OT: anybody refinancing?

Submitted by BlueWolverine02 on March 12th, 2020 at 3:07 PM

So apparently rates are really low and everyone is trying to take advantage of them.  I just shot Homesure Lending an email to explore options.  Anybody else looking into this?  What kind of rates are people seeing?  Has to be some silver lining in the coronavirus. 

bigdemo

March 12th, 2020 at 3:53 PM ^

Hey guys, on the wholesale end of things my investors have been really uncompetitive the last 3 days as they try to control the influx of loans AND the mounting losses from unseasoned loans being paid off.  Still check in with me, but my suggestion a local bank (for today at least).  mgoblog (at) homesurelending.com 

I wish I had an alternative to losing this business but call a small bank that may still be lending it's own assets.

WestPalmBlue

March 12th, 2020 at 4:17 PM ^

I bought at seemingly the worst time at 4.625 on a 30yr 2 yrs ago but about 4 weeks ago locked in a 15yr refi at 2.75 with 0 points and no appraisal with Bank of America here in Orlando.  

Champeen

March 12th, 2020 at 4:19 PM ^

Your 2 days late.  Rates jumped almost a half a point in 2 days.  My contact was 3% for fixed conventional 30 years.  Sucks because i refinanced at what i thought was a steal - 3.5% - about 4/5 months ago.

pfholland

March 12th, 2020 at 4:25 PM ^

I started the process with Wells Fargo back in the end of January when I saw 15-year fixed refinance rates drop to 2.875% (I'm refinancing from a 30-year fixed at 3.625%). With the markets melting down the way they are I assumed I rate locked too early, but when I checked today the 15-year fixed refinance rate was 3.25%.  Go figure.

The Claw

March 12th, 2020 at 4:34 PM ^

I was at a 4.65% and Quicken hit me up about a refi. It went down to a 3.5% a couple weeks ago. I haven't closed yet so I'm hoping I can get the lower rate in or I might be looking elsewhere.

Khaleke The Freak

March 12th, 2020 at 4:53 PM ^

3.5% rate, 30 year term at 75% LTV, no cash out.  Rates were lower last week, hard to gauge what the future holds

johnhugo

March 12th, 2020 at 5:00 PM ^

i just was approved today by underwriting by Mercantile in GR for 3.125 for a 20 yr, house is under 60% LTV so no appraisal needed couple thousand in closing costs, but that's expected.  I applied a little over a week ago, ours is pretty straightforward though, easily verifiable income, assets, and no debt.  Just a straight refi with no cash out.  Saved a full point in interest, and 5.5 yrs of payments.  Payment only going up $60/mo.  Really happy with them if you guys are looking for options.  Considered holding off for a bit, but the markets are so volatile right now who knows what's going to happen. 

MGoJukes

March 12th, 2020 at 5:30 PM ^

 

 

Rates were incredibly low a week ago such that lenders couldn't handle the volume - so they've raised rates above market to try to slow it down.  Still low, but not abnormally so anymore.  Many lender websites will speak to this.

 

JamieH

March 12th, 2020 at 6:04 PM ^

I got unbelievably lucky and bought a house in 2012.  So I haven't refinanced.  But I probably would be otherwise.  Anyone that can get a lower rate and zero points should do it.  

Having your largest debt at under 3.5% is a financial boon.  Well, it normally is, when the market isn't going down 10% a day.

switch26

March 12th, 2020 at 6:17 PM ^

My wife is in real estate and she works with several lenders so her friend just went over stuff with us yesterday.

 

We are probably going to go to a 15 year loan instead of our 30, as we would save over 50k in interest.

 

Rates were 2.99 yesterday and back to 3.25 today.  She said we could wait until things balance out and it should settle under 3 percent soon.

 

Then we will refinance 

Ty Butterfield

March 12th, 2020 at 7:28 PM ^

Would like to but I am sure places are swamped. Have a 30 year fixed with 4% locked in. May not be worth unless I can get something close to 3%.

drjaws

March 12th, 2020 at 8:15 PM ^

No.  I’m actually putting my house on the market this weekend and, if it sells for $5k less than the list price (most homes in my neighborhood are selling at or slightly above list price and sell in 2 weeks or less) then I’ll be pocketing a cool $40k after fees, closing costs etc.

Since I have recently moved to *throws up in mouth a little* Ohio for a new job, I am renting a townhouse as I save even more $ for my next house.  I was gonna wait until a few months before the lease is up but I may have to move as soon as the house sells to get these low rates

kalamazoo

March 13th, 2020 at 5:13 AM ^

What about getting a mortgage if you don't currently have one to invest in the stock market?

Like cash-out 200K, stick into stock market, pay the $1000 mortgage payment, 2x your money in a year off oil etfs and royal carribbean?

Seems like something I would never try. But then again, every huge dip in the market that I've seen (2000, 2009, now) a lot of folks have been able to 2x their money in areas where I've lived (big real estate markets). While real estate may have peaked in many areas, the stock market will have some 2x opportunities for sure.

If you don't think the market will fall much further, seems like worst case you would still have your cash in 6 months or a year to pay off the principal again without much loss from your mortgage payments and closing costs.

But I think a few interesting stocks will 2-3x in the next year, the S&P 500 ETFs like IVV may go up 30%...even that 30% gain would net 44K on a 200K investment (well 60K, but 12K for your mortgage and 4K closing costs). Then yeah, you have taxes on the 44K.

But that is assuming you pay off the loan after the 30% gain. After 20 years at 9% compounding, it could be 1.4M. Subtract the 400K in interest and principal payments and left with 1M. And yes, taxes on that.

Thanks for reading. Got a little excited just thinking about all the money.