Mortgage Rate Question
Bond yields have continued to fall this morning and we’re starting to reevaluate the rate we locked in a couple of months ago. Anyone know what a jumbo 30-year fixed is at this morning and who has the best rate in town right now?
Bond yields have continued to fall this morning and we’re starting to reevaluate the rate we locked in a couple of months ago. Anyone know what a jumbo 30-year fixed is at this morning and who has the best rate in town right now?
Talk to a mortgage broker. I recommend First Merchants on 7th Ave and Berkeley Place in the Slope. Ask for Tonya (I think her last name is Martin). We got out first mortgage and first refi through them before making the mistake of working directly with the bank on the 2nd refi — and getting screwed on the rate as a result.
you can avoid a lot of the closing costs by consolidating the new mortgage with the old and signing what’s commonly called a CEMA (consolidating extension modification agreement). The bank would concurrently loan you “new money” to cover whatever difference there is. On that new money you’d pay mortgage tax but it would be very low as if you’re only a few months past your first closing, the difference would be miniscule. Assume the new money is 10K, you only pay mortgage tax on that new 10K rather than, say, $1 million. You’d also have to pay any bank fees, bank attorney fees, your own attorney fees if you get one (no real need in this instance), and recording fees for the new mortgage and CEMA (minor payment). You MAY also have to pay for new title insurance which would get pricey (if it’s required for the combined mortgage amounts) but some banks are more flexible on that. If you can avoid title insurance (or only have to get coverage for the new money) you’d be in good shape.
You do pay closing costs but not the 2% (?) charge for registration if you can have it assigned
For Anonymous
you do pay closing costs again if you refinance – that’s why it’s good to wait for a 2% drop in the rate before you go for it (or has that formula changed?)
I have the same question. I’ve been told recently that if your bank will agree to do ‘assignment of mortage’ you can avoid the mortgage transfer tax (except on any cash you pull out), but another bank told me it just cuts closing costs down to about 3% of the usual 6% because there are still bank/lawyer fees, etc. Who knows anything more about this.
BTW, Brownstoner, these financial discussions are quite helpful to many of us, keep ’em coming. Along that line, I saw a small article in the NY Post last week — what if the capital gains tax law is not renewed? If I remember correctly, the article said the law would expire in 2008…have you heard an update on the subject?
Does anyone know if you have to pay closing costs again if you re-finance in the new york city area?
The best gauge of mortgage rates is Fannie Mae’s Required Net Yield(RNY). The RNY is roughly defined as the minimum yield price that Fannie Mae is willing to accept when it buys a ‘closed’ (originated) loan from lenders. Think of it as the ‘wholesale’ price for lenders. Here are a few links: http://ww3.freddiemac.com/ds1/sell/rnyhistory.nsf/frmChart?OpenForm , http://www.efanniemae.com/sf/refmaterials/hrny/index.jsp ——IAC
go to bankrate.com, they really do have a damn good site with everyone’s point’s, fees and competitive rates… very well done.
North Palm Beach, Fla. — Aug. 31, 2005 (Bankrate.com) — Average rates on 15-year jumbo mortgages in the New York metro area fell 2 basis points to 5.25 percent on Wednesday, according to Bankrate.com’s daily Your Best Interest report. A basis point is one-hundredth of a percent. The mortgages in the survey had an average of 0.71 discount and origination points.
http://www.bankrate.com/brm/updates/ybir/ybir_results.asp?web=brm¶ms=mtg,M,165,NY,2
http://www.bankrate.com/brm/rate/mtg_ratehome.asp?params=165000,NY,2&product=165&pType=f&refi=0&sort=3&points=6