I guess my question is….are rates still headed lower?
Did a quick check with my CU today. On a 30 yr fixed, I can reduce my rate from 5.99% to 5.09%, cut my payment by ~ $120/mo. Low closing costs, no need to re-appraise.
Should I go ahead or wait a month or two until the new guy has a chance to get his feet wet in DC?
I’m working on a refinance right now. I have been getting quoted around 4.75 from where I plan on going through which is a broker.
I did check with my current loan holder which is a large bank and they weren’t too interested in helping me out so I talked to my credit union and a broker and I was quoted anywhere from 4.75 and 4.85. One of the guys I talked to thought the rates were headed lower, possibly around 4.5% soon.
Great question. I am thinking about refiing too with the rates being what they are. I believe our pal at CCFU can help us out on this question….Bob Bowman.
Bob-
is your company still looking for people to refi with? didn’t you say something about a free guided trip and a guarentee muskie with every refi? 
Waiting is always a gamble, and no matter who’s opinion you hear there is very little other than more negative news on our economy that can lead us to lower mortgage rates. They are tied to the bond market, and can fluctuate with investor activity. Consider both the rate and up front costs when comparing offers, which again can very greatly.
Rates are good now, which makes it a good time to explore options. I would be happy to help with questions if fellow IDO’ers want to send me a pm.
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I guess my question is….are rates still headed lower?
Did a quick check with my CU today. On a 30 yr fixed, I can reduce my rate from 5.99% to 5.09%, cut my payment by ~ $120/mo. Low closing costs, no need to re-appraise.
Should I go ahead or wait a month or two until the new guy has a chance to get his feet wet in DC?
Jason,
Credit Unions are great for some things but generally not 30 Yr Mortgages. Check with a non-member owned bank and you’ll be pleasantly surprised. I’m confident your credit is in good shape, your not mortgaged to the hilt, and it you should be able to get 4.5% w/ no points. It has been as low as 4 3/8ths certain times of the day. Follow the 10 year bond rate and that trend typically tells you when the good time is to gamble. I would not settle for 5%.
Closing Cost on $200k should be around $1200-1500 depending upon credit score.
Good luck, I do believe rates will hit 4% but not sure when.
MJ
The 10 year bond right now is not a very good source to determine mtg rates right now, so much is in question with our economy we are seeing rates move around as much as .25% in a day. The biggest thing to think about when refinancing is too check how long it will take you to recoup your closing costs…example if your closing cost are 2000 grand and your saving 100 month it will take you 20 months to get that money back. All Lenders are now required to have people past a benefit to borrow ratio test prior to approval by said lender. One other tip for you…..check your A.P.R vs your note rate…..IF APR is greater than .25% higher than your note rate your paying too much for closing costs. If they are equal your NOT paying any closing costs. Remember not everyone fully discloses all fees required on a refinance, even credit unions..Be cautious, ask questions, have an independent person look at a good faith estimate as well. Biggest thing is just to make sure your going to recoup those closing fees in a short amount of time, right now on average I would say most people are taking 20-30 months to get those closing costs back.
Good luck to ya.
I appreciate the advice guys!
I was also thinking of refinancing but I’ve heard it’s going to go down to 4% yet? I can lock in for 4.25% on a 15yr fixed right now. Pretty tempting. Does anyone have any info as to what the rates are “supposed” to do?
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I was also thinking of refinancing but I’ve heard it’s going to go down to 4% yet? I can lock in for 4.25% on a 15yr fixed right now. Pretty tempting. Does anyone have any info as to what the rates are “supposed” to do?
It is risk vs reward… 4.25 is very good, if it goes to 4.0 even better but is the 1/4 pt worth the risk of losing the current rate. A good rule of thumb is if you can save a point it is worth moving on the rate. Calvin hit the nail on the head above, if your housing is a short term thing the payback on $1500 could take 15 months. In those cases consult w/ your bank on having a higher rate and not paying closing costs. It is a win/win that way. Good luck.
You should be able to find a better interest rate than that. My bank, which is normally a little high, quoted me 4.75% for a fixed 30 year today. Shop around!!! It will be worth it!!! 
Ted
Thanks LazyEyez, it saves about $400 a year, for each 1/4pt. I don’t know I’ll probably give it a few more weeks and see if it drops. If doesn’t I’ll just go ahead.
Jason, the place I checked is 4.6% for a 30yr fixed right now. Feel free to shoot me a PM and I’ll give you the link.
IN a previous thread discussing this, somebody mentioned a “streamlined” (not sure on the term……) type of re-fi where the closing costs were only $500 or so….. Does anybody recall this? I can not recall the terminology, but it was some type of re-fi process that was less intense……. I have a recent appraisel, and a new mortgage, so I am hoping to re-fi pretty soon, as I will be able to save quite a bit over my 6.25% current rate.
Tim
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IN a previous thread discussing this, somebody mentioned a “streamlined” (not sure on the term……) terminology, as I will be able to save quite a bit over my 6.25% current rate.
Tim
I wouldn’t wait for too long…. lock in at 4.75% or lower and you can shave 10 years off your mortgage and probably keep the same payment 
big G
I was/am at 6.25 had told myself if I could get 5.00 I would go. Called another bank yesterday and they would give me 4.875 on a 20yr., and the loan stayed in-house. I asked my bank to match the 4.875 after he said they were at 5.00 and he did. Not having the loan farmed out means something to me so I locked it in. Guess the crappy economy was good for one thing. Don’t wait to long, it may not be worth the roll of the dice.
Nut
I don’t mean to turn this into a political comment.
