Just a quick note to all who might be looking at a refi or purchase. Mortgage rates are plummeting so far this week and looks like we will have solid Mid 4% rates on fixed loans in the next day or two. Also the conforming loan limit just adjusted up to $506,000 effective Jan.1...cheers

4%? I wonder how many points it will cost upfront?
I closed at 4.875% with 1 point loan fee on 12/31. I went thru a credit union. I second your opinion that if any one is considering refiing to talk to a lender. Interest rates were higher 30 years ago.

How about a factoid of the day about interest rates - I have a copy of some mortgages from the 1870's where the note rate was 1% to 1 1/2% per month. Some folks put up a quarter section, 160 acres, as collateral for a $250 loan. Money was hard to come by after the Civil War.

I just refi'd about the same time as Chuck at 5.5 with no points and I made the broker eat all the costs.

I'm good with that rate!

Chuck E,
You got a great deal on your loan. I wouldn't worry too much if you missed the absolute rock botton as it wouldn't effect your payments a whole lot. If you have a rate over 5.5% though it is a great time to look into it.

I've been seeing quite a pickup in refi's the last month, time for lenders to buckle their seatbelts for a while.

I'm at 5.99%, what could I get for a no fee rate. I owe $178,00 with a house value of $320,000. Could I put some pressure on my current mortgage holder Wells Fargo?

Tell them you want to do a streamline refi that way you don't have to spring for the appraisal and other closing costs.

Richard,

You are looking at 5.375% to 5.625%, depending on the day. I'm still a few months away from being ready to lock the rate on our place (long rate locks cost more money).

Just a few pieces of advice.

If you are going to stay in the house forever, pay the fee. Over 4-5 years, you will recoup the fee. (most caluculations I've done show about 3.8 years to recapture the fee).

If you have been in your house for 5-10 years, why refi again for another 30 years? Ask your lender about a 15-20 year loan. A 15 year loan with a 1% fee is around 4.5%, no fees are close to 4.875%.

Pay yourself first and work towards paying off your house. If you can shorten your term, lower your rate, and keep your payment in the neighborhood of your current payment you won't have more cash flow, but you'll save tens of thousands of dollars in the long run.

Today I am at 4.75% with no fee so rates are really getting down there. That's a 30y fixed.

what about 15yr?

15 yr is 4.375% no loan fee.

There are some 3rd party costs associated but no origination fee at that rate.

30yr just came out again at 4.625%

My rates were from Friday, so they must have really dropped since then.

Checked our rates today for an owner occupied, 700 credit score, 50% LTV, refi no cash out and rates are 4.5% with a 0.5 fee and 4.625% with no fee. Lots of variables go into what the rate will actually be, so keep that in mind when getting a quote.

Commercial loan rates are pretty good as well, with 5 year rate periods of 6.125-6.625% depending on property type,

It would be a good time to talk to your banker.

Yup rates change daily and locking a rate is usually done after appraisal.

what's the going minimum down payment for a first time home buyer these days?

There are a couple programs that are still 100% financing but you have to fit into a pretty tight box.

I would expect to pay 5% down.

only 5%? that's better than i would have ever hoped, the numbers i've heard from a couple relatives were putting that around 20%. i was figuring on putting around 10% down.

i'll see how my job keeps going, and get more serious in a couple months...

I plan to start building a place soon so all these low rates are good news to me.

Crazy crazy day but in a good way...looks like everyone who was interested got some good info...back to the battle tomorrow...cheers

Ok Mortgage guys,
I've always been crummy at math. I'm currently 15 yrs into a 30 yr term @ 7.5% fixed and remaining balance is 100k. How much would I save over the next 15 years if I got a refi to say, 4.75 ?
Moe

Dogfish,

With an uncertain economic future way not stick with a 30 year loan and just make an extra payment (or pay what you are currently paying so it is like a 15 year loan)? That way if you loose your job or something you can drop down to your 30 year monthly mortgage payment and not loose your house?

That always sounds good but hardly anyone does it or sticks to it.

Moe $25K+ Google amortization calculator and it'll come up some online calculators to figure differences in terms, payments, and interest on your principal.

Moe,

On your 15 years left at 7.5%, you'll pay $66,900 in interest.

Assuming you get a rrate of 4.25%, you'll pay $35,400 over the next 15 years, and your payment will drop from $975 P&I to $752.

Keeping your P&I payments at $975, you'll pay that note off in 10 years or so, saving an additional $11,100 in interest.

Depending on which route you choose, you could save $31,500, or $42,600.

I suggest the latter model.

As far as me choosing a 15 year note, I have a contract with a buy-out feature every year I work there. Odd for a banker, but it gets more expensive for them to release me every year.

Check with your title and/or escrow companies in your county if you are considering a refi. Most have discounts of some sort on escrow fees and title premiums, especially if they have handled a transaction of your's before. Look at any recorded document you have for the property, there will probably be a hand written number or a stamp with the title company name that recorded the document and the order number . Call them first and see what they have to say. The fees and premiums are based on liability or loan amount.