting ready to sell mode, not the buying mode. Hopefully the rates will stay low till I can sell & find new digs! I don't know if those rates are with or without discount points, I didn't ask.

megacorp-firee · 01-22-2008, 08:37 PM

Nope, on a 4 3/8 fixed 10 year with about 4 years to go.

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.

tjon72 · 01-22-2008, 05:03 PM

I am in the process of refing with Penfed/ 5/5 arm They are quoting no points,but all of the other assorted charges amount to (don't recall exactly) around $1500 ! I had to back out to find some income data they are requesting......

Nords · 01-22-2008, 11:06 PM

Quote:

Originally Posted by BristolBane

Anyone else thinking of re-financing the mortgage at the new low rates this morning? I'm seeing some 5.30 APRs on bankrate.com for 30yr fixed w/ 0 points.

Tell me about it.

After decrypting all the fine print, NFCU is offering a zero-points zero-fee 30-year fixed at 5.5%. PenFed's a bit higher at 5.75% (for now). We refinanced two years ago for 5.375%.

Remember when mortgage rates were the lowest in over 40 years and we'd never see that again in our lifetimes?!? This would be our fifth refinance in eight years, but the lower payments have paid all the refinancing expenses.

If either of those CUs made us an offer we'd probably take it. Heck, we'd even restart the 30-year clock. If they think I can pay a mortgage until I'm 77 years old then I think so too...

FinanceDude · 01-23-2008, 09:27 AM

Quote:

Originally Posted by Nords

Tell me about it.

After decrypting all the fine print, NFCU is offering a zero-points zero-fee 30-year fixed at 5.5%. PenFed's a bit higher at 5.75% (for now). We refinanced two years ago for 5.375%.

Remember when mortgage rates were the lowest in over 40 years and we'd never see that again in our lifetimes?!? This would be our fifth refinance in eight years, but the lower payments have paid all the refinancing expenses.

If either of those CUs made us an offer we'd probably take it. Heck, we'd even restart the 30-year clock. If they think I can pay a mortgage until I'm 77 years old then I think so too...

Nords, you make a good point. As long as folks realize you are starting over with a NEW amortization, and the numbers works, then ok. Also, folks don't realize that your only choices are 10,15,25,30 years. I re-fied into a 25 and a 19 year mortgage over the years........

chinaco · 01-23-2008, 04:54 AM

We have a 5.125% rate on a 15 year mortgage. We have about 8 years left on the mortgage at the current payment schedule. I intend to pay it off in the next 4-5 years.

We are intending to downsize and move when I ER. If for some reason we decided to stay, paying it off would depend on interest rates at the time. If we were able to achieve some small benefit from the spread and the mortgage tax credit... I would keep the loan.

I would likely only consider a refi if I could trim > 1% off of the loan. I would only want a 10 yr mortgage. The last time we refinanced, I trimmed 1.25% off of the loan. The payback on the closing costs (all the various fees involved) the last time was about 18 months (before we broke even).

If anyone finds a legitimate 4% mortgage on 10 years with zero points/zero fee; post it.