Anyone refinancing their home? Mortgage rates hit all time low on corona

[FrugalSaver]

What rates are you getting?

I have a 3.75% 30 year. Have about 29 years left on it.

At what rate might it be a good idea to refinance?

[Assetup]

I've always heard 1% reduction in rates or more but we know how accurate these rules of thumb can be.  It's getting dangerously close to being 1% lower for me but I'm on the fence as well.

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[Telecaster]

My rule of thumb is if I can save $100/month in interest.  There are probably better ones, but that's what I do. 

[YttriumNitrate]

What rates are you getting?
I have a 3.75% 30 year. Have about 29 years left on it.
At what rate might it be a good idea to refinance?

My rule of thumb is that I refinance when the refi will pay for itself in two years.

EDIT: This generally works out to be strikingly similar to Telecaster's rule.

[legalstache]

I am. I got 3.375% with a lender credit of $2,045 from my local credit union. Previous rate was 3.875%. Will save about $130/mo in P&I.

I like the pay for itself in two years rule of thumb, too. 

[TomTX]

One of the folks in the DON'T pay off your mortgage thread just locked in 2.875% with relatively low closing costs, no cashout.

[Sibley]

Just started process to refi, we'll see what comes out of it. My current rate is 4.25%, so I imagine I'll be able to improve that.

[Optimiser]

I had signed papers on my refi Friday night. Then when I heard about the emergency rate cut on Tuesday morning I cancelled because I was still in my 3 day right of rescission period. I'm getting the ball rolling to start the refi process again now to take advantage of the lower rates (which just keep falling).

I was going to refi at 3.375% which seemed pretty good compared to the 4.875% I currently have, but I'll be able to go even lower now!

[martyconlonontherun]

Looks like worst case for me is 2.875%; 15 year, with 60k cashout at 80% LTV; $1,300 closing costs. 'Needed' to do it for Minisplit installation but makes financial sense with ability to lower original 3.375% loan and $30k of student loans 3.9%-5.5%

[jpdx]

I'd love to consider a re-fi, but my income has dropped quite a bit the past couple years. Is it even possible to re-fi when you're self-employed and your income has decreased?

[Fomerly known as something]

I'd love to consider a re-fi, but my income has dropped quite a bit the past couple years. Is it even possible to re-fi when you're self-employed and your income has decreased?

It depend on your new income to mortgage ratio.  If you still qualify for the loan you should be good.

[DK]

i got a 30 @3%. thought i did good but w/emergency rate drop it looks like i could have got the 2.8-2.9 area. (not a huge diff i guess). i see 15 @ 2.5 there now.

[Morning Glory]

I got a 3.25 with lender credit covering all closing costs. Could have gotten in the 2's but it didn't seem worth it to buy the rate down if we might only stay in this house another couple years.

[Arrian]

Who are you guys using to refi? Local lenders?

I'm interested but have never gone through the process before.

[TheAnonOne]

I just refinanced like 2 weeks ago at 3.375.

My balance is higher at 450k so even a 3.0 rate is around $150 less.

Can I refi again? The fees from the first refi were 0 so no buyer's remorse.

To be clear, a 2.75 would save me $200 buck a month. Insane. Not seeing that rate yet but maybe soon?

[afox]

i got a 30 @3%. thought i did good but w/emergency rate drop it looks like i could have got the 2.8-2.9 area. (not a huge diff i guess). i see 15 @ 2.5 there now.

Really, with points?

Im shopping for a refi and having a hard time getting under 3.25 on a 30 yr fixed (in CO with 50% LTV and credit over 800) with no points and about 3k in closing costs. Rates dont seem to be meeting the hype and im reading that the fed funds rate has little to do with mortgage interest rates.

If anyone is getting lower rates please share what bank you are using.

[Fru-Gal]

I am at 3.375 and have 11 years left, good to excellent credit, low LTV. I don't see lower rates than what I already have. on 10 or 15 year loans on Bankrate. Should I look somewhere else?

