Shopping for a mortgage

[liv2ski]

Summit, paying .50 points to buy the rate down to 2.625% does not sound like anything special to me. You should shop around and fuck any company that takes 3 months to do a 30-45 day job.

[sirbumpsalot]

Is 2.625 (buying a half point) for a 30yr REFI with cashout no assesor still a good deal for CO? Good credit. The mortgage company (Sebonic/Cardinal) fucked up so much shit they have been working on this since AUGUST. Working into closing now and I'm wondering if it has been so long that I should be shopping again.

It doesn't hurt to contact zillow and get some initial quotes from a couple responders to compare. If your rate and buydown was from August I bet they can beat it.

[alembical]

I'm currently at 2.625% in Idaho. Danno's recent refi has me wondering if I can do better.

Can anyone confirm if they are seeing rates low enough to justify a REFI at the moment?

I closed last week at 2.25, 15 year, loan was about 1/4 of RMV, wife and I both had 800 credit scores, low costs, no appraisal, Portland, Oregon

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[Kevo]

I closed last week at 2.25, 15 year, loan was about 1/4 of RMV, wife and I both had 800 credit scores, low costs, no appraisal, Portland, Oregon

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Thanks. I don't think I know what RMV stands for. Remaining mortgage value?

I'm debating if I want to go down to a 15 year. I like liquidity, probably to a fault.

[alembical]

Thanks. I don't think I know what RMV stands for. Remaining mortgage value?

I'm debating if I want to go down to a 15 year. I like liquidity, probably to a fault.

RMV is the Real Market Value or cost of the home.

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[liv2ski]

Very oddly Mortgage backed Securities are not increasing in rate like the 10 yr treasury. That means rates are at all time lows, but I would get em while it is hot as the MBS market cannot stay low in the face of higher T Bond rates. I just priced a 15 year refi and at 2% the credit covered all the non recurring costs on a CA loan.

[Brock Landers]

Happened in July except the other way. Tsy rates fell while mtg stayed somewhat flat.

Spread between mtg and tsy now is closer to average. Tsy drives the bus in the relationship longer term but inside a year and with such risk on/off driving tsy yields, strong housing market and Fed still buying mortgages...I’d say mtg rates move independent of tsy over the next year. Whether up or down.

[skaredshtles]

<snip> I like liquidity, probably to a fault.

Me too.

Wife and I have tentatively agreed to pay the fuckin' thing off this year. I mean, we're at the point that we owe less than a modestly-appointed modern pickup truck.

[MiddleOfNight]

Is 2.625 (buying a half point) for a 30yr REFI with cashout no assesor still a good deal for CO? Good credit. The mortgage company (Sebonic/Cardinal) fucked up so much shit they have been working on this since AUGUST. Working into closing now and I'm wondering if it has been so long that I should be shopping again.

Seems like it to me... In dec my guy quoted 2.875 on 30y w a 65k cashout (I think). I
went with a 15y, but that sounds good for 30.

but +1 it shouldn't take that long, and no risk in poking around just to be sure you can't do better someplace else

[neufox47]

About to close on our house in CA at the end of month. We have the option of buying points with a 3.5 year payoff period, which gets us to a rate of 2.5%. Typically not a big fan of points but hard to think I shouldn’t take that rate for the cost.


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[Gman]

About to close on our house in CA at the end of month. We have the option of buying points with a 3.5 year payoff period, which gets us to a rate of 2.5%. Typically not a big fan of points but hard to think I shouldn’t take that rate for the cost.


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Where in CA?

[neufox47]

Auburn


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[4matic]

I have a 2.5% 5/5 rolling over next month to 2.85%. ARM probably still the way to go as it’s been for years and years.

