Author Topic: just refi'd mortgage for 2.75%  (Read 19452 times)

Mr Mark

  • Handlebar Stache
  • *****
  • Posts: 1150
  • Location: Planet Earth
  • Achieved Financial Independence summer 2014. RE'18
just refi'd mortgage for 2.75%
« on: August 01, 2012, 10:10:35 AM »
The deals American's can get on mortgages are incredible. Just refinanced our mortgage on a 30 yr 5/1ARM at 2.75% and no fees. Incredible.

I was paying 4.125, so a nice return :-)

smedleyb

  • Guest
Re: just refi'd mortgage for 2.75%
« Reply #1 on: August 01, 2012, 10:17:05 AM »
Awesome deal.

Did you refi through your current lender?

Kazak

  • 5 O'Clock Shadow
  • *
  • Posts: 20
  • Location: Titan
Re: just refi'd mortgage for 2.75%
« Reply #2 on: August 01, 2012, 12:00:51 PM »
Which lender did you use?

James

  • Handlebar Stache
  • *****
  • Posts: 1680
  • Age: 46
  • Location: Rice Lake, WI
Re: just refi'd mortgage for 2.75%
« Reply #3 on: August 01, 2012, 12:27:48 PM »
Excellent! 

I went from 5.5% down to 3.75% for a 30 year fixed last winter (Wells Fargo), saved a lot since I'm in a huge mortgage right now.  We have someone looking at our house today, hopefully they will be interested.  The low rates should make a large house like ours possible to more people, as long as they don't all go mustachian at the same time as I am...  :)

carolinakaren

  • Stubble
  • **
  • Posts: 171
  • Location: Charlotte, NC
Re: just refi'd mortgage for 2.75%
« Reply #4 on: August 01, 2012, 02:50:29 PM »
Congratulations Mark!  I'm working on a possible re-fi now.....30yr 5/1ARM with similar rates.  The last good faith estimate I received was from a local credit union and the closing costs were very high.  Hopefully one of the other guys can do better!  James....good luck on the house showing! 

Mr Mark

  • Handlebar Stache
  • *****
  • Posts: 1150
  • Location: Planet Earth
  • Achieved Financial Independence summer 2014. RE'18
Re: just refi'd mortgage for 2.75%
« Reply #5 on: August 01, 2012, 04:26:22 PM »
Awesome deal.

Did you refi through your current lender?

Nope. They weren't even close.

I really liked the instant payback, no nett fees.

bdub

  • 5 O'Clock Shadow
  • *
  • Posts: 77
  • Location: Minneapolis, MN
Re: just refi'd mortgage for 2.75%
« Reply #6 on: August 01, 2012, 07:14:18 PM »
We refi'ed last year with ING on a 7/1 ARM @ 3.625% with pretty good fees ($2000, IIRC).  Plus, they gave us two pair of pajamas.

The nice feature, is they allow you to relock a new rate/ARM period once more during the mortgage for 1 months payment.  Last month, we locked in a new 7/1 @ 2.625% for less than 800 bucks.

James

  • Handlebar Stache
  • *****
  • Posts: 1680
  • Age: 46
  • Location: Rice Lake, WI
Re: just refi'd mortgage for 2.75%
« Reply #7 on: August 01, 2012, 07:16:14 PM »
Plus, they gave us two pair of pajamas.


That struck me as really funny...  :D


Congrats on the nice rate, wish I could do that right now.

Mr Mark

  • Handlebar Stache
  • *****
  • Posts: 1150
  • Location: Planet Earth
  • Achieved Financial Independence summer 2014. RE'18
Re: just refi'd mortgage for 2.75%
« Reply #8 on: August 02, 2012, 11:12:37 AM »
My advice to anyone paying more than say .25% above market, with >20% equity and a credit score >700 (800 even better) is:

Get together the following documentation as fast as possible
- 3 months bank statements, credit cards statements,pay slips,
- house insurance details
- property tax details
- HOA Fees statements and current balance
- last 2 years tax returns
- current mortgage papers, ESP original 'note' , latest statement
- details on 401k, roths, other pension savings, money market, CDs

Then do a Google and pick a big rate comparison site, and ask for a specific mortgage refi, in terms of loan type, and within minutes you'll be getting quotes via email and phone.

Ask only for no points, no PMI, and no closing costs more than $250.