Heard on the news just his morning that Congress has been meeting with Citibank to convince them to readjust mortgages for those that are at risk of foreclosure. They hope other major banks would follow suit. I’m assuming this means they would lower loan amounts for people that are upside down on their mortgages which could allow them refi opportunities. The last statement of this report indicated this would raise interests rates.
You could argue whether this is good or not, but with the change in administration and everything else thats going on, I don’t know that I would wait until it gets to 4.0 if your current mortgage is in the high 5’s or 6’s. Then again, I’m not in the banking business either (meaning – I’m not an expert by any means).
i have been looking into refinancing and have a question. where are you guys getting the closing costs for that cheap. the two places i have checked have been 3,500 and 4,000. i have a high credit score. please pm me.
We are allso looking at refi. Our present mortgage is through a CU. If we refi with them our closing cost would go from $1250 to roughly $500. We are not adding money just a change in rates.
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the two places i have checked have been 3,500 and 4,000. i have a high credit score. please pm me.
I am finding the same and have credit scores over 800 so i too would be interested in hearing where we can get a rate 4.75% with lower than 3,500 to 4,000 in closing costs. Please PM me with a lead if one exists.
I make my living trading mortgages so I guess I’m an insider. The Fed has made it very plain that they want mortgage rates in the low 4s – it is the only way to “fix” the housing market in a equitable manner and is a better way to jump start the economy than a tax rebate for example. To that end they are buying $500 billion mortgages in the next 6 months – roughly 4 billion a day. That does not include what FNMA or FHLMC are buying themselves. Net origination – new issue minus refis – is running about 2 to 3 billion a day and is expected to be in the 600 to 800 billion area for the whole year. So the Fed plus the agencies will probably buy all new mortgages created in 2009 and a little more. Mortgage yields in the market have reacted accordingly. In the bond market a 30yr agency backed 3.5% mortgage is trading at just over 100 – that means a homeowner should be able to get a 4 to 4.25% rate. Financial institutions have not lowered their rates to that level as yet for various reasons but the pressure is building. I do not forsee rates rising in mortgages for the rest of 2009 – the Fed will print as many dollars as it needs to – and at some point you will see low 4% loans offered.
You can always become a serial refinancer – I know people who refi’ed every other month in the last mortgage rate drop. No cost refi’s typically cost you a 1/4% in rate. Do it now and then do it later if rates drop enough.
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the two places i have checked have been 3,500 and 4,000. i have a high credit score. please pm me.
I am finding the same and have credit scores over 800 so i too would be interested in hearing where we can get a rate 4.75% with lower than 3,500 to 4,000 in closing costs. Please PM me with a lead if one exists.
Many banks charge 1-2% closing fee. Work w/ your bank to make this a flat fee (like $500). Takes the same paperwork for $50k or $500k. Sometimes you may have to show closing cost from another bank. Many times member-owned charge the bare minimum so they are good guage to use w/ a non-member owned to work your bank down. Using this strategy will work easier on smaller banks as their SOP’s are not tied to other banks.
With a credit rating over 800 your in good shape to name your price. Banks are hungry for business if it is the right business.
In summation, check the closing fee and you can shave $100’s from your overall closing cost.
MJ
Guys remember NOT one mortgage is the same……These are unique towards the customer. Not 1 single mortgage is the same… So often times your NOT going to get the same as your neighbor or friend…..Take the time to look into what the mortgage is going to do for you. I think most refi’s in MN is around 3-4K in closing costs that is at least my expierence in doing this for the past 12 yrs….Holler if you have any questions …
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IN a previous thread discussing this, somebody mentioned a “streamlined” (not sure on the term……) type of re-fi where the closing costs were only $500 or so….. Does anybody recall this? I can not recall the terminology, but it was some type of re-fi process that was less intense……. I have a recent appraisel, and a new mortgage, so I am hoping to re-fi pretty soon, as I will be able to save quite a bit over my 6.25% current rate.
Tim
A streamlined refi can be used if it is not a 1) cash out and 2) your staying w/ the same bank. Many times you can avoid having to get another appraisal and title insurance which can save $100’s.
Don’t forget to ask your lender about this…they don’t necessarily have to do the loan this way but could save you $’s.
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Guys remember NOT one mortgage is the same……These are unique towards the customer. Not 1 single mortgage is the same… So often times your NOT going to get the same as your neighbor or friend…..Take the time to look into what the mortgage is going to do for you. I think most refi’s in MN is around 3-4K in closing costs that is at least my expierence in doing this for the past 12 yrs….Holler if you have any questions …
Cal has some valid points, every person has different Debt to Equity, Credit Score etc, and it is possible the rates in the same bank at the same time can offer 2 different rates.
Some Bank Managers are only authorized to offer a certain level whereas maybe the VP or senior level person has the ability to get another 1/8 to 1/4 lower. I’m sure you’ve heard of banks matching other banks #’s but yet told you they were the lowest they could go. Granted they may not make as much money on the resale of the mortgage but don’t let them fool you. If they truly would lose money they would put the bank first.
MJ
We must be doing a streamliner.. they did not need to appraise our home and closing costs are estimated high at $2055, which our lending agent (Wells Fargo) said, we will more than likely get a couple hondos back at closing, he figured it would be closer to $1800. We locked in over a week ago, at 4.625. Saving over $72,000
big G 
Good work G…..now thats a benefit…little things like that make it all worth while. Remember folks most lenders are not the Red Cross (non-profit) companies. they are in the business to make money just like the next business…Just do your homework…..If it sounds too good to be true, it probaly is….
If you have general questions feel free to pm me!
So is it typical for closing costs to be higher with a mortgage broker than with a credit union?
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