Mortgage rates at all time low

[Capt Caveman]

I just hate the closing costs, and also resetting the mortgage to 30 years again. I've lived in my house for 5 years and refinanced 2 times already. Going back to 30 years again would just keep pushing this loan out further into my life. Yes I know I could pay it off early, and the money saved adds up but I don't know if I want to bother again.

Both times it was a pain in the ass and a ton of paperwork. First time the guy lost our paperwork, and we barely got it settled, but it was ugly. The second time I swore I wouldn't deal with that bank again, and instead we ended up with a company that said they would allow online payments, but didn't bother telling us that they charge you $11 to do it each month. I just hate dealing with these companies, I don't think a .7 drop is worth the BS.

No closing costs and 25 year mortgage refinance for me with Chase. And under HARP, no income/asset/employment verification which has led to me only needing to sign a couple of documents before closing.

 

[rh71]

^ no closing costs but you're back to paying mostly interest the first few years. And they always find a way to work it into the loan... just means no money out of your pocket up front. Refinanced once with no costs too, but it was early in the loan.

 

[yh125d]

I have a plan

I just joined my uncles credit union so I have the option to go through them to avoid PMI, and who knows, they may beat the rate/terms I get from USAA or whoever else I apply to. I plan on actually starting to mortgage shop once I get my W2 in a week or two, I already have a dozen or so houses to look at more seriously once I get pre-approved, and hopefully can make an offer soon thereafter and close in time to move in by April 1 (when lease is up)


I might empty out my IRA to get a bigger down payment too. Theres only 2500 in there, and its only been losing money since it was opened. As I understand it I won't have to pay any fees for early withdrawal since it's to buy a house, but still pay income tax on it, right? And come tax time I just have an extra form to fill out (5329 I think)

 

[spidey07]

^ no closing costs but you're back to paying mostly interest the first few years. And they always find a way to work it into the loan... just means no money out of your pocket up front. Refinanced once with no costs too, but it was early in the loan.

At rates this low, your very first payment some 33% is going directly to principle.

 

[Capt Caveman]

^ no closing costs but you're back to paying mostly interest the first few years. And they always find a way to work it into the loan... just means no money out of your pocket up front. Refinanced once with no costs too, but it was early in the loan.

That's why I went to a 25 year loan. Sure the closing costs are worked into the rate, you think banks are going to refinance you for free?

 

[Wyndru]

That's why I went to a 25 year loan. Sure the closing costs are worked into the rate, you think banks are going to refinance you for free?

25 year is something I might actually consider. And I wish that was eligible for that no cost/ no hassle refinance thing the government had been providing, but since I've refinanced recently (out of pocket) I think it prevents me from getting it.

 

[CZroe]

Can anyone guess what will this look like by the end of the year? I have good credit but no savings and a $10hr job but I'll pick up another and get crackin' on a real career if I can get enough for a down-payment by the end of the year.

Next question: How much down-payment for how much house?

 

[Blackjack200]

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No one has any idea where the rates will go, it's like the stock market. There is speculation that they could go even lower, but that's all it is. I remember a couple of years ago the rates hit 4.5% and I was shitting my pants 'cause I couldn't refi, now they're 150 points lower.

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Ugh, they won't let me streamline from 30 year FHA to 15 year FHA if the payment goes up more than $50. My payment would have gone up $160. I think that's amazing in itself. The rate would have been 3.5%, barely half the rate I have now.

The guy is checking if they have a 25 year product, but I may just have to stick with a 30 year FHA. Still will be awesome though: 3.75%. Rolling about $1700 into the loan to pay for origination.

Edit: Oh for fucks sake, the rate is actually 3.87%, which is fine, but PMI doubles, so my payment only goes down about $150/month with a big shift from interest to mortgage insurance, i.e. less interest to deduct (I think). I don't know where the hell I'm going to get the money, but I've got to find a way to get a conforming loan. This mortgage insurance is fucking killing me.

 

[jlee]

I started looking at houses yesterday...rates are so low, and housing out here is so cheap that I'm having a hard time continuing to rent.

