Shopping for a mortgage

[John_B]

OK, I'm dumb as a stump when it comes to mortgages. We refinanced at the end of June into a 2.99% 30 year. If I can get a ~2.375 or similar rate with closing costs covered am I dumb not to do so? Our loan amount is currently at 150K so it would save us 50-60 bucks a month.

[Bronco]

John, not dumb either way, why not put that $ in your pocket each month?

[sirbumpsalot]

OK, I'm dumb as a stump when it comes to mortgages. We refinanced at the end of June into a 2.99% 30 year. If I can get a ~2.375 or similar rate with closing costs covered am I dumb not to do so? Our loan amount is currently at 150K so it would save us 50-60 bucks a month.

Weigh it with the hassle. I've waited until there is a 0.50% difference to make it worth my time. $50 a month would probably not get me off the fence....but depends on your situation.

[sirbumpsalot]

Weigh it with the hassle. I've waited until there is a 0.50% difference to make it worth my time. $50 a month would probably not get me off the fence....but depends on your situation.

Fed speak today jiggled things just as I was locking so was able to drop to 2.5% with a 7/8th lender credit which gets me 99.9% fee/closing cost coverage. I am shocked. Crazy times.

[JaytaeMoney]

I'm in CO and just locked 2.375 with 2500 lender credit.

On a 30 year fixed? If so please PM me the name of your mortgage guy/gal


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[John_B]

On a 30 year fixed? If so please PM me the name of your mortgage guy/gal


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Well FWIW I just tried on Zillow and was only able to improve from 2.99 in April to 2.875 yesterday.

[Danno]

On a 30 year fixed? If so please PM me the name of your mortgage guy/gal


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done

[Shredhead]

Where do you live Jay?

[JaytaeMoney]

Thx Danno.

Shred, I'm in a free market condo in SMV

[fool]

Weigh it with the hassle. I've waited until there is a 0.50% difference to make it worth my time. $50 a month would probably not get me off the fence....but depends on your situation.

I am starting to look at refi now. I have an investment property at 4.75% - refi'd in fall of 2019 - and it looks like I could get something around 3.6%...so probably need to start considering it. I went Better.com last time but open to suggestions. I'll also be sending you a PM, Danno.

[Danno]

Damn, I feel like a mortgage broker pimp! Now if I could only get my bitch to pay me.

[liv2ski]

On the Non Owners, look at lower rates with minimal credit, as often the rate is way lower with a small credit rather than a $3k credit.

[MiddleOfNight]

Anyone spec out 15 or 10 yr fixed rates while you were at it? I see ZZZ's 2.25, who was that through??
Last time I checked rates weren't 'better enough' to make it worth refinancing. 3 1/8 on 30 now.

[Shredhead]

Thx Danno.

Shred, I'm in a free market condo in SMV

Blue Roofs?

I live in Melton Ranch, just off Sinclair & Martingale.

[JaytaeMoney]

Blue Roofs?

Close... I'm in Meadow Ranch. Our place is actually free standing with no shared walls but it is still technically a condo which is pretty atypical everywhere else but there are several like mine in MR. I also get the privilege of paying the extra 12-25bps on mortgage rates because of it.

[liv2ski]

You need 25%+ equity to avoid the condo hit to fee.

[JaytaeMoney]

Is that an extra closing fee or is it an interest rate bump? I was at 65% LTV on my recent refi. Assumed my rate was higher because it’s a condo but maybe not. The guy I used smoked everyone else’s rate so I didn’t ask any questions.


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[Toadman]

Refi fee of 50 basis points takes affect on Dec. 1st.

https://www.businessinsider.com/pers...ing-fee-2020-9

[Name Redacted]

Refi fee of 50 basis points takes affect on Dec. 1st.

https://www.businessinsider.com/pers...ing-fee-2020-9

Many lenders are absorbing the fee, for now.

[fool]

Property Type Question: If I'm buying a place that is listed as "Multiple Occupancy" - it's a 4-unit house - how does that affect the mortgage?

When selecting "Multi-family home" on Zillow or NerdWallet with the purpose of "Secondary Home" or "Investment Property," the websites do not return results. Then I see the following from BankRate (https://www.bankrate.com/finance/mor...unit-home.aspx) - bolding mine - and it seems that maybe a mortgage for a four-unit house might still be a single-family home mortgage because it's four units or less? Thoughts?

I'm going to ask some brokers but thought I would ask the Mortgage Maggots too.

Multifamily homes with up to four units are considered residential for the purpose of financing, so you can buy them with mortgages like those used to buy single-family homes.

On the other hand, properties with five or more units are considered commercial real estate, so financing those is a different process. Loans for commercial real estate are generally more difficult to get, require bigger down payments and often require shorter repayment schedules.

[liv2ski]

Property Type Question: If I'm buying a place that is listed as "Multiple Occupancy" - it's a 4-unit house - how does that affect the mortgage?

If you're moving into a unit, the pricing will be waaaay better than if a N/O/O transaction. Also a 4 unit purchase normally requires 25% down unless you are moving in and qualify for a Home Possible program which may allow as little as 5% down.

[fool]

If you're moving into a unit, the pricing will be waaaay better than if a N/O/O transaction. Also a 4 unit purchase normally requires 25% down unless you are moving in and qualify for a Home Possible program which may allow as little as 5% down.

Ah, should have stated that more clearly...I'm not currently planning to move into any of the units. Would it change if I considered it as a second/vacation home? That might be possible...I need to do some more research on how that works. (Assume n/o/o is non-owner occupied, right?) How bad is the pricing on a n/o/o mortgage? Like a few percent higher or smaller (.5%)?

That being said 25% down is doable.

[liv2ski]

I ran a 4 unit purchase of $800k at 75% ltv and the rate was .50% higher as a N/O/O than as a O/O loan. Good luck getting anyone to approve it as a second home so you score an O/O rate.

[DryorDie]

Anyone have recommendations for a good mortgage guy in Utah?

[bagtagley]

Got a question about negotiating. I'm not a huge fan of our lender, but we're too far along to change. He's sticking to 2.875 with points, which seems high based on some quotes I've gotten and every online quick quote I'm seeing, which are 2.875 without points a the most. Do I have any leverage at this point to get it down to 2.875 without points, or even lower? I know if I tell him I have better quotes, he'll ask to see them. Unfortunately, everything I have is an unofficial email or text, no formal estimates.