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View Full Version : Mortgage Rates continue to drop!!!


robb01
12-17-2008, 11:17 AM
Ive been reading on other forums that people are getting new 30 yrs for under 5% now, and being able to re-fi at under 5% as well. This is getting quite awesome. :cool1: :cool1: :cool1: :cool1:

smiller
12-17-2008, 11:25 AM
I'm seriously considering a refi. My ARM is up next August, so I'd like to get a headstart on that.

I'm at 5% right now, and the way it's figured (considering current rates), I'd be at about 5.01% come August. Not too shabby, but not really a risk I want to take.

I'd love to lock in at lower than 5%! :thumbsup2

CarolA
12-17-2008, 11:27 AM
I am hoping for lower.... My ARM is at 5.25% Right now it's a "toss up" I was never worried about the reset. It was a reasonable ARM with a cap etc plus even at max the payments weren't an issue. I just thought that I would not stay here for five years. Now... I am not willing to take the loss LOL!

punkin
12-17-2008, 11:32 AM
I have an ARM that is not due to reset for another 4 years, and I am tempted to get into a 30 or 20 yr. fixed; just waiting for the rates to go down to 4.5%. ;)

madge
12-17-2008, 12:09 PM
I have an ARM that is not due to reset for another 4 years, and I am tempted to get into a 30 or 20 yr. fixed; just waiting for the rates to go down to 4.5%. ;)

ditto.

Punkin - I know you & I have talked about the Penfed 5/5 before. I'm watching that rate, too. I'm glad I procrastinated doing our refi - the rates are so much better than they were even 3 months ago!

kydisneyfans
12-17-2008, 12:13 PM
Same here, I have a 5 3/8 ARM the resets in 2012, I'll start shopping at 4.75, but will look harder at 4.5.

punkin
12-17-2008, 12:35 PM
Yes, Madge. You made the right decision, but 3 months ago no one could have predicted this huge drop. Well, at least I couldn't.

chemysterygal
12-17-2008, 12:40 PM
I'm sorely tempted to refi our 30 year bi-weekly (actually 24 year) mortgage to a 15 year biweekly as we'd be saving more than 1% on the rate! I can't believe how low these rates are!!

esulerzy
12-17-2008, 12:42 PM
I just refinanced from a 30 year to a 15 year at 5.125% - lower payment but if I still pay the same amount I was paying, it will be done in 10 years! :cool1:

lenshanem
12-17-2008, 12:45 PM
I dunno what to do! We were locked at 5.625 and were supposed to close yesterday. We postponed the closing and they renegotiated for us and came back with 5.25. We've actually renegotiated five times. They want to close before Christmas. I was told the rates dropped this morning, then went back up around 11:00 AM. Anyone know??? DH is not answering his cell! :confused3

mom2aiden
12-17-2008, 12:50 PM
The rates did drop this morning. We had an offer of 5% yesterday, and it dropped to 4.875 this morning. It's been volatile today though. Oh, and this is for a refi.

minnie1928
12-17-2008, 01:21 PM
Can everyone post what rate they're being quoted and from whom? I'm looking at Wells Fargo, but I'd like to look at others that might be worthwhile.

chemysterygal
12-17-2008, 01:29 PM
For a 15 year bi-weekly, 4.625% as of this afternoon. The 30 year bi-weekly was more...about 5.25 I think. HTH!

pixiewings71
12-17-2008, 01:32 PM
I have an ARM that is not due to reset for another 4 years, and I am tempted to get into a 30 or 20 yr. fixed; just waiting for the rates to go down to 4.5%. ;)

This is us, and we are tempted as well. Our big worry tho, our home is not worth what we owe so we don't think anyone will actually refi us. We have GREAT credit (almost 800) but we also have cc debt and a car loan that we wanted to pay off before trying to refi. Does anyone have thoughts on that? Should we even try to contact a lender?

lisaluvsmickey2000
12-17-2008, 01:53 PM
We're trying to get re-fi'd too! We have an ARM with bad, bad terms. We're currently over 12% on our loan and are locked in at 5.5% I'm happy with that, but since it's dropped again and they haven't finished it I'm hoping we'll grab an even lower rate!

Kay1
12-17-2008, 01:54 PM
Can everyone post what rate they're being quoted and from whom? I'm looking at Wells Fargo, but I'd like to look at others that might be worthwhile.

I agree. It would be really helpful if people would name companies.

kandemom
12-17-2008, 01:57 PM
Thanks so much for this, we actually have a FHA loan and I heard you can refi at a lower rate without having to pay any closing costs. Im calling my DH now:cool1:

seeking pixie dust
12-17-2008, 02:09 PM
I'm trying to decide, too. We can get 5.125 today @ Chase (we're at 6.5). Will they drop lower...that is the question. They say we don't have to pay closing...but remember "there are no free lunches". You still have to pay Title, etc...so saying you aren't paying closing costs isn't really being honest.

duketennisgal
12-17-2008, 02:14 PM
I'm wandering what things are going to look like a year from now. I'll be looking to buy my first house in a year, I wish I could do it now with the way the housing market is, there are some great deals out there.

