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Is it time to refinance again?
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“So a cupla days ago somebody here, credit-wise all normal and good, refi'd a fifteen year at 2.875! It was only a year ago that we refried our jumbo loan into a fifteen year at a record 4.25.
So anyone here pro's at this sorta thing? I've heard that if you can go a full point, it's worth the bank cost of refi-ing. Anyone have any amazing refi stories as of late?
A lady will call me in the morning..... the same one that refi'd us a year ago. What's anybody think? thanx”
“I'm no expert but we did it. It seems crazy because at some point you're gonna be too old if you don't stop eventually.”
“Here's what we've done since buying the house: Bought the home bout 3.5 years ago, jumbo loan at record 5.75% (not sure as of what apr record, but at the time erbody was seriously gigady over it). Actually I think we paid down another quarter point to make it a 30 yr jumbo mortgage at 5.5 fixed. So a year ago we looked into refinancing, and we were able to get a point, or actually, just neeeeaaaaarrrrly get a whole point. I'd heard several times if you can go down a whole point then it's gonna be worth it in the long run. But the banker chik sold us on a 15 yr, which had a fixed 4.25. So not only did we knock more'na whole point, we changed it from a 30 yr to a 15 yr mortgage with only a cupla hundred more a month increase!
So tomorrow when the gal calls to crunch some numbers, I'll let yun's know what she says.
For anyone here who's not played this game yet, how it works is that it costs a good number of thousands of dollars to do this; bank fee, $500ish to get another home appraisal, other minor fees, 1 percent of total mortgage for closing costs, and of course paying out your present loan with that interest. Naturally you have to know that you're gonna be in the home for a few years, and not whatsoever intent on selling the home. I think the bank lady said if you know you're gonna be in the home at least 3 years, it pays to refi. All those fees it costs to refi are just rolled into your new loan, except for 1 part, and I cannot remember which part. So what you have to figure up is how many months it takes to break even for when you've essentially paid off the cost of the refinancing. Usually it takes around 2.5 or 3 years, but our break-even point came at 18 months. What this means is that at that 18-month point, we were at the place where we'd have been anyhow, had we not done a refinancing, except now (with paying a refi) we are paying both a lower monthly payment, and a lower interest rate on the money we borrowed to buy the house. (In our case we were paying a little more, cause we'd changed from a 30 yr to a 15 yr.)
Before doing this, all the above was upside-down Chinese to me. Hopefully this makes some kinda sense.”
“Whew, that wore me out Ape. We were gonna do it again but the appraisal went down due to the bad market.”
“All sounds about right - payoff time, need to save 1%, etc. I considered it 2 weeks ago when the new record low hit but just couldn't justify the costs this time. I refied 2-3 years ago when it hit a record low in the mid-4's. I think mine is exactly 4.5. I think I was seeing rates around 3.5 for a 25 year refi, and we are certainly planning on staying put, but the incremental savings on the monthly cash flow would have been minor for the first 6-8 years because we'd have to pay for PM insurance again since our house value has dropped below 20%. I got PMI removed from my current loan a few years ago when the house values were all up so we had 20% equity. Still mostly on the fence but leaning towards staying put.”
“O ye, thanx tech, you just batted a cobweb for me ..... that was something else I recall from our last debacle: "they" say not to refi with a PMI bank. So all that above that we've done thus far has been without the PMI.
Also, I think the lawyer's fee was 500, or 750, and I'm thinking it actually cost us about $5k total to do the refinance, and I cannot recall if it was required, or we payed some up front. Actually, I think that was what was a required out-of-pocket cost, cause everything else was just included in our next mortgage. We obviously would'a wanted all we could of the refi cost to be wrapped up into the new deal. Flood insurance was a required cost, which was dumb, as we're way way up a hill, but it was only like 45 bux or something.
Ain't spoke with the bank chick yet.
LOL Strat, naptime.”
“I'm lucky I guess, never could afford a stick house, just a mobilehome, but I am out of debt and built a 24' X 28' garage 10 years ago, my man cave. It's all mine on a acre of ground.
“If your bank still holds your mortgage and didn't sell it into the secondary market, they may be willing to recast it for a small fee, rather than a refinance. We were able to recast ours which had 23 years to go to a 15 year term at 3.5% by paying 7/8 of a point. Try that route first. The mortgage rep gets paid on commission and has every incentive not to tell you about that possibility.”
