Refinance

jeepinmatt said:
Ok, just got all the paperwork this morning.

Stated rate is 2.5%, APR over life of the loan is 2.52% on a 30yr fixed refinance.

$1950 in Closing costs, $3000 for Insurance/Taxes/Escrow, and $500 in prepaid interest that I will try to negotiate out, but will probably be unsuccessful. Minus $1250 in lender credits. So basically $2500 in fees, and $1250 credit. Approximately $1250 in actual costs and $4250 total out of pocket including costs and prepay on taxes/insurance (but a good bit of that will be credited back from my current loan Escrow account).

This is through Agora Lending (One American Bank):
Today's Mortgage Rates


I'll probably just let them handle the "Services You Can Shop For" since I don't think I can save much, but if anyone sees anything that seems way too high, let me know. Working on getting an appraisal waiver since I just went through this at the beginning of the year and have a fairly recent appraisal, but haven't heard back on that yet.
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These guys finally called me back today.
First of all - they are a primary lender, and do not sell the loans. Hence they can afford a lower rate and origination b/c they'll make $$ in the long run.

Then - he wouldn't match your rate for me :flipoff:. Best he could do was like 3% w/o any points or 2.875 with. That was also on a 30. I'll post the deetz when I get them.
He said the difference is a combo of the locale and the loan amount, as I understand it your remaining balance is a lot more than mine. Said to get 2.5% you have to owe over a certain amount. In hindsight I should have asked what that threshold was and asked about getting extra overage cash on mine to put me there :D.

Based on that I'm better off w/ one of the deals I've been quoted through Better.com
 
RatLabGuy said:
These guys finally called me back today.
First of all - they are a primary lender, and do not sell the loans. Hence they can afford a lower rate and origination b/c they'll make $$ in the long run.

Then - he wouldn't match your rate for me :flipoff:. Best he could do was like 3% w/o any points or 2.875 with. That was also on a 30. I'll post the deetz when I get them.
He said the difference is a combo of the locale and the loan amount, as I understand it your remaining balance is a lot more than mine. Said to get 2.5% you have to owe over a certain amount. In hindsight I should have asked what that threshold was and asked about getting extra overage cash on mine to put me there :D.

Based on that I'm better off w/ one of the deals I've been quoted through Better.com
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Double the loan amount, get 2.5%, then immediately pay off the other half. :lol:
 
jeepinmatt said:
Double the loan amount, get 2.5%, then immediately pay off the other half. :lol:
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Thats exactly what i was thinking.... after id hung up the phone.
Or, just invest it and pay back later.
Still waiting for the emsil w quote.
 
RatLabGuy said:
Thats exactly what i was thinking.... after id hung up the phone.
Or, just invest it and pay back later.
Still waiting for the emsil w quote.
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But there's usually a 1/4-1/2% penalty for cash out refi, so maybe it wouldn't work out after all. Still worth looking into, haha.
 
jeepinmatt said:
But there's usually a 1/4-1/2% penalty for cash out refi, so maybe it wouldn't work out after all. Still worth looking into, haha.
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Gotta make the appraiser feel real generous......
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king.jpg
 
I've been using Better.com to fish for rates.
Best long-term deal I've gotten is 2.5% w/ $3543 in orig. fee on a 30, or same and $1512 orig. fee on a 20. Only 2.125% on a 15 yr (!) but it has a $4600 fee.
Since I'm at 19.4 years anyway, that 20 is quite a deal and basically a direct swap. However I'm thinking I'll probably pay the extra fee for the 30 and either continue paying at teh rate I am, or more likely, put that extra difference into a market fund. In the long run even if it only averages 5% the total savings difference is substantial. Like, it would gain more than the total cost of the loan.
Only thing I don't like about that is that it puts the mortgage payoff well past my retirement date. But, I figure if I make enough on the chunk in the market it dosn't matter.

Or, per the growth table, in ~15.5 years I could sell the stock and pay off the loan. (but that would be foolish)
 
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Not a shocker, but my neighbors just put their house on the market on 8/6 & were under contract on 8/9. I'm hoping these low interest rates & the seller's market stay around for several months until I can move!
 
Talking to the guy helping with my refi, he brought up a good point. If 4-5 years a lot of people are probably going to be thinking really hard about moving with how low the rate they have are. Moving from a 2.65% rate back to a 4% rate is about 175 bucks a month on a 240k mortgage. People may really consider not moving to stay at these crazy low rates.
 
Signed papers with one of @Ron guys (Dan) last night. Top notch guy, thanks Ron.

2.5 for 20
3k fees plus funding escrow. (Around 75%ltv)
(2.25 for 15, 2.75 for 30)

Payment is going down 1$ and I'm cutting 5 years and 80k of interest.

Had 3.875 for 30 with 25 left.

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DSM Turbos said:
Talking to the guy helping with my refi, he brought up a good point. If 4-5 years a lot of people are probably going to be thinking really hard about moving with how low the rate they have are. Moving from a 2.65% rate back to a 4% rate is about 175 bucks a month on a 240k mortgage. People may really consider not moving to stay at these crazy low rates.
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Thats an interesting point. However I'm not sure that I'd buy that an increase that size is really going to slow many people down. Most people choose to move because they need (want) a bigger house, or relocate for work etc, not just because they can get a great interest rate. It's have to be a lot higher than that. The housing market was already great at 4%.
 
RatLabGuy said:
Thats an interesting point. However I'm not sure that I'd buy that an increase that size is really going to slow many people down. Most people choose to move because they need (want) a bigger house, or relocate for work etc, not just because they can get a great interest rate. It's have to be a lot higher than that. The housing market was already great at 4%.
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very true. But I’m sure it will impact some. Especially the ones that just want a bigger house. They may consider not moving.
 
