Author Topic: DONT Payoff your Mortgage Club  (Read 385161 times)

Dicey

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Re: DONT Payoff your Mortgage Club
« Reply #2100 on: March 06, 2020, 09:22:50 PM »
I wend with a small regional player with a branch a mile from my home.
What happened?  Before I made the *first payment* they sold my loan to another bank, who sold it to a third player.  Now I'm with some company in California (opposite coast).  Go figure.

Don't assume that just because you go with a local bank it will stay that way.
Hey, there's nothing wrong with California![snirt]

Not to rub it in, but for the benefit of others, be sure to ask that question during or even before you begin the loan application process.

FWIW, all but one of our loans are with a local lender who doesn't resell. We have one with Chase. They just sold it, but they're still going to be servicing the loan, so nothing's changed. Go figure.

Once you don't have an escrow account, it's no big deal if your loan sells, but I remember what a pain in the ass it can be. My first home loan must have been sold at least six times. It sucked.
« Last Edit: March 07, 2020, 08:49:16 AM by Dicey »

nereo

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Re: DONT Payoff your Mortgage Club
« Reply #2101 on: March 07, 2020, 07:00:03 AM »
I wend with a small regional player with a branch a mile from my home.
What happened?  Before I made the *first payment* they sold my loan to another bank, who sold it to a third player.  Now I'm with some company in California (opposite coast).  Go figure.

Don't assume that just because you go with a local bank it will stay that way.
Hey, there's nothing wrong with California![snirt]

Not to rub it in, but for the benefit of others, be sure to ask that question during or even before you begin the loanapplication process.

FWIW, all but one of our loans are with a local lender who doesn't resell. We have one with Chase. They just sold it, but they're still going to be servicing the loan, so nothing's changed. Go figure.

Once you don't have an escrow account, it's no big deal if your loan sells, but I remember what a pain in the ass it can be. My first home loan must have been sold at least six times. It sucked.

Hey, I love California.  LIved there for 10 years, and my sister and her family are (and will almost certainly remain)  there.

My point was merely that we went with a local lender because it gave us a local branch we could walk into if we had a problem and talk with a person vis-a-vis, and their quote was on par with many other lenders.  Turns out we never had a single opportunity to use that local branch.

Yeah... we should have specifically asked for a provision that they not re-sell our loan (or at least asked about their policy).  Live and learn.

To be fair weve had no problems with the company that now owns our loan - 6 payments in and things are going as they should.

ender

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Re: DONT Payoff your Mortgage Club
« Reply #2102 on: March 07, 2020, 09:09:48 AM »
Once you don't have an escrow account, it's no big deal if your loan sells, but I remember what a pain in the ass it can be. My first home loan must have been sold at least six times. It sucked.

This is actually why we're considering not escrowing this time around, just to avoid dealing with the pain that might be.


Dicey

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Re: DONT Payoff your Mortgage Club
« Reply #2103 on: March 07, 2020, 09:21:58 AM »
Once you don't have an escrow account, it's no big deal if your loan sells, but I remember what a pain in the ass it can be. My first home loan must have been sold at least six times. It sucked.

This is actually why we're considering not escrowing this time around, just to avoid dealing with the pain that might be.
DH adamantly prefers this. Therefore, when taxes are due on four properties, it is a huge chunk of change. It hurts to write those checks, even though we're savers and always have plenty of cash. Just for grins, our tax bill is in excess of $26k per year. Yay for California high-priced real estate.

MasterStache

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Re: DONT Payoff your Mortgage Club
« Reply #2104 on: March 07, 2020, 01:06:03 PM »
Once you don't have an escrow account, it's no big deal if your loan sells, but I remember what a pain in the ass it can be. My first home loan must have been sold at least six times. It sucked.

This is actually why we're considering not escrowing this time around, just to avoid dealing with the pain that might be.
DH adamantly prefers this. Therefore, when taxes are due on four properties, it is a huge chunk of change. It hurts to write those checks, even though we're savers and always have plenty of cash. Just for grins, our tax bill is in excess of $26k per year. Yay for California high-priced real estate.
Our broker gave us the option of not escrowing without any additional fees. I have never done that before but since our last mortgage company kept screwing it up, I am choosing to pay everything myself this time around. Just have to remember to put that money to the side.

