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

[TomTX]

I avoid escrow. Too many shenanigans.

[broketriathlete]

We went from 4.25% down to 2.375%. No out of pocket but was $16K closing. Went from 30 to 15 year. Going to save nearly $160K in interest with only increasing about $400/month.

[Captain FIRE]

We locked back at the end of January, so we unfortunately missed the very brief lower dip.  (They told us they'd try to get it for us, but then things went south in a hurry so that didn't happen.)  Went from 30 yr 3.625% to 15 year, 2.875% for 0 points.  Lenders are all jammed up now, but if things remain low and the capacity crunch eases, we might consider refinancing again in the fall.

One note, at the closing we were surprised with a new document we had to sign called the "Taxpayer Consent Form" permitting the general release of our tax return information for "marketing" purposes (with no restrictions for marketing specifically related to the loan) among other reasons.  There were NO privacy or confidentiality protections, so this means they could post our tax returns on a billboard if they wanted.  After a useless call to the loan officer while we were at the closing, I marked it up to strike the marketing provision and require that they maintain confidentiality of our information except as required by law or regulation.

I looked up the organization that copyrighted the Taxpayers Consent Form, Mortgage Industry Standards Maintenance Organization (MISMO).  It appears that they have guidance on the form here:
http://www.mismo.org/standards-and-resources/additional-tools-and-resources/taxpayer-consent-language 
http://www.mismo.org/standards-and-resources/additional-tools-and-resources/taxpayer-consent-language/background-and-implementation-guidance 

They apparently consulted with everyone on the form but actual borrowers.  It seems to be a broad response to the Taxpayer First Law, which according to MISMO, "requires the taxpayer to provide consent for the express purpose for which their tax information will be used" and "to provide consent for their tax information to be shared with other parties."  So, a law designed to protect borrowers is being used against them.  (In my opinion, the release is so broad though that it could fail to meet the "express purpose" requirement.)  Just an FYI in case you want to keep an eye out for it and mark yours up as well.

[Weisass]

We have been quoted a refi rate of 3.25% on our previously 3.875% mortgage.  Savings are $430/month, and we would recoup the cost of the closing within 21 months.  That is a no-brained, right?

[TomTX]

We have been quoted a refi rate of 3.25% on our previously 3.875% mortgage.  Savings are $430/month, and we would recoup the cost of the closing within 21 months.  That is a no-brained, right?

Sounds reasonable. Have you shopped the rate/costs around?

[Weisass]

We have been quoted a refi rate of 3.25% on our previously 3.875% mortgage.  Savings are $430/month, and we would recoup the cost of the closing within 21 months.  That is a no-brained, right?

Sounds reasonable. Have you shopped the rate/costs around?

We have. Got it down to no points, and closing costs are pretty low.  My only hesitation is the forecasting for mortgages—Fannie Mae is forecasting that rates could go below 3 going into 2021, and I don’t know how seriously to consider that forecasting. 

[TomTX]

We have been quoted a refi rate of 3.25% on our previously 3.875% mortgage.  Savings are $430/month, and we would recoup the cost of the closing within 21 months.  That is a no-brained, right?

Sounds reasonable. Have you shopped the rate/costs around?

We have. Got it down to no points, and closing costs are pretty low.  My only hesitation is the forecasting for mortgages—Fannie Mae is forecasting that rates could go below 3 going into 2021, and I don’t know how seriously to consider that forecasting.

I did a cashout refi back in November, and in Texas that means I cannot refi again for a year. I'm hoping for those lower rates in 21 ;)

[Optimiser]

Finally closed yesterday on the refinance that I started the first week of March. 3.074% 30 year fixed, no points. Loan cost not including any prepaids was $1,148. Recording fees were $375. Title fees were $1,312. LTV is 87%.

My monthly payment is going to be $261 less per month. My payoff date was extended by about 2 years, but I'm totally okay with that considering my old interest rate was 4.875% and I'm at 3.074% now.

