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Posted: 11/6/2002 11:06:01 AM EDT
Link Posted: 11/6/2002 11:21:25 AM EDT
Originally Posted By lordtrader: But then again I could just be talking out my ass.
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And this would be different how...? [:D] Any good "rules of thumb" for when to refi, or are all bets off in the current market environment?
Link Posted: 11/6/2002 11:23:10 AM EDT
Link Posted: 11/6/2002 11:23:19 AM EDT
Link Posted: 11/6/2002 11:28:25 AM EDT
OK LT, I just locked a 5.75% fixed 30 year conventional on the new digs in VA. Now watch it go to 5.00%[:)]
Link Posted: 11/6/2002 11:58:11 AM EDT
I dunno, I think interest rates could go to zero. In Japan, I think they pay people to take out loans now (negative?). The blob (our government) is still eating everything in sight. That's the real problem we face.
Link Posted: 11/6/2002 12:18:11 PM EDT
Link Posted: 11/6/2002 12:29:44 PM EDT
Hey, LT Don't forget that I will spiff you $1000 or 1% of the loan amount (whichever is greater) for each new home sale or refi that you send me that finances through me! Nationwide for conventional loans and New Mexico wide for FHA! Who else can you be sure will have your best interests (AR's) at heart, and help support a brother.
Link Posted: 11/6/2002 12:36:18 PM EDT
Originally Posted By wiggy762: Hey, LT Don't forget that I will spiff you $1000 or 1% of the loan amount (whichever is greater) for each new home sale or refi that you send me that finances through me! Nationwide for conventional loans and New Mexico wide for FHA! Who else can you be sure will have your best interests (AR's) at heart, and help support a brother.
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Will you "spiff" [b]me[/b] a grand if I refi through you?
Link Posted: 11/6/2002 1:07:38 PM EDT
Link Posted: 11/6/2002 2:02:25 PM EDT
Originally Posted By FatMan:
Originally Posted By wiggy762: Hey, LT Don't forget that I will spiff you $1000 or 1% of the loan amount (whichever is greater) for each new home sale or refi that you send me that finances through me! Nationwide for conventional loans and New Mexico wide for FHA! Who else can you be sure will have your best interests (AR's) at heart, and help support a brother.
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Will you "spiff" [b]me[/b] a grand if I refi through you?
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Yes! BUT the spiff will be in the form of a real $1000 discount of your closing costs. By real I mean that I will not increase your closing costs and then give you a grand off the inflated amount.
Link Posted: 11/6/2002 2:05:05 PM EDT
Link Posted: 11/6/2002 2:17:00 PM EDT
Originally Posted By lordtrader: Hey just sent you an IM. BTW can you do in the hi fives yet? May have a guy here in TX with a 150K loan in Plano TX. 4bdrm, 2car garage with a pool on a 2acre land.
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For a no-cash refi, the limit is in the low 5's or even high 4's if someone wants to use a bit of their equity to buy the rate down or if they can go to a 15 yr term. Advise everyone against cash-out refi's in Tx as there are several cash-out rules specific to Tx that cause HUGE headaches. If everyone will stay away from cash-outs we will be golden. You will need to provide me the name, address, payoff, cost of any improvements, income, and SSN. I can then put the info in front of FannieMae and get an answer in about 10 minutes. Also, let me know the approximate value of the house so I can work up a base LTV.
Link Posted: 11/6/2002 2:46:09 PM EDT
I recently refinanced a 30 yr fixed(for 5 years then variable) at 5.25%. It's cool because we are selling within the next couple of years so we will never see the variable rate. A hell of a deal, I couldn't pass it up.
Link Posted: 11/6/2002 2:49:16 PM EDT
OK, last year (when I was convinced the rate couldn't possibly go down any more) I refinanced my house, taking out equity to pay off some bills and do some work on the house. (I added a 10x40' covered back porch, put a rooftop A/C-gas heat unit on - replacing the original evaporative cooler & 20 year-old heater - had the roof redone, and put new concrete slabs in the driveway where a tree root had lifted and broken the original ones.) I went from a 9% $66,000 30-year note to a 7% $78,000 20-year note (been paying on the original for 10 years.) House appraised B4 improvements at $96,000. Since then I've repainted the exterior. Question: Should I refi AGAIN and try to get 5% or so?
Link Posted: 11/6/2002 3:24:33 PM EDT
[Last Edit: 11/6/2002 3:26:39 PM EDT by wiggy762]
Originally Posted By KBaker: OK, last year (when I was convinced the rate couldn't possibly go down any more) I refinanced my house, taking out equity to pay off some bills and do some work on the house. (I added a 10x40' covered back porch, put a rooftop A/C-gas heat unit on - replacing the original evaporative cooler & 20 year-old heater - had the roof redone, and put new concrete slabs in the driveway where a tree root had lifted and broken the original ones.) I went from a 9% $66,000 30-year note to a 7% $78,000 20-year note (been paying on the original for 10 years.) House appraised B4 improvements at $96,000. Since then I've repainted the exterior. Question: Should I refi AGAIN and try to get 5% or so?
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YES....if you can get a 15 yr term, and are going to be OK with the pmt, and if you plan on keeping this loan for at least 5 years. A 15 yr term, today's rates, with 2pts is 5.25% fixed.
Link Posted: 11/6/2002 3:38:31 PM EDT
Originally Posted By wiggy762: YES....if you can get a 15 yr term, and are going to be OK with the pmt, and if you plan on keeping this loan for at least 5 years. A 15 yr term, today's rates, with 2pts is 5.25% fixed.