SwordGuy

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Re: DONT Payoff your Mortgage Club
« Reply #2105 on: March 07, 2020, 02:24:28 PM »
Once you don't have an escrow account, it's no big deal if your loan sells, but I remember what a pain in the ass it can be. My first home loan must have been sold at least six times. It sucked.

This is actually why we're considering not escrowing this time around, just to avoid dealing with the pain that might be.
DH adamantly prefers this. Therefore, when taxes are due on four properties, it is a huge chunk of change. It hurts to write those checks, even though we're savers and always have plenty of cash. Just for grins, our tax bill is in excess of $26k per year. Yay for California high-priced real estate.
Our broker gave us the option of not escrowing without any additional fees. I have never done that before but since our last mortgage company kept screwing it up, I am choosing to pay everything myself this time around. Just have to remember to put that money to the side.

We own 9 houses and only 2 of them are mortgaged and under escrow.  So when September comes along, writing those 7 checks hurts!      We set aside income from the rental properties for the taxes and insurance, and only spend the money on us after those two costs are covered for the year.   It takes about 4 months rent to cover the properties that are rent-ready.    The rest have those costs added in as part of the renovation costs.  I prepay the insurance for a year first thing when I buy them and make sure to set aside tax money on non-rented properties from the rented property profits.

desert_phoenix

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Re: DONT Payoff your Mortgage Club
« Reply #2106 on: March 07, 2020, 02:59:17 PM »
We just locked in 3.25% for a 30 year fixed refinance yesterday. Down from 4%. We don't have a large mortgage but still saves us $110/month. Closing cost is only $700. Used a local broker that was highly recommended by multiple people. Thought about cash out refi but our goal was to lower our monthly payment. We also plan to move in about 8 years.

That is amazing, I wish my closing costs would only be $700.

Raenia

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Re: DONT Payoff your Mortgage Club
« Reply #2107 on: March 07, 2020, 06:10:23 PM »
We're considering going for a refinance to take advantage of the lower rates - just debating if it's worth the hassle when we're already busy chasing down the roofer, getting some electrical work scheduled, and rushing to get the garden ready by last frost.  We only bought last June, so our rate isn't awful, and we wouldn't be extending our term by much, but dealing with the bank was a massive hassle originally, so I'm waffling on if we want to deal with all that again when we're already busy.

talltexan

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Re: DONT Payoff your Mortgage Club
« Reply #2108 on: March 09, 2020, 09:40:20 AM »
If you're busy now, I have a feeling rates will stay low for a little while. The pressure is on FRB to cut, not raise. Bond market has fallen far below the yields that were supporting mortgage rates in the mid 3's (ten-year treasury yield was 0.43% at one point this morning). I'd feel secure letting mortgage rates catch up to these conditions.

nereo

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Re: DONT Payoff your Mortgage Club
« Reply #2109 on: March 09, 2020, 09:55:27 AM »
We're considering going for a refinance to take advantage of the lower rates - just debating if it's worth the hassle when we're already busy chasing down the roofer, getting some electrical work scheduled, and rushing to get the garden ready by last frost.  We only bought last June, so our rate isn't awful, and we wouldn't be extending our term by much, but dealing with the bank was a massive hassle originally, so I'm waffling on if we want to deal with all that again when we're already busy.

I would ask myself how many hours of work is a ReFi likely to take, and then look at how much money I would save over the next 1 and 3 years over my current rate.  Lowering your payment by $65/mo might not seem worth the hassle, but that could be $2,360 over the next three years.
Important of course to consider refinancing costs and what that does to the equation.

If you're busy now, I have a feeling rates will stay low for a little while. The pressure is on FRB to cut, not raise. Bond market has fallen far below the yields that were supporting mortgage rates in the mid 3's (ten-year treasury yield was 0.43% at one point this morning). I'd feel secure letting mortgage rates catch up to these conditions.