[JLee]

3.175% with $2000 in lender credit -- total fees $645. Previous rate 3.5%; my break-even is about 9 months.

[afox]

I am at 3.375 and have 11 years left, good to excellent credit, low LTV. I don't see lower rates than what I already have. on 10 or 15 year loans on Bankrate. Should I look somewhere else?

Im getting quotes of 2.75 on a 15yr fixed, no points from aimloan in CO, 50% LTV and credit over 800.

[afox]

3.175% with $2000 in lender credit -- total fees $645. Previous rate 3.5%; my break-even is about 9 months.

Thats a good rate but need some details for a comparison, What state are you in? What term is the loan? and what bank?

[JLee]

3.175% with $2000 in lender credit -- total fees $645. Previous rate 3.5%; my break-even is about 9 months.

Thats a good rate but need some details for a comparison, What state are you in? What term is the loan? and what bank?

Apologies. New Jersey / 30 year conventional / Garden State Home Loans mortgage broker. I do get a new appraisal with it so I'm hoping that I will gain enough value to reduce my PMI (I put 5% down and am optimistic that improvements since purchase will get me to 90% LTV, which reduces PMI cost) as well.

[Fru-Gal]

Quote from: Fru-Gal on Today at 08:45:16 AM
I am at 3.375 and have 11 years left, good to excellent credit, low LTV. I don't see lower rates than what I already have. on 10 or 15 year loans on Bankrate. Should I look somewhere else?

Im getting quotes of 2.75 on a 15yr fixed, no points from aimloan in CO, 50% LTV and credit over 800.

Ooh! Just got 2.625% on a 10 year from Aimloan! Thanks! Any other lenders to check?

[OurTown]

Will apply today.  10 year fixed, 2.5.

[legalstache]

I'd love to consider a re-fi, but my income has dropped quite a bit the past couple years. Is it even possible to re-fi when you're self-employed and your income has decreased?

I believe some lenders will consider your assets as well as your income in deciding whether to make a loan. In that case, if you have enough assets to meet whatever criteria they have, you'd be good.

[Queen Frugal]

I'd love to consider a re-fi, but my income has dropped quite a bit the past couple years. Is it even possible to re-fi when you're self-employed and your income has decreased?

I'm sure it depends on how much it decreased! But I am self-employed and I bought a house last summer. I used New American Funding - they are online only - and they were happy to work with me whereas several lenders flat out said no because I was self employed. They locked me in at rates lower than their published rate (I received 3.25%).

[ditheca]

I just finished running the numbers on this.  I have 26 years left at 3.75%.  I could drop it to 3.1 (for 30 years) with a refinance, but I won't be saving any money because closing costs are silly in my state.  The only profit would come from investing the bank's money in the stock market for a few more years.

I'm considering refinancing to a 15 year at 2.75%.  I suspect that would be slightly worse from a lifetime net worth perspective, but I know my parents would be thrilled if I finished paying off the mortgage.  They didn't manage that until retirement, so they think it's a Big Deal.

[JLee]

I just finished running the numbers on this.  I have 26 years left at 3.75%.  I could drop it to 3.1 (for 30 years) with a refinance, but I won't be saving any money because closing costs are silly in my state.  The only profit would come from investing the bank's money in the stock market for a few more years.

I'm considering refinancing to a 15 year at 2.75%.  I suspect that would be slightly worse from a lifetime net worth perspective, but I know my parents would be thrilled if I finished paying off the mortgage.  They didn't manage that until retirement, so they think it's a Big Deal.

These guys are claiming 3.0 for 30 years - https://citycreekmortgage.com/

Are any lenders in your state able to provide lender credits towards closing?

[Brother Esau]

rbfcu.org

A link to this site was in the DPYM thread. Apparently it's the biggest credit union in TX and does mortgages everywhere.

