Thread: Mortgage Rates?

I got 4.875% with no points 4 months ago. I think rates are still hanging around 5% with no points. Personally I don't see them getting much lower. Maybe 4.5%. From what I hear banks are overwhelmed right now with refinances. It takes a minimum 60 days to refie with some banks. It is also very hard to refie right now.

I was "lucky" enough to buy my place right before the crash. I can't refinance because my place is worth less than when I bought it. I'm at 6.75 right now.

i really don't see rates getting any lower. banks can't afford to give money away for free for the next 30 years. they still need to turn a profit.

Wish I was clairvoyant so I can give you a definite answer, but this recession goes a lot deeper then once thought. I've heard it said that Mortgage rates are set to stay low for at least another year. But who knows with these so called experts.

Originally Posted by Prince

they are almost at all time record lows, just curious do you guys think they can/will get any lower, or will they begin to rise?

Maybe you're looking for refi?

I am guessing - note, "guessing" - that the Fed will try to keep interest rates as low as possible because of the recession.

i refi'd in January at 4.5 for 11 years.
that rate dipped to 4.4 a month or 2 later, but never lower. now its a bit higher.
all in all, its a GREAT time to buy/refi Prince. And don't believe that every bank is backed up 6 months. Call local credit unions (i got my refi w/ a CU) or local banks. Forget the national megabanks.
Mine was closed in about 2 weeks.

we're buying a new home, have to go through the builder's preferred lender to get the $10K incentive which pays all closing costs, I was able to lock in 4.25% 30 year fixed, however its costing me $1200 to lock that rate for 6 months until we close on the new house, so basically I am paying a $200/month insurance policy, that is why I was asking about future rates, I am just wondering if I am wasting $1200.

Originally Posted by Prince

we're buying a new home, have to go through the builder's preferred lender to get the $10K incentive which pays all closing costs, I was able to lock in 4.25% 30 year fixed, however its costing me $1200 to lock that rate for 6 months until we close on the new house, so basically I am paying a $200/month insurance policy, that is why I was asking about future rates, I am just wondering if I am wasting $1200.

What's this ? You trying to mingle with the common folk ? Everyone here knows you are paying cash for your multi-million dollar home.

Originally Posted by Prince

we're buying a new home, have to go through the builder's preferred lender to get the $10K incentive which pays all closing costs, I was able to lock in 4.25% 30 year fixed, however its costing me $1200 to lock that rate for 6 months until we close on the new house, so basically I am paying a $200/month insurance policy, that is why I was asking about future rates, I am just wondering if I am wasting $1200.

Does that money go towards closing costs at all? Is it like paying a point? On another note, 4.25% is an awesome rate and I doubt you will ever see that again. It's worth the 1200$. You also get the 8K back from the stimulus. Good luck.

Originally Posted by Doublebase

Does that money go towards closing costs at all? Is it like paying a point? On another note, 4.25% is an awesome rate and I doubt you will ever see that again. It's worth the 1200$. You also get the 8K back from the stimulus. Good luck.

yup, I can use whatever is necessary for closing costs and buying points, so I am buying 1/2 point to get 4.25%, and the rest will pay all closing costs, so I will be able to use the full $10k. Also, I got them to knock off $45k on the base price and include ALL appliances (upgraded, not cheap crap), front & back yard landscaping and privacy fence!

Originally Posted by ROID

What's this ? You trying to mingle with the common folk ? Everyone here knows you are paying cash for your multi-million dollar home.

lol, I live well, but I am not a millionaire (yet) bro.

Originally Posted by Prince

yup, I can use whatever is necessary for closing costs and buying points, so I am buying 1/2 point to get 4.25%, and the rest will pay all closing costs, so I will be able to use the full $10k. Also, I got them to knock off $45k on the base price and include ALL appliances (upgraded, not cheap crap), front & back yard landscaping and privacy fence!

Now is the best time to buy from a builder. They are hurting so bad. Offering great incentives.

I just refinanced my house for 4.25% no points. ING

Originally Posted by calalily1972

I just refinanced my house for 4.25% no points. ING

isn't that impossible (no points) when rates have not gone that low?

I initially had 5.5% with ING Direct. They offered me 4.25% for a one time fee of $750 total cost no other fees.

Originally Posted by calalily1972

I initially had 5.5% with ING Direct. They offered me 4.25% for a one time fee of $750 total cost no other fees.

so was it an actual refinance, i.e. you went to closing, etc., or they just dropped the rate to keep your business?

Not a traditional refi no. Dropped the rate 1.25%. They offer it to all their customers. Of course the rate they offer depends on your fico just like any other mortgage.

i disagree w/ points unless you plan to stay in the house for a time. it can take 7-9 years to break even, on what you paid upfront to get the "savings" on rate, versus just paying the higher rate. With all the incentives they are throwing at you, it seems like a good deal. But you could try to bargain them a bit harder
flex those muscles as it were!

Originally Posted by urbanski

i disagree w/ points unless you plan to stay in the house for a time. it can take 7-9 years to break even, on what you paid upfront to get the "savings" on rate, versus just paying the higher rate. With all the incentives they are throwing at you, it seems like a good deal. But you could try to bargain them a bit harder
flex those muscles as it were!

it's a pretty good deal, they pay ALL closing costs and gave me a 4.25% 30 year fixed mortgage, I am not complaining.

So when are you moving in? Is it close to where you are now?

Originally Posted by urbanski

i disagree w/ points unless you plan to stay in the house for a time. it can take 7-9 years to break even

Or 1-2 years. 1 point at 200,000$ will only take you two years if you are saving 200$/month. THen it may worth it.

Originally Posted by dg806

So when are you moving in? Is it close to where you are now?

sometime in September, no it's about 40 miles north/east of where I am at now.

$200/month is a heck of a lot of savings.

200K, 4.25%, 30yrs is $984/month.
200K, 4.75, 30yrs is 1043/month

that's Prince saving $59 a month for the .5 point he bought. 59 * 12 is $700/yr. He can divide how much he paid for the half point by 700 to get how many years to break even. Remember, if you roll that point and closing costs into the loan, you're financing more and paying more which sort of wipes out some of your "savings".

I did not pay anything for the points, its part of the seller incentive as well as the seller paying all closing costs.

Originally Posted by urbanski

$200/month is a heck of a lot of savings.

200K, 4.25%, 30yrs is $984/month.
200K, 4.75, 30yrs is 1043/month

that's Prince saving $59 a month for the .5 point he bought. 59 * 12 is $700/yr. He can divide how much he paid for the half point by 700 to get how many years to break even. Remember, if you roll that point and closing costs into the loan, you're financing more and paying more which sort of wipes out some of your "savings".

I would only refie if it was a percentage point or more. i.e 5.5% to 4.5%. Not worth paying the closing cost for under that.

I refied from 6.875 to 4.875. Saving 600$/month. My loan amount also went down 50K.

Prince if you can try not to escrow. I have found that avoiding that saves you money in the long run. You can invest the money in the mean time while awaiting your tax bills. You only get two a year anyway. You must be 80%LTV in order to waive escrows. Also, are you paying a PMI?

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