Refinance

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Gossamer

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Apr 10, 2014
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The rates will tell you how bad they want to make the loans. The banks are in no hurry to lose money or potentially sit on a <3% loan for 30 years.
just out of curiosity, do you even understand the spreads that are being earned on <3% loans right now? Who is losing money? Rates have been adjusted based on capacity for the last 90 days, not how bad they want to make the loans.
 
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KnappShack

Well-Known Member
May 26, 2008
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just out of curiosity, do you even understand the spreads that are being earned on <3% loans right now? Who is losing money? Rates have been adjusted based on capacity for the last 90 days, not how bad they want to make the loans.
Hearing processors are getting offers north of $150k and underwriters over $200k in some markets.
 

Three4Cy

Well-Known Member
Jan 19, 2010
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West Des Moines
Please remember the rates quoted are websites are for the perfect borrower. You need to actually apply to find out the real rate you will be offered.

From GreenState Credit Union:
Actual rate may be higher based on credit history, occupancy and LTV.

Also:

Due to the unprecedented number of applications – REFINANCE applications are temporarily paused to allow our Team to process those already submitted. We invite you to check back in August as we hope to re-start at that time. Thank you for your patience.
 
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ArgentCy

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Jan 13, 2010
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just out of curiosity, do you even understand the spreads that are being earned on <3% loans right now? Who is losing money? Rates have been adjusted based on capacity for the last 90 days, not how bad they want to make the loans.
Works well when they have an automatic government buyer of the debt. Check on in-house rates / loans.
 

mtowncyclone13

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Oct 10, 2012
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Works well when they have an automatic government buyer of the debt. Check on in-house rates / loans.
I've had several personal and business mortgages and they absolute best banks are the ones who keep them in-house. they are faster and more flexible.
 

Gossamer

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Apr 10, 2014
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Works well when they have an automatic government buyer of the debt. Check on in-house rates / loans.
i don't know a bank that books 30 year fixed loans out of want...nearly all banks sell long term loans to the secondary market.
 

Gossamer

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Apr 10, 2014
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I've had several personal and business mortgages and they absolute best banks are the ones who keep them in-house. they are faster and more flexible.
what you think is "in-house" may not be what is really "in-house". Many banks sell the loan but retain the servicing...that to many is in-house.

I prefer a loan where the servicing is kept by the bank or is serviced locally...that way I can deal with them should I need to. There are some reputable seller/servicers, in both banking and mortgage banking. Just have to sniff them out.
 

Gossamer

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Apr 10, 2014
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Hearing processors are getting offers north of $150k and underwriters over $200k in some markets.
could be...not sure those numbers are executable in Iowa. There's a lot of money in mortgage sales right now...but those numbers are transactional and you have to turn quite a few widgets to support that kind of expense.

Shoot, before this all started, the avg. cost to produce a mortgage was nearly $7k per loan...according the the MBA. That's nearly 300 bps to close a $235k loan.
 

ArgentCy

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Jan 13, 2010
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I've had several personal and business mortgages and they absolute best banks are the ones who keep them in-house. they are faster and more flexible.
I agree and recommend them but you will not find them offering the lowest rates. They usually try to stay competitive but certainly not secondary market rates.
 

cowgirl836

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Sep 3, 2009
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thanks for the heads up on this, hadn't checked in a while. We're five years in on our 30 but scheduled to be done 6 years early. Got quoted 2.5% on a 15 but can't lock anymore today. Closing would be ~$1500 or less.
 

Sigmapolis

Minister of Economy
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SuperFanatic T2
Aug 10, 2011
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Washington, DC
I told a work colleague about this.

He submitted a refi application with Chase about 15 minutes ago.

Calculated it out as $115 less per month on a 30-year with 27.5 left.

I thought it was academic for him, too -- guess not.
 

BDAL23

New Member
Nov 16, 2019
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I refinanced my 30 year mortgage. I was scheduled to pay off in 24 years. I refinanced at 3.0 % for 20 years. We paid all costs out of pocket including funding the escrow. We pay the same as before the refinance. With no changes in our budget we effectively lowered our term to 15 years.
 

BCClone

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Sep 4, 2011
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When I was a loan officer, I hated escrows. A lot of work for what it’s worth. Said we should charge for it. Not too hard to just set up monthly transfers for yourself. The yearly recalculation we did blew.