minnie1928
12-17-2008, 02:20 PM
I just spoke w/ Wells Fargo. They quoted the following:

30yr Fixed Rate

5.00% (with .5 point)
4.75% (with 1 point)

The only upfront cost would be $495 for the appraisal fee. All other fees could be rolled into the mortgage (if need be) if you have at least 20% equity in the house.

mom of princessx2
12-17-2008, 02:50 PM
I also have my mortgage with Wells Fargo and I just called about their Three-step Refi system(had about it on my statement)and was quoted 5.25% with no closing, appraisal or application fees. She said as long as you have over 20% equity (which we do) she fills out a short app and mails the packet to my home to be signed and notorized. Will talk to DH tonight but it takes us from 6.125 to 5.25 with no cost and saving us about $170 per month! :santa:

JoyG
12-17-2008, 03:05 PM
Thanks so much for this, we actually have a FHA loan and I heard you can refi at a lower rate without having to pay any closing costs. Im calling my DH now:cool1:

Wait, what's that? I have an FHA at 5.75 fixed. Can I refi without paying closing costs? Is it much lower than that now?

minnie1928
12-17-2008, 03:15 PM
I'm on hold with TD Banknorth at the moment. According to their website they are offering a 30 yr FR at 4.75, no points.

frannn
12-17-2008, 07:01 PM
We have 19 years left on a 25 year loan. I'd love to be able to keep the payment the same & shave 4 years off the loan. The rate would have to be about 4 for that to happen....is there such thing as a 20 year loan? Or, maybe I'm better off with a 25 year & just paying extra each month to knock off the extra time. We have over 20% equity in the house.

TheRatPack
12-17-2008, 08:09 PM
Wait, what's that? I have an FHA at 5.75 fixed. Can I refi without paying closing costs? Is it much lower than that now?


I think it's called a streamline refinance? Try typing in that on a search and see what you get ;)....from what I've heard, FHA is pretty easy to refinance and less stringent on credit score...etc.

momsavealot
12-17-2008, 08:09 PM
I'm on hold with TD Banknorth at the moment. According to their website they are offering a 30 yr FR at 4.75, no points.

wow, that's a good deal! what happened? did you take it? We're at 5% and were hoping for 4.5 to refi.

Lisa_M
12-17-2008, 08:21 PM
are the deals only happening for refi's or conventional mortgages as well?

McDISer
12-17-2008, 09:16 PM
If you are buying a home, you have to pay all those fee's. But these are great rates for a home.

Usually, the less number of years you need, the lower the rate. If you keep going back to 30 years, you are just extending the loan, thus more interest. You may have a lower payment, but in the long run you are paying more. So it would be better, to drop down to a 20 or 15 year loan, with the interest rate that low.

twinmommyks
12-17-2008, 10:40 PM
Opinions please:) . We have about 8 years left on our mortgage with a balance of only $38,000 and a current fixed rate of 6%.

Is it possible to get a 5 year mortgage loan? I tried checking on-line and believe it or not, a few sites would not give me any rates because it said the loan amount was not enough:confused3 . And the terms were 15 or 30.

I would love more than anything to drop the percent so we could get the house paid off in 5 years or less. But we do not want to pay any closing costs and we have over $200,000 in equity so the value of the home is not in question.

We do pay some extra in principal each month, but I would sure love to drop othat rate and have more of my payment go to principal instead of that darn interest.

Anyone know about mortgage terms?

Bren

Weluvdisny
12-17-2008, 10:49 PM
twinmommyks,

Why don't you look into a 10 year and if the rate is good, and just pay it off in 5 years by adding more to the principal each month?

I work at a hometown bank, and we offer modifications to our customers where they can change their rate/term for a nominal fee. The fee depends on the principal balance of their current mortgage. Most customers have paid down their balance enough so they just roll that fee into the modification.

I don't know how many banks offer modifications, but as long as you don't want any new $, it would be worthwhile to look into with your current lienholder.

Or a fixed home equity has no closing costs, but the rate is usually higher than a fixed mortgage. If the home equity is paid off within 3 years, you have to pay a set amount back to the bank based on the amount you originally took out.

SplshMtn99
12-17-2008, 11:22 PM
Opinions please:) . We have about 8 years left on our mortgage with a balance of only $38,000 and a current fixed rate of 6%.

Is it possible to get a 5 year mortgage loan? I tried checking on-line and believe it or not, a few sites would not give me any rates because it said the loan amount was not enough:confused3 . And the terms were 15 or 30.

I would love more than anything to drop the percent so we could get the house paid off in 5 years or less. But we do not want to pay any closing costs and we have over $200,000 in equity so the value of the home is not in question.

We do pay some extra in principal each month, but I would sure love to drop othat rate and have more of my payment go to principal instead of that darn interest.

Anyone know about mortgage terms?

Bren

When we were in that situation in 2004, we took out a HELOC instead to pay off (or refi) the small mtg balance. Reason was the HELOC has no closing costs, just an appraisal fee. The HELOC had an introductory rate of 2.9% for 1 yr, then adjustable after that. They also were billing interest only, but we agressively paid it off in 4 yrs.

