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PSA - Mortgage rates hit all time lows today!

Big Matt

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Post your source for the rates. They are absolutely at all time lows with no points. If your loan starts with a "4" you need to do something.
 

CalGalTraveler

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Where are you finding this? I am seeing 3.3% with 0 points for 30 year fixed.
 

mdurette

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Post your source for the rates. They are absolutely at all time lows with no points. If your loan starts with a "4" you need to do something.

Source is me.....that is what do for a living, write mortgages. I have been locking rates for customers all day long with those rates.

It isn't even if you have something that starts with a "4". You could have 3.25% now......but have $100K out in consumer/home equity debt and it still makes sense.
 

mentalbreak

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Post your source for the rates. They are absolutely at all time lows with no points. If your loan starts with a "4" you need to do something.

Not necessarily. When loan balance is low enough or near maturity, the interest savings will not overcome closing costs.
 

mdurette

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Not necessarily. When loan balance is low enough or near maturity, the interest savings will not overcome closing costs.

correct. you could have 5% on $50k with 10years left and a refi most likely won’t make sense.
 

DaveNV

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Those are awesome rates. Too bad I just did a refi a few months ago. :)

Dave
 

heathpack

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FYI - Mortgage rates hit some all time lows today.

30 year fixed with 0 points 3.00%
15 year fixed with 0 points 2.50%

Maybe time to refinance.

What’s the best VA rate? We’re are 3.875% currently with 22 years to go.
 

rocksteadyserg

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Tell me where to find the 15 year at 2.50%


Sent from my iPhone using Tapatalk
 

MULTIZ321

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Source is me.....that is what do for a living, write mortgages. I have been locking rates for customers all day long with those rates.

It isn't even if you have something that starts with a "4". You could have 3.25% now......but have $100K out in consumer/home equity debt and it still makes sense.
If this is what you do for a living, why aren't you quoting the APR? That's the shopping tool Uncle Sam developed 40+yrs ago. Without the APR, there's no way to know what a customer's true costs are. Those rates could be based on 1 or 2 or more points.
 

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What’s the best VA rate? We’re are 3.875% currently with 22 years to go.
You probably don't need another VA loan if you are refi-ing. VA definitely has its benefits, but if you have equity and good credit, a conventional mortgage may be just as attractive.
 

Snazzylass

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Those are awesome rates. Too bad I just did a refi a few months ago. :)

Dave
Well, if the math makes sense, maybe you want to check again. Since you aren't planning to keep your home past 3-4 years, I suspect not.
In general, rates have been fantastic since last July. Glad a few more people are starting to look into it.
 

joestein

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correct. you could have 5% on $50k with 10years left and a refi most likely won’t make sense.

I disagree. $2,500 interest at 5% would be cut in half at 2.5%. That would result in a savings of $12,500 over 10 years. Plus you could save even more by continuing the same payment and pay off the loan in 9 years instead of 10.

This is why I did when I refinanced around 8 years ago. I went from 3.25 to 2.75 and paid off my mortgage about a year ahead of time.
 

bluehende

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Source is me.....that is what do for a living, write mortgages. I have been locking rates for customers all day long with those rates.

It isn't even if you have something that starts with a "4". You could have 3.25% now......but have $100K out in consumer/home equity debt and it still makes sense.
My son is in PA and was quoted a rate of 3.25 for a 20 yr yesterday. These rates seem better. Any advice on how he could get those rates?
 

heathpack

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You probably don't need another VA loan if you are refi-ing. VA definitely has its benefits, but if you have equity and good credit, a conventional mortgage may be just as attractive.

Typically for us that is not true, as the issue is the down payment. VA loans require 3% down and no private mortgage insurance. Additionally my husband (who has the VA qualification) has a high enough disability rating that we don’t pay the typical 1% for the loan.

However in this instance, the House has appreciated enough in value and we’ve paid it down enough that we’d probably only be looking at a loan for around 60% of the home’s current value. So we could look at non VA loans in this instance, you’re right. The last time we refinanced was within maybe 2 years of purchasing the house and we did not have 20% equity in the home, so the VA loan still came out ahead.
 

