Mortgage rates headed down - time to refi?

[bayfritz]

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]

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]

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]

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 If the loan is withdrawn or does not close, all third-party fees incurred will become the responsibility of the applicant.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

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]

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]

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]

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]

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]

Thanks brewer.

-CC

[REWahoo]

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]

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]

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]

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]

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]

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]

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.

[SecondCor521]

Quote:

Originally Posted by 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.

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