Mortgage Refi Question
- Thread starter cyfan92
- Start date
Absolutely, that flexibility is awesome and when you do the math on the amortization calculator the difference is very small.
How often do you originate a refi and wave the appraisal? I bought my house about a year ago and it seems silly that I'd need a new one. Just trying to save money..
Its actually more often than you think especially if you have a bunch of equity and recently did something that the bank already is aware of. I used to originate as well and saw quite a bit of it, I did a HEQ LOC 3 years ago to help pay for my wedding and no appraisal was needed either.
I've mentioned this in one of the other threads, but I'll reiterate: only do this after you've calculated what the interest is for each early in the term.
It may be nice to have that flexibility, but depending on how big your loan is, that flexibility is probably costing you $100 in additional interest every month
- Jun 20, 2006
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It really only works if you want the 30 yr mortgage. If you want to pay the least amount of interest possible, there are other solutions.
A 30 year is almost all interest early on so that difference can be large. That said I think I'm going to get a 30 year and then make a large principle payment when our current home sells. That will cut it down to about 15 years.
It could work to your advantage to get a new appraisal. Depending on your loan to value (LTV), an increase in value could diminish your need for PMI or remove a loan level price adjustment and get you a better rate.
That said, a property inspection waiver (PIW) isn't controlled by the lender...it's a finding on the automated underwriting system (AUS). The parameters of your loan situation dictate whether or not you'd be eligible. I wouldn't count on it because they aren't incredibly common...but they do happen. That said, even if you pay a $500 appraisal fee (which is a high estimate), you'll still be ahead if you can recoup those costs relatively quickly.
After being in this gig for 20+ years, saying you have X for a rate is really neat at a party but the fact remains, it's more about your planning and execution than it is about what rate you have.
Your overall financial picture should be taken into account but there are so many knuckleheads in this industry who simply want you to refi because it pays them that you don't always get the straight scoop. Find someone you trust, talk about longer term strategies and you'll be able to discern if it makes sense.
Also, there's talk that the 10-year treasury could drop well below 1%...which makes what we are seeing now for rates, high...if you can believe that.
No cost means their cost is being built into the rate...either in the service release premium they are being paid to originate and sell the loan or they are valuing the servicing of the loan when they service it after selling it on the secondary market. In any case, nothing is for free.
You can ask for your rate to be amortized over 27 years. Some companies will allow it...but I wouldn't. I'd do what others have suggested...take the 30 and pay aggressively, thus effectively reducing your interest paid and lower your rate at the same time.
Lol...has nothing to do with banks. I get a chuckle out of these statements. The GSE's are in charge...and if i am right, FNMA wrote a check for $18+ billion last year to the government. Don't get me wrong, banks make money...but mortgage departments aren't the cash cow they used to be and MANY lose money in mortgage. It's a loss leader for many.
Bro good stuff, you’re like a not Dooshy capitalcityguy.
I totally agree on rates. 10 year german bonds are -0.54. Japan 10yr bonds are -0.2. We are screaming too high. Just want to get all of my ducks lined up so I can jump on the time I feel best
yeah, I was just in a meeting on Monday and it was actually discussed that the 10 year could hit 0. It's difficult for me to even type that...that could mean 15-year rates at 1.5%...30 in the low 2's...wtf, man, it would be a mad house.
Whatever...I've learned that I actually don't know a thing and I'm just hanging on...and that applies to life overall...not just mortgage stuff.
Fannie Mae and the people buying the loans are the ones who write the rules, along with the big banks.
Speaking of which, has the cave disappeared recently or did I just get lost?
You must have been shadow banned.
Depending on which rules you are referring to, you are both correct and incorrect. FHFA, the GSE's, CFPB...they're all incestuous with one another...and big banks have become the enemy...which is why some of the aforementioned even exists.
Suffice it to say that none of US are making decisions...merely along for the ride.
But I feel better knowing that all the entities are looking out for us. Recasting is weird to me...you will pay a fee to do it (most charge it) and you can accomplish the same thing on your own...to a large extent. IDK...to each their own.