[Morning Glory]

Got the rate locked in but they did a tiny little bait and switch and my lender credit decreased, so I will have to pay about $550 in closing costs. My break even time is still just four months so I will probably go ahead and do it. Also my husband's name is wrong on the forms which might take a while to fix.

[PDXTabs]

I'm hoping that rates will keep dropping so I was going to wait? I just got this mortgage in November.

[MountainFlower]

Our credit union is at 3% today.  I guess it went below that a couple of days ago, and perhaps we should wait to lock in, but that's a pretty awesome rate, so we're going for it.  My rate is currently 2.85%, but on an ARM that will reset next year, so this is good for us.  My husband HATES that ARM, so some peace of mind to lock in forever. 

Paula

[afox]

Our credit union is at 3% today.  I guess it went below that a couple of days ago, and perhaps we should wait to lock in, but that's a pretty awesome rate, so we're going for it.  My rate is currently 2.85%, but on an ARM that will reset next year, so this is good for us.  My husband HATES that ARM, so some peace of mind to lock in forever. 

Paula

3% for what type of loan? with or without points? total closing fees? in what state?

[apples2apples]

I'm locked in @ 3.125% with no closing costs on 470K 75% LTV.  Broker says I may be able to float down to 3%.

[RedmondStash]

Rates could drop further than this. I'm holding out -- but this summer or fall might be a great time to buy a house. Or not. Hard to say.

[dmc]

I’m buying a new to me home.  I got 3.125 locked in for 30 days, but can change if rates drop.  30 yr.

[JLee]

Rates could drop further than this. I'm holding out -- but this summer or fall might be a great time to buy a house. Or not. Hard to say.

Bird in hand....you can always refinance again if rates drop enough.

[the_fixer]

First tech credit union had 2.875 on a 30 year 2 days ago wish I had jumped on it :( they are at 3.125 right now

They have 2.5 on a 15 year that looks nice.

Best part is they service the loan so you do not get shuffled from company to company.


https://www.firsttechfed.com/rates/rates-landing-page/home-loans

They have locations in Colorado, California and other states as well.


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[TheAnonOne]

10 year treasury dropped again today. I expect the next week(s) of mortgage offers to be good.

[TomTX]

rbfcu.org

A link to this site was in the DPYM thread. Apparently it's the biggest credit union in TX and does mortgages everywhere.

RBFCU hasn't dropped their rates yet.

Mortgages tend to drift down more slowly - and there is a general consensus the Fed is going to cut rates again no later than the March 18 meeting.

Pulling the trigger today may be premature.

[JLee]

10 year treasury dropped again today. I expect the next week(s) of mortgage offers to be good.

My mortgage broker told me today that mortgage rates have stopped tracking the 10-yr treasury -- if anything he's seen a very slight uptick in rates.

[RangerOne]

Hmmm, I refied last year at what turned out to be a low point. I had a 30 year fixed @ 4.125% interest. Refied to 3.625%, they waived the home appraisal and paid me back about $4000 in points. So they paid me about $2500 after expense to reduce my mortgage...

If you find a deal like that who cares if it only drops half a percent. It is still about $170 cheaper per month. Only $100 if I didn't give up 1 year worth of my pay off schedule.

Thats the best part about rates going down though. That means a lot of times you can find a lower rate that pays out points to you to cover the refi. Making it super easy to justify. I haven't seen any rates that low on a condo so far this year. But I also noticed to get that rate, I applied with an online lender and then turned down their initial rate offer. They emailed me daily with new offers. And as soon as I saw one with practically free refi to a rate low enough to positively impact my monthly payment I accepted.

[TheAnonOne]

10 year treasury dropped again today. I expect the next week(s) of mortgage offers to be good.

My mortgage broker told me today that mortgage rates have stopped tracking the 10-yr treasury -- if anything he's seen a very slight uptick in rates.

This is mostly due to an absolute wave of refinances. It will drift down, there is a reason they are in lockstep.

[TomTX]

10 year treasury dropped again today. I expect the next week(s) of mortgage offers to be good.