“I badly want to refi. When we built 5 year ago, we closed at about 82% LTV. With the homevalues going crazy, we're now something like 107% LTV....and our balance is 20k less than it was then. Ouch!”
“We are about to buy at the right time. Sooner or later the market will bounce back and we can buy a ready built at the price it was 10 or more years ago.”
“Chili, you are neglecting the Zombie Apocalypse.”
“147 - interesting info. I'll have to call the bank I send my checks to, to find out.”
“I missed the refi lady at her office, but after playing phone tag a cupla times, and getting her some crucial numbers, I caught her after hours. She didn't wanna get specific without the numbers in front of her, so I'm like, well heck, gimme something... do you recall enough to think it's worthwhile?
Yes, she says.
147 both 3.5 years ago on the purchase, and last year's refi, it weren't but a cupla weeks and one'a the big boys was sending our bill each month. That nagged me about the initial sale, so when we refi'd I asked her if her bank would bounce me, she said no that her bank was a lender not a broker ....... 2 weeks later I had a different bank statement, hehe. But I'll look into that.....
In the meantime I'll let yuns know what she says on Monday. Got 2 figures coming: cost benefit/analysis on refi for a 15yr at around 2.85, and another at buying a quarter point or so to sign a 15yr at 2.5.
Chili with the stagnated housing markets in nearly all areas, you'd be nuts not to buy into a foreclosure! Matter of fact, we ain't seen the worst of the housing crash .... keep some greens tucked away on the side ..... more likely than not, you could be in 3 houses instead of 1 ..... only caveat is how friendly you can be with the bank restrictions.
Dayhiker before we left Phx several of our nabes went ahead and bought foreclosures at 20cent on the dollar, and then just walked away from their existing home .... just moved out and locked the doors with the keys inside. One of'em drew all the shades, locked all the doors, and mailed all the sets of keys to their mortgage company! Damdest thing to see. I can say this for certain, they sleep a helluva lot better at night now.”
“Yo, Ape, are you using a local bank or someplace online?”
“Hello hyway! Howya doin' ole chap? I'm using somebody somewhat local, the very best that you can get locally anyhow. It's actually a bank outa N GA, but they extendin their tentacles some into WNC. No bank w/in a hunnert-fitty miles can match them, even none in the big city of Asheville.”
“are they a big bank like Bank of America or Wells fargo or a regional bank?”
“Here's how it breaks down for us on this house hyway:
We bought it from First Citizens Bank in Asheville, a regional one I think. Wells Fargo took it in a few weeks.
Then we refried last Feb thru Brand Mortgage, and Chase took that one over after a cupla weeks.
Brand Mortgage is also a regional bank I think, out of Atlanta, we heard about them thru our realtor gal, now a good friend, who'd said this mortgage gal couldn't be beat.”
“Thanks. My wife banks with Bank of America and they show pretty low rates. Just wondering how they would be. Our credit Union had a really good unheard of rate of 5.5% 9 years ago when we refinanced but they are too conservative these days and barely dip into the 4's.”
“OK we bout done did this thang, I'll give yawl all the det's shortly. Hyway I called and spoke with Chase, whom has our mortgage at the moment, and is obviously one'a the big boys. Chase couldn't do me better than 3.25% on a simple refi on a 15 yr term. Brand Mortgage Bank outa N GA is giving me a 2.875 on a 15, when we close the deal I'll ask her what they offer for the typical 30yr if you want me to. I'd asked the Brand gal if I could nibble at an even better rate with a 10yr, but it's the same, so we ain't gonna lock ourselves into that short an amortization.
To the Chase guy, Robert, I'd said if he cannot do me much better than 3 1/4 then he's about to lose my business. He lied and said he was sorry. We both know he'll be seeing my mortgage again in a month or so anyhow, hehe. He would save me about 600 bux in closing costs, but I had to remind him that the 600 now ain't exactly savings if it's costing me numerous tens of thousands in the long run.
