Wow refinance is great right now

[SD_Prairie_Goat]

Went to the bank to test the waters, I didn’t realize how great the rates are right now.
I went in with mortgage insurance on my original loan, so my goal was to remove the insurance to save some cash.

Long story short, I was able to get a fifteen year loan at 0.225 % for only $120 more a month than my old thirty year loan.

Great time to refinance if you’re thinking about it!

 

[SAJ-99]

Nice! Good timing. Others need to move fast. Fannie and freddie announced and increased in lender fees yesterday of 0.5%. Those will get pushed on to the borrower. Of course you also need to be in solid financial shape. The median credit score for a mortgage is now an eye-popping 759.

 

[Big Sky Guy]

Went to the bank to test the waters, I didn’t realize how great the rates are right now.
I went in with mortgage insurance on my original loan, so my goal was to remove the insurance to save some cash.

Long story short, I was able to get a fifteen year loan at 0.225 % for only $120 more a month than my old thirty year loan.

Great time to refinance if you’re thinking about it!

.225%!? Or 2.25%? Just wanting to verify that’s not a typo.

 

[seeth07]

My parents just did a 15 year mortgage on a condo they bought with 25 percent down and got a stellar 2.1% rate. They did this in late June. 7 years ago I got a rate of 3.3 and I thought that was a steal lol

 

[JohnCushman]

I'm in the middle of a refi right now through the VA. I'll be going to a 15 year loan, .25% lower, and $200 a month less

 

[SD_Prairie_Goat]

.225%!? Or 2.25%? Just wanting to verify that’s not a typo.

haha, my mistake got distracted! 2.25%

 

[SD_Prairie_Goat]

My parents just did a 15 year mortgage on a condo they bought with 25 percent down and got a stellar 2.1% rate. They did this in late June. 7 years ago I got a rate of 3.3 and I thought that was a steal lol

I thought that rate was too, they just keep getting better though, crazy

 

[seeth07]

Rather than refinance now my wife and I actually decided to just toss our savings into a big payment on the mortgage last month. As a result, this month our interest in the monthly payment dropped 70 bucks. That's a big savings every month of money just going down the drain!

 

[Hummer]

We've been debt free for 14 years but want to make improvements on 3 homes. Yesterday, partly due to covid distancing, we closed in the post office parking lot and did the signings on the hood of a Subaru Outback. The notary said it was his first experience doing it open air.

We took $200K @ 3.081% 29 yr fixed mortgage with closing costs of $2500 rolled into the loan. It made no sense spending from our investments when 3% money is available.

 

[Big Sky Guy]

haha, my mistake got distracted! 2.25%

2.25% is still great. Ill need to look into it again, it didn’t make sense when I checked in May, we have a 3.5 fixed 30, rates then were right around 3.0.

 

[338RCM]

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

 

[MarvB]

Since money was so cheap we opted for a 15% down to keep more cash out for a shop and other furnishings, still locked at 2.99% on our 30yr with no buy down or pts.

 

[NEWHunter]

Closing next Wednesday on a 5 year ARM at 2.5%. It’s taken over three months, but I think we’re finally going to get there. Not saving a ton, but enough for it to make sense.

 

[MarvB]

Closing next Wednesday on a 5 year ARM at 2.5%. It’s taken over three months, but I think we’re finally going to get there. Not saving a ton, but enough for it to make sense.

yeah,our “30-day” escrow took nearly 2 full months; cash in hand and no contingencies but everyone playing the Covid card to get extra time

 

[3rdCoastTXHunter]

Last month started speaking to the wife about refinancing, I wanted to refi, but since we were planning on moving in the next 4-5 years decided to speak to a lender and after some math we decided now was time. She found the house and plan to close in 2 weeks and was quoted 2.75% fixed for a 30yr for the new house. I was surprised thought we were sitting good on the current house at 3.3%

 

[SD_Prairie_Goat]

Last month started speaking to the wife about refinancing, I wanted to refi, but since we were planning on moving in the next 4-5 years decided to speak to a lender and after some math we decided now was time. She found the house and plan to close in 2 weeks and was quoted 2.75% fixed for a 30yr for the new house. I was surprised thought we were sitting good on the current house at 3.3%

I thought I was sitting fine too until you are almost a percent cheaper in some cases.

At this point they're basically giving money away!

Closing costs suck, but not much you can do about that I suppose

 

[406LIFE]

FWIW, if there are others thinking about refing, you can call your lender directly for an Interest Rate Reduction Modification. Very often these are low fees (if any, for VA). Basically they get to keep your loan and you get the lower rate.

 

[SD_Prairie_Goat]

FWIW, if there are others thinking about refing, you can call your lender directly for an Interest Rate Reduction Modification. Very often these are low fees (if any, for VA). Basically they get to keep your loan and you get the lower rate.

Good option if you like your current loan. I needed to get out of my FHA loan to get away from mortgage insurance, but good advise for others!

 

[Ttannahill14]

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.

 

[Steiny]

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.