Mortgage rates headed down - time to refi?

[tjon72]

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......

[megacorp-firee]

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

[Nords]

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...

[OAG]

Quote:

Originally Posted by Gworker I recently relocated and have only been in my house a year. I've got a 30 year at 6% right now. I paid one point for that rate a year ago. I've been thinking of trying to refinance to a 15 or 20 year mortgage. Hopefully the rates will get a little lower. I've got about 15 years until retirement.

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

[chinaco]

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.

[StJohnsWood]

I was thinking about it last week and got a rate quote. Now I'm really thinking about it and hoping for a better quote.

[ERD50]

If you can find a 4% mortgage at any term, let us know. You can always step up your monthly payment and make it any term you want. - ERD50

[rs0460a]

What's a mortgage ?

- Ron

[FinanceDude]

Quote:

Originally Posted by rs0460a What's a mortgage ? - Ron

Something you USED to have??

[theHundt]

The penfed 5/5 just dropped to 4.750.

[FinanceDude]

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........

[brewer12345]

Quote:

Originally Posted by theHundt The penfed 5/5 just dropped to 4.750.

And it may well continue dropping. SOmewhere around 4% or a smidge higher, I will start getting real interested in the details of this loan.

[JohnDoe]

Why get an ARM?

Pen Fed has 15yr fixed at 4.625 with zero points! $1500 closing.

[brewer12345]

Quote:

Originally Posted by JohnDoe Why get an ARM? Pen Fed has 15yr fixed at 4.625 with zero points! $1500 closing.

That's pretty low. Not low enough for me to bother refinancing, but pretty low.

Personally, I have decided that I don't want a 15 year mortgage any more and that I probably would have been better off with a 30 of some sort. So if I do refi, it will not be into another 15 year loan unless I can get something like a 4% rate on it.

[JohnDoe]

I'm currently 6 yrs into a 30yr fixed at 6.5%. ouch

I want to refi into a fixed 15yr. When I saw 4.625 I peed my pants. I don't know if I want to wait for much lower than that. I've been waiting since 5.625 and hit my target of 4.75.

I'm calling my local guy to see if he can match or beat. Roll the closing costs and pay off in 11 years, I should save about 20 G's.

[cardude]

Quote:

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).

That's the same situation I'm looking at. Is that a decent payoff period? I would be going from a 20 yr @ 6.5% to a 15yr 4.75%.

I keep thinking rates will fall a little more (.25-.50) over the next 60 days or so, but I really have no idea of course. If rates do drop another .50%, and if I keep the house another 10 years, that would cost me about $13,900 over 10 years, or about $7000 in today's dollars.

What are the odds fixed rates will fall another .50% or more??

[brewer12345]

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

Whole site is very useful, in fact.

[GatorBuzz]

Quote:

Originally Posted by brewer12345 A helpful calculator: Mortgage Refinance Calculator: Refinancing One FRM Into Another FRM Whole site is very useful, in fact.

That calculator is awesome! I was looking for something similar this morning and couldn't find anything. Thank you very much.

[Nords]

Wed 23 Jan, the day after the Fed's rate drop, PenFed has dropped their 30-year fixed mortgage rate to 5.5% and NFCU has dropped theirs to 5.375%. NFCU has now matched our current mortgage rate.

Quote:

Originally Posted by brewer12345 And it may well continue dropping. SOmewhere around 4% or a smidge higher, I will start getting real interested in the details of this loan.

No closing costs, either...

[saluki9]

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