Refinance

Been crunching numbers before I write my name in stone with the lender
2.15, 3.7 points, around $9k at closing, $500 out of pocket. Other option is 3%, no points, >$1k closing
Numbers wise, at year 13 it'll be a wash in terms of interest vs closing costs. We plan to have it paid for well before then.
Looking like I'll take a middle 2._%, moderate points and little OOP at closing since our schedule is well ahead of 30 years.
 
Jody Treadway said:
Been crunching numbers before I write my name in stone with the lender
2.15, 3.7 points, around $9k at closing, $500 out of pocket. Other option is 3%, no points, >$1k closing
Numbers wise, at year 13 it'll be a wash in terms of interest vs closing costs. We plan to have it paid for well before then.
Looking like I'll take a middle 2._%, moderate points and little OOP at closing since our schedule is well ahead of 30 years.
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Bingo. Looks like you're doing the math right.
And now we see how you got that sweet low, low interest rate - bought way down w/ points, paying more up front. But then they just roll that into the loan so you are borrowing more, but at a lower rate.
For me it was the same scenario. Once I figured in the actual total cost over X # of years, assuming extra payments, the most logical thing was a slight buy-down (for me, 0.89 points) and pay more cash now.
If you're really gonna pay it off faster, then paying more for a really low ate dosn't make as much sense.
 
RatLabGuy said:
Bingo. Looks like you're doing the math right.
And now we see how you got that sweet low, low interest rate - bought way down w/ points, paying more up front. But then they just roll that into the loan so you are borrowing more, but at a lower rate.
For me it was the same scenario. Once I figured in the actual total cost over X # of years, assuming extra payments, the most logical thing was a slight buy-down (for me, 0.89 points) and pay more cash now.
If you're really gonna pay it off faster, then paying more for a really low ate dosn't make as much sense.
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Exactly. I had time to read what dooder had been saying. Seeing the numbers made it clear.
Still, dropping from 4.25 to 3% will drop our payment over 25%.
Gonna shake him down more tomorrow. Regardless, I'm locked in at 2.15 with points if I want or no more than 3 with zero points
 
Jody Treadway said:
Exactly. I had time to read what dooder had been saying. Seeing the numbers made it clear.
Still, dropping from 4.25 to 3% will drop our payment over 25%.
Gonna shake him down more tomorrow. Regardless, I'm locked in at 2.15 with points if I want or no more than 3 with zero points
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Jody at 15 you should be able to get 2.5 no points....and still lower than you are paying currently...you "lose" the smaller payment option but...do you care?
 
I emailed the Manager of Refi, yesterday, concerning not hearing any updates for the past 6-7 weeks, on closing & interest rates, I requested. Natural response was, "were Super Busy, & working as fast as we can". Then he went on to say, "per pre-recorded conversations, I had been told closing could be January. My rate now stands at 2.65%, on a 15 year". I'm also only refing $94K, so I would think that has some effect on rates. As far as closing, my notes I scribbled, the first time we spoke, was Late November! I'll review what emails & statements I have, but I Sure don't recall anything about January! My application was started on 8 /25! Seems I Screwed up thinking working In-House with my current lender [Fifth-Third], would be easier! :mad:
 
rodney eppes said:
I emailed the Manager of Refi, yesterday, concerning not hearing any updates for the past 6-7 weeks, on closing & interest rates, I requested. Natural response was, "were Super Busy, & working as fast as we can". Then he went on to say, "per pre-recorded conversations, I had been told closing could be January. My rate now stands at 2.65%, on a 15 year". I'm also only refing $94K, so I would think that has some effect on rates. As far as closing, my notes I scribbled, the first time we spoke, was Late November! I'll review what emails & statements I have, but I Sure don't recall anything about January! My application was started on 8 /25! Seems I Screwed up thinking working In-House with my current lender [Fifth-Third], would be easier! :mad:
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Refi with your current lender is always worst choice. They lose money by getting you a lower interest rate. Why would they be motivated?
Also you can cancel and go with another lender with no penalty up to 3 days before closing.
They have to refund any money paid except for services already complete.
IE if you paid for an appraisal and it’s already done..they can keep that.
Provided they gave you a copy of appraisal within 72 hours of completion
 
rodney eppes said:
I emailed the Manager of Refi, yesterday, concerning not hearing any updates for the past 6-7 weeks, on closing & interest rates, I requested. Natural response was, "were Super Busy, & working as fast as we can". Then he went on to say, "per pre-recorded conversations, I had been told closing could be January. My rate now stands at 2.65%, on a 15 year". I'm also only refing $94K, so I would think that has some effect on rates. As far as closing, my notes I scribbled, the first time we spoke, was Late November! I'll review what emails & statements I have, but I Sure don't recall anything about January! My application was started on 8 /25! Seems I Screwed up thinking working In-House with my current lender [Fifth-Third], would be easier! :mad:
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You didn't screw up from a timeline standpoint. Everyone is taking 2-3 months.
 
