Wow refinance is great right now

[SD_Prairie_Goat]

All of the re-fi work has been good for banks too. They get some nice fees with every one of these transactions and typically just sell of the mortgage.
Most banks don't want to hold these cheap loans in house.

For sure, win win if you ask me right now.

I learned that local credit unions (who I bank with) formed a group that has enough capital to serve their mortgages rather than selling them to Well Fargo right away. I like the idea that I'll be served locally this go around.


But yes, many don't want them, or don't have enough capital to serve them.

 

[2rocky]

Good info from everyone. I'm a mortgage broker so I'll chime in.

They put a 50 BPS penalty on all refi's earlier this week... not .5%.... 50 BPS... which is $500 per $100,000 loan.... about an 1/8 of a percent for a 200-350k house... so instead of 2.750 now you're paying 2.875. Basically they were trying to force lenders to lower their rates even more because they are making too big of a spread and according to the markets rates should be lower... unfortunately lenders are at capacity and can't take any more business so supply/demand wins out and lenders just passed on the charge to the borrowers.

We're being told rates should recover in 30-60 days or so from the rate we took this week. Good time to get your loan in, float your rate over the next 2-4 months, and if you like it lock it.



Save some money, use the savings to hunt more.

So I'm in the process of closing soon on my Refi. Will I see the penalty?

 

[NEWHunter]

So I'm in the process of closing soon on my Refi. Will I see the penalty?

If you have your closing statement you should be good. I’m closing Wednesday and am OK as far as the fee goes.

 

[RobG]

Good info from everyone. I'm a mortgage broker so I'll chime in.

They put a 50 BPS penalty on all refi's earlier this week... not .5%.... 50 BPS... which is $500 per $100,000 loan.... about an 1/8 of a percent for a 200-350k house... so instead of 2.750 now you're paying 2.875. Basically they were trying to force lenders to lower their rates even more because they are making too big of a spread and according to the markets rates should be lower... unfortunately lenders are at capacity and can't take any more business so supply/demand wins out and lenders just passed on the charge to the borrowers.

We're being told rates should recover in 30-60 days or so from the rate we took this week. Good time to get your loan in, float your rate over the next 2-4 months, and if you like it lock it.



Save some money, use the savings to hunt more.

Who is “they”?

 

[SD_Prairie_Goat]

Who is “they”?

Pretty sure the feds in this case

 

[ShootsManyBullets]

Who is “they”?

FHAFA

 

[Ttannahill14]

FHAFA

Yes FHAFA,


They delayed the 50 BPS penalty until December 1st. That means we'll see it show up on pricing October 1st.

If you're thinking about refi'ing, I'd do it in the next week or two and make sure your rate is locked prior to October 1st.

 

[NDGuy]

Locked up 2.625% on a 20 year. Dropped from a 30 year at 4.625%..That was a no brainer even with continued PMI payments as we near doubled the principle payment amount.

 

[2rocky]

SO I had a 5/1 ARM and I was on year 3.5.

My new mortgage is a percent lower, and has my property taxes rolled in to the payment and is still a cheaper payment.

 

[Irrelevant]

SO I had a 5/1 ARM and I was on year 3.5.

My new mortgage is a percent lower, and has my property taxes rolled in to the payment and is still a cheaper payment.

#winning

 

[SD_Prairie_Goat]

Finally closed on my house last week, took a long time for the appraisal and to get into the title office to sign the paperwork. So many people are refi right now that there is a waiting line for both of those.

 

[Jmnhunter]

I am in the middle of a refi right now and am locked in at 2.5 on a 15 yr. Crazy rates.

same here; waiting for the appraisal to come; the sickening part was how much the fees and closing costs are going to be after everything is done ~ $8k, tempted to pay this out of pocket to alleviate the extra $ towards our monthly payments

 

[SFC B]

We closed last week. Went from 4.4% to 2.25%.....that along with new lower home insurance dropped my payment by more than 40%. As we are only going to be here a couple more years and have a lot of equity due to the market here this gives us incredible flexibility. The closing cost were rolled in but the difference in payments make it so we are head after less than 8 months. If we keep making the payments we were making we are taking much bigger chunks of the principle.....either way it is a big win.

 

[SD_Prairie_Goat]

We closed last week. Went from 4.4% to 2.25%.....that along with new lower home insurance dropped my payment by more than 40%. As we are only going to be here a couple more years and have a lot of equity due to the market here this gives us incredible flexibility. The closing cost were rolled in but the difference in payments make it so we are head after less than 8 months. If we keep making the payments we were making we are taking much bigger chunks of the principle.....either way it is a big win.

almost my situation to a tee except I went to 15 year to pay it off for about 15% more a month instead of saving every month

 

[brownbear932008]

We did a 7/1 ARM refi back in July and got 2.25%. Our payment dropped almost in 1/2. With the fact that we throw all extra funds into principle each month we should own house 2 in the 7 years and be debt free. The new payment has felt so great we were stuck in a 4.2. prior. Hard to believe these awesome rates.