I need to refi rates look amazing

[FlyerInHi]

[quote=moneymaker][quote=FlyerInHi]8 years since the financial crisis. Still no dollar debasement or hyperinflation.

I still have an adjustable rate mortgage.[/quote]

You might want to lock it in now.
Greenspan said inflation is coming he just doesn’t know when, I tend to agree with him. Since he is 90 years old now he may not see it, but I’m pretty sure we will.[/quote]

It’s a small mortgage so I’m not worried.

I think that low interest rates is a new normal because of so much unused manufacturing capacity and aging populations in developed countries.

[treehugger]

ahhhh, I had not asked about the increased credit for a higher rate!

About $2000 difference, can’t believe rates will go lower? We plan to downsize maybe in 5-6 years depending on where the kids go to college, may be longer, seems worth it to keep the lower rate?

[an]

[quote=treehugger]ahhhh, I had not asked about the increased credit for a higher rate!

About $2000 difference, can’t believe rates will go lower? We plan to downsize maybe in 5-6 years depending on where the kids go to college, may be longer, seems worth it to keep the lower rate?[/quote]
That’s what I thought 4 months ago when I started the last refi.

[no_such_reality]

I’m sliding into analysis paralysis.

We’re about $20K above the $417K low conforming limit.

Checking the easy online sources shows about a 0.25% hit for being in the higher conforming zone. Is this carrying through or other places not doing that?

Refi-ing is a no brainer. Which refi is the question.

* Shave a 0.25% and keep the higher balance
* take a 1/8th point, use the credit to fund the impound and pay the extra towards principal and hope rates hold for six months and refi again
* kick in $20k and take the 0.5% off the rate

It may be time to be time to let a broker make some money.

[Coronita]

[quote=no_such_reality]I’m sliding into analysis paralysis.

We’re about $20K above the $417K low conforming limit.

Checking the easy online sources shows about a 0.25% hit for being in the higher conforming zone. Is this carrying through or other places not doing that?

Refi-ing is a no brainer. Which refi is the question.

* Shave a 0.25% and keep the higher balance
* take a 1/8th point, use the credit to fund the impound and pay the extra towards principal and hope rates hold for six months and refi again
* kick in $20k and take the 0.5% off the rate

It may be time to be time to let a broker make some money.[/quote]

I’d take the 1/8 point hit if I were thinking that this wouldn’t be the last time I was refinancing..

Or, I’d borrow $20k from my 401k (the portion in a money market right now earning 0.1%), and use the $20k to shave your loan down to the conforming limit. Then, I’d pay myself back the $20k loan, at a rate of 4% (non tax deductible of course, less yearly maintenance fee)…which is still better than that 0.1% interest I’d earn keeping it in a money market.

[no_such_reality]

That’s the analysis paralysis.

Will the 3.25% Brexit induced mortgage last for seven months? Will it be longer? Or is it going to disappear in a month when the world realizes even with Brexit, it’s pretty much business as usual around the world?

It’s hard saying no to the lower rate, but the reality is the payback on the lower payment versus the funds to get it, is a little north of a decade.

Hence, if I can do a 3.5% for near zero out pocket. Or take a 3.625% for a net credit to my impounds.

Or maybe go conforming to $417K, back the rate up to 3.375% or even 3.5% and apply the credit to the balance to reduce the amount I need to bring to the table. How much credit will I get on a $417k at 3.5%? 1.5% about $7000 ( is the credit running about 1 pt per 1/8th?) Could I push it to 3.625% and get the banks to kick in half or more of the amount I need to get myself below $417K? Then if rates stay low for six months, I could refi lower and suck credits out.

If rates stay at this level for a year, could I walk myself below the $417K and essentially have the banks pay for the principal reduction by taking a higher interest rate for a year ( a grand total of an extra $1000 in interest)

Of course, if interest rates rise, I’m stuck with a 30 year at a rate lower than I’ve got now, but maybe a half point higher than it could have been. A net $25 grand or so over the life of the loan if I don’t refinance again.

[Coronita]

[quote=no_such_reality]That’s the analysis paralysis.

Will the 3.25% Brexit induced mortgage last for seven months? Will it be longer? Or is it going to disappear in a month when the world realizes even with Brexit, it’s pretty much business as usual around the world?

It’s hard saying no to the lower rate, but the reality is the payback on the lower payment versus the funds to get it, is a little north of a decade.

Hence, if I can do a 3.5% for near zero out pocket. Or take a 3.625% for a net credit to my impounds.

Or maybe go conforming to $417K, back the rate up to 3.375% or even 3.5% and apply the credit to the balance to reduce the amount I need to bring to the table. How much credit will I get on a $417k at 3.5%? 1.5% about $7000 ( is the credit running about 1 pt per 1/8th?) Could I push it to 3.625% and get the banks to kick in half or more of the amount I need to get myself below $417K? Then if rates stay low for six months, I could refi lower and suck credits out.

