Post by steamboat185 on Jul 3, 2019 9:16:16 GMT -5
We’ve had a mortgage broker reach out to us before to refi (we’ve done it 4 or 5 times on this house). As long as you look over the numbers closely I don’t think there is anything wrong with taking the offer.
I would pull the trigger. Generally when you get these offers from your current servicer they're looking to keep you as their client rather than you looking elsewhere for that refinance and rate reduction.
No one knows what rates are going to do in the future. People have guesstimates but no one knows for sure. A year ago, 2019 was supposed to be a year of rising rates and look where we are now.
I'd love to know what bank is offering lower than 4% Cappy. I'd refi with them and we've only been in our house a year
I recommend putting your info into bankrate’s mortgage calculator for indicative pricing. Bankrate is great because you don’t have to put any contact info into the calculator so you’re not barraged by 10 calls within 2 minutes from lenders.
I’m currently refi’ing and 3.875% would have been a no points/no cost loan for my scenario. I ended up paying points to buy the rate down because it made sense for me.
I would just make sure they’re not rolling too much, if anything, into your loan balance. That’s usually how they offer ‘no fee’ refinances, and the companies are not very upfront about it. If your principal balances goes up, the break even point might stretch out farther. It still might be worth it for you! Just be aware of it.
Post by HitchedIn2006 on Jul 4, 2019 9:13:28 GMT -5
I called the credit union we have our mortgage at... a 15 year is now 3.125% WOW! A modification to the loan would be better for us, $600 fee and drops our payment by ~$100/month, but we don’t have to start the 15 years over and do all the annoying paperwork of a refi. We’re going to do it. We have only been in this house 9 months and the mortgage is currently at 4%, so it’s a win win, even though we are aggressively trying to pay down the balance and have the house paid off in less than 10 years.
One thing to consider, and it probably doesn't affect you since you've only had the mortgage for 5 months, is that it starts the clock on the 30 years over so the ratio of principal/interest will change. We've had our mortgage for almost 5 years now and we'd have to drop our rate considerably to consider getting another 30 year mortgage.
One thing to consider, and it probably doesn't affect you since you've only had the mortgage for 5 months, is that it starts the clock on the 30 years over so the ratio of principal/interest will change. We've had our mortgage for almost 5 years now and we'd have to drop our rate considerably to consider getting another 30 year mortgage.
When we refinanced after two years, they let us refinance for a 28-year term so we wouldn’t be starting over. You obviously have to specifically request that, but some places will do it.
One thing to consider, and it probably doesn't affect you since you've only had the mortgage for 5 months, is that it starts the clock on the 30 years over so the ratio of principal/interest will change. We've had our mortgage for almost 5 years now and we'd have to drop our rate considerably to consider getting another 30 year mortgage.
You can refi into a 25 yr amortized mortgage if you want to. Rates on 25 yr mortgages should be the same as 30 yr mortgages.
I called the credit union we have our mortgage at... a 15 year is now 3.125% WOW! A modification to the loan would be better for us, $600 fee and drops our payment by ~$100/month, but we don’t have to start the 15 years over and do all the annoying paperwork of a refi. We’re going to do it. We have only been in this house 9 months and the mortgage is currently at 4%, so it’s a win win, even though we are aggressively trying to pay down the balance and have the house paid off in less than 10 years.
Just another idea for folks.
I just tried this and the guy wanted all this info and said he couldn’t access our loan. He asked a bunch of questions including do we want to take cash out. So he’s not answering my question on modification and talking about refinancing I believe which I don’t want.
I just wanted to say thank you to the OP - because of this thread I contacted our mortgage broker and today we started our own re-fi! We just did a construction loan/re-fi in November of last year, 30 years at 5%. We’re doing another 30 year loan but we’re getting 3.75% and it’s knocking off $400 in interest each month! The fees will be about $3800, but we’ll recoup that in 10 months from what we’ll be saving in interest and then have $4800/year more to save or spend on other things. So thank you so much for the idea to call and inquire!!
I just wanted to say thank you to the OP - because of this thread I contacted our mortgage broker and today we started our own re-fi! We just did a construction loan/re-fi in November of last year, 30 years at 5%. We’re doing another 30 year loan but we’re getting 3.75% and it’s knocking off $400 in interest each month! The fees will be about $3800, but we’ll recoup that in 10 months from what we’ll be saving in interest and then have $4800/year more to save or spend on other things. So thank you so much for the idea to call and inquire!!
RockNVoll I think we are at 4% so I'll shoot our broker an email asking him to look into those 2 banks and anywhere else that may have a good rate. Thanks!
Mortgage brokers can only shop around between the lenders they have existing relationships and working contracts with, traditionally a handful only. They can't just call up and be a broker for any lender.
If you're really looking to shop rates I recommend a combo of bankrate.com, your local credit union, costco lending partners, other on-line only shops called 'consumer direct' rather than retail.
ETA: I've been in mortgage banking for over 20 years.
ETA2: Unless you're a high net worth customer with assets at a bank that also provides jumbo loans. That will more than likely be your sweetest deal.
Mortgage brokers can only shop around between the lenders they have existing relationships and working contracts with, traditionally a handful only. They can't just call up and be a broker for any lender.
If you're really looking to shop rates I recommend a combo of bankrate.com, your local credit union, costco lending partners, other on-line only shops called 'consumer direct' rather than retail.
ETA: I've been in mortgage banking for over 20 years.
ETA2: Unless you're a high net worth customer with assets at a bank that also provides jumbo loans. That will more than likely be your sweetest deal.
