Interest Rates

With the interest rates getting so low. Is anyone taking advantage of them right now, I am thinking about refinancing and wondering what everyone else is getting.

We are signing the paperwork today at 2.25.

onestout wrote:

We are signing the paperwork today at 2.25.

15 or 30 year?

We did a garage and 3 season room addition last fall and did 30 yr @ 3.75. Bank called me this week saying we could refi at 2.5% for a 30 yr so we locked in. 20 years ago when I bought our acreage, I was at 6% and thought that was decent. Crazy!

15 year

A Realtor I know told me a month ago she refinanced at 2% for 15 year loan.

In refi process right now at 2.5%. Turnaround time is 2-3 months at my bank because so many people are doing it

Fish To Escape wrote:

In refi process right now at 2.5%. Turnaround time is 2-3 months at my bank because so many people are doing it

You’re going to find that at most places. Rates aren’t going to get much lower so it would certainly be a good time to take advantage. I’d do it sooner than later though. The line is getting very long

Tom Albrecht wrote:

<div class=”d4p-bbt-quote-title”>Fish To Escape wrote:</div>
In refi process right now at 2.5%. Turnaround time is 2-3 months at my bank because so many people are doing it

You’re going to find that at most places. Rates aren’t going to get much lower so it would certainly be a good time to take advantage. I’d do it sooner than later though. The line is getting very long

I agree, but I thought the same when they were 3.5%

My current balance is too low to make it worth my while. The refi was going to cost me several thousand dollars in fees to save $75/month so decided to pass.

loretta negron wrote:

Refinancing is the best option when interest rates get lower.Is it worth refinancing for .5 percent?

Absolutely, if you still owe a lot on your current mortgage. .5% over a 30 year is huge.

loretta negron wrote:

Refinancing is the best option when interest rates get lower.Is it worth refinancing for .5 percent?

We bought our house last year, got a 30 year at 3.5%. If we paid just the monthly payment we would be paying $200,000 in interest. However we put $500 extra in each month, that brings it down to $120,000 in total interest and takes 18 years.

Now if we are able to refinance into a 15 year at 2.25, and just pay monthly payment (which for us turns out to be exactly the same as we’ve been paying each month) that turns into less than $60,000 in interest.

Yeah its YUGE!!! And hopefully we are able to get this done.

Just curious what you guys are paying in closing cost? Seems that the rate is higher than normal?

supercat wrote:

Just curious what you guys are paying in closing cost? Seems that the rate is higher than normal?

$500! but that’s for 3.5%. We bought our house back in 2006 and our interest rates are much higher. So for $500 and to bring it from 5.5 to 3.5 is huge. We only have less then 3 years until its paid off see we couldn’t justify the around $6K for closing on a 2.25 or 2.5 loan.

supercat wrote:

Just curious what you guys are paying in closing cost? Seems that the rate is higher than normal?

I’m in the process of refinance to 15 at just under 2% and my entire closing costs are just under 5k. I also feel like that is high. But it is shaving 8 years off my original mortgage.

I finished refinancing a month or so ago at 2.9 and I thought that was good, so don’t say it can get any lower. It did take ninety some days to close, so the earlier you get started the better. I bought my first house back in the early 80s. Do you remember what the interest rate was back then? 16%

Ugh. I refinanced in February just before this covid stuff took hold. 3.25% for 15 which I thought was great. If I could shave another half a percent or more off might do it again. Total cost i think was about $3200 to do it.

My mortgage this time around was sold to chase Bank and they allow for bi-weekly payments. This shaves 2 years off the loan on its own at no additional cost to me. My previous mortgage holder didn’t offer that so kinda wondering if I wanna risk losing that option…..

These are all good problems to have. My uncle told me when he bought his first house in the late 70s he was paying like 8 or 9% and that was considered a steal at the time

Cooperman – we bought in 1989 at 11%. It sucked, refinanced witha variable and did much better over time.

Crappie – Chase may offer bi-weekly payments a term of your mortgage. You can do the same thing with a monthly payment mortgage by paying twice monthly at the payment for the bi-weekly mortgage and retain flexibility of paying monthly if cash gets tight. There is no prepayment penalty permitted in Minnesota by statute.

Quicken Loans/Rocket Mortgage wants 7 grand to get down into the 2% – 3% range.

SuperDave1959 wrote:

Quicken Loans/Rocket Mortgage wants 7 grand to get down into the 2% – 3% range.

Jesus

We refinanced 4.5 years ago down to 2.875% for $3k

10.5 years to go!! Then I’ll buy my real dream boat

Brad Dimond wrote:

Crappie – Chase may offer bi-weekly payments a term of your mortgage. You can do the same thing with a monthly payment mortgage by paying twice monthly at the payment for the bi-weekly mortgage and retain flexibility of paying monthly if cash gets tight. There is no prepayment penalty permitted in Minnesota by statute.

Good point

Cooperman wrote:

I finished refinancing a month or so ago at 2.9 and I thought that was good, so don’t say it can get any lower. It did take ninety some days to close, so the earlier you get started the better. I bought my first house back in the early 80s. Do you remember what the interest rate was back then? 16%

We paid 20% on a operating loan for farm in 1982. No wonder so many farms went under!

Damn I wish I would of had a savings account then!!

Just closed our refi a few weeks ago at 2.25% for 15 years.

SuperDave1959 wrote:

Quicken Loans/Rocket Mortgage wants 7 grand to get down into the 2% – 3% range.

Closing costs should be called bank rip offs! There is no way it takes that much time and effort for closing documents to justify charging 7k.

mxskeeter wrote:

<div class=”d4p-bbt-quote-title”>SuperDave1959 wrote:</div>
Quicken Loans/Rocket Mortgage wants 7 grand to get down into the 2% – 3% range.

Closing costs should be called bank rip offs! There is no way it takes that much time and effort for closing documents to justify charging 7k.

Legal thievery

munchy wrote:

<div class=”d4p-bbt-quote-title”>loretta negron wrote:</div>
Refinancing is the best option when interest rates get lower.Is it worth refinancing for .5 percent?

What if you took that 500.00 and invested instead…500 a month for 18 years is 105,000, without any earnings at all.

0 cost refi 30 yr fixed at 2.95%. put the difference between a 15 year and 30 year into a fidelity fund FFNOX each month and will revisit in 13-14 years.

locking this week on new home build, hoping for 30 yr fixed at 2.50-2.625% with no points.

to those who say rates cant go lower, mortgage rates went negative in Denmark!

We just finished getting all the docs over to the bank so they did a final check to lock it in and the rate went down, we are locked in at 2.125 for 15 yr. It may go lower….but I am calling it good enough for us.