Again, the reason was NO CLOSING COSTS. It made no sense to pay closing costs on such a small balance that would be paid off in such a short time frame. There would have been no way to re-coup.

This is not something the bank suggested to us. I used to do mortgages when I worked at a bank, so I came up with the idea on my own. It made sense for us.

Its now all paid off by the way, and we are keeping the HELOC open just in case.

Every banks terms on HELOCs & fixed rate home equity loans will be different. You'll need to shop around for the one that works for you to avoid a prepayment penalty if you are lucky to pay it off (AND CLOSE IT) in a short time. Usually no penalty if you don't close the line early - say in less than 3 yrs.

jlima
12-18-2008, 12:09 AM
The rates did drop this morning. We had an offer of 5% yesterday, and it dropped to 4.875 this morning. It's been volatile today though. Oh, and this is for a refi.
DH & I are buying a bigger home! The guy at B of A asked if I wanted to lock in yesterday at 4.875 with one point. I said I'd get back to him. I think I can do better.

piratemamaof3
12-18-2008, 12:32 AM
We havn't been here but a yr and did pretty good. All I know is that DH is in mortgages at BOA so he is finally buzy again and that is good for us.
congrats to those that are getting good deals.

Mickey527
12-18-2008, 01:29 AM
I called today to check into refinancing and paying off all my debt. Right now my mtg is at 4.65 but it is variable and it will raise in 2010. I think 5% will be better in the long run because in April of 2010 it could jump up 2%, then at least that every year to the cap of 12.65
I was on the phone with the bank agent for almost an hour and in that time the rates changed 3 times. they were 5.25 when I called, then went down to 5, then back up to 5.15.
I am being checked out right now because I am disabled and they don't think my income is enough to pay off the mtg. But my mtg now is almost 1,200 with the taxes, and the 2nd is $217. I pay at least $500 a month to all the credit cards (yes I know, but before getting accepted to SS disability I had to pay my gas and electric with credit). So my monthly outlay is $1,900 and the new mtg with taxes will be $1,400. I am planning on making a 1/2 payment to the principal to pay it off faster too because a 30 yr mtg at 54 yrs old is scary.
I will hear from the bank tomorrow and hopefully the rates will drop again.

minnie1928
12-18-2008, 05:57 AM
wow, that's a good deal! what happened? did you take it? We're at 5% and were hoping for 4.5 to refi.

I'm still on hold:lmao: !

Actually, at the time I called it was getting close to 5pm and it looked like they stuck to their 5pm cutoff, so I hung up after 5. I'm going to try again today.

mommytoone
12-18-2008, 06:24 AM
I have a question, what is an ARM? How do you know if you have one?

Does anyone think the intrest rate will drop below 5% I have a 5.2% intrest on my mortgage, but would be willing to refi if drops. We did a refi 7 years for a 15 year, and only have 8 more left, but I sure would love to lower my payment it at all possible.

Who has the best rates?

hsmamato2
12-18-2008, 06:38 AM
I think it's only worth a refi if it's at least a full point drop or more...... I'm think we're at 5.875- but it might be the time......

minnie1928
12-18-2008, 06:46 AM
ARM stands for Adjustable Rate Mortgage - meaning that during some period of time your mortgage rate will adjust (most likely upward). There are many different kinds of ARMs, so I would look at your original mortgage documents. If that doesn't work, call your lender and they can tell you.

Whether or not to refinance not only depends on the rate change but also the amount of financed principal involved. A mortgage of $75,000 with a .5 point drop in rates may not be worth it. However, a 750,000 mortgage with that same drop would most likely be worth it. You have to look at the whole picture (interest rate, principal and fees) in order to make a truly informed decision.

dizcrazy
12-18-2008, 06:55 AM
:cool1: :yay: :cool1: :yay: :cool1: :yay: :cool1: :yay: :cool1: :yay:
THANK YOU OP!!!!!!
We just moved from 5.875 to 4.375! The 4.375 rate was the same for the 20 or 30 year fixed mortagges. (We didnt ask about the 15 year)
I am SOOOO happy!

Mom3girls
12-18-2008, 06:59 AM
:cool1: :yay: :cool1: :yay: :cool1: :yay: :cool1: :yay: :cool1: :yay:
THANK YOU OP!!!!!!
We just moved from 5.875 to 4.375! The 4.375 rate was the same for the 20 or 30 year fixed mortagges. (We didnt ask about the 15 year)
I am SOOOO happy!

What bank did you go with? We would like to refi and pay off some debt.:cool1: We are at 5.25 and are interested if it's below 5%. Not sure where to start...:surfweb:

2mickeys1minnie
12-18-2008, 07:03 AM
We are at 5.375% now.....for all of you mortgage experts....it would only make sense to refi if it drops a full point, correct? Right now our bank is at 4.875%....I have a feeling it will drop lower......would 3/4 of a point save us money? I would really love to lower the montly payment and/or reduce the term.

tmccullough
12-18-2008, 07:32 AM
I'm trying to decide, too. We can get 5.125 today @ Chase (we're at 6.5). Will they drop lower...that is the question. They say we don't have to pay closing...but remember "there are no free lunches". You still have to pay Title, etc...so saying you aren't paying closing costs isn't really being honest.