Give them 48 hrs to provide a good faith estimate,research the best few companies on BBB etc, and save money!!

You need the paperwork ready to rock, as they're going to allow you only a couple of days and if you take longer you could get additional fees.

kudy

  • Pencil Stache
  • ****
  • Posts: 945
  • Age: 36
  • Location: RV Traveling the U.S.
Re: just refi'd mortgage for 2.75%
« Reply #9 on: August 02, 2012, 12:40:34 PM »
Sounds like good advice Mr Mark.  I keep flip flopping on whether I should rush to pay down my mortgage so I have > 20% equity (I am close if you count the value per the appraisal at my last refinance) while rates are low.  The other option is to max out savings and hope for a good return.  My interest rate is 4.5% on the mortgage, so it might be worth doing, but I'd be directing money away from my savings and towards mortgage payoff in the hopes that I can refinance in 6-12 months at the same rates people are getting now.
« Last Edit: August 02, 2012, 12:54:10 PM by kudy »

kudy

  • Pencil Stache
  • ****
  • Posts: 945
  • Age: 36
  • Location: RV Traveling the U.S.
Re: just refi'd mortgage for 2.75%
« Reply #10 on: August 02, 2012, 12:56:18 PM »
Sorry to double post, but I was just thinking this whole thing over, and I realize how frustrating it is to enter into the refinance process without knowing what the house will appraise for - why isn't this the first step in the process? If it appraises at what it did last time, I actually have 21% equity, but if that number dips (appraisals are subjective, afterall), then suddenly I may not qualify for the terms of a refinance! Am I thinking about this wrong, or does everyone go through these frustrations?

fidgiegirl

  • Handlebar Stache
  • *****
  • Posts: 1108
Re: just refi'd mortgage for 2.75%
« Reply #11 on: August 06, 2012, 08:42:30 AM »
Thinking about this some more, and started to do some research.

With an ARM, though, couldn't they be using super dee duper rates to suck you in, and then going to up them right away?  The quotes I got on fixed loans are anywhere between 3-4%.  What's to say the ARM will stay in the 2% range very long?

Mr Mark

  • Handlebar Stache
  • *****
  • Posts: 1150
  • Location: Planet Earth
  • Achieved Financial Independence summer 2014. RE'18
Re: just refi'd mortgage for 2.75%
« Reply #12 on: August 07, 2012, 09:35:02 PM »
Yes, ARMs are adjustable,but in my case not for 5 yrs, and will have sold it long before that. If I wasn't sure of moving, I'd go 15 yr fixed.

But heck, 30 year fixed is around 3.6% - an absolute bargain IMHO!

ShavinItForLater

  • Stubble
  • **
  • Posts: 149
Re: just refi'd mortgage for 2.75%
« Reply #13 on: August 12, 2012, 01:47:15 PM »
In my opinion the long term fixed rates (15 or 30 year) are the real bargains.  Sure if know 100% that you'll be out of the property soon you can go with the ARM, but with such an uncertain real estate market in many areas, I'd probably still be considering a fixed rate as a sort of insurance policy for the property not selling quickly.

MsGuided

  • Handlebar Stache
  • *****
  • Posts: 1058
  • Location: Colorado
Re: just refi'd mortgage for 2.75%
« Reply #14 on: September 13, 2012, 02:08:23 PM »
My advice to anyone paying more than say .25% above market, with >20% equity and a credit score >700 (800 even better) is:

Get together the following documentation as fast as possible
- 3 months bank statements, credit cards statements,pay slips,
- house insurance details
- property tax details
- HOA Fees statements and current balance
- last 2 years tax returns
- current mortgage papers, ESP original 'note' , latest statement
- details on 401k, roths, other pension savings, money market, CDs

Then do a Google and pick a big rate comparison site, and ask for a specific mortgage refi, in terms of loan type, and within minutes you'll be getting quotes via email and phone.

Ask only for no points, no PMI, and no closing costs more than $250.

Give them 48 hrs to provide a good faith estimate,research the best few companies on BBB etc, and save money!!

You need the paperwork ready to rock, as they're going to allow you only a couple of days and if you take longer you could get additional fees.
Thanks Mr. Mark!
I've been sick about the rate on our mortgage, but have resigned myself to keeping b/c of the 2 quotes I've gotten on re-fis.  One from my current mtg co. & another from a mtg. broker.  With the costs/fees they quoted me, we would not break even for several years.  That made it not worthwhile for us.  I will try your advice.  Wish me luck!