I think this is entirely possible.  Rates always fall slowly but rise sharply.  Even if the 10y note bottomed out today and held there, mortgage rates would continue to drop for a few more weeks.  Of course they could always rebound tomorrow...
;-)

YttriumNitrate

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Re: DONT Payoff your Mortgage Club
« Reply #2110 on: March 09, 2020, 10:05:37 AM »
We're considering going for a refinance to take advantage of the lower rates - just debating if it's worth the hassle when we're already busy chasing down the roofer, getting some electrical work scheduled, and rushing to get the garden ready by last frost.  We only bought last June, so our rate isn't awful, and we wouldn't be extending our term by much, but dealing with the bank was a massive hassle originally, so I'm waffling on if we want to deal with all that again when we're already busy.

From my experiences, refi-ing tends to be a lot less of a hassle than getting the original loan to buy the property. The biggest hassle for me so far has been getting all the documentation needed. I'd say I've spent 4-6 hours on the process to hopefully save $100 a month.

MasterStache

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Re: DONT Payoff your Mortgage Club
« Reply #2111 on: March 09, 2020, 10:32:42 AM »
We're considering going for a refinance to take advantage of the lower rates - just debating if it's worth the hassle when we're already busy chasing down the roofer, getting some electrical work scheduled, and rushing to get the garden ready by last frost.  We only bought last June, so our rate isn't awful, and we wouldn't be extending our term by much, but dealing with the bank was a massive hassle originally, so I'm waffling on if we want to deal with all that again when we're already busy.

From my experiences, refi-ing tends to be a lot less of a hassle than getting the original loan to buy the property. The biggest hassle for me so far has been getting all the documentation needed. I'd say I've spent 4-6 hours on the process to hopefully save $100 a month.
+1
I think it took me and the wifey maybe an hour to gather everything the broker needed. Now we are in waiting mode. 

OurTown

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Re: DONT Payoff your Mortgage Club
« Reply #2112 on: March 09, 2020, 10:54:22 AM »
I'm in.  We just locked in our refi at . . . {drum roll} . . . 2.5%. 

nereo

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Re: DONT Payoff your Mortgage Club
« Reply #2113 on: March 09, 2020, 10:56:59 AM »
I'm in.  We just locked in our refi at . . . {drum roll} . . . 2.5%.

30 year??  Fixed??!!

OurTown

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Re: DONT Payoff your Mortgage Club
« Reply #2114 on: March 09, 2020, 11:01:46 AM »
10 year fixed.

nereo

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Re: DONT Payoff your Mortgage Club
« Reply #2115 on: March 09, 2020, 11:06:53 AM »
10 year fixed.
oh.  Well that's a horse of a different colour.
Still, great rate!

achvfi

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Re: DONT Payoff your Mortgage Club
« Reply #2116 on: March 09, 2020, 01:28:05 PM »
"Sinking mortgage rates prompt lenders to add resources, inflate advertised rates"

https://www.bankrate.com/mortgages/sinking-mortgage-rates-prompt-lenders-to-add-resources/

DadJokes

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Re: DONT Payoff your Mortgage Club
« Reply #2117 on: March 09, 2020, 04:18:40 PM »
Lock in a 2.99% or float? I think rates might get lower, but Id still be pretty thrilled with a sub 3% rate.

Dicey

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Re: DONT Payoff your Mortgage Club
« Reply #2118 on: March 09, 2020, 08:33:36 PM »
You guys and your rates are killing me! We don't have a mortgage on our primary home*. I am dying to pull cash out of it, but if you have no mortgage and you want to get one, it's considered a cash-out re-fi and typically they cost a bit more. Definitely a MPP, but it's yet another reason to always carry a big, fat mortgage and never prepay it!!!

*The rates we have on our rentals are pretty good. There's no evidence that a re-fi on them would be worth the time or trouble yet, but we're watching and waiting. However, if we pull were to pull cash out of our primary home, what kind of impact will it have on our ability to re-fi the rentals if the Non-Owner Occ rates go down? And...what if we find another house to flip?? So many questions, so many MPP's.

Reason #11,987 not to prepay your mortgage. This could happen to YOU! Although if you're on this thread, it's less likely, but still...be warned!

