Shopping for a mortgage

**mooseknuckle** · 03-03-2020, 10:35 PM

Was quoted 2.75 with one point on 20 yr fixed. Can get 30 yr fixed @ 2.75 with 1.5 pts. I don’t usually like points, but good lord that’s a stupid low rate. Couldn’t get lower, right?

**rideit** · 03-03-2020, 10:37 PM

Originally Posted by mooseknuckle

Was quoted 2.75 with one point on 20 yr fixed. Can get 30 yr fixed @ 2.75 with 1.5 pts. I don’t usually like points, but good lord that’s a stupid low rate. Couldn’t get lower, right?

Where are you, may I ask?

**mooseknuckle** · 03-03-2020, 10:42 PM

717 - Central PA

**liv2ski** · 03-03-2020, 11:07 PM

Originally Posted by mooseknuckle

717 - Central PA

Why pay points when the recapture takes so long?

**mooseknuckle** · 03-03-2020, 11:30 PM

Wife seduced by rate; I’m inclined to agree with your outlook. Don’t see the juice as worth the squeeze.

**VTeton** · 03-04-2020, 09:19 AM

Originally Posted by mattig

Yes, 3.0 today by the close. Tomorrow should be similar. If you need a connection, I got buds (clients) there that I'd trust for my own loan.

Tomorrow could be 2.875, best case borrower and market movement. It was actually doable today at a few lenders. Sheer insanity and easily all-time low.

PM sent

**Danno** · 03-04-2020, 10:24 AM

I just saw a 2.875 rate on zillow for a 30 year in CO. I clicked and asked for a formal quote, because that is significant even given I have a 3.375. Would save me over $200/mo, or alternatively, I could turn the new 30 year into a 25 year if I pay the same amount as I do currently, shortening my loan by 16 months.

**GiBo** · 03-04-2020, 10:24 AM

So mortgage mags, tell me if my thinking is correct. I got talked into a 7 yr ARM in 2006. My plan was to fix the house up and flip it. The mortgage guy showed me the numbers and the ARM made sense for that scenario. Well 2007 came and the flip didn't quite work out.

So I was stuck in that ARM. I was going to walk if the adjustment ever got silly. It never did and along came HARP 2.0 which saved my ass (thanks Obama!). I'm now in a 30 yr fixed at 3.8%. I'm just now getting to where the amount towards principal is catching up to the amount going towards interest. I've been looking into a refi as I think I can get a better rate and a lower payment, but I think I'd take a hit on the amortization. I plan on moving in 3-5 years, so it seems like getting back into a interest front loaded loan right now wouldn't pay off.

Does this make sense?

**4matic** · 03-04-2020, 10:26 AM

ARM has been the best mortgage choice in terms of cost for 40 years. I don't see that changing. Short rates have a chance to go back to zero.

If people had ARM's all along they wouldn't have had to refinance.

**Cruiser** · 03-04-2020, 10:29 AM

Originally Posted by Danno

I just saw a 2.875 rate on zillow for a 30 year in CO. I clicked and asked for a formal quote, because that is significant even given I have a 3.375. Would save me over $200/mo, or alternatively, I could turn the new 30 year into a 25 year if I pay the same amount as I do currently, shortening my loan by 16 months.

I'm putting an email in to Bob today!

**Danno** · 03-04-2020, 10:31 AM

Originally Posted by GiBo

So mortgage mags, tell me if my thinking is correct. I got talked into a 7 yr ARM in 2006. My plan was to fix the house up and flip it. The mortgage guy showed me the numbers and the ARM made sense for that scenario. Well 2007 came and the flip didn't quite work out.

So I was stuck in that ARM. I was going to walk if the adjustment ever got silly. It never did and along came HARP 2.0 which saved my ass (thanks Obama!). I'm now in a 30 yr fixed at 3.8%. I'm just now getting to where the amount towards principal is catching up to the amount going towards interest. I've been looking into a refi as I think I can get a better rate and a lower payment, but I think I'd take a hit on the amortization. I plan on moving in 3-5 years, so it seems like getting back into a interest front loaded loan right now wouldn't pay off.

Does this make sense?

Not to me it doesn't. I'm guessing that with today's rates, you could drop your payment enough to have it make sense. Run the numbers, what would be the difference in payments if you did a new 30 year today? Then look at how much of the new payment goes to principal from the get-go (it's probably more than you think given the low rates), and add the difference you just calculated to that. Is that greater than what is going to principal today on your existing loan?

