Mortgage Rates continue to drop!!!

[mom of princessx2]

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!

 

[JoyG]

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

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]

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]

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]

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]

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]

are the deals only happening for refi's or conventional mortgages as well?

 

[McDISer]

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]

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 . 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]

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]

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 . 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]

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]

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]

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]

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 !

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]

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]

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]

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]

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]

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. We are at 5.25 and are interested if it's below 5%. Not sure where to start...