Mortgage Refi Question

Discussion in 'Real Estate' started by cyfan92, Aug 5, 2019.

  1. ArgentCy

    ArgentCy Well-Known Member

    Jan 13, 2010
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    I should be hearing back from the bank today on an initial application. If only I could find a decent house that I want to buy... but that's a whole different problem.
     
  2. superman_101680

    Oct 30, 2006
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    I've been quoted a 3.75 for a refi (currently at a 4.20) but I'll need a new appraisal and closing costs of 2500. I've had the mortgage for about a year and a half so I'm thinking of waiting. Given it's the same credit union, I was surprised we had to do another appraisal.
     
  3. cyfan92

    cyfan92 Well-Known Member

    Sep 20, 2011
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    From what other posters have said, I'd push to have them drop the new appraisal. Also, I'd shop that rate. Assuming you are talking a 30yr. note. I was quoted last week 3.25% from a credit union in central iowa
     
  4. 2forISU

    2forISU Well-Known Member

    Oct 8, 2008
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    Negotiate and roll the closing cost into the loan. Saving roughly .75% is a nice saving each month(depends on the loan amount).
     
  5. VeloClone

    VeloClone Well-Known Member

    Jan 19, 2010
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    We are 4 years into our last refi (15 year) at 3.125%. Our broker says he could get us maybe 2.875% but he agrees that that wouldn't be cost effective when you factor in refinancing costs.
     
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  6. 2forISU

    2forISU Well-Known Member

    Oct 8, 2008
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    Performance:

    upload_2019-8-14_14-28-18.png


    upload_2019-8-14_14-27-55.png
     
  7. ArgentCy

    ArgentCy Well-Known Member

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    And? I'm not sure what cherry picked stock performance data is supposed to show. There was a recession every time. It does appear that the time to the start of the recession has been taking longer each time.
     
  8. 2forISU

    2forISU Well-Known Member

    Oct 8, 2008
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    That's showing the S&P, not cherry-picked stocks. If we follow history there will be a bounce-back in the stock market.
     
  9. ArgentCy

    ArgentCy Well-Known Member

    Jan 13, 2010
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    It's the time frame that is cherry-picked. Not the index. The stock market freaked out because this indicator has always been followed by a recession. I do think we could see a sharp if not incredible bounce in US stocks. This will be a blow-off top like Japan circa 1980's
     
  10. 2forISU

    2forISU Well-Known Member

    Oct 8, 2008
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    That why the bottom graph shows a 3-year period, not dates. I do agree, we should see a nice bounce-back.
     
  11. Gossamer

    Gossamer Well-Known Member

    Apr 10, 2014
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    #191 Gossamer, Aug 15, 2019
    Last edited: Aug 15, 2019

    If we are solely discussing GSE's, appraisals are still required for the overwhelming majority of the transactions that take place. Will that change? Yes...once they feel they have compiled enough data to do so. But that is some time off.

    appraisers got sued because they were allowing themselves to be influenced to meet inflated values...thus, appraisal independence was born.

    My statement about collateral was tongue in cheek...people are wildly unpredictable. An 800 credit score today can be 520 next week...so in many ways, yes, it's the primary concern in the event the borrower ***** the bed.
     
  12. Gossamer

    Gossamer Well-Known Member

    Apr 10, 2014
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    an appraisal is only good for so long...so all these people posting that you get to use your same appraisal or that you don't need one do not work in the secondary market. You'll more than likely be required to obtain a new appraisal.

    that rate is on the high side though, especially with those costs. I'd shop a bit if I were you.
     
  13. Gossamer

    Gossamer Well-Known Member

    Apr 10, 2014
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    lolz
     
  14. 1100011CS

    1100011CS Well-Known Member
    SuperFanatic SuperFanatic T2

    Oct 5, 2007
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    Do people do this? Pay ~3% interest for 30 years on money you should have available? I mean if you can't come up with $2500 maybe you should rethink your financial strategy.
     
  15. Gossamer

    Gossamer Well-Known Member

    Apr 10, 2014
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    all. the. time.

    the system is set up to put people in homes, not necessarily put people in homes who SHOULD be in homes.

    You want to be surprised, look at some of the government guaranteed loans that allow people to buy a home and start off with 105% loan to value...rolling in all kinds of costs.
     
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  16. ArgentCy

    ArgentCy Well-Known Member

    Jan 13, 2010
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    Definitely agree. The system has been developed by large banks and the NAR. Just always keep that in mind. Their goals are clearly the same and that is to get lots of transactions and at ever increasing prices.

    Speaking of which the government has consented to raising the minimum. Nothing like doing this as the market is already falling. Here is a good article from the appraisers point of view. Got to love the government.

    http://www.workingre.com/de-minimus-raised/

    But bizarrely those most qualified to do them, licensed appraisers, are barred from completing evaluations in most states: they are only allowed in Tennessee, North Carolina, Virginia, and a handful of other states where appraisers have recently banded together to pass legislation that specifically exempts appraisals from USPAP when performing evaluations.
     
  17. UNI1ISU2

    UNI1ISU2 Active Member

    Jun 7, 2019
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    Bank of America is at 2.75 now. So I guess it can get that low and even lower again
     
  18. Dandy

    Dandy Well-Known Member

    Oct 11, 2012
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    Refinancing from 30 year at 4.875% to a 15 year at 3.125% and should close sometime next week.
     
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  19. cyphoon

    cyphoon Member

    Sep 8, 2011
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    Make sure you verify that 20% would get you out of PMI on a refi. Sometimes a refi has a higher requirement (like 25%)
     
  20. cyphoon

    cyphoon Member

    Sep 8, 2011
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    I built a google sheet for analyzing a refi. Includes time to break even on the refi and overall savings.

    https://tinyurl.com/yxgqx3l3
     
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