We refi'd last February with Brand Mortg. Bank, so we now don't have to pay the 1% origination fee for being a repeat customer, saves us a lil under 4k in closing costs. Present total closing costs will be about 4300 including starting up a new escrow account for taxes. We'll get back about 2k from our existing escrow account from Chase, and the Brand Bank gal (like last time) will close the deal nearer the end of the month, so we won't have a payment to make for the following month. This skipped month will allow for us to recoup what's remaining on the total refi cost (including Chase's escrow refund). Man it's good stuff all way 'round. Bout 450 a month less on the mortgage bill, which cuts the total 15 yr payout by 76k bux....., from 4.25 to 2.875.
We do have to pay for another home appraisal tho, for 415 or 450, because it's been past 12 months since our last one. In WNC only the lowest end houses have seen any kind of decline in value, and the mtn McMansions. Everything in between is pretty much left untouched, unless it's been foreclosed on.
Anybody tried to buy raw land in the last 3 years?l......good luck.”
“I called my mortgage holder yesterday, Bank of America, and their rates are horrible compared to others I'm seeing on bankrate.com. Yeah I'd save a lot of money on closing since they can "fastrack" me, but long-term I can do a lot better with other lenders. Just found a new one on bankrate I'm checking out now.”
“Tech let us know what you find. Dangit there's a couple last pieces of puzzle to get to our banker gal, so we've still not locked in our rate .... as of today it's still 2.875 .... but it won't continue with what Europe is doing. In the morning I'll fax awf them last things, the processors can set the appraisal and something else, then the rate can be locked.
Actually, it might stay this low for some time still, but afterwards you won't see these rates for a very lawng time again, if ever.”
“Aiight, so today the appraiser guy came for some pix, he was just here 15-16 months ago for our last refi. We've not yet locked in a rate, as it's now moved up to 3.0 for a 15yr with this bank. Bank gal says don't worry, we'll wait a bit, with what's coming out about housing and the economy, it will go back down to 2.875 in a little time.
Tho, the appraisers are raising their prices, in NC anyhow. Instead of $415 as it has been in the past, it's now $650 with this particular appraiser, and all the other appraisers for WNC are at $800 (could be that we're a repeat customer that it's less than the others, dunno). Nachurly, being the sob that I am, I complained to the guy about what gives?! He said his rate is still the same, $415, but that the officing agencies are now tacking on a $235 sur-charge to his price, and that other agencies are much higher than that. My banker is complaining something seriously about it, as she says they don't have that tack-on fee in GA, and is seeing if she can appeal that $235 cost. Mebbe I'll be filing a BBB complaint, but that and a cup of cawfee will get me a nice cup of cawfee.
Tech ain't hearing nuttin from you, found anything good?”
“"Tech ain't hearing nuttin from you, found anything good ...â
... that isn't attached to your body?”
“HOI, nope. What is attached below the belt is still the best!
I stayed on the fence. I found good rates (before they went up), and after about 5 years it would make a big difference once the PMI dropped off. But to make a big dent in the monthly cash flow it would have taken too much of my cash reserves - which I need to hold on to right now. Bought a Suburban and nobody is biting on the minivan it replaced. Until I can sell the minivan I can't pay off my wife's car, which means I have two car payments...”
“Brand Mortgage Bank gots no PMI. (She had warned me to stay away from those.)”
“Talked to my lady today, said the rates are at 3, but with the market fluctuation expected, among many other things, we're gonna stay the hold pattern till it hits 2.875 again, she says it will pretty soon, so for now just forget all about it.”
“Unfortunately everyone will want PMI from me. Our home value has dropped to below 20%. I had it removed from our current loan when the prices spiked a few years ago. Happily the value is still well above my loan balance so I'm not "upside down", but its 100K below where it was at one time.”
“Back with awesome news. Found a lender that didn't want PMI or a home valuation. Signed the papers yesterday for a 30-year @ 3.25%.
Could have done a 20-year and still cut my monthly payment a bit but my goal right now was improving monthly cash flow. In 8 years we will have finished pre-paying for the kid's college and will then apply that money to pay down principle. In the end it will work out to be somewhere around a 20 year loan, without being locked into the larger payments right now.”
“Up here they have eliminated the 30 year mortgage after dis-allowing 40 year ones and eliminating 35 year ones. This is to reduce pressure from the housing boom and to protect the market from a bubble.”
“So what terms can you get? Only up to 25 years?
I still feel like my rate is nearly stealing the money. Anyone getting a 15-year in the 2's should be charged with Felony Theft.
