Life Refi Home Mortgage to drop 1% - Page 4

Holladay · 06-03-2020, 03:25 PM

I have refinanced our home a few times. I thought the school of thought is that it is worth doing if you can drop the interest by 1 point.

Currrently, ours is at %3.75. I see ads for %2.6. Is that enough to justify a refi. We have ~14 yrs left and the %2.6 is for 15 yrs.

Thoughts?

Third Eye · 06-05-2020, 02:09 PM

Regardless, we are very much hijacking this thread about refinancing to talk about health insurance. So I’ll let it die and just say that we can agree to disagree. I obviously have a bias since I’m intimately involved in one side of the argument, but I also think I have a better than average understanding of the mechanics.

Bill Brasky · 08-13-2020, 08:30 PM

Thanks CP. Because of this thread I reached out to my lender and locked 2.875% two weeks ago, and now FM/FM are trying to deep dick the market with a cash grab which will be passed onto consumers. I narrowly avoided a $2500 fee. If your rate isn’t locked as of yesterday, sorry pal.

https://www.marketwatch.com/story/re...mac-2020-08-13

Edit: refied from 4.62 -> 3.5 -> 2.875 in about 12 months. Saved about $155k over the life of the loan. Pretty ****in’ horny.

backinblack · 08-13-2020, 08:56 PM

Just bought my first house a little over a month ago for $221K at a rate of 2.62%, with zero dollars put down. Mine was a bit of a special case though, bought the house from a family friend, so no realtor costs or any of that, on a VA loan. Still, I think it's a great deal.

Jethopper · 08-13-2020, 10:27 PM

Last time interest rates went up .5% it crashed the market. We just printed 3 trillion dollars. Rates will go much lower than this in 2021.

arrowheadnation · 08-13-2020, 10:56 PM

If I have a HELOC with $14k left on it, would now be a smart time to do a cash out refinance to pay off the HELOC and also hopefully lower my current mortgage payment (I purchased the house 3 years ago at 3.4%). I obviously know I need to speak to a loan officer about this, but figured someone on here might be able to tell me if it's even worth pursuing.

kepp · 08-14-2020, 09:24 AM

Quote:

Originally Posted by Bill Brasky

Thanks CP. Because of this thread I reached out to my lender and locked 2.875% two weeks ago, and now FM/FM are trying to deep dick the market with a cash grab which will be passed onto consumers. I narrowly avoided a $2500 fee. If your rate isn’t locked as of yesterday, sorry pal.

https://www.marketwatch.com/story/re...mac-2020-08-13

Edit: refied from 4.62 -> 3.5 -> 2.875 in about 12 months. Saved about $155k over the life of the loan. Pretty ****in’ horny.

Reading that article and this stuck out:

Quote:

If lenders cannot complete those loans by Sept. 1, they will be forced to pay the fee. However, if a borrower had not yet locked in a rate with their lender, the cost of the new fee would be passed on to them in most cases.

The new fee goes into effect Sept. 1, so that would mean that if you have a locked in rate and your loan is in the pipeline, before 9/1, your lender would be on the hook for the fee. Am I seeing that correctly?

Bill Brasky · 08-14-2020, 02:27 PM

Quote:

Originally Posted by kepp

Reading that article and this stuck out:

The new fee goes into effect Sept. 1, so that would mean that if you have a locked in rate and your loan is in the pipeline, before 9/1, your lender would be on the hook for the fee. Am I seeing that correctly?

That is exactly correct. Here is the email from my lender:

Hi guys!
It will not affect you guys, but it will affect our bank. This is just terrible what they are doing and not giving us time.
So, we are trying to get your loan closed as fast as we can, and hopefully be able to get the loan sold to Fannie before the 31st of this month. It takes us about a week to package the loan and sell it to Fannie. If you guys can help us get it done quickly, I know our bank would be ver appreciative!
Just for reference, if our locked August loans don’t make it to Fannie by the 31st. It will cost our bank 1.5M.
Just imagine how much that would be for bigger banks. Ugh!
More soon!