Vapour

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Re: DONT Payoff your Mortgage Club
« Reply #2119 on: March 09, 2020, 09:31:06 PM »
Lock in a 2.99% or float? I think rates might get lower, but Id still be pretty thrilled with a sub 3% rate.
What are the closing costs?  I'd be real tempted to lock it in if it's ~3% with low/no closing costs.  Also, how much would you be saving going to 2.99%?  If it's a big drop in your rate and you'll save a lot per month, it's probably worth going ahead with it now to ensure an awesome rate.  Even if it goes lower, you really can't complain about 2.99% for 30 years!!  Obviously, the risk in waiting is that it jumps back up.  But with the way things are looking now, it seems like rates are being kept a little higher due to the massive demand and the suddenness of all this.  I'm thinking we may see things go slightly lower once this latest batch of refinances has been processed (at least weeks, maybe months?).  Then again, the market may be doing better by that time and maybe rates will head back up.

Or in other words: \_(ツ)_/

Vapour

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Re: DONT Payoff your Mortgage Club
« Reply #2120 on: March 09, 2020, 09:37:44 PM »
How are people finding lenders with such good deals?  Do you throw your info out onto one of the sites that sends it on to a million more sites where you get contacted until the end of time?  Go with whoever has your current loan?  Check with a mortgage broker? Local credit union? Online bank/lender?  So many options!

Ideally I'd like to find a no or low cost 30yr for 3% or less.  Or pay closing costs for a rate of ~2.75% or less.  I've never refinanced before as I have an awesome 3.5% rate since I purchased my house.  I've been keeping an eye on rates but the lowest published ones seem to be around 3-3.125%.  I'm thinking I'll wait a few weeks until the dust starts to settle and then start giving my info out to more places to see what's the best I can do.  Just not sure what the best approach is.

If anyone has any recommendations in MN, I'd appreciate it!

Vapour

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Re: DONT Payoff your Mortgage Club
« Reply #2121 on: March 09, 2020, 09:49:47 PM »
You guys and your rates are killing me! We don't have a mortgage on our primary home*. I am dying to pull cash out of it, but if you have no mortgage and you want to get one, it's considered a cash-out re-fi and typically they cost a bit more. Definitely a MPP, but it's yet another reason to always carry a big, fat mortgage and never prepay it!!!
Do it!! Then you can truly belong in the DPOYM club! :)  JK.  You always belong and I appreciate your championing for mortgages even when you don't have one yourself (on your primary home).

But seriously, this opportunity won't come around often.  Even if there are higher rates for a cash out refi, it's worth some serious consideration.  Especially with all the stocks you could buy now at a large discount!

DadJokes

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Re: DONT Payoff your Mortgage Club
« Reply #2122 on: March 10, 2020, 05:57:44 AM »
Lock in a 2.99% or float? I think rates might get lower, but Id still be pretty thrilled with a sub 3% rate.
What are the closing costs?  I'd be real tempted to lock it in if it's ~3% with low/no closing costs.  Also, how much would you be saving going to 2.99%?  If it's a big drop in your rate and you'll save a lot per month, it's probably worth going ahead with it now to ensure an awesome rate.  Even if it goes lower, you really can't complain about 2.99% for 30 years!!  Obviously, the risk in waiting is that it jumps back up.  But with the way things are looking now, it seems like rates are being kept a little higher due to the massive demand and the suddenness of all this.  I'm thinking we may see things go slightly lower once this latest batch of refinances has been processed (at least weeks, maybe months?).  Then again, the market may be doing better by that time and maybe rates will head back up.

Or in other words: \_(ツ)_/

Total closing costs came out to $1,700, and my payment will drop by $200/month. I went ahead and locked it in.

nereo

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Re: DONT Payoff your Mortgage Club
« Reply #2123 on: March 10, 2020, 06:00:38 AM »
One worry I have is that in a few weeks there might be so many people trying to refinance that they wont be able to process them all.  So when we go to refinance (should rates keep falling) we might get turned down simply because they will be too busy.  Anyone know if this fear is plausible?

talltexan

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Re: DONT Payoff your Mortgage Club
« Reply #2124 on: March 10, 2020, 06:44:09 AM »
No rush here. I think rates are going to stay low at least through the election.

ender

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Re: DONT Payoff your Mortgage Club
« Reply #2125 on: March 10, 2020, 06:46:46 AM »
One worry I have is that in a few weeks there might be so many people trying to refinance that they wont be able to process them all.  So when we go to refinance (should rates keep falling) we might get turned down simply because they will be too busy.  Anyone know if this fear is plausible?