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Question: "With 2pts" - does this mean 2% cash-to-loan? Second, since my wife quit work to watch the grandkids, I don't think I can swing a 15 year loan. I'd have to see what the payments looked like. But if I had to come up with 2% - no way, José. I'll live with the 7%.
Link Posted: 11/6/2002 3:58:08 PM EDT
Originally Posted By KBaker:
Originally Posted By wiggy762: YES....if you can get a 15 yr term, and are going to be OK with the pmt, and if you plan on keeping this loan for at least 5 years. A 15 yr term, today's rates, with 2pts is 5.25% fixed.
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Question: "With 2pts" - does this mean 2% cash-to-loan? Second, since my wife quit work to watch the grandkids, I don't think I can swing a 15 year loan. I'd have to see what the payments looked like. But if I had to come up with 2% - no way, José. I'll live with the 7%.
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On a refi the 2 pts is usually out of the equity of the home, not from cash. Let me make a couple of assumptions and give you some ideas of what I am talking about. If you owe $78,000, and are going to finance in all of the closing costs (minus the $1,000 AR15.com discount), then you will probably have a total loan of around $82,000. Here are the pmt breakdowns, all with insurance and taxes included, (we may be able to do w/out MI if the appraisal/loan is under 80%, but I will include it now.) 15 yr term @ 5.25% 20 yr @ 5.875% 30 yr PI $659.00 $581.58 $485.06 Tax 51.25 51.25 51.25 Ins 21.87 21.87 21.87 MI 62.87 62.87 62.87 $794.99 $717.57 $620.95 As you can see, the benfits to a 15 yr are the way to go, if you can afford it.
Link Posted: 11/7/2002 7:22:00 AM EDT
Nice numbers LT. Unfortunately here in Maryland the property tax amount is closer to $300 a month (on $155k of assesed value)! And they wonder why I despise liberals. GunLvr
Link Posted: 11/7/2002 7:58:58 AM EDT
Originally Posted By GunLvrPHD: Nice numbers LT. Unfortunately here in Maryland the property tax amount is closer to $300 a month (on $155k of assesed value)! And they wonder why I despise liberals. GunLvr
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You really, really, really, really gotta move!
Link Posted: 11/7/2002 8:31:51 AM EDT
Originally Posted By wiggy762: On a refi the 2 pts is usually out of the equity of the home, not from cash. As you can see, the benfits to a 15 yr are the way to go, if you can afford it.
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Lets look at this: My loan balance is currently $73k. The interest rate (according to the bank) is 7.25%. PITI is $720.16/month, up from about $660 on the old 30-year 9% loan. I'll have my truck paid off in March. Can I reasonably wait till then to refi, and what am I looking at paymentwise on a 15 year loan. (And thanks for doing all this work for free!)[:D]
Link Posted: 11/7/2002 8:52:41 AM EDT
LT, Yes this is the time to do it. I've been looking at refi lately. Less than two years ago I bought my house with 7.25% which at the time was an excellent rate. Now I'm looking at as low as 4.75% (gotta see the fine print though). This could potentially reduce my payment by about $140 a month or I could afford a 15 year loan. My current one is 30 years. How long would you say it's going to take for this rate cut to precipitate in actually reduced morgage/refi rates banks offer? Months, weeks? Balu -- Si vis pacem para bellum! --
Link Posted: 11/7/2002 9:01:12 AM EDT
Now if I could only afford the $450K median home price. Sigh.
Link Posted: 11/7/2002 9:01:52 AM EDT
Link Posted: 11/7/2002 9:21:13 AM EDT
Originally Posted By KBaker:
Originally Posted By wiggy762: On a refi the 2 pts is usually out of the equity of the home, not from cash. As you can see, the benfits to a 15 yr are the way to go, if you can afford it.
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Lets look at this: My loan balance is currently $73k. The interest rate (according to the bank) is 7.25%. PITI is $720.16/month, up from about $660 on the old 30-year 9% loan. I'll have my truck paid off in March. Can I reasonably wait till then to refi, and what am I looking at paymentwise on a 15 year loan. (And thanks for doing all this work for free!)[:D]
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Short Answer: Yes, you can wait until March to refi your home loan, the only variable is the rate then. On a 73K payoff, you could roll everything into it and have a loan of around 80K. Using average Insurance and Tax factors, you would be looking at; 6.5% 30 yr - $590 5.75% 15yr - $774 The choice is yours, but to cloud the issue further...If you refi'd in November, your first payment will not be due until Jan 1st 2003 and if you refi in December, the first payment will be due in February. Thanks for the thanks. I am happy to help my brothers out, if I can.
Link Posted: 11/7/2002 9:30:22 AM EDT
Link Posted: 11/7/2002 9:33:37 AM EDT
wiggy, email sent. Kevin
Link Posted: 11/7/2002 9:46:01 AM EDT
Originally Posted By Balu: LT, Yes this is the time to do it. I've been looking at refi lately. Less than two years ago I bought my house with 7.25% which at the time was an excellent rate. Now I'm looking at as low as 4.75% (gotta see the fine print though). This could potentially reduce my payment by about $140 a month or I could afford a 15 year loan. My current one is 30 years. How long would you say it's going to take for this rate cut to precipitate in actually reduced morgage/refi rates banks offer? Months, weeks? Balu -- Si vis pacem para bellum! --
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The time frame for an adjustment at the lender level is usually 24 hrs. If the rates at your lender have not followed the Fed in 48 hrs. then they are not gonna. Make sure that your 4.75% rate is fixed and find out how many pts. you are being charged. If it all looks good, then go for it, but be careful....if it looks to good to be true, you're getting the shaft somehow. Let me know of any problems.
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