Marco Polo · 08-14-2020, 02:44 PM

Closed a few weeks ago on a 30-year refi for 2.875%, down from my current 3.875%. ROI on costs will be just five months!

Bill Brasky · 08-14-2020, 04:33 PM

Quote:

Originally Posted by Marco Polo

Closed a few weeks ago on a 30-year refi for 2.875%, down from my current 3.875%. ROI on costs will be just five months!

That’s really great. I imagine a lot of people locking at the same time will get the same 2.875 rate for 30 year loans. It feels so good to save that kind of money.

penchief · 08-14-2020, 07:29 PM

I just closed on a refi today. I had a little under 18 years left on my current mortgage. I bought the house in 2018 and wanted to make some major upgrades by adding a central air system, and basement heating and dehumidification. So I borrowed an additional $20,000 at a refi rate of 2.625%.

Even though I added two years and $20,000 to my current note, my payment went down $20 a month, I saved $7,800 on the total payoff, and it paid for all the work I had done to the house. For me, it was a no-brainer.

Bill Brasky · 08-14-2020, 11:08 PM

Quote:

Originally Posted by penchief

I just closed on a refi today. I had a little under 18 years left on my current mortgage. I bought the house in 2018 and wanted to make some major upgrades by adding a central air system, and basement heating and dehumidification. So I borrowed an additional $20,000 at a refi rate of 2.625%.

Even though I added two years and $20,000 to my current note, my payment went down $20 a month, I saved $7,800 on the total payoff, and it paid for all the work I had done to the house. For me, it was a no-brainer.

Adding central air is no joke. What part of the country are you in where you didn’t have that in that in the first place? How did the addition work?

penchief · 08-15-2020, 02:48 AM

Quote:

Originally Posted by Bill Brasky

Adding central air is no joke. What part of the country are you in where you didn’t have that in that in the first place? How did the addition work?

Upstate NY. It works fantastic. It's actually a five zone mini split system. The house is a stone and brick ranch and the way it was built didn't accommodate ducting for a traditional central air system. It's a nice house so I always wondered why in the heck nobody ever had central air installed. I got my answer when the HVAC guys came out to give me estimates.

VAChief · 08-15-2020, 11:33 AM

Refi to a 10 year note at 2.75 back in Nov 2016 on the remaining 300,000. I doubt I could do better from here on out. Paying extra on principle now to get it paid off in 4 more years.

Chief Roundup · 08-15-2020, 12:36 PM

Finishing up my refi my interested rate dropped to 2.12 from 4.75

scho63 · 08-15-2020, 01:48 PM

With rates so low, why are some of you not changing from a 30 year to a 15 year instead of a straight refinance???

Seems like a much better idea

06-03-2020, 03:25 PM
Holladay Veteran Join Date: Sep 2000 Casino cash: $2649480	Refi Home Mortgage to drop 1% I have refinanced our home a few times. I thought the school of thought is that it is worth doing if you can drop the interest by 1 point. Currrently, ours is at %3.75. I see ads for %2.6. Is that enough to justify a refi. We have ~14 yrs left and the %2.6 is for 15 yrs. Thoughts?
Posts: 3,581

06-05-2020, 02:09 PM	#46
Third Eye Veteran Join Date: Apr 2007 Location: JoCo Casino cash: $1680860	Regardless, we are very much hijacking this thread about refinancing to talk about health insurance. So I’ll let it die and just say that we can agree to disagree. I obviously have a bias since I’m intimately involved in one side of the argument, but I also think I have a better than average understanding of the mechanics.
Posts: 3,441