I was trying to get Chase to match an offer last week and it took them much longer than normal - the mortgage broker there said they were swamped.


DadJokes

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Re: DONT Payoff your Mortgage Club
« Reply #2126 on: March 10, 2020, 07:33:28 AM »
If it's that bad, I would think that at some point supply/demand would kick in, and banks would raise rates little just to balance out the workload.

achvfi

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Re: DONT Payoff your Mortgage Club
« Reply #2127 on: March 10, 2020, 08:28:32 AM »
Lock in a 2.99% or float? I think rates might get lower, but Id still be pretty thrilled with a sub 3% rate.
What are the closing costs?  I'd be real tempted to lock it in if it's ~3% with low/no closing costs.  Also, how much would you be saving going to 2.99%?  If it's a big drop in your rate and you'll save a lot per month, it's probably worth going ahead with it now to ensure an awesome rate.  Even if it goes lower, you really can't complain about 2.99% for 30 years!!  Obviously, the risk in waiting is that it jumps back up.  But with the way things are looking now, it seems like rates are being kept a little higher due to the massive demand and the suddenness of all this.  I'm thinking we may see things go slightly lower once this latest batch of refinances has been processed (at least weeks, maybe months?).  Then again, the market may be doing better by that time and maybe rates will head back up.

Or in other words: \_(ツ)_/

Total closing costs came out to $1,700, and my payment will drop by $200/month. I went ahead and locked it in.

That is a excellent rate. Congrats!

Its hard to time it perfectly, as long as rate is close to 3% for 30 year fixed, I would get it over with. Its likely difference of few dollars a month.

I had to remind myself of what I was trying to achieve with refinance, other than slightly better interest rate. My intent was to increase monthly liquid cash-flow and set ourselves for greater flexibility incase of jobloss or need to take career break.

Kem

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Re: DONT Payoff your Mortgage Club
« Reply #2128 on: March 10, 2020, 09:17:24 AM »
Only fixed debt
Student Loan Refi 39.4K - Closed
~18 year @ 5.01% with Earnest
_20 year @ 4.48% with Commonbond
Zero out of pocket
$31/m cashflow improvement

Mortgage Ref 197.2K In Que
~29 year @ 3.875% with Wells Fargo (assigned from NAF) $935 P&I
_30 year @ 3.375% with TopFlightFinancial $865 P&I
-$2,100 loan costs (including appraisal, title, etc)
-$1,694 for other (including escrow hazard insurance, escrow property taxes, prepaid interest, recording fee, etc)
+$1,646 existing escrow liquidation
-2,052 if I have to fund escrow
-0,947 if I do not have to fund escrow (Attempting to move away from the escrow if possible)
$80/m cashflow improvement 

Notes, Switched careers last year and took a significant reduction in base salary, plus lived off of my stash for 4.5 months.  Credit score 820.

Between the 2, that is 33K less I need invested to support the debt and over the term not only saves ~25K in interest, but likely leaves me with ~100K in additional portfolio value.


The more cashflow I can free-up on the path to FI, the quicker I can get there and for the most part so long as the rates are under 5% I will likely refi multiple times on that path.  I will then pay the debt off when the threshold is hit where my FI is achieved sooner than the support levels required for holding the debt.
« Last Edit: March 11, 2020, 12:05:56 PM by Kem »

Vapour

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Re: DONT Payoff your Mortgage Club
« Reply #2129 on: March 10, 2020, 04:24:14 PM »
Lock in a 2.99% or float? I think rates might get lower, but Id still be pretty thrilled with a sub 3% rate.
What are the closing costs?  I'd be real tempted to lock it in if it's ~3% with low/no closing costs.  Also, how much would you be saving going to 2.99%?  If it's a big drop in your rate and you'll save a lot per month, it's probably worth going ahead with it now to ensure an awesome rate.  Even if it goes lower, you really can't complain about 2.99% for 30 years!!  Obviously, the risk in waiting is that it jumps back up.  But with the way things are looking now, it seems like rates are being kept a little higher due to the massive demand and the suddenness of all this.  I'm thinking we may see things go slightly lower once this latest batch of refinances has been processed (at least weeks, maybe months?).  Then again, the market may be doing better by that time and maybe rates will head back up.