“Hello everyone ..... we're about to pull the trigger still, hehe. We did eventually lock in the 15 yr at 2.875, and then our banker gal had to extend the lock, having to wait on our insurance company to provide their paperwork ...... guess we'll be looking for different insurance .... could you imagine actually needing them for something, when they cannot provide a simple declaration form? Sheesh.
One snafu however, we had to get another appraisal, cause it'd been a lil more than a year since our last refi. Well our house value was cut by a lil more than 1/7th...., after the market crash and loss incurred already at our purchase! It was astounding that we picked up the house for the price we did, 3.5 years ago. Later I found out that the Flardy richie was finishing a house in lateeda Blowing Rock, so basically he had to sell this one. Well, even after me scooping it up way low (our realtor was uncomfortable with my final offer). Last week I paid a visit to the appraiser, to find out what the fuuuuu. He was an aiight guy tho, long story short -- any house in this market worth above 400k is impossible to verify, due to having to use comps within only the last 12 months. My banker gal was floored, I was pissed, so I paid him a visit with a possible squidbilly "you fix this, er I'll fix you". But he ain't a bad dude. The drop in the appraisal won't effect our loan refi, so that's good.
We won't close tomorrow, but we might Friday. I'll keep yuns in the know.
Oh, me and my hunny drove 72 miles today and bought 3 goats, 2 fellers with no testes(mohair/angora mix), and one feller with them (french alpine). Dey cute.”
“Huge CONGRATS tech !!!!”
“Sounds like congrats will be due to you soon, too.
If we needed an appraisal we would have run into the same problem as you. Lots of sales 3 years ago around us put us over 500, one sale in the last year have resulted in a "drop" in value to below 400. Supposedly. We had one sale 3 houses down a few weeks ago that hasn't been recorded yet, so I can't look it up (all that info is online around here). I'm curious what it went for.
If I had to raise something, I would consider Alpacas. Goats can get mean, LOL!”
“Signed the dotted line this morning at 9 ! Actually, signed about fitty dang lines ... sheesh! A 15 year mortgage at 2.875%, lawyer guy said congrats, he'd never seen one that low yet. No prize tho, I ast. Anyhow, cost about $5200, but half that will come back as a check from our previous bank's escrow account, first payment will Oct.1. Our previous loan, which we refi'd last February, about a year and a half ago, was 4.25. So from that rate, changing to our present rate, will save us a lil over $76k for the term of the loan. No PMI, and since we're a "repeat customer" to Brand Mortgage Bank (who we refi'd with last time) the 1% origination fee is waived.
I called Chase Bank, who bought our loan from Brand Bank last time around, to see if they could match this new rate, but they couldn't, even when I said that they were going to lose us ..... We both know more'n likely they'll just pick us back up again Oct or Nov.
Tech when you see the prices of them precious lil alpacas, you'll be considering it far less. Shewt, round these parts, with feed costs rising like they are, you can buy horses cheaper than goats!!! If you have the time to scour and watch long-term, you can pick up some good deals .... ppl are starting to need money. The 2 3 yr old angora wethers(no bawls) ran me $75 for both of them together .... not each, and the balled 1.5 yr old french alpine (Elvis) only cost fitty, it's what I offered for a pkg deal. Round here the Mexicans are eating up goats yum, so cheap goats, even at auctions, don't exist anymore. Add about 20 or 25 for gas picking up the above 3 goats, and that's all we paid total.”
“Cool. Time for a méchoui.”
“Congrats! I just double-checked and I see rates on bankrate.com today for a 15-year refi @ 2.75, so you did well. Especially for that fee. I did the same as you and called my current mortgage holder but they couldn't come close on the rate. I'll laugh if they end up buying the loan.”
“Tiny fyi if anyone decides to step into the game: the rate you lock in ...... I don't know how long you get the lock, but you get one extension for free .... our second one (caused by our local bank to subordinate the line of credit loan, which is just an additional loan to complete the original jumbo loan, cause jumbo loans only go so high) cost us $250, the sumbytches.
Due to some idiot in some office who don't give a schytte not putting in wordage that's supposed to be in there anyhow, we had to extend our locked 2.875 a second time.
Hope this helps somebody, if it's making any sense. I'm trying to keep it strayt in my own dang head!”
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