True... but we refinanced in Oct. 2007, lowered our payment, and cut 5 years off the loan with the no closing cost refi with Wells Fargo. We went from 8 to 6.5 percent. I'm waiting on a call from them today for a possible 2nd refi... a no lose situation IMO. Also, for those who haven't done the easy refi through Wells Fargo, I have never in my life been through such an easy process. Wells Fargo did everything! All they did was a credit check (if there was an appraisal, I never saw it - I think they just pulled it off the web I guess?). Then, there is no attorney involved at all so no fees that way. They sent us 2 hugely thick booklets with tabs showing where to sign,etc. and then we only had to have a notary public sign in a couple places basically witnessing that we are who we say we are which we did at our local bank. Let's face it... even as big as Wells Fargo is, they're bending over backwards to keep their current clients. I'd also suggest telling them that you've been offered excellent rates elsewhere. HTH :cool1:

princessmorgan
12-18-2008, 08:10 AM
Let's face it... even as big as Wells Fargo is, they're bending over backwards to keep their current clients. I'd also suggest telling them that you've been offered excellent rates elsewhere. HTH :cool1:

I wish someone would tell me who they are speaking with at Wells Fargo, because our guy is no help at all! And this is our second mortgage with them.:confused3

tmccullough
12-18-2008, 08:15 AM
I wish someone would tell me who they are speaking with at Wells Fargo, because our guy is no help at all! And this is our second mortgage with them.:confused3

I just called the toll-free number from their website. If you go to their main page, check today's mortgage rates and to the right, there is a box with a toll-free number for current customers who want to do their easy refi. I'd post the number but don't know if it's allowed. When I called them, they are so busy that they are screening calls, taking your loan number,etc. and forwarding it to a loan officer who will call you back within 48 hours. They haven't called me back yet but it's only been 24 hrs. HTH :hippie:

Pennykay
12-18-2008, 08:17 AM
Ok, I realize that this is probably a stupid question, but if you have an ARM and interest rates are dropping, why wouldn't the ARM decrease?

princessmorgan
12-18-2008, 08:30 AM
I just called the toll-free number from their website. If you go to their main page, check today's mortgage rates and to the right, there is a box with a toll-free number for current customers who want to do their easy refi. I'd post the number but don't know if it's allowed. When I called them, they are so busy that they are screening calls, taking your loan number,etc. and forwarding it to a loan officer who will call you back within 48 hours. They haven't called me back yet but it's only been 24 hrs. HTH :hippie:

Thanks!

minnie1928
12-18-2008, 08:33 AM
We are at 5.375% now.....for all of you mortgage experts....it would only make sense to refi if it drops a full point, correct? Right now our bank is at 4.875%....I have a feeling it will drop lower......would 3/4 of a point save us money? I would really love to lower the montly payment and/or reduce the term.

You really need to do an amortization table (you can google for one) to see what the difference would be for you. There are too many variables to say that dropping x% would make it worthwhile. It depends not only on the rate, but the principal, the fees to do the refi, the amount of time you plan on spending in the house, etc.

What I would do is this:
1. Use an amortization table to determine what your new payment would be if you refinanced.
2. Compare that payment to your existing payment to determine your monthly savings.
3. Using the lenders good faith estimate of closing costs, divide the closing costs by the monthly savings from #2.
4. That's how many months it will take you to re-coup the cost of refinancing, after that it's all good. Looking at that time frame, do you still plan on being in your house after that period of time? If so, then refinancing would probably be in your best interest.

RitaE
12-18-2008, 08:53 AM
If you are in the Chicago area, Liberty Bank has 10 and 15 years with 0 points 4.875% today.

If you have at least 25% equity they have a 10 year @ 4.5% with 0 points, APR 4.637%.

http://www.libertybank.com/rates.aspx#1530

tedhowe
12-18-2008, 09:11 AM
Ok, I realize that this is probably a stupid question, but if you have an ARM and interest rates are dropping, why wouldn't the ARM decrease?

One reason is that most ARMs have an artificially low "teaser" rate at the start of the load that is below the normal spread from whatever benchmark they use (t-bills, LIBOR or whatever they use).

This gets people into the ARM at an especially low initial payment, but almost guarantees that the payment will go up at the first (and sometimes second) adjustment.

There may be some ARMs that will not adjust up with the current interest rates, but most will.

We got lucky when we bought our first house - back in 1996 - we had a 1 year ARM - with that short of a lock at the start, it wasn't too artificially low - the rate stayed virtually the same the first year (it went up slightly as I recall) the second year it went down slightly, but interest rates were so much lower to allow that to happen then when we bought, that we very quickly did a Well streamline refi into a 30 year fixed.

Chicago
12-18-2008, 09:13 AM
RitaE -

I live in Chicago. Did you personally refinance with Liberty? If so, will you pm me your contact?

