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+---- Thread: Refinanced? (/thread-6344.html)
Refinanced? - Breand - 03-12-2009
Has anyone refinanced during these great rates, and if so what was the experience like? I have a 30 year 5.875% that I wouldnt mind turning into a 15 year 4.5% or less. are closing costs really that extensive?
Re: Refinanced? - Dustie - 03-12-2009
Breand Wrote:Has anyone refinanced during these great rates, and if so what was the experience like? I have a 30 year 5.875% that I wouldnt mind turning into a 15 year 4.5% or less. are closing costs really that extensive?
I'm in the same situation. The lady I used last time said she could do it for less then 2000. I don't know if that's good or not, I just know thta if I can lock in 4.8ish then I can save about 300 a month and I'll make back the 2K in less then 7 months.
- Vanraw - 03-12-2009
I refinanced the last time it was low. Got a 5.1, so 4.5 isn't worth it to me.
Go to your existing mortgage holder and start the negotiation. I shopped around and ended up refinancing with my existing company with 0 closing cost.
- Zeel - 03-13-2009
I just started looking to refinance, but I'm having debt to equity ratio issues because I have a home line that I used to renovate the whole house.
Property values in my area are still ok, but they are down 10-20% from peak which puts me right on the edge.
Anyone else have luck in that situation?
Originally I was looking to change lenders to consolidate everything in one place... I think now I'll just try and work with my existing lenders to lower the rates.
- amins - 03-13-2009
I'm currently rolling 2 of my properties and thier accompaning investment LOC's into a single HELOC (Canadian: Home Equity Line of Credit) at 4.1%. The Cash Flow this opens up will pay for my prinicipal mortgage.
I'm not sure if there's an equivilant in the US, I can ask my sister, she's a broker in Calif, if no one here knows.
If you're looking to refinance, maybe take a look at taking out an extra 30-50k and investing it into your home energy system: solar, wind, geothermal, etc.. You could, depending on your region, at least cut your bills down by 80% and possibly make your home put power back on the grid.
Example: If your region is suitable for Geothermal, it can produce 80 your basic heating needs with a $30k dollar system (at least here in BC). You can get another 15v eeasy with 4 pannels (20k), covering the last 20% of your homes needs... assuming you're going to keep your kwh to under 30....
Ofcourse, you could then charge your neighbors a 'hook up fee' to your Geothermal... Permits permitting...
EDIT:
In Canada there are funds & grants available from the government, municipalities (counties: Sonoma County), etc, as well as National Tax Incentives/Rebates for eco-friendly reno's and building/Energy Systems. They help offset costs.
I'm not sure what these programs would fall under in the states, but i'm sure they're there...
One other thing, I made the HELOC interest only. I did this so that I had more control over how the interest and principal repayments were divided: Most loans front end the interest. The money I saved through consolidation can now be put onto the loans principal, which in my case is 1600 (typical 30 yr mortgages, you're putting 4-500 a month).
In addition, its treated as a Line of Credit, not a 30yr House Mortgage (5 yr fixed/adjustables). This means you always have access to your money, whenever you want it.
- Dustie - 03-18-2009
Did you refinance yet?
http://www.thepurge.net/forum/viewtopic.php?t=10007
- Dustie - 03-18-2009
Situation:
Loan Type: 30 year fixed refinance with no points
Over 20% equity
Credit Score: 800+
Area: DC Area
Yesterday: 5.0% with no points
Today: 4.875
Tomorrow: ???
I wish I knew more how 300 billion in long term treasuries being bought by the fed affected rates. Will it bring rates down more over time? Are we going to see the big dip tomorrow? Next week? Next month? This summer? Never? Will we actually see 4.5%?
If we see 4.6 to 4.7 I think I'll need to pull the trigger for sure.
- Zeel - 03-19-2009
I'm still waiting... I think we are going to see more downward movement for the next few weeks.