Lender is UWM via Credible. I had originally closed on a refi. at the end of Feb., also through Credible (loandepot), but then the fed cut rates the next day so I cancelled it and started the process over. The first transaction was super smooth. The more recent one was kind of a headache (closing date kept getting rescheduled, didn't find out cash needed to close until 2 hours before closing and even then was given the wrong amount, took a long time to get answers to my questions, etc.). I would be hesitant to recommend Credible if the first transaction hadn't gone so well. I don't know how much of the difference was working with a different team vs. coronavirus causing everyone to work from home, lender requiring multiple employment verifications, etc.

I was worried how closing would work with nonessential businesses closed in my state. They did a "contactless closing" where they sent a notary to my house, wearing an N95 and gloves, with the documents for me to sign and asked me to provide my own pen. I set up a makeshift table on the front porch where I signed everything so the notary didn't have to come into my house, wore a mask myself, washed up afterward, and put my pen, ID, and closing docs in quarantine in the garage when we were all done. Strange times.

[Weisass]

We have been quoted a refi rate of 3.25% on our previously 3.875% mortgage.  Savings are $430/month, and we would recoup the cost of the closing within 21 months.  That is a no-brained, right?

Sounds reasonable. Have you shopped the rate/costs around?

We have. Got it down to no points, and closing costs are pretty low.  My only hesitation is the forecasting for mortgages—Fannie Mae is forecasting that rates could go below 3 going into 2021, and I don’t know how seriously to consider that forecasting.

I did a cashout refi back in November, and in Texas that means I cannot refi again for a year. I'm hoping for those lower rates in 21 ;)

Whelp.  After we talked to the folks we thought we might refi with, our originating bank reached out and offered us a 3.125 % adjustment to our existing loan, no closing costs, no fees or small print. They clearly want us to stay, and we decided to take their offer.  So I guess we didn’t refi after all, but we did manage to get our loan rate down from 3.875 to 3.125.  I’ll take it.

[six-car-habit]

Whelp.  After we talked to the folks we thought we might refi with, our originating bank reached out and offered us a 3.125 % adjustment to our existing loan, no closing costs, no fees or small print. They clearly want us to stay, and we decided to take their offer.  So I guess we didn’t refi after all, but we did manage to get our loan rate down from 3.875 to 3.125.  I’ll take it.

 That seems way better than a refinance with a different company.   You get the Same company you were already dealing with, maybe the same loan / account #, no title changes to be recorded with the county, no escrow changes, no reading thru 40 pages of contract, nor bringing in a 3rd party notary , lower interest % rate than the other offer. All wins, i think.

[jpdx]

Wow. That's a great outcome. I wonder if there is any way to achieve a rate adjustment without going through the refi process with another bank.

[Weisass]

Whelp.  After we talked to the folks we thought we might refi with, our originating bank reached out and offered us a 3.125 % adjustment to our existing loan, no closing costs, no fees or small print. They clearly want us to stay, and we decided to take their offer.  So I guess we didn’t refi after all, but we did manage to get our loan rate down from 3.875 to 3.125.  I’ll take it.

 That seems way better than a refinance with a different company.   You get the Same company you were already dealing with, maybe the same loan / account #, no title changes to be recorded with the county, no escrow changes, no reading thru 40 pages of contract, nor bringing in a 3rd party notary , lower interest % rate than the other offer. All wins, i think.

Exactly.  We checked—there is nothing in the fine print.  I think that when we reached out to them a couple weeks ago about refinancing, and then *didnt* get back to them, they figured out we were shopping around. I guess they didn’t want to lose us.  And we are happy to stay under these conditions.

[Weisass]

Wow. That's a great outcome. I wonder if there is any way to achieve a rate adjustment without going through the refi process with another bank.

I mean, We didn’t pull the trigger on a refi from our end. We just shopped around a little bit.  I wonder if, with the contraction in the market right now and in home sales, banks are just willing to give folks with good credit and payment histories a break in order to keep them.