08-13-2020, 08:30 PM	#47
Bill Brasky Veteran Join Date: Sep 2010 Casino cash: $8384914	Thanks CP. Because of this thread I reached out to my lender and locked 2.875% two weeks ago, and now FM/FM are trying to deep dick the market with a cash grab which will be passed onto consumers. I narrowly avoided a $2500 fee. If your rate isn’t locked as of yesterday, sorry pal. https://www.marketwatch.com/story/re...mac-2020-08-13 Edit: refied from 4.62 -> 3.5 -> 2.875 in about 12 months. Saved about $155k over the life of the loan. Pretty ****in’ horny.
Posts: 1,487	1 0

08-13-2020, 08:56 PM	#48
backinblack go to work wasted Join Date: Jan 2020 Location: Boise Casino cash: $3230400	Just bought my first house a little over a month ago for $221K at a rate of 2.62%, with zero dollars put down. Mine was a bit of a special case though, bought the house from a family friend, so no realtor costs or any of that, on a VA loan. Still, I think it's a great deal.
Posts: 2,704

08-13-2020, 10:27 PM	#49
Jethopper A Great Pick Join Date: Mar 2009 Casino cash: $9776008	Last time interest rates went up .5% it crashed the market. We just printed 3 trillion dollars. Rates will go much lower than this in 2021. __________________ matriculating the posts down the thread
Posts: 1,756

08-13-2020, 10:56 PM	#50
arrowheadnation MONTANA #19 Join Date: Mar 2005 Casino cash: $6267357	If I have a HELOC with $14k left on it, would now be a smart time to do a cash out refinance to pay off the HELOC and also hopefully lower my current mortgage payment (I purchased the house 3 years ago at 3.4%). I obviously know I need to speak to a loan officer about this, but figured someone on here might be able to tell me if it's even worth pursuing. __________________ Things I need to happen in order to die happy.... KU wins a National Championship....Check! The Royals win a World Series....Check! The Chiefs win a Super Bowl....FINALLY!!!
Posts: 4,212

08-14-2020, 02:44 PM	#53
Marco Polo Veteran Join Date: Oct 2003 Location: 41°59.4′N 87°39.6'W Casino cash: $5828908	Closed a few weeks ago on a 30-year refi for 2.875%, down from my current 3.875%. ROI on costs will be just five months!
Posts: 2,506

08-14-2020, 07:29 PM	#55
penchief MVP Join Date: Feb 2003 Casino cash: $6325286	I just closed on a refi today. I had a little under 18 years left on my current mortgage. I bought the house in 2018 and wanted to make some major upgrades by adding a central air system, and basement heating and dehumidification. So I borrowed an additional $20,000 at a refi rate of 2.625%. Even though I added two years and $20,000 to my current note, my payment went down $20 a month, I saved $7,800 on the total payoff, and it paid for all the work I had done to the house. For me, it was a no-brainer.
Posts: 17,027	1 0

08-15-2020, 11:33 AM	#58
VAChief Comfortably Numb Join Date: Sep 2000 Location: Virginia Casino cash: $5235842	Refi to a 10 year note at 2.75 back in Nov 2016 on the remaining 300,000. I doubt I could do better from here on out. Paying extra on principle now to get it paid off in 4 more years.
Posts: 5,539

08-15-2020, 12:36 PM	#59
Chief Roundup Admitted Planet Junky Join Date: Oct 2000 Casino cash: $2091627	Finishing up my refi my interested rate dropped to 2.12 from 4.75 __________________ Fanaticism is nowhere. There is no tenderness or humanity in fanaticism.
Posts: 19,195

08-15-2020, 01:48 PM	#60
scho63 Politically Incorrect Join Date: Feb 2009 Location: Scottsdale, AZ Casino cash: $2801110	With rates so low, why are some of you not changing from a 30 year to a 15 year instead of a straight refinance??? Seems like a much better idea __________________ *"The only difference between sex for free and sex for money is that sex for free costs you a WHOLE LOT more!"* ~Redd Foxx~ ~~2018 2019 2020 20212022 2023~~ 2024 Adopt a Chief - Clark Hunt and Brett Veach "The men who drafted Patrick Mahomes"
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