Or in other words: \_(ツ)_/

Total closing costs came out to $1,700, and my payment will drop by $200/month. I went ahead and locked it in.
That sounds like a pretty good deal.  I probably would've locked that in too.  I mean, you can't really go wrong with a mortgage rate less than 3%.  I had a 5 year CD that ended last year that was paying 3%.  30 years is a really long time and I'm sure we'll get there again where CDs/bonds/savings are yielding higher.  It's pretty awesome that we can lock in such low rates for a long-ass time.

Vapour

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Re: DONT Payoff your Mortgage Club
« Reply #2130 on: March 10, 2020, 04:33:19 PM »
One worry I have is that in a few weeks there might be so many people trying to refinance that they wont be able to process them all.  So when we go to refinance (should rates keep falling) we might get turned down simply because they will be too busy.  Anyone know if this fear is plausible?
I don't have any first-hand experience, but from what I've been reading, that kind of seems to be the case right now.  I think lenders have been so flooded over the last 3 weeks with so many re-finances that they're keeping rates higher.  I saw PenFed go from ~3% last week to 2.875% briefly yesterday all the way up to 3.5% today.  That's a big spread.  I thought about jumping on it when it was 2.875% but missed it by the time I got home.  So I think I'll just wait until things settle down a little.  That may not end up being the right approach, but my rate is pretty good as it is so I won't be heartbroken if I miss out.

Brother Esau

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Re: DONT Payoff your Mortgage Club
« Reply #2131 on: March 10, 2020, 05:30:22 PM »
yep, the rbfcu.org 11 year refi rate actually went up today to 2.55. hoping the rates drop in the near future.

SwordGuy

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Re: DONT Payoff your Mortgage Club
« Reply #2132 on: March 10, 2020, 07:38:15 PM »
One worry I have is that in a few weeks there might be so many people trying to refinance that they wont be able to process them all.  So when we go to refinance (should rates keep falling) we might get turned down simply because they will be too busy.  Anyone know if this fear is plausible?
I don't have any first-hand experience, but from what I've been reading, that kind of seems to be the case right now.  I think lenders have been so flooded over the last 3 weeks with so many re-finances that they're keeping rates higher.  I saw PenFed go from ~3% last week to 2.875% briefly yesterday all the way up to 3.5% today.  That's a big spread.  I thought about jumping on it when it was 2.875% but missed it by the time I got home.  So I think I'll just wait until things settle down a little.  That may not end up being the right approach, but my rate is pretty good as it is so I won't be heartbroken if I miss out.

You didn't miss anything.    Unless you were one of the folks who got thru to their folks right away, they were overwhelmed.  I've been trying to talk to them since last week.   No luck, even if I was willing to wait on the phone all day.

Jack0Life

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Re: DONT Payoff your Mortgage Club
« Reply #2133 on: March 10, 2020, 10:04:58 PM »
One worry I have is that in a few weeks there might be so many people trying to refinance that they wont be able to process them all.  So when we go to refinance (should rates keep falling) we might get turned down simply because they will be too busy.  Anyone know if this fear is plausible?
I don't have any first-hand experience, but from what I've been reading, that kind of seems to be the case right now.  I think lenders have been so flooded over the last 3 weeks with so many re-finances that they're keeping rates higher.  I saw PenFed go from ~3% last week to 2.875% briefly yesterday all the way up to 3.5% today.  That's a big spread.  I thought about jumping on it when it was 2.875% but missed it by the time I got home.  So I think I'll just wait until things settle down a little.  That may not end up being the right approach, but my rate is pretty good as it is so I won't be heartbroken if I miss out.

Yeah I saw 2.675 this morning for their 7/1 ARM. Came home tonight and its 3.0 right now.
Those guys are swamped right now.
I've dealt with them 3 times already. Those guys are a PITA.
My 3rd time I think I had the dumbest loan processor ever. I gave up on her and went with another bank.
I'd rather not deal if them again if I had my way.

achvfi

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Re: DONT Payoff your Mortgage Club
« Reply #2134 on: March 11, 2020, 09:46:10 AM »
Rates seem to be ticking back up, even with self servicing mortgage lenders.

mtnman125

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Re: DONT Payoff your Mortgage Club
« Reply #2135 on: March 11, 2020, 10:41:58 AM »
AimLoans went from 3.125% 30y fixed on Monday to 3.5% yesterday and today.