TheDude

  • Bristles
  • ***
  • Posts: 467
Re: just refi'd mortgage for 2.75%
« Reply #15 on: September 13, 2012, 04:32:07 PM »
Thanks Mr. Mark!
I've been sick about the rate on our mortgage, but have resigned myself to keeping b/c of the 2 quotes I've gotten on re-fis.  One from my current mtg co. & another from a mtg. broker.  With the costs/fees they quoted me, we would not break even for several years.  That made it not worthwhile for us.  I will try your advice.  Wish me luck!

Crriep, Check out http://www.boxhomeloans.com/. They  seem to have pretty good rates here in Colorado. I used them for my purchase and their fees are legit. No messing around what they quote is what you get.

MooreBonds

  • Stubble
  • **
  • Posts: 193
  • Location: St. Louis, MO
Re: just refi'd mortgage for 2.75%
« Reply #16 on: September 13, 2012, 06:13:33 PM »
Currently have a 3.375% 5/5 ARM with PenFed, max rate increase each reset is 2%. Will be refinancing with PenFed's 1.99% 5 year Home Equity Loan, and have finished paying off the house in 5.

PenFed's current 5/5 ARM is just something like 2.75%. If you plan on being in your house for up to 7-10 years, it's a great money saver, since the most the rate can jump up is to 4.75% for years 6-10....still kind of high, but that's the worst-case scenario, if you think you'll either sell and move or have it paid off by then, but can't afford the high monthly payments of their 5 year Home Equity Loan at 1.99%.

The best thing of all is that PenFed doesn't gouge you with fees for everything under the sun. They won't even charge you for an appraisal if your LTV is under 70% (assuming they can confidently estimate your house value through real estate tax records or some other means)

TheDude

  • Bristles
  • ***
  • Posts: 467
Re: just refi'd mortgage for 2.75%
« Reply #17 on: September 14, 2012, 10:22:04 AM »
Just wanted to through this out there for anyone looking to refi. Rates are killer this morning.

AJ

  • Pencil Stache
  • ****
  • Posts: 906
  • Age: 35
  • Location: Oregon
Re: just refi'd mortgage for 2.75%
« Reply #18 on: September 14, 2012, 10:32:43 AM »
PenFed's current 5/5 ARM is just something like 2.75%. If you plan on being in your house for up to 7-10 years, it's a great money saver, since the most the rate can jump up is to 4.75% for years 6-10....still kind of high, but that's the worst-case scenario, if you think you'll either sell and move or have it paid off by then, but can't afford the high monthly payments of their 5 year Home Equity Loan at 1.99%.

With that time frame, you might be better off with a 10 year fixed from AIM (currently 2.625% with no points). We did a 15 year loan with them earlier this year and it went smoothly.

MsGuided

  • Handlebar Stache
  • *****
  • Posts: 1058
  • Location: Colorado
Re: just refi'd mortgage for 2.75%
« Reply #19 on: September 14, 2012, 11:14:32 AM »
Thank you all so much!  A re-fi is possible, and I wouldn't have realized it without all your helpful info.  I am out of town right now (no kids, ergo so much time to look at the MMM forums!), but will get on this Monday, when I'm back in Colorado.

fidgiegirl

  • Handlebar Stache
  • *****
  • Posts: 1108
Re: just refi'd mortgage for 2.75%
« Reply #20 on: September 14, 2012, 04:25:42 PM »
Interesting how these things work out.  I've been dinking around with the paperwork and finding someone who is palatable to work with (and found someone delightful, BTW) and so it's been dragging out for about, what, six weeks or so since I first saw this thread and had the idea sparked to do this.  She quoted us 3.5%, which can't be locked until after the appraisal (this week, we hope) but then yesterday, the Fed's announcement!  Looks like we'll do even better than we thought, and we thought we'd missed the boat.