My mortgage broker told me today that mortgage rates have stopped tracking the 10-yr treasury -- if anything he's seen a very slight uptick in rates.

This is mostly due to an absolute wave of refinances. It will drift down, there is a reason they are in lockstep.

Yep. Lenders don't have enough people to keep up with demand for refinancing, so they moderate volume by jacking up the rate. They're not willing to hire (much) because it is likely a short-term phenomenon.

[TheAnonOne]

10 year treasury dropped again today. I expect the next week(s) of mortgage offers to be good.

My mortgage broker told me today that mortgage rates have stopped tracking the 10-yr treasury -- if anything he's seen a very slight uptick in rates.

This is mostly due to an absolute wave of refinances. It will drift down, there is a reason they are in lockstep.

Yep. Lenders don't have enough people to keep up with demand for refinancing, so they moderate volume by jacking up the rate. They're not willing to hire (much) because it is likely a short-term phenomenon.

I would imagine over the next 2-3 weeks you will be able to get the rate you want.

[TomTX]

10 year treasury dropped again today. I expect the next week(s) of mortgage offers to be good.

My mortgage broker told me today that mortgage rates have stopped tracking the 10-yr treasury -- if anything he's seen a very slight uptick in rates.

This is mostly due to an absolute wave of refinances. It will drift down, there is a reason they are in lockstep.

Yep. Lenders don't have enough people to keep up with demand for refinancing, so they moderate volume by jacking up the rate. They're not willing to hire (much) because it is likely a short-term phenomenon.

I would imagine over the next 2-3 weeks you will be able to get the rate you want.

Judging by the swarm of threads and posts here on this topic, it would be longer - even if it didn't usually take 4+ weeks to actually close a refi.

[Loretta]

I have a 3.375% mortgage for 10 years that was born May 2019?  Posting to follow. 

[TheAnonOne]

10 year treasury dropped again today. I expect the next week(s) of mortgage offers to be good.

My mortgage broker told me today that mortgage rates have stopped tracking the 10-yr treasury -- if anything he's seen a very slight uptick in rates.

This is mostly due to an absolute wave of refinances. It will drift down, there is a reason they are in lockstep.

Yep. Lenders don't have enough people to keep up with demand for refinancing, so they moderate volume by jacking up the rate. They're not willing to hire (much) because it is likely a short-term phenomenon.

I would imagine over the next 2-3 weeks you will be able to get the rate you want.

Judging by the swarm of threads and posts here on this topic, it would be longer - even if it didn't usually take 4+ weeks to actually close a refi.

True but brokers don't have to wait until a loan closes to look at new loans.

I'll be waiting a few weeks for a nice 2.75 30y to pop up myself...

[jpdx]

I'd love to consider a re-fi, but my income has dropped quite a bit the past couple years. Is it even possible to re-fi when you're self-employed and your income has decreased?

It depend on your new income to mortgage ratio.  If you still qualify for the loan you should be good.

Since my income has decreased, my debt to income ratio is currently around 50%. So I assume I won't qualify for a refi, even though this would decrease my monthly payments, correct? For what it's worth, I have excellent credit and plenty of assets.

[TheAnonOne]

I'd love to consider a re-fi, but my income has dropped quite a bit the past couple years. Is it even possible to re-fi when you're self-employed and your income has decreased?

It depend on your new income to mortgage ratio.  If you still qualify for the loan you should be good.

Since my income has decreased, my debt to income ratio is currently around 50%. So I assume I won't qualify for a refi, even though this would decrease my monthly payments, correct? For what it's worth, I have excellent credit and plenty of assets.

50% as in, you make 100k and owe 50k including your mortgage, you will qualify. If you owe 500k on a house another 50k in credit card debt... maybe not so much.

[dhc]

I must have gotten a spectacular rate 4 years ago because I'm sitting at 3.25% and the lowest I've seen in this "record low" are exactly that. Folks who've seen temporary drops even lower, are you checking constantly, or working with a broker who is, or what?