I'm not sure if I should refinance. I have 15 years left on a conventional loan at a rate of 5.25. I don't plan on staying in the house longer than 4 years. Any advice from you mortgage experts?

paper1225
12-18-2008, 09:21 AM
:cool1: :yay: :cool1: :yay: :cool1: :yay: :cool1: :yay: :cool1: :yay:
THANK YOU OP!!!!!!
We just moved from 5.875 to 4.375! The 4.375 rate was the same for the 20 or 30 year fixed mortagges. (We didnt ask about the 15 year)
I am SOOOO happy!

We are at 5.875 right now too--can I ask about the 4.375....ie, how much did your payment drop? any points involved? it is a fixed rate right? and who did you get that great rate from? we currently have countrywide and have for every house we have owned for the last 15 years, would like to keep loyal-but not sure if that is the best way to go at this point in the economy!!TIA

RitaE
12-18-2008, 09:24 AM
RitaE -

I live in Chicago. Did you personally refinance with Liberty? If so, will you pm me your contact?

I'm not sure if I should refinance. I have 15 years left on a conventional loan at a rate of 5.25. I don't plan on staying in the house longer than 4 years. Any advice from you mortgage experts?

No, I've just been watching local rates closely, I have about 22 years left on a 30 year mortgage at 5.5%. Harris Bank is still above 5%. I'd like to drop down to at least a 15 year. Most 10 year rates I have seen are the same as the 15 year fixed, so I figure I might as well go with a 15 year and then try to pay it like a 10 year. We have no plans to move, so it is definitely worthwhile for us to go through with a refi for the lower rate.

left210
12-18-2008, 09:49 AM
:cool1: :yay: :cool1: :yay: :cool1: :yay: :cool1: :yay: :cool1: :yay:
THANK YOU OP!!!!!!
We just moved from 5.875 to 4.375! The 4.375 rate was the same for the 20 or 30 year fixed mortagges. (We didnt ask about the 15 year)
I am SOOOO happy!


What company are you with and do you have a contact name and #?

mzspaz
12-18-2008, 10:05 AM
paper1225, I am right there with you at 5.875% through Countrywide. We are 4 years into a 30 year loan. It would be nice to get our monthly payments lowered, so I am keeping an eye on things.

Funny thing is.....I haven't heard from Countrywide in about a year regarding refinancing. We used to get calls from them all the time. But 2 days ago I visited their web site in order to check their rates and see if they were offering any deals. Since then, they have called 2 times and sent us mail.

I'll be keeping an eye on things and will see if Countrywide is willing to do anything for us since we are good customers, put 20% down, and have paid on time every month.

princessmorgan
12-18-2008, 10:11 AM
I just talked to Wells Fargo. They quoted a rate of 4.75% for 30 year fixed. No points. Does anyone know if there is such a thing as a real no cost refinance? It seems that when you don't have to pay any fees, they either give you higher rate or roll your fees into the mortgage.

CarolA
12-18-2008, 10:35 AM
Ok, I realize that this is probably a stupid question, but if you have an ARM and interest rates are dropping, why wouldn't the ARM decrease?

It might. My first ARM did just that the first time it reset.

However, the crystal ball doesn't always work and when rates go up so does your ARM. Plus most of them reset annually after the five year lock. So at some point.....You will be much higher the 5% and kicking yourself!

crisi
12-18-2008, 10:38 AM
Ok, I realize that this is probably a stupid question, but if you have an ARM and interest rates are dropping, why wouldn't the ARM decrease?

Depends on how the contract is written as well.

Some won't decrease, they'll only go up. Some will only adjust once - either direction - which is great if the rate is lower when you hit your one time adjustment - others will adjust multiple times during the contract - which will create a lot of volitility.....

In general ARMs are a gamble....get a lower rate now hoping that the rate is lower when it does adjust - but interest rates can be pretty volitile and for a family that has a budget at the bone, the combination of an ARM going up by a 1% and adding $200 to their house payments - and gas at $4+ a gallon - it forced a lot of foreclosures this year....

jennilouwho
12-18-2008, 10:59 AM
I'm 3 years into a 30 year loan at 6.37. I called Countrywide today and we are changing to a 30 year fixed at 4.5 percent with 2 points. We're actually going to pay it off in 15, but got a better interest rate with 30. So we now are paying about $80 more a month and it will be paid off 12 years sooner than planned, when my oldest graduates! Whoo! :)

dizcrazy
12-18-2008, 11:02 AM
Paper1225:
Regarding our current 5.875 moving to 4.375....
Our payment dropped $330 a month on the 30 year.
I believe we are paying .5 (1/2 a point) I dont have the Good Faith w/ me
Yes, it is fixed. I triple checked that!
We have a financial advisor who worked with our mortgage broker. I am not sure which bank we ended up with - because one bank didnt even need an appraisal and that's the one our advisor wanted us to go with. I think the one bank was AMTRUST BANK in Cleveland, OH.

We live in Pennsylvania - I dont know if mortgage brokers can work in other states, but if anyone would like my brokers name, please PM me.