I'm hoping to end up shaving a point of my main mortgage (from 6.25 to somewhere just north of 5.0) and I know I can shave a few points off my fixed rate home line (currently at 7)
At a minimum I'm redoing the home line... probably in the next 2 to 4 weeks.
- Riz - 03-19-2009
I'm locked into a fixed 5.0, so I have no real incentive to bother refinancing at the moment.
- Vanraw - 03-19-2009
Rumor is that we might see 4.0% in the next week or so. I might jump in with some of that action.
- Dustie - 03-19-2009
Dropped to 4.75 today, not as much as I hoped, but hopefully we'll see Mauls 4.0.
- Breand - 03-19-2009
if we can get 4.0 for a 30 year Id love to see what a 15 year will drop to. Id pounce on any sub 4.00 15 year.
- Zeel - 03-20-2009
Wow, I can't even fathom a sub-4 rate on a mortgage. That would be hotness.
I called the bank yesterday and everyone there is working 12 hour days to keep up with the call volume. I guess lots of people are looking to get a little extra cash in their pocket by refinancing.
Nothing on rates yet... they owe me a call back. I think we'll see mid-4's in the next week or so on a 30 year fixed which means I should get my 5 that I'm looking for.
I see that they raised the limit on Jumbo loans to 417,000. What exactly does that mean? When they evaluate your loan, do they look at the total outstanding (including home lines) or is that just for the main mortgage?
I owe about 300k on my primary mortgage, but with my home line I'm just over the 417,000 limit.
- Zeel - 03-21-2009
I talked to my bank again on Friday. 30 year fixed with one point was offered at 4.5%
Wow.
They are running my numbers on monday to see if I can qualify... even if I end up at 5% I'm still ahead of where I wanted to be.
Also, my fixed rate home line went from 7% to 3%.
I'll probably end up with about $500 - $600 more dollars in my pocket every month. SWEET! Kid #3 needs diapers!
- Dustie - 03-22-2009
Zeel Wrote:I talked to my bank again on Friday. 30 year fixed with one point was offered at 4.5%
Wow.
They are running my numbers on monday to see if I can qualify... even if I end up at 5% I'm still ahead of where I wanted to be.
Also, my fixed rate home line went from 7% to 3%.
I'll probably end up with about $500 - $600 more dollars in my pocket every month. SWEET! Kid #3 needs diapers!
nice, congrats (on the kid and the cash)
- Uncle Shags - 03-22-2009
I don't own a house, so it is all a mystery to me, but my brother told me he just refinanced, did the math, and figured out he saved himself 120k over the course of his mortgage. He said he went from a 30 year mortgage to a 15 year, and it only raised his payments by like 50 bucks a month.
- Zeel - 04-03-2009
My appraisal is today to confirm that my debt to equity is still ok with the downturn in housing... fingers crossed.
If I appraise high enough they'll be able to offer me a really nice rate, which will save me some much needed cash month to month.
If the appraisal doesn't work out, I'll start over with another bank and see what they think
- Vanraw - 04-03-2009
grats man.
4.25 15 year here in Cedar Rapids today.... Keeps dropping. Not sure if we will see the 4% though.
- amins - 04-04-2009
For all you Canadians:
Scotia Bank's HELOC is Prime (2.5) +1, 5 year variable: Got a nice 350k to reinvest into US property/stocks. They base it off equity and tenancy/property income, which is a bit different than they initially implied but still works. Thier Fixed is currently 5.15, or was 2 weeks ago.
Over in BC we haven't seen the staggering house prices drop, but that's more because of the 2010 bubble that's keeping us at the top end with relitevely little drop (I was appraised at only a ~10% drop since i refied in 07).
- Zeel - 04-06-2009
Still waiting on approvals, but the application paperwork showed up Saturday. 4.75 is the APR that they are offering, but I have not locked yet.
- Breand - 04-06-2009
you say you are targeting a 5.00 which is fine, just as a heads up, which Im sure you already know, 4.75% with a point, isnt a true 4.75%.