If rates stay at this level for a year, could I walk myself below the $417K and essentially have the banks pay for the principal reduction by taking a higher interest rate for a year ( a grand total of an extra $1000 in interest)

Of course, if interest rates rise, I’m stuck with a 30 year at a rate lower than I’ve got now, but maybe a half point higher than it could have been. A net $25 grand or so over the life of the loan if I don’t refinance again.[/quote]

I think you need to look at it this way. Anything is better than doing nothing. 🙂

So pick… flip a coin…

[OwnerOfCalifornia]

10-yr and 30-yr T-bill yields at fresh lows.

[bewildering]

I would not be surprised if 10 year rates go negative in the next couple of years. Just like Germany and Japan.

[HLS]

[quote=no_such_reality]I’m sliding into analysis paralysis.

We’re about $20K above the $417K low conforming limit.

Checking the easy online sources shows about a 0.25% hit for being in the higher conforming zone. Is this carrying through or other places not doing that?

Refi-ing is a no brainer. Which refi is the question.

* Shave a 0.25% and keep the higher balance
* take a 1/8th point, use the credit to fund the impound and pay the extra towards principal and hope rates hold for six months and refi again
* kick in $20k and take the 0.5% off the rate
[/quote]

If you have access to $20K, it’s well worth your effort
to get loan amount to $417,000.
Another factor is current home value.

[HLS]

[quote=moneymaker]Here’s 2 questions for HLS or others in the industry here, should I approach my current mortgage servicer for refi or go somewhere else first? Can I shop them without giving out too much personal/financial info? Ok 1 more question, how long should a refi take? Seems like it was quick last time I did it, but am reading others are saying 3-4 weeks.[/quote]

When you refi, the old loan gets paid off and you are creating a new loan with a new term to be sold into a future bond portfolio.
A servicer does not own your loan. Some have a different division that offer refi’s.
You can check wherever you’d like to.
Many times the current servicer has terrible pricing but people just assume they are getting special treatment.

Pricing changes daily and often intra-day.
Today is a good day.

You can get a quote with basic info, but if it’s not accurate it could affect net loan pricing.

Credits to cover closing costs are a % of the loan amount. There’s more dollars on a $417K loan than a $100K loan. There is not one rate for everyone.
Credit score & equity are factors on every loan.
Regardless of these factors, there are many other possible hiccups in getting approved.

At the moment it can easily take 6 weeks or more to complete a refi. Purchases get priority.

Doing something is better than doing nothing. There is never a reason to not refi to a lower rate at no cost.
If there is a cost, you can do the math.

Not understanding this can cost $50k-$100K or more in wasted interest over the long run.

[moneymaker]

Thank You HLS, do you know if appraisers take solar into account when the system is owned and not leased? They should but I think last time i got an appraisal they did not.

[HLS]

In theory yes,
It couldn’t hurt to show them your invoice and that it was paid in full, not financed. (that applies to any upgrades that you have done)
However,
If you paid $30K for the system, you cannot assume that it will add $30K to your value.

If you disagree with a completed appraisal(for any reason), there is a dispute process which is sometimes successful, sometimes not.

A successful dispute means that the appraiser has to admit that they did a poor job and made a mistake.

[no_such_reality]

[quote=HLS][quote=no_such_reality]I’m sliding into analysis paralysis.

We’re about $20K above the $417K low conforming limit.

Checking the easy online sources shows about a 0.25% hit for being in the higher conforming zone. Is this carrying through or other places not doing that?

Refi-ing is a no brainer. Which refi is the question.

* Shave a 0.25% and keep the higher balance
* take a 1/8th point, use the credit to fund the impound and pay the extra towards principal and hope rates hold for six months and refi again
* kick in $20k and take the 0.5% off the rate
[/quote]

If you have access to $20K, it’s well worth your effort
to get loan amount to $417,000.
Another factor is current home value.[/quote]

Sorry, missed this. Are there major break points on loan to value? 70% (30% equity), 60%? 50%?

[HLS]

There are 3 basic tiers for pricing
80% LTV
75% LTV
60% LTV

It’s a cut & dried matrix table, non negotiable.ALSO
Credit score, cash out & 2nd Lien/HELOC are factors.
So is condo VS house AND primary home/2nd home vs. Rental property.

Don’t forget the the % difference you will save applies to the entire $417,000. For a cost of $20K it not only lowers your monthly payment, it’s a huge guaranteed good return in today’s market.

I would not think twice about taking a 401K loan OR pulling money out of any non penalty retirement account to get the money.

I completely understand the desire & comfort associated with having a large cash cushion, but with good credit, there are many ways to access cash cheaply these days.

Every situation is a little different. Feel free to contact me privately if you’d like to discuss your specific situation. There’s no pressure or obligation.

[Author]

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