[Brock Landers]

Yeah I’d ride that 285 for sure

[liv2ski]

I read an article the other day where some big company (like Goldman Sacks) was predicting negative 10 year T bonds in the next year. I could not see it, especially with rates now going up, but what do I know. 4matic, a 15 year fixed is still 2.125% on a no cost loan if a conforming loan amount with a low ltv. I like that better than your 2.85%

[4matic]

I read an article the other day where some big company (like Goldman Sacks) was predicting negative 10 year T bonds in the next year. I could not see it, especially with rates now going up, but what do I know. 4matic, a 15 year fixed is still 2.125% on a no cost loan if a conforming loan amount with a low ltv. I like that better than your 2.85%

Thanks but with 10 year rate close to 2% I’d rather pay less each month. Plus, the house is supposed to close April 1. Long story in why it took so long. It fell out if escrow twice last fall but I ended up getting $80k more so it worked out. I’ll be using Prop 19 to stay in California.

Check out this home at Realtor.com
$850,000
3beds · 2baths
15898 Via Paro, San Lorenzo



https://www.realtor.com/realestatean...s_core_ldp_ios

[mattig]

10yr won't go negative as long as usd is world reserve currency. It was Minerd from guggenheim, btw. Same call he's been making for a few years.

[liv2ski]

4matic, isn't that the place you're selling?

[4matic]

4matic, isn't that the place you're selling?

Yes. April 1 close

[liv2ski]

Congrats, if you can WFH, where you moving to?

[4matic]

Congrats, if you can WFH, where you moving to?

It changes but looking at American River Canyon and surrounding.

[alpinevibes]

Bump.

I'm in a bit of a quandary here on a refinance option; feeling cold feet today and looking for advice re: refinancing break even point. We've got a appraisal set up for tomorrow and its suddenly feeling like potential sunk cost. I've googled, done a bunch of calculators, but don't feel like I'm grasping the simple maths...

Current: 2bd deed-restricted condo, $144,600 valuation, $128,000 original mortgage, 30yr fixed at 4.375%.
Now in it's 84 month with $108,400 remaining. No PMI and we pre-pay an extra $65/mo for $800 total monthly.

We're in the process of bidding in lotteries for other deed restricted units in the Aspen employee housing program. It's always a long shot, but our hope is that we'd be moving within 12mo. If it were a wager, I'd say the odds are heavily in favor of us not winning a new place and staying put for likely the next 12-24mo, but you never know. Refinancing sounds great, but I want to limit out-of-pocket costs up front to protect a down payment.

When I started talking to a lender two weeks ago, I was quoted 2.5% on a 15yr, with the $2500 (potentially more like $2000) appraisal and closing costs rolled onto the new loan. Rates seem to be moving upward, so a conservative guess might be something like $111,000 at 3% once this all wraps up.

Trying to figure out what the actual break even point is for the added costs of the refinance vs us continuing to prepay towards our current. With the unknown quantity of potentially winning a place any day, I don't really want to get hosed on fees if its a year or more timeline.

Many many thanks!

[Iowagriz]

my 2 cents....for easy math...assume all of your closing costs = $2400

what is your monthly savings over the $800 monthly you are currently paying? Let's say new payment is $700 - then your break even point is 24 months down the line. Overly simplified, but that is always the way I look at it.

[liv2ski]

Why was the rate not locked in 2 weeks ago at 2.50% is issue #1? So $128k @ 4.375% is/was $639.09 p&i per month. You have 276 payments left or $176,388 left over the remaining 276 months.
New loan of $110,400 at 3% over 15 years is $762.40 p&i a month for 15 years or $137,232 over the life of the loan. Looks like you will save about $39,000 over the life of the loan, so do it.
The new payment is $123.31 more than you pay now, so if you don't refi and just pay $762.40 per month the present loan would pay off in 16.73 years rather than 15 years, so ya, do it.

[Danno]

You haven't provided enough numbers to determine. Generally speaking, though, an intent to sell/move in the next 12-24 months means a refi doesn't make sense, unless skipping a mortgage payment and getting escrow refunded is very important to you. I mean, using lowagriz's simple calc above, what if closing cost was only $1200 and you were saving $100/mo so your simple break even was only a year. Is it really worth it to refi, to save $100/mo a year out, if somewhere in the next 2 years you're going to sell?