And let's say you don't move (as you have already seen, plans change). If you made the same payment as you do currently in your existing loan, but under the new loan (ie you're making additional principal payments), which would pay off faster? I'm sure it would be the new loan.

**Danno** · 03-04-2020, 10:38 AM

Originally Posted by Cruiser

I'm putting an email in to Bob today!

same

**Yonder_River** · 03-04-2020, 11:37 AM

Seattle peeps! I'm looking to refi our 30 year fixed currently at 3.6%. Recommend me someone who cuts to the chase with good terms if you can.

**teleee** · 03-04-2020, 11:41 AM

Anybody have a Colorado lender they would like to hook me up with, or is zillow my best option?

**Blackbeard** · 03-04-2020, 11:58 AM

Appreciate VTeton bumping this thread and the info everyone is bringing

Refi a 20 year at 3.125, currently 4 years in on a 30 year at 3.875. Monthly payment is flat.

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**skaredshtles** · 03-04-2020, 12:02 PM

@teleee - Sent you a PM.

**Brock Landers** · 03-04-2020, 01:56 PM

Spreads between mortgage rates and treasury yields are the widest they’ve been since 2008. So there may be room to go for rates to go lower, should the Fed’s next move be to stop letting the $20B a month in mortgage debt roll off its balance sheet. Which would actually impact the consumer and economy more than another rate drop.

I’m not sure on timeline (Fed meets this month) but I don’t think the risk is to rates suddenly jumping from here. But if they do reinvest that 20B/month back into mortgage backed securities is could be 50-75 bps benefit to a 30 year fixed mtg.

**4matic** · 03-04-2020, 02:10 PM

Good call there. Rates going lower.

**VTeton** · 03-04-2020, 04:35 PM

No luck finding a 30yr fixed at 3% yet but tracking down another lead. No one wants to go below 3.25% in MA.

See what I can finder but rates are awesome!!

**Danno** · 03-04-2020, 05:16 PM

from what I saw (just doing stuff like checking zillow) rates moved a tick up today.

**goldenboy** · 03-04-2020, 07:02 PM

Originally Posted by teleee

Anybody have a Colorado lender they would like to hook me up with, or is zillow my best option?

I'll shoot you an email, I was thinking refi as well and I talked to one of the lenders I work with a lot, she had some great rates...

**Smoova** · 03-04-2020, 09:05 PM

I could use a mag-approved lender in CO as well. Thanks

**BC13** · 03-04-2020, 09:16 PM

Originally Posted by huckbucket

Any recs on who I should talk to in NY?

Here is the information of a guy I have used twice. I'm at 2.875% on a 15 yr fixed no closing cost loan I got 8 years ago. My buddy, a real estate lawyer, said he never saw a better loan rate with no closing costs.

He is located in Jersey. Everything is done via e-mail and telephone except the closing, which occurred at my buddy's local office. My loan was sold to Chase soon after it closed.

Carl Casperson
Senior Loan Originator
American Federal Mortgage Corporation

Phone: (862) 259-3138 x3138
Fax: (866) 247-9288

ccasperson@amfedmtg.com
AmericanFedMortgage.com
NMLS License#: 39910

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**liv2ski** · 03-04-2020, 09:46 PM

Originally Posted by Brock Landers

Spreads between mortgage rates and treasury yields are the widest they’ve been since 2008. So there may be room to go for rates to go lower, should the Fed’s next move be to stop letting the $20B a month in mortgage debt roll off its balance sheet. Which would actually impact the consumer and economy more than another rate drop.

I’m not sure on timeline (Fed meets this month) but I don’t think the risk is to rates suddenly jumping from here. But if they do reinvest that 20B/month back into mortgage backed securities is could be 50-75 bps benefit to a 30 year fixed mtg.

This is the fact of the matter folks. Lenders are presently taking huge losses on loans originated over the last 2 years that are already paying off, so lenders are not bidding strong on refinances for the most part yet. Also, as the current health crisis unfolds, there is a good chance the worlds PPI tanks which will put further pressure to lower rates.
Today yields did creep up a bit on the 10 Year T bond and lenders are quick to up rates, but slow to lower them, as over the last 5 days the 10 Year T bond is lower by .25%, but long term rates are not, so hang in there.
I think rates will improve for a variety of reasons and ya, if you're in CA I am kicking everyone's ass, so pm me your details and needs.