Website is running pretty slow too, so they must be swamped.

Currently building home scheduled for completion in June/July- fingers crossed rates stay low, go lower.

robartsd

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Re: DONT Payoff your Mortgage Club
« Reply #2136 on: March 12, 2020, 10:02:05 AM »
I wend with a small regional player with a branch a mile from my home.
What happened?  Before I made the *first payment* they sold my loan to another bank, who sold it to a third player.  Now I'm with some company in California (opposite coast).  Go figure.

Don't assume that just because you go with a local bank it will stay that way.
Mortgages get sold all the time. Larger originators might retain the servicing of the loan which makes the sale of the mortgage far less visible to the borrower, but the loan itself is still very likely sold.

DadJokes

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Re: DONT Payoff your Mortgage Club
« Reply #2137 on: March 12, 2020, 12:13:59 PM »
Despite having a significantly lower P&I payment for my new mortgage, my total payment isn't going to change that significantly. It appears that my current mortgage company has not been adjusting the escrow payment as needed. I should be paying much more, and I currently have a huge negative escrow balance.

I requested to pay it myself with the new company, but apparently this company doesn't allow that with VA loans.

TomTX

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Re: DONT Payoff your Mortgage Club
« Reply #2138 on: March 12, 2020, 12:21:54 PM »
yep, the rbfcu.org 11 year refi rate actually went up today to 2.55. hoping the rates drop in the near future.

Yeah, their site has a note that they are swamped with mortgages. Purchase mortgages are getting priority.

Telecaster

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Re: DONT Payoff your Mortgage Club
« Reply #2139 on: March 12, 2020, 03:08:28 PM »
Banks are raising rates because they can't handle all the business.  I hope that after the initial log jam gets sorted out rates will come back down.  No guarantee on that of course. 

Brother Esau

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Re: DONT Payoff your Mortgage Club
« Reply #2140 on: March 12, 2020, 04:40:57 PM »
Banks are raising rates because they can't handle all the business.  I hope that after the initial log jam gets sorted out rates will come back down.  No guarantee on that of course.

yeah, heard that as well... was almost ready to pull the trigger

achvfi

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Re: DONT Payoff your Mortgage Club
« Reply #2141 on: March 13, 2020, 01:08:11 PM »
Type ---> Refinance
Term ---> 30 year fixed
Interest rate ---> 2.875 locked
Closing costs ---> 300 appraisal + ~$1000 Title + ~$300 Misc fees - Potential Lender credits $700 
                          + refundable lock fee + fund escrow for next year
State/location ---> Midwest
Cashout? ---> no
Interestingly I found out that there is no appraisal required for my home because fannie mae accepted home value we gave on the application. Likely saves few hundred bucks.

On the other hand looks like rates have gone up quite a bit in just few days.
Beyond the loan demand aspect for the lenders, I wonder if the liquidity issues lenders are facing that Fed recognized and is dealing with for the short term lending have anything to do with it.

Telecaster

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Re: DONT Payoff your Mortgage Club
« Reply #2142 on: March 13, 2020, 02:17:06 PM »
^ Very possibly.  I've heard there is a huge shortage of cash as businesses are forced to tap into lines of credit. 

TomTX

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Re: DONT Payoff your Mortgage Club
« Reply #2143 on: March 13, 2020, 07:32:24 PM »
Banks are raising rates because they can't handle all the business.  I hope that after the initial log jam gets sorted out rates will come back down.  No guarantee on that of course.

yeah, heard that as well... was almost ready to pull the trigger

I have some acquaintances high up in banking. They say that they have been seeing 4x-10x normal daily volumes for mortgages.

talltexan

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Re: DONT Payoff your Mortgage Club
« Reply #2144 on: March 16, 2020, 08:10:33 AM »
Banks are raising rates because they can't handle all the business.  I hope that after the initial log jam gets sorted out rates will come back down.  No guarantee on that of course.

yeah, heard that as well... was almost ready to pull the trigger

I have some acquaintances high up in banking. They say that they have been seeing 4x-10x normal daily volumes for mortgages.