LeslieG
12-18-2008, 12:35 PM
I just talked to Wells Fargo. They quoted a rate of 4.75% for 30 year fixed. No points. Does anyone know if there is such a thing as a real no cost refinance? It seems that when you don't have to pay any fees, they either give you higher rate or roll your fees into the mortgage.


What banks are offering no fee refinances?

loveysbydesign
12-18-2008, 12:43 PM
We have an FHA loan with Citibank that's biweekly at 6%. We have 23 years left on our 30 year mortgage. We'd like to refi and take cash out to get new windows and such. Is it a good time to do that or should we just refinance. And if we re-fi do we stay with FHA or get a normal mortgage???
AHHHHH...so many questions my head is spinning!

princessmorgan
12-18-2008, 01:19 PM
What banks are offering no fee refinances?

Wells Fargo is offering no fee refinances if you are currently with them, but the rates are a little higher. So it's not really no cost. It just cost you later on. There are other companies too that do it, but with a higher rate unless you add points. If they require points, then aren't you just buying down the rate anyway?

mom of princessx2
12-18-2008, 01:42 PM
Wells Fargo is offering no fee refinances if you are currently with them, but the rates are a little higher. So it's not really no cost. It just cost you later on. There are other companies too that do it, but with a higher rate unless you add points. If they require points, then aren't you just buying down the rate anyway?

I do not completely agree with that. If I am paying 6.125% and Wells Fargo is going to reduce it to 5.125% at no cost I do not feel it will cost me later on. All it will do is save me $200 per month which I can spend elsewhere to help the economy or save to help my retirement or even pay the extra on my mortgage.

Now, can I pay closing or points and get a lower rate? Certainly, but am I content with a no cost reduction of 1%? Absolutely

minnie1928
12-18-2008, 01:49 PM
We have an FHA loan with Citibank that's biweekly at 6%. We have 23 years left on our 30 year mortgage. We'd like to refi and take cash out to get new windows and such. Is it a good time to do that or should we just refinance. And if we re-fi do we stay with FHA or get a normal mortgage???
AHHHHH...so many questions my head is spinning!

I would call and ask a loan officer your questions. I just peeked at Citibank's website and their rates aren't as low as others, so you might want to shop around. Try Wells Fargo or TD Bank North, they seem to be competitive.

minnie1928
12-18-2008, 02:21 PM
I'm still on hold:lmao: !

Actually, at the time I called it was getting close to 5pm and it looked like they stuck to their 5pm cutoff, so I hung up after 5. I'm going to try again today.

I finally got a call back from TD North. They are listing 4.75 on their website with 0 points. After speaking with them we realized that we don't qualify for that rate since our mortgage is higher than the traditional conforming loan limits that they are adhering to. FWIW, she said that they do not sell their loans and that was the reason that they couldn't adhere to the higher COL conforming loan limits (which I fall into).

For anyone with a mortgage of less than $417,000 in the northeast, this could be a very good deal.

left210
12-18-2008, 02:23 PM
I finally got a call back from TD North. They are listing 4.75 on their website with 0 points. After speaking with them we realized that we don't qualify for that rate since our mortgage is higher than the traditional conforming loan limits that they are adhering to. FWIW, she said that they do not sell their loans and that was the reason that they couldn't adhere to the higher COL conforming loan limits (which I fall into).

For anyone with a mortgage of less than $417,000 in the northeast, this could be a very good deal.

Did they mention cost of fees?

minnie1928
12-18-2008, 02:33 PM
Did they mention cost of fees?

If you go to their website and key in your basic loan information (this is not applying for the loan) they will show you the monthly payment and an estimate of costs.

http://tdbanknorth.mortgagewebcenter.com/CheckRates/SearchCriteria.asp?PID=22

left210
12-18-2008, 02:42 PM
Thanks - I called TD North and they do not write loans in my state (IN). I am still waiting on Wells Fargo to call me back. Just be careful and check all fees to everyone. I had Countrywide quote me $6500 in closing costs and my local bank PNC quote me $2100 for the same loan and same rate. I am still trying to get a lower rate so that is why I am waiting to hear back from Wells Fargo but may just end up going with PNC.

forgop
12-18-2008, 08:31 PM
In my situation, it doesn't do me any good to refinance. I'm in a 30 year fixed at 5.75% that was due to mature in 2032, but made a HUGE payment from an inheritance that took it down under $100k. Even dropping to 4.75 on a 15 year and figuring the same monthly payment under each scenario (I intend to pay $1500/month with the extra amount going to principle), my payoff only improves by 1 month. There's another inheritance looming that would be more than enough to pay it off, so I'd be paying $2k+ in closing costs to extend the existing term. I just wanna get my house and student loans paid off...

jlima
12-18-2008, 09:24 PM
DH & I are buying a bigger home! The guy at B of A asked if I wanted to lock in yesterday at 4.875 with one point. I said I'd get back to him. I think I can do better.
Today the B of A guy said 4.75. Stay tuned! Don't have to lock in until 7 days before we close.

momsavealot
12-18-2008, 09:38 PM
I finally got a call back from TD North. They are listing 4.75 on their website with 0 points. After speaking with them we realized that we don't qualify for that rate since our mortgage is higher than the traditional conforming loan limits that they are adhering to. FWIW, she said that they do not sell their loans and that was the reason that they couldn't adhere to the higher COL conforming loan limits (which I fall into).

