Lower 30 year fixed for a coop?

We financed our coop purchase last year for 4% fixed over 30 years. I’ve been seeing on the news that 30 year fixed rates have dropped since then, if you’ve refinanced a 30 year fixed non conforming in the last 3 months or so what did you pay? Looking at some of the costs involved for us last time it doesn’t make sense unless the rates fall below 3.75% so i guess what I’m asking is…..are we there yet? Are any brokers on the list able to offer lower than 3.75% for 30 year fixed on 950k/on a 1.65m Brooklyn heights coop?

deanbh

in Financial Services 10 years and 4 months ago

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earleburns | 10 years and 4 months ago

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If the rate goes below 3.75% then I will surely refinance mortgage. Being a mechanic in Ontario I will not miss a chance to save some extra dollars. I had taken a mortgage at 6.25% from a local mortgage dealer to buy my house, but after two years I refinanced it with Northwood Mortgage as they offered me a better rate. Right now I am really satisfied with the offer I have and I don’t think I am going to get a better offer.

deanbh | 10 years and 4 months ago

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Well if I can get more than 0.25% then sure…….but I don’t know of any 30 year fixed jumbo loans going for less than 3.75% 🙂 and not sure they are going to go lower than that.

stuyheights | 10 years and 4 months ago

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So you would refi to save a quarter on the rate? Is that the goal?

deanbh | 10 years and 4 months ago

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@mrohrmann I’m only trying to refi this time because the rates have fallen below our current fixed 4% that we signed up for last year, once we lock in this next loan that will be it until we sell. Like I said not sure any mortgage brokers can get 30 year for 3.75% yet but based on the fed minutes today……it must be getting close.

mrohrmann | 10 years and 4 months ago

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Dean Learn the mechanics of interest rates to get comfortable with ARM type products if you really want to save money. The $35k in cost is an extremely expensive hedge. If you just try to refi every time there is a rate fluctuation you are eating up all your cost savings vs. your current loan anyway and then some when a 5 or 7 year arm would be way cheaper and you can refi at any point anyway so there is no reason to try to hedge your current loan from interest rate risk anyway. Moving down the yield curve is the easiest way to save and even with the yield curve flattening out you can always move back to longer duration loan later so.

deanbh | 10 years and 4 months ago

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sorry but prefer 30 year fixed. the difference when I looked at 5/1 to 30 year was about $7k a year……for me it was worth the additional $35k not to be worried about trying to refi in 5 years from now at 8% etc…….

resident2 | 10 years and 4 months ago

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Just as you are already looking to refinance your fixed loan, you probably will again in a few years. So why pay all that extra interest for a fixed rate. Look at refinancing with an adjustable rate, but be sure that there are caps on the adjustments so that the rate cannot sky rocket, although it does not look like the rates will be going up too fast in the near future. (few year) I bought my current home ten years ago with a 5/1 adjustable. It stayed fixed for 5 years and has adjusted every year since. It has gone down every year since. I took it out it was almost 5% it is now 2.875% Adjustable with caps is the way to go. No one in reality pays their 30 year loan off in 30 years! Life happens!