When too many people apply for loans all at once, the labor becomes the constraint. There just aren't enough PEOPLE to process these loans, so the price goes up.

TomTX

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Re: DONT Payoff your Mortgage Club
« Reply #2145 on: March 16, 2020, 08:18:11 AM »
Banks are raising rates because they can't handle all the business.  I hope that after the initial log jam gets sorted out rates will come back down.  No guarantee on that of course.

yeah, heard that as well... was almost ready to pull the trigger

I have some acquaintances high up in banking. They say that they have been seeing 4x-10x normal daily volumes for mortgages.

When too many people apply for loans all at once, the labor becomes the constraint. There just aren't enough PEOPLE to process these loans, so the price goes up.

And there is scrambling to try and set up secure work from home...

nereo

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Re: DONT Payoff your Mortgage Club
« Reply #2146 on: March 16, 2020, 08:22:08 AM »
Banks are raising rates because they can't handle all the business.  I hope that after the initial log jam gets sorted out rates will come back down.  No guarantee on that of course.

yeah, heard that as well... was almost ready to pull the trigger

I have some acquaintances high up in banking. They say that they have been seeing 4x-10x normal daily volumes for mortgages.

When too many people apply for loans all at once, the labor becomes the constraint. There just aren't enough PEOPLE to process these loans, so the price goes up.

Huh.
Well the Fed has set rates near zero, and there's a new round of QE, so I expect the yield on T-notes to stay at rock-bottom prices for the foreseeable future (many months at least).  Hopefully there will be time in the months ahead to take advantage and refinance.

Vapour

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Re: DONT Payoff your Mortgage Club
« Reply #2147 on: March 16, 2020, 07:01:03 PM »
PenFed is back down to 3.625% today from 4% Friday.  So maybe things will start to head lower again.  Obviously the coronavirus might have an impact on lenders' ability to give out loans, so that's another unknown here.  With all the craziness going on, refinancing isn't at the top of my priority list.  If rates get back to ~3%, I'll start taking a look again.  If we don't get there because the virus quickly stops spreading and the economy is great again, well I'll call that a win :)

SwordGuy

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Re: DONT Payoff your Mortgage Club
« Reply #2148 on: March 16, 2020, 08:47:16 PM »
PenFed is back down to 3.625% today from 4% Friday.  So maybe things will start to head lower again.  Obviously the coronavirus might have an impact on lenders' ability to give out loans, so that's another unknown here.  With all the craziness going on, refinancing isn't at the top of my priority list.  If rates get back to ~3%, I'll start taking a look again.  If we don't get there because the virus quickly stops spreading and the economy is great again, well I'll call that a win :)

I tried to get one of their sub-2.8% rates but didn't contact them quickly enough.  They were swamped and still haven't responded.

Vapour

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Re: DONT Payoff your Mortgage Club
« Reply #2149 on: March 16, 2020, 09:46:09 PM »
PenFed is back down to 3.625% today from 4% Friday.  So maybe things will start to head lower again.  Obviously the coronavirus might have an impact on lenders' ability to give out loans, so that's another unknown here.  With all the craziness going on, refinancing isn't at the top of my priority list.  If rates get back to ~3%, I'll start taking a look again.  If we don't get there because the virus quickly stops spreading and the economy is great again, well I'll call that a win :)

I tried to get one of their sub-2.8% rates but didn't contact them quickly enough.  They were swamped and still haven't responded.
So you signed up last Monday when rates were low and still haven't heard back?  Wow, I guess they really are swamped.  Let me know when you hear back.  I'm curious if they offer you a better rate than listed because you applied so long ago when rates were much lower.  Also curious what their closing fees are, if you or anyone else has an idea.  Does anyone know if they do no-cost refinancing for a higher interest rate?  They seem to have some of the lowest rates, but wondering if the closing costs make it a no-go.  Then again, that's only if they respond to you in the first place!!

For now, I'll just use them as a gauge for rates overall, since at least they post it and have some of the lowest rates I've seen. I guess when they get to around 3.25% apply and maybe I'll hit sub 3% by the time they get back to me?  Is mortgage refinance timing as bad as market timing?