Not bad for some dinkin' around.

jrhampt

  • Handlebar Stache
  • *****
  • Posts: 1068
  • Age: 41
  • Location: Connecticut
Re: just refi'd mortgage for 2.75%
« Reply #21 on: September 18, 2012, 08:13:53 AM »
Yeah, I posted about this in another thread, but we had tried to do a no-cost refi last month at 3% and had a low appraisal.  We didn't do it since we didn't want PMI.  Then yesterday I checked with my current lender, and they said they'd do a loan modification for a 15 year fixed at 2.875, with no appraisal or paperwork.  It's not no-cost, but the fee is reasonable, so we decided to do it (our loan is currently at 3.625).  I still think we might see lower rates, but they'd have to drop at least another 3/4 point before we'd do it again, and by then we would hopefully have sufficient LTV to do a no-cost refi.

alandjackson

  • 5 O'Clock Shadow
  • *
  • Posts: 25
Re: just refi'd mortgage for 2.75%
« Reply #22 on: September 28, 2012, 07:18:42 PM »
We just refinanced at the same rate for a 15 year fixed (though we do have a PMI because of a 93% LTV).  We are using roundpoint mortgage found through Zillow mortgage search thing.  It is easy to play with the numbers to see how they affect the rates.  You can also see the feedback there (roundpoint had over 1000 positive reviews where many just had a few).

Another Reader

  • Magnum Stache
  • ******
  • Posts: 4837
Re: just refi'd mortgage for 2.75%
« Reply #23 on: September 28, 2012, 07:50:42 PM »
Yesterday I locked a 30 year fixed rate refinance at 3.125 percent with a one point origination fee.  The loan is through the current servicer, who is Wells Fargo.  In my entire life, I have never seen rates like this.  I can remember going to the credit union as a child with my father on the early 1960's.  He explained how we deposited money at 3.25 percent, and borrowed money from them at 4.25 percent.  And that was to buy a car.  My parents' first mortgage was in the mid 1960's, through a private lender.  I think it was at 7 percent.  I bought my first house in the mid 1980's with a builder buy down of the interest rate from 13.5 percent to 11.75 percent.

When I last refinanced in 2009, I pulled out equity and bought two rentals for cash.  I thought I was getting a great deal at 4.5 percent.  Effectively, I am refinancing those rentals at 3.125 percent.

Anyone really think mortgage rates are going to be in the 3's for the next 30 years? 

Cooperstown

  • 5 O'Clock Shadow
  • *
  • Posts: 23
Re: just refi'd mortgage for 2.75%
« Reply #24 on: September 29, 2012, 01:49:55 PM »
Just finished the paperwork, refi'ed our 30 year from 4.5% to 3.25% no points.

kkbmustang

  • Handlebar Stache
  • *****
  • Posts: 1286
Re: just refi'd mortgage for 2.75%
« Reply #25 on: September 29, 2012, 03:13:36 PM »
Cooperstown - Can I ask which lender you used? We're looking into refinancing. It totally makes sense as we are currently at 5.25%.

kudy

  • Pencil Stache
  • ****
  • Posts: 945
  • Age: 36
  • Location: RV Traveling the U.S.
Re: just refi'd mortgage for 2.75%
« Reply #26 on: September 29, 2012, 07:29:06 PM »
I was thinking of grabbing a lender with a good rate and good closing costs deal from somewhere like zillow to initiate my refinance... has anyone done that with good results? My last two mortgages were through the same local person, but I paid closing costs on both, it seems that I can get a deal without any closing costs easier online?

Another Reader

  • Magnum Stache
  • ******
  • Posts: 4837
Re: just refi'd mortgage for 2.75%
« Reply #27 on: September 29, 2012, 08:01:34 PM »
Zillow acts as an on-line lead aggregator.  There are no special deals.  Call a couple of brokers recommended by people whose financial knowledge you trust  and compare their rates and terms with a couple of the lower priced on-line options.   Also check with your credit union and the current servicer of the loan.  Wells Fargo is the current servicer on my loan and they matched the best broker price.  Make it clear to them you are shopping rates and terms among several lenders, and the best deal gets the job.  Get the rate, the points, the lock period and the closing costs for comparison purposes.  A low rate may have more points, a short lock period or higher closing costs.

I missed the lowest point to lock this week by 18 hours.  Probably lost a few hundred dollars, but rate changes are unpredictable.  Rates can change several times a day, so lock the rate for at least 90 days when you select the winner.  In this market, even with a simple application and all your paperwork in hand, you are looking at 60 to 90 days because of the backlog. 


kudy

  • Pencil Stache
  • ****
  • Posts: 945
  • Age: 36
  • Location: RV Traveling the U.S.
Re: just refi'd mortgage for 2.75%
« Reply #28 on: September 30, 2012, 11:56:05 AM »
Thanks for the feedback.  I realize Zillow is just a marketplace that lenders are paying to advertise in, but it seems competitive.

