Just can't fade these mortgage rates

[Shorty]

What a great opportunity for (especially for young people) to actually buy a place cheaper than what rent would cost.

Yup. I bought in May. My mortgage payment is ~$80 a month more expensive than my rent was.

[KBScobravert]

Refi is first thing on my agenda in Oct when I get back on with my old employer making the real coin again.

[SVT Lurch]

Man I need to refi, just not sure if I qualify. Also not sure if this is the time to do it; I don’t have any money for closing cost so that is a big part of my reluctance to apply.

The other day I went to Lending Tree, just to look around. Next thing you know my phone is being blown up for a month straight by these banks. Never answered though as I am not sure what to ask or be weary of...

Costs can be rolled into the note or the rate depending on your scenario. I would stay away from anyone on Lending Tree.

yea we're at about 3.625% at par right now

In CA or TX?

FHA(it is a refi, just want to take 90% value) 30 year fixed Did amortization with as little as a 15 year note would be versus putting that much extra per payment to loan on 30 year note and liked what i saw with the 30 and extra cash flow if needed and not making double payments. SO although 15 year would have been 2.875, but 3.25% is still a HUGE gain for us(1.4%), and we are rolling in our equity loan(4% gain) with it also. so hands down best thing to do.


3.2%, no discount points charged


not interested in credit from lender. Do not want .25% or whatever increase to cover a small 2k up front. That will cost tens of thousands in life of loan if not paid off early.

Didn't mean to single you out, just trying to point out there's a lot that goes into a rate. I can get 1.875% today, but it's paying points on a 5/1 ARM...so it doesn't make financial sense. There's a lot more to it than just the rate, but people have a hard time getting past that.

[SMKR]

Costs can be rolled into the note or the rate depending on your scenario. I would stay away from anyone on Lending Tree.

In CA or TX?


Didn't mean to single you out, just trying to point out there's a lot that goes into a rate. I can get 1.875% today, but it's paying points on a 5/1 ARM...so it doesn't make financial sense. There's a lot more to it than just the rate, but people have a hard time getting past that.

People are still doing arms? What are the stipulations/requirements?

[Droppedlime]

We were approved on our construction loan, our house is in the appraisal process now. I am glad we are going to lock in a good rate.

[fordracing19]

We were approved on our construction loan, our house is in the appraisal process now. I am glad we are going to lock in a good rate.

Will you be doing a one time close? I didn't and construction rate was 5.95 and then 30 days before the house was to be finished we locked in 3.625

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[FATHERFORD]

People are still doing arms? What are the stipulations/requirements?

Arms can kick ass if you can front the cash.

Lots of people at my work buy 200-250k houses with 5/1-7/1 arms. They either get them paid off in that time, refinance after 5/7 years, or just hang onto the loan for another 3 years or so. From my understanding the ARMs can only go up so much. I keep hearing 6% from co-workers.

[ceyko]

I only go 4% last year and I know how everyone feels about the lower rates. Hell though, compared to even 10 years ago it's amazing. Although, not a good sign for our economy as far as I know.

[Vertnut]

I only go 4% last year and I know how everyone feels about the lower rates. Hell though, compared to even 10 years ago it's amazing. Although, not a good sign for our economy as far as I know.

4% is still one helluva rate.

[Jensha]

4% is so high!

If I may ask, do you know if there's still any companies that are giving $3 and below?

Do they exist or does all of them all of them now only plays between $3-4?

[Doug Hatton]

Man, this is on my list to do! I bought my house at what was a good rate back in '08 of 5.75%!

[zachary]

Didn't mean to single you out, just trying to point out there's a lot that goes into a rate. I can get 1.875% today, but it's paying points on a 5/1 ARM...so it doesn't make financial sense. There's a lot more to it than just the rate, but people have a hard time getting past that.

AH no single out here, i really do not know a whole lot about how it all works. It is our first house and first refi. Just explained what i knew, or thought i knew.



NO WAY i would ever do an ARM, you never know where you will be financially in 3-5 years or how secure your job will be. To me it just makes more sense to get a fixed as low as you can and dramatically overpay your payments and knock the interest off that way.

Like if we pay our 3.25% rate for life of loan, 30 years, we pay 107,000$ in interest, but just by putting 500$ extra a month to it. Interest drops to 50,000$ and gets paid off in 15 years. Now if we would have went with 15 year at 2.875% the interest drops to just 29,000$ over term of loan but would not have extra $ to put toward it or to use if needed.

If you happen to need that 500$ for something else you can always make a monthly minimum and have the extra cash flow. - that is our thought process. Although the interest is way more on the 3.25 in the end it is saving us SOO much over our current rate and situation we could not be happier.

[ceyko]

4% is still one helluva rate.

I agree 100%, but I remember some of the interest rates my father has told me he has paid. Wow. Part of the reason I live where I do is because of the low interest rates.

Getting into the low 3s is really good for the buyer.

[SVT Lurch]

People are still doing arms? What are the stipulations/requirements?

A surprising number given the low fixed rates. No special requirements (although wanting a few more months of reserves is typical).

Arms can kick ass if you can front the cash.

Lots of people at my work buy 200-250k houses with 5/1-7/1 arms. They either get them paid off in that time, refinance after 5/7 years, or just hang onto the loan for another 3 years or so. From my understanding the ARMs can only go up so much. I keep hearing 6% from co-workers.

Most of our ARMs have 5/2/5 caps which mean they will never go higher than 5% over the original note rate.

AH no single out here, i really do not know a whole lot about how it all works. It is our first house and first refi. Just explained what i knew, or thought i knew.



NO WAY i would ever do an ARM, you never know where you will be financially in 3-5 years or how secure your job will be. To me it just makes more sense to get a fixed as low as you can and dramatically overpay your payments and knock the interest off that way.

Like if we pay our 3.25% rate for life of loan, 30 years, we pay 107,000$ in interest, but just by putting 500$ extra a month to it. Interest drops to 50,000$ and gets paid off in 15 years. Now if we would have went with 15 year at 2.875% the interest drops to just 29,000$ over term of loan but would not have extra $ to put toward it or to use if needed.

If you happen to need that 500$ for something else you can always make a monthly minimum and have the extra cash flow. - that is our thought process. Although the interest is way more on the 3.25 in the end it is saving us SOO much over our current rate and situation we could not be happier.

It sounds like you got a good deal for your situation. People just get so hung up on the rate they forget there are other components to a good overall deal.

Most people that get ARMs now can pay cash for what was borrowed several times over so if rates move they just pay it off completely.

Your idea of paying the additional principal is a good one as long as you actually pay it. Lots of people say they will, but end up not and then they pay the higher interest (again not saying this is you).

[Droppedlime]

Will you be doing a one time close? I didn't and construction rate was 5.95 and then 30 days before the house was to be finished we locked in 3.625

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It is looking like two closings right now.