Who's refinancing their mortgage?

[TraumaRN]

I just closed on a mortgage a couple months ago. I locked in a 5.75% and thought I was getting a steal I suppose in a sense I still am...however obviously right now is not the time for me to re-fi. I mean I put 12% down and already pay an extra $75/month on principal only....I figure if rates are still this low and by low I mean under 5% I'll re-fi once I'm married in 6 months and have a solid 2 income revenue stream. By that point I should have closer to 15% equity as well...

 

[Chunkee]

Originally posted by: Aharami
Ive been talking with a guy from Chase, he just sent me a good faith estimate. closing costs are much higher than 1.5K for me
Non Refundable Application Fee 395.00
Processing Fee 300.00
Underwriting Fee 295.00
Courier Fee-Prepaid 50.00
Flood Certification LOL
Wiring Fee
Settlement/Closing
Abstract/Title Srch
Title Examination
Title Insurance
Title Policy Endorsement
E-Doc Closing Fee-Settle Agnt
Recording/Filing Fee
3rd Party Courier-Not Prepaid
14.00
50.00
395.00
150.00
150.00
883.00
50.00
50.00
395.00
25.00

They forgot the We Remove the Lube Before We Arse Fuck You Fee

 

[Aharami]

Originally posted by: Chunkee

Originally posted by: Aharami
Ive been talking with a guy from Chase, he just sent me a good faith estimate. closing costs are much higher than 1.5K for me
Non Refundable Application Fee 395.00
Processing Fee 300.00
Underwriting Fee 295.00
Courier Fee-Prepaid 50.00
Flood Certification LOL
Wiring Fee
Settlement/Closing
Abstract/Title Srch
Title Examination
Title Insurance
Title Policy Endorsement
E-Doc Closing Fee-Settle Agnt
Recording/Filing Fee
3rd Party Courier-Not Prepaid
14.00
50.00
395.00
150.00
150.00
883.00
50.00
50.00
395.00
25.00

They forgot the We Remove the Lube Before We Arse Fuck You Fee

tell me about it. I spoke with this same guy when we were mortgage shopping back in July. His GFEs back then didnt have all this crap fees. I dont know if he is pissed we didnt go with him or what...

 

[OCGuy]

Originally posted by: Marlin1975
Yea I am looking right now. We are at 6.5%. Like to get 5.5% or lower with no money out of pocket.

have over 20% equity, me and my wife have low 800 score, been in house over a year, etc...

4.625 is possible. VERY possible. 5% with no closing costs is more like it.

And the people complaining about fees, you are wrong. A lender gives you a higher rate in order to pay the fees on a "no-cost" loan.

There is no such thing as a true "no-cost" loan.

All of those fees on that list are pretty standard and are real costs of doing a loan.

If you go into BofA and get a "no-fee" loan, you are paying those fees one way or the other.

 

[JEDI]

Originally posted by: joshsquall
Apparently rates have dropped more than 25% from when I closed on my mortgage in July. Who else is going to refinance soon? I may even refi into a 15 year loan.

refied @ 4.99% fixed in sept, no costs.
also got a new heloc @ prime -1%, no costs.

no mortgage crisis or credit crunch for those of us with 800 FICOs :smile;

 

[SandEagle]

Huntington said they can give me a fixed 15 yr at 4.5%. not too bad, but i may just wait it out too. closing cost is anywhere from 900-1400

https://www.huntington.com/pas/HNB1750.htm

 

[LordSnailz]

Originally posted by: Capt Caveman

Originally posted by: LordSnailz

Originally posted by: PingSpike

Originally posted by: spidey07
Careful with refinancing guys. You reset your amortization tables when you do so that money you think you saved each month is actually costing you more money depending on how long you plan on staying in the house.

Can't you just change the loan length from 30 to say 28 or whatever years?

bump - I was thinking the same thing, the only issue with that is whether they have 28yr. loans or the 'good' interest rate loans on limited to the standard 30yr, 20yr, and 15yr. fixed.

anyone know?

The terms are standardized (30, 20, 15, etc) for selling on the secondary markets.

If that's the case, how do you calculate whether refinancing to a new 30yr. fixed loan makes sense or not assuming you pay the same amt. every month?

I'll throw some numbers in there -

current loan amt - $500,000
old interest rate - 6%
monthly payment - $3000
4 years into the loan already

loan amt - $500,000
new interest rate - 5%
monthly payment - $2600
actual monthly payment - $3000, remain the same as before.

If I plan to move out of the house in 10yrs., do I just calculate the amt. of equity between the first case vs the second case at the 10yr. mark, if the 2nd case is greater than the first case then it makes sense to refi?

 

[SandEagle]

^^ Am I better off refinancing? Calculator here: <a target=_blank class=ftalternatingbarlinklarge href="https://www.53.com/wps/portal/calhom11">https://www.53.com/wps/portal/calhom11</a>

take a look at all of the mortgage calculators here to guide you
https://www.53.com/wps/portal/.../Calculators/#mortgage

 

[Noirish]

what's the first thing to do if you want to buy a house nowadays?
is it to get pre-approved first even though you don't know what you are buying yet?
can you ask loan agent to give you the max possible based on your salary?
how much can you realistically borrow per $10k salary?

 

[vi edit]

Originally posted by: Noirish
what's the first thing to do if you want to buy a house nowadays?
is it to get pre-approved first even though you don't know what you are buying yet?
can you ask loan agent to give you the max possible based on your salary?
how much can you realistically borrow per $10k salary?

Definitely talk to a bank (or credit union if you can) to get pre-approved. Especially in this market. Lenders are really cranking the screws to what/who they will lend.

As for what you'll be approved for, it's really a matter of debt to income.