I hadn't realized that Wells Fargo (my note holder) might be willing to match.

Another Reader

  • Magnum Stache
  • ******
  • Posts: 4837
Re: just refi'd mortgage for 2.75%
« Reply #29 on: September 30, 2012, 12:39:49 PM »
My advice to anyone paying more than say .25% above market, with >20% equity and a credit score >700 (800 even better) is:

Get together the following documentation as fast as possible
- 3 months bank statements, credit cards statements,pay slips,
- house insurance details
- property tax details
- HOA Fees statements and current balance
- last 2 years tax returns
- current mortgage papers, ESP original 'note' , latest statement
- details on 401k, roths, other pension savings, money market, CDs

Then do a Google and pick a big rate comparison site, and ask for a specific mortgage refi, in terms of loan type, and within minutes you'll be getting quotes via email and phone.

Ask only for no points, no PMI, and no closing costs more than $250.

Give them 48 hrs to provide a good faith estimate,research the best few companies on BBB etc, and save money!!

You need the paperwork ready to rock, as they're going to allow you only a couple of days and if you take longer you could get additional fees.

This gives you the list of documents to have in hand before starting the process.  Most brokers and new lenders will not lock until they have all the paperwork in hand.  Some won't lock until underwriting looks at your loan package.  Usually the current servicer can do a streamline refinance.  The Wells Fargo rate and terms represented a discount because they can sell the replacement loan to Fannie and retain the servicing rights.  They were able to lock based on pulling credit and making a preliminary review at the loan officer level.  I pdf'd the docs and e-mailed them plus they had the loan history. 

You can go with a no cost refi, or pay for some combination of points and closing costs to get the rate down.  The choice depends on how long you intend to stay in the house. 

zinnie

  • Pencil Stache
  • ****
  • Posts: 602
  • Location: California
Re: just refi'd mortgage for 2.75%
« Reply #30 on: October 01, 2012, 08:24:28 AM »

Crriep, Check out http://www.boxhomeloans.com/. They  seem to have pretty good rates here in Colorado. I used them for my purchase and their fees are legit. No messing around what they quote is what you get.

Thanks for this tip! We're about halfway through the refinance process with them, and it's been seamless so far--I love that everything is handled through their website and our loan officer is very responsive. Negative points (a credit) and 3.25 fixed 30 year. Great deal.

Mr Mark

  • Handlebar Stache
  • *****
  • Posts: 1150
  • Location: Planet Earth
  • Achieved Financial Independence summer 2014. RE'18
Re: just refi'd mortgage for 2.75%
« Reply #31 on: October 02, 2012, 08:40:38 PM »
Hope y'all are getting great refi deals. Mine has worked out great - for several reasons.
- I also went with RoundPoint Mortgage of NC. Seem straight up.
-  Ensured I selected my own Title Company*, so they are beholding to me, in a feduciary (sp?) sense
- When I refi'd, I seemed to essentially skip a mortgage payment. Really.
- There was zero hocus pocus, because I did get 2.75% with no fees. No shit. No payback period, which I like.

And I 1000% support the idea that if [unlike me] you are staying put or keeping it to rent out, get a 30 yr fixed mortgage.

If you 'feel' you really want a 15 yr fixed one, cool. Get a 30 and repay as if it was a 15. No foul.

And finally, remember an allocated portfolio. Quality real estate (in small quantities, in quality areas) with some leverage looks pretty good right now. Diversification.


* my right under Texas Law.

kudy

  • Pencil Stache
  • ****
  • Posts: 945
  • Age: 36
  • Location: RV Traveling the U.S.
Re: just refi'd mortgage for 2.75%
« Reply #32 on: October 18, 2012, 12:31:21 PM »
Confirmed today I'm not eligible for the Wells Fargo streamline refinance, so it looks like Box Home Loans might be the best bet... thinking of locking with them soon.

Can anyone who's used them let me know how the appraisal went? Was it a local appraiser? Did they seem to do a thorough job?

My last appraisal came in higher than expected, and the "estimated property value" number I am using is lower than the last appraisal, but I'm paranoid that it's going to be vastly different.

freelancerNfulltimer

  • Stubble
  • **
  • Posts: 157
Re: just refi'd mortgage for 2.75%
« Reply #33 on: October 18, 2012, 12:59:47 PM »
I'm in the processing of locking down 3.75% which would be down from 4.75% on an FHA streamline refinance. The only part that sucks is my new MIP is higher but I'm stilling going to be saving money between $100-$123/month.