For anyone with a mortgage of less than $417,000 in the northeast, this could be a very good deal.

Is this the old Commerce bank?

JoanneNC
12-18-2008, 09:45 PM
I just talked to Wells Fargo. They quoted a rate of 4.75% for 30 year fixed. No points. Does anyone know if there is such a thing as a real no cost refinance? It seems that when you don't have to pay any fees, they either give you higher rate or roll your fees into the mortgage.

umm- when I looked at the website for Wells Fargo 4.875% fixed for 15 years BUT the fine print says 1 point fee in the rates

MKCP5
12-19-2008, 05:44 AM
If you go to their website and key in your basic loan information (this is not applying for the loan) they will show you the monthly payment and an estimate of costs.

http://tdbanknorth.mortgagewebcenter.com/CheckRates/SearchCriteria.asp?PID=22

It is a better deal than what we have, but you still have to pay closing costs. Does anyone know of anyone who is offering no closing costs also?

I am clueless to all of this. We only bought about 18 mo ago and with the change in the econonmy don't know about values and refi and how it all works.

minnie1928
12-19-2008, 07:14 AM
Is this the old Commerce bank?

Yep, sure is!

minnie1928
12-19-2008, 07:16 AM
It is a better deal than what we have, but you still have to pay closing costs. Does anyone know of anyone who is offering no closing costs also?

I am clueless to all of this. We only bought about 18 mo ago and with the change in the econonmy don't know about values and refi and how it all works.

I don't think you'll easily find a true "no cost" refi (unless you're currently with Wells Fargo, then you might). If you have the equity, you might be able to roll your closing costs into the mortgage.

princessmorgan
12-19-2008, 07:19 AM
umm- when I looked at the website for Wells Fargo 4.875% fixed for 15 years BUT the fine print says 1 point fee in the rates

I don't know if the rate is different for 15 year mortgages. This is just what the guy I talked to said. Also we'd have to pay some closing costs. I know the rate is different for a no cost refinance.

kellia
12-19-2008, 07:22 AM
We have a 30 yr fix mortgage through Wells Fargo. Looks like we could save a little bit by refinancing. Problem is, we live in Michigan, so our home value has dropped so much, I doubt we have any equity. Think they would still let us lower it if they already own the loan anyway?

momsavealot
12-19-2008, 08:55 AM
With respect to Wells Fargo, be careful, the rates that you see include one point, which is 1% of the loan amount you're seeking.
TD Bank's website has the same rate with no points. However, when we called today, they gave us a different (higher) rate than the website.
And we can't get thru to Wells Fargo today - they are so swamped that their phone lines can't handle it - very frustrating. We are already Wells Fargo customers but we want to increase the principle amount to pay off some cc debt so I don't think we qualify for their fee free refinancing.
Any other banks out there with good rates and no/low feespopcorn:: ?

sk8jdgca
12-19-2008, 09:23 AM
Not to make you feel bad but up here in Canada, people who took a variable rate as sitting as low as 2.65%

jmpellet
12-19-2008, 05:33 PM
There's a great website I use to run all the numbers: www.figurewiz.com

CarolA
12-19-2008, 06:25 PM
I spent some time looking today. Maybe it's Georgia, but I don't see the great rates here. Part of it may be that I am in a townhome which may be higher but.... I don't want to pay points etc. and... I just put in some basic info on BankofAmerica.com for example and the rates weren't that great. And these are "blind" so it's not my credit (which is excellent) or my specific home etc. I don't get it!

minnie1928
12-19-2008, 07:08 PM
I spent some time looking today. Maybe it's Georgia, but I don't see the great rates here. Part of it may be that I am in a townhome which may be higher but.... I don't want to pay points etc. and... I just put in some basic info on BankofAmerica.com for example and the rates weren't that great. And these are "blind" so it's not my credit (which is excellent) or my specific home etc. I don't get it!

I looked at BofA as well and wasn't impressed. Take a look at Wells Fargo, see if that looks better.

madge
12-19-2008, 07:12 PM
I spent some time looking today. Maybe it's Georgia, but I don't see the great rates here. Part of it may be that I am in a townhome which may be higher but.... I don't want to pay points etc. and... I just put in some basic info on BankofAmerica.com for example and the rates weren't that great. And these are "blind" so it's not my credit (which is excellent) or my specific home etc. I don't get it!

I found rates to be slightly higher today than they were a day or two.

Avonlady1001
12-19-2008, 07:12 PM
With respect to Wells Fargo, be careful, the rates that you see include one point, which is 1% of the loan amount you're seeking.
TD Bank's website has the same rate with no points. However, when we called today, they gave us a different (higher) rate than the website.
And we can't get thru to Wells Fargo today - they are so swamped that their phone lines can't handle it - very frustrating. We are already Wells Fargo customers but we want to increase the principle amount to pay off some cc debt so I don't think we qualify for their fee free refinancing.
Any other banks out there with good rates and no/low feespopcorn:: ?