Big Matt

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Not necessarily. When loan balance is low enough or near maturity, the interest savings will not overcome closing costs.
I agree with you, but unless you've been heavily prepaying, people with a mortgage rate of 4+ have a balance that would warrant the refi.
 

CalGalTraveler

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@mdurette Would love to know the APR on the loans you describe. I just called our lender and they still have 30 year at 3.2% and 3.26 APR, $3000 closing costs with top credit score. Also BankRate is not showing that low. How long would you expect until we see the adjustments from the FED cut?
 
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louisianab

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Source is me.....that is what do for a living, write mortgages. I have been locking rates for customers all day long with those rates.

It isn't even if you have something that starts with a "4". You could have 3.25% now......but have $100K out in consumer/home equity debt and it still makes sense.
So how do mortgage underwriters feel about refinancing rental properties right now?
 

Steve Fatula

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If it goes below 3% for 30 years, I would likely refinance. It's such a pain though (for me), I hate the process. But they are nowhere near 3% around us.
 

easyrider

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So how do mortgage underwriters feel about refinancing rental properties right now?

Last I checked it was better to refi my house and pay for the rental. Same thing for some condos.

Bill
 

mdurette

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Hello All - this thread was just a PSA, it by no means is any sort of advertising looking for business. Trust me....I have more than I can handle at the moment. It was just a heads up that rates are very good and you should reach out to your preferred lender.
I only know what the rates are in my little corner of the world.....I can only assume that different markets have different pricing?

I started at 4am this morning and just stopped.....so my brain is a bit fried at the moment, but here it goes.

My most popular program to lock into today was a 15 year fixed refinance.
Example: $550,00 value. $250,000 loan amount. No cash out. Single family, primary residence with a FICO above 740, with tax escrow
2.50% with 0 points, APR 2.575

And the 30 year for the same scenario....2.875% with 0 points, APR 2.917

Again, this is just a PSA to check with your lender of choice......
 

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LoanDepot is redoing our 30 year VA at 2.75 APR. which drops monthly by over $200. Was $1250 going to $1018. We treat it as low rent, but we are our own landlord.
 

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Typically for us that is not true, as the issue is the down payment. VA loans require 3% down and no private mortgage insurance. Additionally my husband (who has the VA qualification) has a high enough disability rating that we don’t pay the typical 1% for the loan.

However in this instance, the House has appreciated enough in value and we’ve paid it down enough that we’d probably only be looking at a loan for around 60% of the home’s current value. So we could look at non VA loans in this instance, you’re right. The last time we refinanced was within maybe 2 years of purchasing the house and we did not have 20% equity in the home, so the VA loan still came out ahead.
Sorry? You mean when you are purchasing, right? I agree VA is a great product when purchasing just for the reasons you stated.

No downpayment is required for a refinance. Of course, as always, the devil is in the details. So, if your own-to-value is 80% or greater - possibly different story. However, I will say that often the mortgage insurance on a conventional loan is a better deal than FHA or VA when refinancing :)
 

heathpack

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Sorry? You mean when you are purchasing, right? I agree VA is a great product when purchasing just for the reasons you stated.

No downpayment is required for a refinance. Of course, as always, the devil is in the details. So, if your own-to-value is 80% or greater - possibly different story. However, I will say that often the mortgage insurance on a conventional loan is a better deal than FHA or VA when refinancing :)

What I'm saying is if we purchase a house, put 3% down and then refi 2 years later, we are looking for a loan that may be for 94% of the purchase price because we haven't paid much down and the house has not yet appreciated much. We have spent a lot of our home-owning life in this situation because we owned all of our prior houses for less than 4 years. Hence we typically are looking to avoid PMI, so we turn to a VA loan- which again, for us, is a low cost loan because of reduced fees for us over non-disabled vets.

This situation is different however in that we've been in the house for awhile, we've paid quite a bit down, and the house has appreciated by 35%. So as you point out in your most recent post (and as I agreed with in a subsequent post), we can cast our net a little wider in this instance because we're looking for a loan that is only around 65% of the home's value.
 
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