[fordman302]

We looked at refi'n in April and best we could get was a 15 at 2.375% (we're on a 30 at 3.375%.  I procrastinated and waited until yesterday to follow up with the local bank.  I just locked in a 15 at 2.00% through Freddie Mac, no points, $2K closing if we need an appraisal.   The guy said that was only his 2nd 2% loan in his 24 years.

[Jack0Life]

We looked at refi'n in April and best we could get was a 15 at 2.375% (we're on a 30 at 3.375%.  I procrastinated and waited until yesterday to follow up with the local bank.  I just locked in a 15 at 2.00% through Freddie Mac, no points, $2K closing if we need an appraisal.   The guy said that was only his 2nd 2% loan in his 24 years.

Thats sweet with a low closing cost. Credit union ??

[fordman302]

We looked at refi'n in April and best we could get was a 15 at 2.375% (we're on a 30 at 3.375%.  I procrastinated and waited until yesterday to follow up with the local bank.  I just locked in a 15 at 2.00% through Freddie Mac, no points, $2K closing if we need an appraisal.   The guy said that was only his 2nd 2% loan in his 24 years.

Thats sweet with a low closing cost. Credit union ??

Nope, just a local farmers bank.   With a rate that low, I'm going to have to resist wanting to pay if off sooner.   Up until now I've been paying the 30 as a 15 AND feeding a brokerage account equally.

[SwordGuy]

We're already retired.   We moved into a new home last January.    We thought long and hard about refinancing when the rates dropped but decided to just pay it off ASAP once our old home and a couple of investment houses sold.   We're already fired, have plenty of net worth, and would prefer to just have the improved monthly cash flow.  Plus one less bill.

I realized I just didn't want to go thru the paperwork hassle to get a loan approved for an asset-based loan.   

[jrhampt]

It took 115 days, but we went from a 4.625 30 year to a 2.625 15 year interest rate on a small home loan.  It was a real pain in the neck and we considered just paying it off instead, but the 2% decrease makes it low enough that we'll just keep the mortgage.

[Krolik]

Locked last week 30 years fixed @ 2.5%, down from 3.75%.

[TheAnonOne]

We just closed on our 450k mortgage @ 2.75%

We went from 4-> 3.375 back in Feb, with a large enough credit to make it almost free

We just closed from 3.375-> 2.75%, and it cost me 2-3k

Our payment is down some 400-500 bucks a month. I call that a win.

...I'd refinance AGAIN if I had the chance, next target would be 2.25

[ctuser1]

It took 115 days, but we went from a 4.625 30 year to a 2.625 15 year interest rate on a small home loan.  It was a real pain in the neck and we considered just paying it off instead, but the 2% decrease makes it low enough that we'll just keep the mortgage.

Can I ask which Bank/CU did you use? And what was the closing cost?

I'm looking for months now, but can't quite get the right combo of rate + closing costs. Being in CT, whatever is available to you is likely available to me as well - hence asking.

[jrhampt]

It was TD Bank, but I really don't recommend using them.  Closing costs were about $2k.

[simonsez]

Yes, I have a new 2.875% 30 yr loan that cost $1700 and made PMI go away.  No points or credits but did have a property inspection waiver (PIW) that saved a few hundred.  I didn't really shop around but am happy with the result.

[slappy]

It took 115 days, but we went from a 4.625 30 year to a 2.625 15 year interest rate on a small home loan.  It was a real pain in the neck and we considered just paying it off instead, but the 2% decrease makes it low enough that we'll just keep the mortgage.

Can I ask which Bank/CU did you use? And what was the closing cost?

I'm looking for months now, but can't quite get the right combo of rate + closing costs. Being in CT, whatever is available to you is likely available to me as well - hence asking.

I used my local credit union and got 2.8 with closing costs of $1300. (loan value $130k). I was able to get my appraisal waived due to my LTV and recent comps in my area, so that saved me some money. I also shopped around for the closing company and saved a couple hundred bucks there. Don't take those closing costs for granted.