Tyler

  • Handlebar Stache
  • *****
  • Posts: 1128
Re: just refi'd mortgage for 2.75%
« Reply #34 on: October 21, 2012, 09:00:12 AM »
I just closed on a 15-year fixed mortgage at 2.875% and the lender paid us half a point in cash.  The title closing agent had a double-take when she saw that.

Great time to be buying/refinancing.

bo_knows

  • Pencil Stache
  • ****
  • Posts: 814
  • Age: 37
  • Location: Fairfax, VA, USA
    • The Crowdsourced FIRE simulator
Re: just refi'd mortgage for 2.75%
« Reply #35 on: October 24, 2012, 07:39:20 AM »
I just closed on a 15-year fixed mortgage at 2.875% and the lender paid us half a point in cash.  The title closing agent had a double-take when she saw that.

Great time to be buying/refinancing.

Where did you refi? I'd love to refi with my credit union, who currently holds my mortgage, because they've been so good to me... but they're charging me a point, plus fees, for a 30yr refi.

Mactrader

  • Stubble
  • **
  • Posts: 142
  • Age: 38
  • Location: Ann Arbor, MI
Re: just refi'd mortgage for 2.75%
« Reply #36 on: October 24, 2012, 07:51:02 AM »
Closing on a refi this Friday (second this year on this house) on my house that I bought last year on an FHA 3.5% down (don't ask, I hadn't found MMM yet). Through some craziness with FNMA, they accepted my brokers value of 79.5% LTV so I am bringing my rate down an 1/8 to 3.625% on a 30 year with ZERO PMI. The loan balance isn't increasing and when I receive my escrow refund from my current loan my out of pockets will be $0 when compared to doing nothing and just making my normal payment. (No payment in november + escrow balance + regular payment = out of pockets).

This is bringing in $240/mo that is going directly into a Vanguard account and the initial seeds of my stash. The housing boom is truly back in effect in my area as the house next door to me sold for $35K more on a cash deal than I paid for mine last year, plus it's smaller.

Tyler

  • Handlebar Stache
  • *****
  • Posts: 1128
Re: just refi'd mortgage for 2.75%
« Reply #37 on: October 24, 2012, 01:14:35 PM »
Where did you refi? I'd love to refi with my credit union, who currently holds my mortgage, because they've been so good to me... but they're charging me a point, plus fees, for a 30yr refi.

Ours was a purchase and not a refi - not sure if that matters on fees. 

We used Primelending.  As in any situation involving money, however, you should shop around and make your own decision.  I'm sure there are good deals out there. 

new2this

  • 5 O'Clock Shadow
  • *
  • Posts: 34
Re: just refi'd mortgage for 2.75%
« Reply #38 on: October 24, 2012, 02:04:08 PM »
I would love to be able to refi right now. Our next goal (we are only $4500 away from paying off our 2nd mortgage at 7%) is to pay down our remaining mortgage to 80%. I'm guessing it will take around 20-30k, so hopefully in less than a year the rates are still this good! Any suggestions on whether I should make large monthly payments or sock away the extra cash and make a big payment once I know what the appraisal comes in for? I am a little worried about making these huge payments and then having the market change making it impossible to refinance. On the other hand, I know the interest savings would be better if I made the monthly payments.

alandjackson

  • 5 O'Clock Shadow
  • *
  • Posts: 25
Re: just refi'd mortgage for 2.75%
« Reply #39 on: October 26, 2012, 10:51:07 AM »
@whitknie: we were waiting to get to 80% LTV and worried about the appraisal as well but I went ahead and decided to see what they'd say.  I'm glad I did because the appraisal came in high enough and they were ok with the LTV (94%).  We have a $145 MPI right now, but that goes away soon.  We just closed the day before yesterday on a 15 yr, 2.75% from Roundpoint.

babar

  • 5 O'Clock Shadow
  • *
  • Posts: 7
Re: just refi'd mortgage for 2.75%
« Reply #40 on: November 02, 2012, 11:09:24 PM »
Last year we refi'd from a 30 yr fixed 5% (with 28-29 years left) that I was putting an extra 350 into each month, which lowered the payoff by 8 years. Went to a 15 yr fixed at 2.875% which was about 20 bucks less than the previous payment when including the extra 350, so no change in the monthly budget.