Just heard back from Dan. Since I'm over the "promised" 90-day mark, they've agreed to either lower my rate from 2.625% to 2.5% OR give me a $2,400 lender credit which would essentially bring my closing costs down to nil.

Going to run the numbers and circle back with him shortly. The hope is to get this done by end of December.
 
rcalexander105 said:
Just heard back from Dan. Since I'm over the "promised" 90-day mark, they've agreed to either lower my rate from 2.625% to 2.5% OR give me a $2,400 lender credit which would essentially bring my closing costs down to nil.

Going to run the numbers and circle back with him shortly. The hope is to get this done by end of December.
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Also known as rates have dropped ...
 
Ron said:
Also known as rates have dropped ...
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Totally agree and that's exactly what I said back to him and the fact that at the onset of this that was their pitch of "we're a little slow right now but we guarantee to close you in 90 days or we'll pay to keep your locked rate if rates go up or buy down your rate if they go down". Which is then when he said, "oh no, they went down but they've gone back up now, yada yada yada." I don't stay close enough to the market or the 10-year to call BS but that's precisely what I was thinking.

At the end of the day, I don't have it in writing nor have a lot of leverage right now as stated above unfortunately. I just wanna get the damned thing done and move on.

After running the numbers and briefly chatting w/ good-ole @BigClay, I'm going to take the 2.5% and hope this thing gets done before the end of this year.
 
Today's results from my guy:I
I've looked at:
30 year, 2.125, $8500 CC
30 year 2.5, $4300 CC
30 year, 3.0, -$400 CC
15 year, 2.5, $3300 CC

For us and the way we have planned our mortgage payoff, the 3.0 @ 30 year makes the most sense. No reason to go OOP so much when we don't plan to be paying on it past 8-10 years.
 
Jody you need better numbers, sir.
Unless you are being dinged for self employment.

FYI I started 2 weeks ago looking at a cash out refi (this hurts my rate)...15 fixed no points, 800 closing cost total no additional roll in, 2.5%
 
Jody Treadway said:
Today's results from my guy:I
I've looked at:
30 year, 2.125, $8500 CC
30 year 2.5, $4300 CC
30 year, 3.0, -$400 CC
15 year, 2.5, $3300 CC

For us and the way we have planned our mortgage payoff, the 3.0 @ 30 year makes the most sense. No reason to go OOP so much when we don't plan to be paying on it past 8-10 years.
Click to expand...
At that rate-price ratio, I'd recommend shopping around some more. You should be able to get somewhere in the 2.5-2.75% range with little or no closing costs.
 
Have a good bit of cash saved up, really thinking about starting to build a house in 2021 (ughh I dread that process). Think rates will rise with dopey joe in office? I am thinking it may be easier to get a cash out refi on my current house to use to build the new house, as from what I have heard that might be easier than a construction loan? My plan was really to burn through the cash first and THEN get a mortgage, but it might make more sense to get it while rates are down? Biggest reason I see to wait is to see if materials prices come down as I have heard everything is high.

I've never had a house built and I am really dreading it, but I am ready to move and be up at our land, so it has to happen at some point, better now than in 2030....
 
Cash out will be easier than construction loan, but construction loan is also not hard. Just more paperwork and checks along the way.
 
Ron said:
Jody you need better numbers, sir.
Unless you are being dinged for self employment.

FYI I started 2 weeks ago looking at a cash out refi (this hurts my rate)...15 fixed no points, 800 closing cost total no additional roll in, 2.5%
Click to expand...

The self employment aspect does play a role in our options.
Thanks for the PM @jeepinmatt. I appreciate the heads up buddy
 
Like ^ said, loan to value ratio (you should be good there) and total amount borrowed have an effect on the rates also. @DSM Turbos and I went through the same parent bank (maybe same lender?) at the same time, and they offered me a better rate because of the higher outstanding balance. In my opinion, it comes down to roughly 3 main factors:
1. How cheap can they get the money: This is out of your control, but it's what drives the average market rate
2. How big of a risk is the loan: How good is your credit score, and can they get their money back if they have to foreclose and sell your house (loan to value ratio)
3. How much money can they make on you: Longer term and higher balance mean they can make more.
 
Update, after a little haggling...we settled at 2.5% and $600 towards closing (I tried to get the 2.5% and split what they offered towards closing at $1,200). Netting my closing costs in the ballpark of $1,800.
 
Just finished up final paperwork, including the final closing statement. Filled in apt times to sign Dec 17 or 18.
Locked and started November 13.

Don't know what's wrong w/ you guys :flipoff2:

I find it interesting they have asked for my pay stub twice, and yet again are requiring verification of employment right before closing.
 
New Mortgage refi fee 0.5%. As far as I know, I beat the deadline on this, & my loan is Under the add on rate, anyway.
 

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