Is there any reason to not refinance?

[DurangoCy]

So I’m an idiot when it comes to this stuff. Don’t pay any attention because i feel overwhelmed because it always feels over my head. Just pay the bills and keep my nose to the grind stone.

I’m about 13 years in on a home loan and just looked at the interest rate. It’s 6.125% and my monthly bill is about $860. Still owe about 70,000 in principle on it. Someone spell it out for me what I could save/ the advantages and disadvantages to trying to refinance. Also what are the steps to it and how much of a pain in the arse is it? Thanks

Yours is a no brainer that a refi would be beneficial.
$70,000, 15 year @ 3.00% = $483.41 monthly
$70,000, 30 year @ 3.25% = $304.64 monthly
Maintaining your $860/month payment, you would be done in 7.5 years vs. 17 years currently.

One thing that others might be able to chime in on - I've heard that mortgages this small aren't really attractive to the brokers, so you might have trouble getting anyone to bite. ...might have to go to a local bank?

 

[BCClone]

Yours is a no brainer that a refi would be beneficial.
$70,000, 15 year @ 3.00% = $483.41 monthly
$70,000, 30 year @ 3.25% = $304.64 monthly
Maintaining your $860/month payment, you would be done in 7.5 years vs. 17 years currently.

One thing that others might be able to chime in on - I've heard that mortgages this small aren't really attractive to the brokers, so you might have trouble getting anyone to bite. ...might have to go to a local bank?

Local banks will typically sell the loans anyhow and you will get basically those rates and the local bank will just take a small cut for servicing the loan.

 

[cyinne]

Fed to cut interest rates to near zero!!

 

[motorcy90]

Fed to cut interest rates to near zero!!

was about to post that.

 

[BCClone]

was about to post that.

Wonder if it will have more than a 10 minute effect on the market?

 

[ISUAgronomist]

Wonder if it will have more than a 10 minute effect on the market?

I'm guessing no positive effect. When they are buying $200 million in mortgage backed securities that tells you how bad it's going to get soon.

Futures market is down 1,000 right now.

 

[BCClone]

I'm guessing no positive effect. When they are buying $200 million in mortgage backed securities that tells you how bad it's going to get soon.

Futures market is down 1,000 right now.

Looking to buy now so not disappointed with another down day or two but think things have dropped enough.

 

[ISUAgronomist]

Looking to buy now so not disappointed with another down day or two but think things have dropped enough.

I think we still have another week or two of big drops to come. When the first MASH unit rolls out to any city the market will limit down IMHO.

 

[ArgentCy]

Sorry but with all these virus concerns going around this may cause some long delays. I'm not sure we should be potentially exposing each to put a number on the house. Especially with so much uncertainty in other markets right now.

 

[NATEizKING]

I can get 2.75% on a 15 year right now, but feel like it may drop again.

 

[BCClone]

Sorry but with all these virus concerns going around this may cause some long delays. I'm not sure we should be potentially exposing each to put a number on the house. Especially with so much uncertainty in other markets right now.

So......do people mask and glove when doing appraisals and inspections or anything else with the houses?

 

[motorcy90]

So......do people mask and glove when doing appraisals and inspections or anything else with the houses?

they literally told me appraisal will basically be done online for mine. the only thing I would have to do is meet with a notary to sign the final docs and that can be set up when/where ever. but I am staying with the same bank. everything else is done through phone/email so they are probably working from home anyway.

 

[BCClone]

they literally told me appraisal will basically be done online for mine. the only thing I would have to do is meet with a notary to sign the final docs and that can be set up when/where ever. but I am staying with the same bank. everything else is done through phone/email so they are probably working from home anyway.

well, touched in at work (part time job). Looks like I get to buy gloves because we are still doing internal inspections

 

[ArgentCy]

they literally told me appraisal will basically be done online for mine. the only thing I would have to do is meet with a notary to sign the final docs and that can be set up when/where ever. but I am staying with the same bank. everything else is done through phone/email so they are probably working from home anyway.

Fannie Mae relaxed the rules for certain loans a year or two ago. If you are below a certain LTV value and they have one on file within X number of years (i think that was the rule) then they waive the need for a full appraisal. Nothing changes on my end. None of the people I see have masks or anything on and I'm supposed to go crawling around the whole thing and poking in every room, etc. Not to mention I have limited ability to work from home because of the software and bad internet.

 

[ArgentCy]

well, touched in at work (part time job). Looks like I get to buy gloves because we are still doing internal inspections

Guess I should probably try to find some gloves.

 

[BCClone]

Guess I should probably try to find some gloves.

Good luck.

I figure I will still touch normal things out of habit although they say others should and then it would take me 3x as long to get through a place. Easier if I can just do it myself and not work about washing my hands non stop since there is not hand sanitizer and I don't feel like buying gallons of rubbing alcohol.

 

[NATEizKING]

Decided not to risk it and locked in Monday at 2.75% for 15 year, it has gone up .125% a day since to 3.125 today.

Rate has been it's lowest on Monday's the last 2 weeks.

 

[1100011CS]

We're trying to get a construction loan to finance a renovation and it has been damn near futile. The banks that haven't jacked up their rates are so backed up that we'd be done with the reno before we'd get the money. Add to that, they are saying they won't even give us a loan because we already started work (I did a bunch of demolition and our contractor started some digging) they won't give us one anyway.

 

[DreamyCy]

Anyone refinanced recently? I got an option to lock in at 2.625 on a 15 and was curious if people have seen lower rates?

 

[BCClone]

Anyone refinanced recently? I got an option to lock in at 2.625 on a 15 and was curious if people have seen lower rates?

Banks like a 3-4% spread so when things drop into the 2s, there isn’t much room more left. Besides, a quarter percent at those levels doesn’t move it much.