We have been with our broker for over a decade, but I still do my own research with such big financial moves I actually found a better rate than he did for our current place and he was able to then go back to one of the banks he works with to get them to match it. I thought there must have been some hidden fee or something I wasn't seeing, but there wasn't. His brokerage actually gave us a credit that was offered with other loan that the bank he got to match was not able to give. So the brokerage helped match it by giving us the credit themselves, is what I should say technically happened.
We do have a jumbo loan, so that may have been a factor.
Mortgage brokers can only shop around between the lenders they have existing relationships and working contracts with, traditionally a handful only. They can't just call up and be a broker for any lender.
If you're really looking to shop rates I recommend a combo of bankrate.com, your local credit union, costco lending partners, other on-line only shops called 'consumer direct' rather than retail.
ETA: I've been in mortgage banking for over 20 years.
ETA2: Unless you're a high net worth customer with assets at a bank that also provides jumbo loans. That will more than likely be your sweetest deal.
We have been with our broker for over a decade, but I still do my own research with such big financial moves I actually found a better rate than he did for our current place and he was able to then go back to one of the banks he works with to get them to match it. I thought there must have been some hidden fee or something I wasn't seeing, but there wasn't. His brokerage actually gave us a credit that was offered with other loan that the bank he got to match was not able to give. So the brokerage helped match it by giving us the credit themselves, is what I should say technically happened.
We do have a jumbo loan, so that may have been a factor.
Yup that makes perfect sense. =)
ETA, more of a PSA in general: Even if a lender doesn't advertise price matching, if you get a competing Loan Estimate (LE) with better pricing rate/points/fees combo, it's always worth it to show it to the lender you're working with to see if they will give you a lender credit. And if they don't, you always have the option to stop working with that lender and work with the better priced lender instead. Just remember that rates move daily and even intra-day sometimes so if you want that same quote, you will have to lock the rate in right away.
RockNVoll I think we are at 4% so I'll shoot our broker an email asking him to look into those 2 banks and anywhere else that may have a good rate. Thanks!
Sorry for reviving the thread, but FYI rates are still below 4% and now some banks are dropping closing costs. I'm looking at pulling the trigger on 3.75%, but paying closing costs. There's also an option for 3.875% with no costs.
Curious if anyone else is looking around and what you're seeing?
I just emailed my mortgage guy today. We closed in June but the rates have dropped so much, I'm wondering what our options are--for either modification or refi.
RockNVoll I think we are at 4% so I'll shoot our broker an email asking him to look into those 2 banks and anywhere else that may have a good rate. Thanks!
Sorry for reviving the thread, but FYI rates are still below 4% and now some banks are dropping closing costs. I'm looking at pulling the trigger on 3.75%, but paying closing costs. There's also an option for 3.875% with no costs.
Curious if anyone else is looking around and what you're seeing?
RockNVoll , I've recently been in touch with Fairway Mortgage and they seem to have a lot of options and directions to go for loan programs. They were recommended to me, Richard Roseman specifically (he's in Newton). They have a bunch of locations in MA.
Post by njohnson1972 on Jul 31, 2019 12:05:20 GMT -5
I am actually looking at a 10yr ARM currently for 3.125% from my employer. If we get another rate cut, I am hoping to get under 3%. I have yet to stay in any of my homes for 10 years, so I figure I am safe with going with a 10yr ARM. If I don't refinance by the end of the 10 years, the max my payment can increase is $800/month.
I just locked in today with 3.75 and 3/8 points to pay at closing on a 30 year loan (costing us approx an extra $3000). We should be closing in a week or two. We’re going to save a little over $400/month in interest in total (we last refinanced last October after a major addition at 5% for 30 years). The paperwork is a pain in the ass, but I’m excited for a better rate and better monthly payment!!
Thanks to this thread I reached out to my broker and we locked on a refinance in mid-July. We were able to get a 15yr with a 3.25% fixed rate. We close later this week. Our old loan was 3.75% so we were able to keep our payment the same, shave a year off the duration, and save $20k over the life of the loan. I’m happy!
This thread prompted me to see what we could get and now I'm struggling with indecision. We have 21 years left, and I would love to refi to a 15 year, but our payment would go up by about $140/month. Seems like not a lot, but we do have other debt right now so I'm not sure it's the smartest option. Refi to a 20 year would save us $180/month but obviously the rate is a bit higher. I'm having a hard time letting go of the idea of a 15 year and lower rate. Our current rate is 4.75% so I think we should definitely do something. Tell me what I should do MM!
This thread prompted me to see what we could get and now I'm struggling with indecision. We have 21 years left, and I would love to refi to a 15 year, but our payment would go up by about $140/month. Seems like not a lot, but we do have other debt right now so I'm not sure it's the smartest option. Refi to a 20 year would save us $180/month but obviously the rate is a bit higher. I'm having a hard time letting go of the idea of a 15 year and lower rate. Our current rate is 4.75% so I think we should definitely do something. Tell me what I should do MM!
If I were you I'd jump on that 15 year. I don't know your financial picture but even with my tight budget that $140 would be worth it to me.
Post by dancingirl21 on Aug 6, 2019 13:39:56 GMT -5
We are doing a cash-out refinance at 3.99%, down from 4.375%. Our broker told us 3.99 is probably as good as it will get in the short term (for a cash-out refi), but she expects rates to jump up a bit, then go back down near the end of the year. We are using the cash out money to finish our currently unfinished basement, and put down a decent amount on a new car for DH. Our monthly payment is only changing $30. We are going back to a 30 year loan, but our old loan was only at 28 years (we bought this house 2 years ago), so it works out ok for us. And our appraised value went up $40k from buying 2 years ago, so we are really good with that.
Seems like a good time to just look into it, if anyone is on the fence.