DSM Turbos said:
very true. But I’m sure it will impact some. Especially the ones that just want a bigger house. They may consider not moving.
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Maybe... but I guess I don't see why that is a big deal. Who loses out on a small % of people not moving into bigger homes just because they can? I guess "big home builders"?
Personally I think the whole philosophy of getting bigger homes than you really need is a crock of shit, and a symptom of a bad American ethos that we need lots of space and stuff to be happy. But that's just me, and I know economists will say that people buying as much stuff as possible is good for everybody....

Sorry, didn't mean to take that off on a ranting tangent. I think I need more coffee.

And all that said ... I want a bigger garage. I don't need it, but I want it.
 
RatLabGuy said:
Maybe... but I guess I don't see why that is a big deal. Who loses out on a small % of people not moving into bigger homes just because they can? I guess "big home builders"?
Personally I think the whole philosophy of getting bigger homes than you really need is a crock of shit, and a symptom of a bad American ethos that we need lots of space and stuff to be happy. But that's just me, and I know economists will say that people buying as much stuff as possible is good for everybody....

Sorry, didn't mean to take that off on a ranting tangent. I think I need more coffee.

And all that said ... I want a bigger garage. I don't need it, but I want it.
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our family of 3 has 1450 sq ft. Would some more room be nice? Sure but we don’t need it. I bought the house when I was single also though. But the 760 sq ft detached garage is what sold me plus the shed. Plus the lean to we enclosed. I buy a lot of toys though. So I can’t say much.
 
What's everybody seeing on days to close right now?

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rcalexander105 said:
What's everybody seeing on days to close right now?

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Still no indication on mine. Waiting on underwriting. I am at like paperwork stage 3, so I guess that's good.
 
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DSM Turbos said:
I was told to expect 45 days or so. He said don't be surprised when you don't hear anything from me for a month or so after the first steps.
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Just completed a refi on 1 August. 2.25% for the remaining 27 yrs. from first paperwork filled out to final document signing/notarized was 48 days. I refinanced inside the existing mortgage company and they said they are processing so many right now it’s ridiculous. Luckily it had no typos or issues and went through pretty easy. Make my first “new” mort. pymt 01sept.
 
skyhighZJ said:
Just completed a refi on 1 August. 2.25% for the remaining 27 yrs. from first paperwork filled out to final document signing/notarized was 48 days. I refinanced inside the existing mortgage company and they said they are processing so many right now it’s ridiculous. Luckily it had no typos or issues and went through pretty easy. Make my first “new” mort. pymt 01sept.
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I can imagine, the broker that I know said he is busier than ever, and it is really stressful on him right now. They are working crazy hours I can see by when they are emailing me asking for things.
 
DSM Turbos said:
I can imagine, the broker that I know said he is busier than ever, and it is really stressful on him right now. They are working crazy hours I can see by when they are emailing me asking for things.
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A guy called me back at 6pm on a Saturday. I almost didn't answer assuming it was spam.
 
skyhighZJ said:
Just completed a refi on 1 August. 2.25% for the remaining 27 yrs. from first paperwork filled out to final document signing/notarized was 48 days. I refinanced inside the existing mortgage company and they said they are processing so many right now it’s ridiculous. Luckily it had no typos or issues and went through pretty easy. Make my first “new” mort. pymt 01sept.
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Still jealous of those military rates. Nobody tells you about that part when they are recruiting for ROTC :lol:
 
jeepinmatt said:
Still jealous of those military rates. Nobody tells you about that part when they are recruiting for ROTC :lol:
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And with VA loans it’s federal law they have to offer the lowest rate possible. Also, there is a threshold of it changes more than X percent they have to call you whether it’s been a year or 10 since you originated your loan.
 
RatLabGuy said:
I've been using Better.com to fish for rates.
Best long-term deal I've gotten is 2.5% w/ $3543 in orig. fee on a 30, or same and $1512 orig. fee on a 20. Only 2.125% on a 15 yr (!) but it has a $4600 fee.
Since I'm at 19.4 years anyway, that 20 is quite a deal and basically a direct swap. However I'm thinking I'll probably pay the extra fee for the 30 and either continue paying at teh rate I am, or more likely, put that extra difference into a market fund. In the long run even if it only averages 5% the total savings difference is substantial. Like, it would gain more than the total cost of the loan.
Only thing I don't like about that is that it puts the mortgage payoff well past my retirement date. But, I figure if I make enough on the chunk in the market it dosn't matter.

Or, per the growth table, in ~15.5 years I could sell the stock and pay off the loan. (but that would be foolish)
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ok fellas I'm struggling with the choice here. Sadly I didn't lock in this day and the orig. fees have gone up slightly, now just under $4k for the 30.

Basically I can't decide if its worth it to pay an extra $2k up front to get the same rate at 30 vs 20. My intention is to make the same payment regardless, so the extra $2k now basically just buys the flexibility of dropping payments down by 30% later if needed for an unexected reason or I want to switch it to market investment as above. Of course the alternative could be to go w/ the 20 and drop that extra $2k into a market fund also.
Its just w/ things so volatile its hard to predict.
 
Started my refi, with Fifth Third Bank, last Tuesday, since they hold my 30 year. Getting a 15 year at 2.625%. The old 30 is at 3.75%. Rolling in closing cost which is not finalized yet. Somewhere between 2K & 3K, which I should save in interest in 4-5 years. Also beat the Sept.1 deadline of the new $1400 Fee, that Freddie/Fannie, are tacking on! Closing in app. 45 days. So far I've spent about 6 hours doing the paperwork by computer & e mails. I had no work / forms, or anything come in Friday, so for now they must have enough information & E signed documents. Damn, I'd forgotten what a shitload of work it is!:mad:
 
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