You really need to keep your debt about 1/3 or less than your gross monthly income.

Meaning, if you bank $3,000 a month gross, your debts shouldn't be more than $1000. This includes student loans, car payments, credit card debt, and the future home loan.

 

[Noirish]

1/3 of gross...hmm...i thought that figure would be higher in california.
i think i heard something like 40-45%, which is what i'm aiming for.

yeah, i think i need to talk to a loan agent to get all the info i need.

 

[OCGuy]

Originally posted by: vi edit

Originally posted by: Noirish
what's the first thing to do if you want to buy a house nowadays?
is it to get pre-approved first even though you don't know what you are buying yet?
can you ask loan agent to give you the max possible based on your salary?
how much can you realistically borrow per $10k salary?

Definitely talk to a bank (or credit union if you can) to get pre-approved. Especially in this market. Lenders are really cranking the screws to what/who they will lend.

As for what you'll be approved for, it's really a matter of debt to income.

You really need to keep your debt about 1/3 or less than your gross monthly income.

Meaning, if you bank $3,000 a month gross, your debts shouldn't be more than $1000. This includes student loans, car payments, credit card debt, and the future home loan.

Fannie Mae is 55%, Freddie Mac is 65%. I would stay under 50%, but you can get it done higher.

 

[ultimatebob]

Nah... I already have a 5.5% CHFA first-time homebuyer mortgage. At least some of us were smart enough to finance their homes correctly the first time

 

[Capt Caveman]

Originally posted by: ultimatebob
Nah... I already have a 5.5% CHFA first-time homebuyer mortgage. At least some of us were smart enough to finance their homes correctly the first time

More like good timing. And with rates below 5%, you could still save $100s a month from refinancing.

 

[charrison]

In the process of refinancing a 30 year at 6.75 to 20 years at 4.75. I wont have to pay PMI on the new note either

 

[Descartes]

Originally posted by: ultimatebob
Nah... I already have a 5.5% CHFA first-time homebuyer mortgage. At least some of us were smart enough to finance their homes correctly the first time

Fail.

 

[mugs]

Originally posted by: Noirish
1/3 of gross...hmm...i thought that figure would be higher in california.
i think i heard something like 40-45%, which is what i'm aiming for.

yeah, i think i need to talk to a loan agent to get all the info i need.

Hello Mr. Van Winkle. I hope you're well rested from your 2 years of sleep. You might want to catch up on the news.

 

[mugs]

Do you have to get the home inspected and/or appraised (with a walkthrough of the house) when you refinance? We bought our house less than a year ago, so it was inspected recently. We're in the middle of some significant renovations now though, so we have no floors downstairs, no kitchen cabinets, etc.

 

[dabuddha]

I just locked my rate in last week at 5.00. My lender said he can relock for me at half a point but I figured it's not worth it unless he can get me 4.625 or lower considering the loan amount isn't that high to begin with. Overall, I'm still happy with what I got but if it gets to 4.5 or below, im definitely gonna relock.

 

[Gunslinger08]

My lender's numbers didn't quite make sense. I'm dropping from 6.375% to 5% and my principal/interest payment is only going down a little under 10%. My calculations show it should be closer to 15%.

 

[Kelemvor]

We're going from 6.25 to 5.25 on a 30yr in WI. Sign the paper work next week. Gotta see what happens if they drop more before then.

 

[IronWing]

Originally posted by: spidey07
Careful with refinancing guys. You reset your amortization tables when you do so that money you think you saved each month is actually costing you more money depending on how long you plan on staying in the house.

That's what we're looking at. We have ten years to go so we're only looking at a ten year, no cash out refi. The problem is that not many banks do ten year notes. Plus our current 15 yr is at 5.125 so the rate has to be below roughly 4.5 to make it worth the closing costs for most loans.

 

[dullard]

Originally posted by: ironwing
That's what we're looking at. We have ten years to go so we're only looking at a ten year, no cash out refi. The problem is that not many banks do ten year notes. Plus our current 15 yr is at 5.125 so the rate has to be below roughly 4.5 to make it worth the closing costs for most loans.

I never understand the desire for these odd term-length loans.
1) Determine how much you can afford to pay a month.
2) Find the best loan rates that you can (include interest rate, closing costs, and any pre-payment costs in this analysis).
3) If that loan has monthly payments that you can afford (see #1), then take the loan regardless of the term-length of the loan.
4) If you want to make a 30-year loan be paid faster, then make extra monthly principle payments.

For example, suppose you can afford $1200 a month in payments. Suppose you owe $100k and you want it to be a 10 year loan. Suppose the best loan you could find was a 20-year loan at 4.5% interest, meaning $633 monthly payments. Then, pay $1036 a month towards that loan and you now have a 4.5% interest 10-year loan.

You can always make a loan term shorter (assuming you didn't get a loan with a massive prepayment penalty). This gives you the flexibility to make the loan length whatever you want while still getting the best loan interest rates and fees. Also, you aren't locked into a $1036/month 10-year loan. If you run into financial trouble you can always drop back to $633 a month for a while.

 

[LordSnailz]

Originally posted by: mugs
Do you have to get the home inspected and/or appraised (with a walkthrough of the house) when you refinance? We bought our house less than a year ago, so it was inspected recently. We're in the middle of some significant renovations now though, so we have no floors downstairs, no kitchen cabinets, etc.

I never thought of that ... for folks who are near the edge of the 80% LTV ratio, but they did have the place renovated, they can ask to have it re-appraise and that might improve their LTV ratio and qualify for the better rates right?

In this case, the owner would have to pay for the lender approval appraiser then?

 

[Aharami]

ive been hearing that the rates will drop more to 4.5%. Im gonna wait a bit