Another would you refi mortgage question :)

[fryjack2]

We bought in early spring 2018 at 4.25% 30 year fixed.

Refi in summer/fall of2019 to 3.75%, 30 year fixed.  Jumbo loan. 

We paid 10k in closing costs and fees ( best we could do at the time. We will recoup in 2 years and will be in this house for 15+ years). 

Because of the fees we paid, and an already good rate, I'm not sure another refi just to drop to a rate that is still in the 3's is worth it. We can just send in extra payments to principle. 

Is my thinking logical or is there something I'm failing to consider? 

[elcjet]

I don't think it hurts to shop around and see what's out there. I just did a jumbo at 3.5% with no costs so they are out there -- and there is much talk of rates headed to the low 3's. Heck, I would even contemplate a second refi in a few months if the rates hit 3%. You're only adding 6 months to your loan with lower interest in the future.....

Your $10K is sunk no matter if you stay with your current loan or refi.....

[madisen]

bankrate.com is such an easy place to start for a rate indicator because you don't have to supply your contact information and can check as many times as you want.

and I still hold that dinkytown.com has some of the best calculators around.

www.dinkytown.net/java/mortgage-refinance-calculator.html

This one specifically shows your break even with closing costs. super easy to use.

[fryjack2]

Mar 5, 2020 11:37:15 GMT -5 madisen said:

bankrate.com is such an easy place to start for a rate indicator because you don't have to supply your contact information and can check as many times as you want.

and I still hold that dinkytown.com has some of the best calculators around.

www.dinkytown.net/java/mortgage-refinance-calculator.html

This one specifically shows your break even with closing costs. super easy to use.

I've been playing around on Bankrate but it doesn't have 20 year rates for my area and the 30 year aren't that much lower than what I have now

I'll have to go to the dinky town one, I've never heard of it.  Thanks!

[madisen]

Mar 5, 2020 11:55:26 GMT -5 fryjack2 said:

Mar 5, 2020 11:37:15 GMT -5 madisen said:

bankrate.com is such an easy place to start for a rate indicator because you don't have to supply your contact information and can check as many times as you want.

and I still hold that dinkytown.com has some of the best calculators around.

www.dinkytown.net/java/mortgage-refinance-calculator.html

This one specifically shows your break even with closing costs. super easy to use.

I've been playing around on Bankrate but it doesn't have 20 year rates for my area and the 30 year aren't that much lower than what I have now

I'll have to go to the dinky town one, I've never heard of it.  Thanks!

Got it.

My advice is to keep checking rates periodically whether there or another consistent access point for rates that you might have.

Rates to consumers don't move completely in line with the fed rate for various reasons, so there could be some timing or capacity issues from lender standpoints we're all dealing with also.

[RockNVoll]

My details are almost the same as yours--purchase and refi dates, jumbo, previous and rates, etc.--with the exception of the closing costs which we were lucky to get to almost zero when we last refi'ed several months ago. I can share what I've found over the last day or two of quote gathering, since it's actually relevant to you given our proximity.

The lowest 30-year I've found so far is 3.125% with closing costs of $2,600 + title insurance (which is calculated at $2.75 * per thousand of the loan amount). What's more interesting have been the ARM rates. I was quoted a 10/1 at 2.875% and a 7/1 at 2.75%. I don't think this will be our "forever" place so the 10/1 is really tempting.

ETA: The lowest 20-year rate I've found is 3.25%.

[madisen]

Here's a great article of what I was alluding to regarding rates to consumers.

www.marketwatch.com/story/mortgage-rates-fall-to-all-time-low-amid-coronavirus-concerns-heres-why-americans-may-not-take-advantage-of-them-2020-03-05?siteid=yhoof2&yptr=yahoo

[Susie]

Mar 5, 2020 11:11:38 GMT -5 fryjack2 said:

Because of the fees we paid, and an already good rate, I'm not sure another refi just to drop to a rate that is still in the 3's is worth it. We can just send in extra payments to principle. 

I don't think the bolded part matters.  They're sunk costs, all you can do now is make the best financial decision you can going forward.

You'd have to run the numbers to see if you'd save by dropping 0.5% or so in another refi.  I've refi'ed twice, dropping between 1-2% both times.  0.5% might be iffy.

Is there any chance you could get out of jumbo category with a refi?  Are you close enough?  That would be a possible reason to do it if the numbers are close.  Our second refi got us out of FHA and into conventional, which was nice.

[fryjack2]

Susie, unfortunately, we are not even close to being out of jumbo category.

The fees we paid just makes me not want pay fees again unless well worth it to do so.

[dutchgirl678]

We just refid but we had a really high rate when we bought in 2018 and dropped more than 1%. One thing you can look into with a jumbo loan is what we did and split up the loan into a regular loan and a HELOC for the remainder. But with the closing costs and everything, you still have to make sure it is worth it to refi right now. We couldn't afford to pay a lot out of pocket, so we were able to refinance with our lender (LoanDepot) without any upfront costs. We may have had a slightly higher rate and a larger amount covered by the loans, but we are saving $650 a month right now on our payments. LoanDepot also offers free refinancing for the life of the loan, but unfortunately for us our mortgage was sold after a month!

[madisen]

For Jumbo loans, another option is if you do have assets, see if you will get a deal from the lender if you move any deposits to their bank and what those requirements might be.