To Refi or Not
So our bank is offering to refinance for only $400 (application fee) on our 2 family. $370K mortgage @ 4.25 for 15years. Current rate is 5.325. We plan to pay the mortgage in 10 years. We already locked and pay application fee. With the news of the FED planning to pump more money out and…
So our bank is offering to refinance for only $400 (application fee) on our 2 family.
$370K mortgage @ 4.25 for 15years. Current rate is 5.325. We plan to pay the mortgage in 10 years. We already locked and pay application fee. With the news of the FED planning to pump more money out and this possible lowering the rates, I’m getting cold feet. We also didn’t shop around, don’t want to shop around due to time constrains (and yes laziness). We plan to pay the mortgage in 10 years.
Is this a decent rate now? Would it make much difference if we would have shop around? Wait? Opinions wanted.
we went through a broker and was able to get nothing out pocket and they are paying for all closing costs refi from 5.25 to 4.25 30yrs. Our credit is 765 average. They just wanted to see our paystubs and banking statement. According to the broker they wanted to show we have saved money(?????).
amount being financed is about 363,000 and some change.
Can’t predict the bottom, my brother keeps telling me to wait a little longer. To me it’s a no brainer.
@Bklnite – no points, just needed to cover the banks lawyers $300 + $100 and the valuation $350.
Was arranged through Apple Mortgage (but as said they are just brokers, it’s through citibank)
@Invisible – where are you getting 3.75% from? I wrang a ton of places to get 4.375% for our co-op, thats a big difference, i’m calling your bluff.
sorry to be a serial thread poster here, but you should be somewhere between today’s conventional of 3.5% and jumbo of 3.75% (because its a 2 fam, perhaps closer to 3.75). ABSOLUTELY COULD HAVE LOCKED ITO THAT TODAY. The rest is you being taken to the cleaners. That”s the difference between them calling you and you calling the market. Adam is spot on!
BHO- Thanks for looking out for me. It’s been pretty busy lately. 🙂
In my honest opinion. ASSUMING… assuming that you have great credit 4.25% is an OK rate since you are not paying closing costs. It’s a 2 fam so there is a 1pt adjustment and closing costs are about 1.5% There is a reason why they are charging you so little to refinance. It’s because they are charging you a rate that is much higher than what is available. Those closing costs are still being paid, they are being paid by you a little bit each month. You are financing the closing costs. You are basically paying those closing costs over and over again. If you are selling the place in the next few years it may make sense but if your intention is to hold the place or mortgage for the long term than it isn’t a good idea.
There are a lot of factors that go into a mortgage rate these days. Mainly the loan amount, the type of property which in conjunction with the loan amount will determine if it’s conforming, conforming jumbo, or true jumbo, your credit score, and the loan to value AKA the LTV.
Multi family properties have more adjustments to rate than 1 unit properties. Conforming jumbos are about .25% higher in rate that conforming loans. Condos with a LTV over 75% have a .75pt adjustment etc…. There are a lot of different scenarios that come into play.
Assuming a loan amount from 330k to 417k with a Loan to Value under 60% with 740 fico and a 1 unit property you could obtain a 15 year rate t 3.5% on a 15 year fixed if you were to pay your own closing costs.
OP- It really depends on what your long term goals are. Do the math and see the difference in monthly payments and closing costs and find out what your break even point is.
Adam Dahill
adahill@wcslending.com
212-351-8020
Have a good weekend people 🙂
deanbh, that is a great rate. Points, or no points?
I refinanced w/ citi late last year into a 30yr fixed at 5%, and am wondering if rates have dropped (or will drop) enough to make it worth another refi.
Petunia, this is via Chase. Same bank that holds the morgage now.
you can refi with another bank and avoid the mortgage tax. doing it now.
Petunia, yes, only $395 feed, I got a good faith estimate. We could have gotten a bit of a lower interestest rate, but would had had to pay around 5K in closing costs, I we just wanted to keep it straight forward. Bank will still be making lots of money either way. I think rates will go down a bit more, but I guess I can always shop around later : )
The refi program i’m getting is HARP FNM (link below). It a bit sad that this is not helping homeowners that really need it and I know a few. Thanks all for your opinions. Let see what happends, I’ve havent close it.
deanbh, that’s a great rate.
https://www.efanniemae.com/sf/mha/
just locked 488k in 30 year fixed jumbo on a co-op with ctibank today at 4.375%