 

[JTsyo]

Made my first payment on the new mortgage, more money went to principal than interest. :thumbsup:

 

[Golgatha]

Made my first payment on the new mortgage, more money went to principal than interest. :thumbsup:

It's a wonderful feeling. Going from a 30 year to 15 year basically flipped me from paying 2/3 interest and 1/3 principle, to paying 2/3 principle and 1/3 interest. We had to put 12k down to get the payment back to where we needed it, but we'll make that back in 36 months due to savings on interest payments alone.

 

[sjwaste]

We just went under contract on a house and locked 4% on a 30 year. That's pretty damn good in my book - my car loan is 3.9% for 5 years.

With money at 4%, I'm not sure that I'll be in a rush to pay that off early.

 

[rh71]

Made my first payment on the new mortgage, more money went to principal than interest. :thumbsup:

how does that happen? I just checked an amortization calculator and that doesn't happen till at least year 12 for 4%, or year 15 for 4.5% (us). Didn't matter what the loan amount was.

EDIT> You are doing a 15 year perhaps? The ridiculous taxes here thrown in with the mortgage payment makes that impossible for us.

 

[yh125d]

Got my W2 and did my taxes last night, getting 1600 back to add to my down/closing costs fund. As soon as that return and tomorrows paycheck come in, I'm gonna get a couple pre-approvals and hopefully close by mid-march at the latest!

 

[alent1234]

why not just get a loan and roll the closing costs in there? with current rates you are risking paying more with a higher rate

 

[yh125d]

why not just get a loan and roll the closing costs in there? with current rates you are risking paying more with a higher rate

I might, depending on what the terms are on the mortgage I wind up going with, but I'm looking at borrowing only around 30-35k and paying it off in 3-5 years so the rate isn't that important

 

[Train]

closing tommorow at 3.75% with no points. Was at 5.0%

Plan on making double payments every month, if I stay in the house it will be paid off in 10.5 years.

 

[sjwaste]

closing tommorow at 3.75% with no points. Was at 5.0%

Plan on making double payments every month, if I stay in the house it will be paid off in 10.5 years.

Wow where did you get 3.75 and how long ago did you lock that rate?

 

[Train]

Wow where did you get 3.75 and how long ago did you lock that rate?

locked it around Dec 20th. Got it through USAA (it's a VA backed loan) and me and the wife both have 800+ credit scores.

Was camping out on the rate alerts for nearly 2 months, finally bit at the 3.75.%. Then right after I locked it actually went down to 3.5 for a couple of days. Oh well.

 

[sunzt]

I bought a house in September with a 4.75 rate, and recently refinanced to a 4.00 rate with no closing costs. 30 yr fixed, no PMI, in Virginia.

 

[Train]

I bought a house in September with a 4.75 rate, and recently refinanced to a 4.00 rate with no closing costs. 30 yr fixed, no PMI, in Virginia.

with no closing costs, or cloing costs rolled in to the new principal?

 

[sjwaste]

locked it around Dec 20th. Got it through USAA (it's a VA backed loan) and me and the wife both have 800+ credit scores.

Was camping out on the rate alerts for nearly 2 months, finally bit at the 3.75.%. Then right after I locked it actually went down to 3.5 for a couple of days. Oh well.

Is that a 30 year loan?

 

[Train]

Is that a 30 year loan?

Yep, tried to make it a 15 (could have gotten a 3.25% rate) but since I already had a 30, VA refinance rules do not allow you to change the term, only the rate. But like I said, I am paying it at a rate that will have it paid off in 10.5 years.

 

[sunzt]

with no closing costs, or cloing costs rolled in to the new principal?

no closing. Closing costs only affected my mortgage rate. So if I paid more closing costs I could have gotten a lower rate, but I didn't want to spend anymore cash since I just paid the down payment a few months ago.

 

[JTsyo]

how does that happen? I just checked an amortization calculator and that doesn't happen till at least year 12 for 4%, or year 15 for 4.5% (us). Didn't matter what the loan amount was.

EDIT> You are doing a 15 year perhaps? The ridiculous taxes here thrown in with the mortgage payment makes that impossible for us.

yup 15yr at 3.625% (posted previously in the thread). Only $500 more a month than what we were paying for 30 year. I didn't include the taxes just loan amount. Tax rate is about 1.6% of home value.