We just did it today w/ Wells Fargo. Locked in 4.75% w/ 1pt...they do free relocks if it goes down. It was 4.5% when I called in the AM & then 4 hours later when I called again to do it, it had gone up. Anyway, there are some closing costs w/ our refi w/ cash out...it's the atty fee, appraisal fee, state fee...all in all about $2500. This is in NY, don't know if it varies. My sister (also NY) was quoted almost $10000 closing w/ Chase to refi.

karinbelle
12-20-2008, 05:28 AM
have any of you checked with your local credit union?

I refinanced in May at 5% fixed on a 15 year loan with less than $500 closing costs. This was when most banks were at 6% and 1000+ closing costs.

Many credit unions allow anyone to join.

I'm going to call them on Monday to see where their rates are now.

drinkme
12-20-2008, 05:48 AM
I've been trying to get in touch with someone (anyone) at Wells Fargo since Thursday at 4pm. I've called 3 times so far and left my name/number to get a return call.

I know they are busy, but c'mon! That's lousy customer service. The rates have increased already.

I was told that I would hear from someone by Monday. With my luck, the rates will have shot up by then.

DVC Sadie
12-20-2008, 06:40 AM
I went to our local bank yesterday and was quoted 4.78 without points, so we went ahead with our paperwork so we can lock in when the rates decrease. I am hoping the rates will go down at least another half % or more.

minnie1928
12-20-2008, 07:10 AM
I've been trying to get in touch with someone (anyone) at Wells Fargo since Thursday at 4pm. I've called 3 times so far and left my name/number to get a return call.

I know they are busy, but c'mon! That's lousy customer service. The rates have increased already.

I was told that I would hear from someone by Monday. With my luck, the rates will have shot up by then.

I called a few days ago and left my name/number and had a return call within 2 hours. The person that called me back was from the local mortgage office. Perhaps you would have better luck calling the local office (assuming there is one near you) directly?

momsavealot
12-20-2008, 05:12 PM
We just did it today w/ Wells Fargo. Locked in 4.75% w/ 1pt...they do free relocks if it goes down. It was 4.5% when I called in the AM & then 4 hours later when I called again to do it, it had gone up. Anyway, there are some closing costs w/ our refi w/ cash out...it's the atty fee, appraisal fee, state fee...all in all about $2500. This is in NY, don't know if it varies. My sister (also NY) was quoted almost $10000 closing w/ Chase to refi.

Does the $2500 include the point you had to pay? I'm currently with Wells FArgo and want to do a cash out refi so I'm trying to determine the costs for that. Left message with Wells Fargo Friday with both local and main office (as well as online contact us forms) - nothing yet.

Avonlady1001
12-20-2008, 07:34 PM
Does the $2500 include the point you had to pay? I'm currently with Wells FArgo and want to do a cash out refi so I'm trying to determine the costs for that. Left message with Wells Fargo Friday with both local and main office (as well as online contact us forms) - nothing yet.

No, that did not include the point. The point I have to pay up front, the closing costs I'm rolling into the mortgage.

momsavealot
12-21-2008, 04:13 PM
Finally got a call from a Wells Fargo local rep today and was told rate higher for a cash out refi. Of course, I didn't ask why then ( I will when I talk to her again) but I was just wondering if you guys knew? Also, she guessed 5% but would get back to me now that she took my info. Sounds kinda high and if we're not saving anything on closing costs (even tho we're WElls Fargo customers already), I may just look around.

Avonlady1001
12-27-2008, 03:09 PM
Bumping this...

Anyone get any recent quotes this week? Just curious what's going on w/ the rates. Haven't heard back from WF since I submitted my paperwork last Friday.

minnie1928
12-27-2008, 03:11 PM
Bumping this...

Anyone get any recent quotes this week? Just curious what's going on w/ the rates. Haven't heard back from WF since I submitted my paperwork last Friday.

I'm working with WF and rates started to go up on Monday night, then they went up again on Friday. I think between Monday am and Friday the rates went up about .375% roughly.

iteach7th
12-27-2008, 03:34 PM
We met with our local guy here - it is a home owned mortgage company that acts as the middle man for different companies. I talked to him on Thursday of last week to start things moving. We met with him on Tuesday the 23rd and signed all the paperwork with a final rate of 4.625% for a 25 year loan. Currently we are at 25 years on our 30 year loan financed at 5.65%. With the way our housing market has gone in the area, we will be able to drop PMI with the refinance but will have to pay closing. The appraiser will come next week and hopefully be ready to close in about 2 - 3 weeks.
I am not sure which mortgage company the loan will go to, he told us during the paperwork signing but I don't remember. We have had two house loans through them and the past experience is it will sit with one company for a few months and then sold to Countrywide the first time and ABN Amro the second (which was later bought out by .......). We have automatic draft so I don't pay that much attention except to make sure it comes out when I balance the checkbook.
He did mention the rates were going up a little but was able to lock us in to the lower rate. It will cut $300 on our payment per month and if I can just stay disciplined with the former payment it will be much more beneficial in the long run. But right now I am seeing that $300 as more WDW money for the summer !!