Total interest paid on the other hand, went from a projected $231K when including the extra 350/mo, down to $81k without paying any extra per month. We did pay 2 points plus closing costs, but that $8k or so in total will pay us $150k when said and done. I'll turn 55 a year after it's paid off, and will retire with a monthly benefit that'll be double our monthly costs, before even considering social security (as if it'll exist heh!).

It is quite empowering to see a real light at the end of the tunnel, and know you have a great chance of making it out of it alive!

lucy

  • 5 O'Clock Shadow
  • *
  • Posts: 47
  • Location: Florida
Re: just refi'd mortgage for 2.75%
« Reply #41 on: November 07, 2012, 09:11:50 AM »
How does this work in a declining housing market like Florida? We have a Condo which was appraised about 4 years ago at 124,000.00 Today they are selling for 50-60 K  Some even forclosed and auctioned at 20-35K  . we owe 83000.  Is it best to re-fi or pay it off if we have the cash? My right now we are paying high interest 6.75.  Is there a way out of this? What is the best move, pay it off, and sell in 3 years, or refi...payments are 600 a month , and we have a 300 monthly association fee.  We can pay it off, and still have a nice savings left, we have no stock investments, or anything else for that matter, just a nice savings due to inheritance.
We only have one income now, I was laid off from my job after 15 years with the same company. Still have found nothing out there, even paying close to what I was making.
We are afraid to invest now that this election went the way it did. Also, I'd like to know about savings accounts, will they now be subject to capital gains tax?

jrhampt

  • Handlebar Stache
  • *****
  • Posts: 1068
  • Age: 41
  • Location: Connecticut
Re: just refi'd mortgage for 2.75%
« Reply #42 on: November 07, 2012, 11:14:59 AM »
Savings accounts do not earn capital gains, but the interest you earn in a savings account will continue to be taxed as it always has been.

markstache

  • Stubble
  • **
  • Posts: 167
Re: just refi'd mortgage for 2.75%
« Reply #43 on: November 07, 2012, 12:01:03 PM »
@babar: good for you to find a mortgage that worked for what you wanted. While I'm happy with the 30yr refi I completed in August, trying to get my loan officer to understand that a 15 year or even an ARM would work for my plans was like talking to a brick wall.

Another Reader

  • Magnum Stache
  • ******
  • Posts: 4837
Re: just refi'd mortgage for 2.75%
« Reply #44 on: November 07, 2012, 01:18:39 PM »
Lucy:

You might qualify for a HARP refinance.  Loan to value ratio is not a factor in HARP.  The loan must be owned by Fannie Mae or Freddie Mac to qualify for HARP.  If you do qualify, you should be able to drop your interest rate and payments substantially.  Start by contacting your current loan servicer to see what options are available.

If you have no other savings or investments, paying the loan off might not be the best move.  In your shoes, I would not pay off the loan because the condo is not a liquid asset.  If I needed the money, I could not get it.  In addition, if it does not appreciate, I would never be able to recover my investment.

fidgiegirl

  • Handlebar Stache
  • *****
  • Posts: 1108
Re: just refi'd mortgage for 2.75%
« Reply #45 on: November 17, 2012, 05:18:54 PM »
Just wanted to let you know that my DH and I signed on our refi, 30 yrs. at 3.25%.  Paid about $700 in closing costs.  We combined a first @ 4.125% and a second at 5.something% into a single loan.  Our payment is the same.  We are very happy, and it was this thread that got us to even look at it!  Thanks!

bo_knows

  • Pencil Stache
  • ****
  • Posts: 814
  • Age: 37
  • Location: Fairfax, VA, USA
    • The Crowdsourced FIRE simulator
Re: just refi'd mortgage for 2.75%
« Reply #46 on: December 04, 2012, 08:13:10 AM »
Just wanted to let you know that my DH and I signed on our refi, 30 yrs. at 3.25%.  Paid about $700 in closing costs.  We combined a first @ 4.125% and a second at 5.something% into a single loan.  Our payment is the same.  We are very happy, and it was this thread that got us to even look at it!  Thanks!

What company did you use, and what was the size of your loan?  I'm having a hard time convincing my wife to go with an "Internet bank" that has zero origination fee, versus our credit union (who currently holds our mortgage) that has a 1% origination fee.