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Sigmapolis

Minister of Economy
SuperFanatic
SuperFanatic T2
Aug 10, 2011
24,875
36,692
113
Waukee
ad2f65abeec7df41b49830bf53d6a97d.gif
 

ArgentCy

Well-Known Member
Jan 13, 2010
20,387
11,176
113
Be prepared to wait. I'm needing a vacation. Just remember people that house prices are generally inversely proportional to these interest rates. Great when they manipulate rates down, but that can't last forever.
 

ArgentCy

Well-Known Member
Jan 13, 2010
20,387
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what does this have to do with refinancing? I was paying $935/month and now I'll be paying about $941/month for a superior rate. what am I waiting for?

It will take you a while to close because everyone is doing the same thing, or at least trying.
 

Sigmapolis

Minister of Economy
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Aug 10, 2011
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Waukee
do you think refinancing is throwing money away? I come out ahead refinancing every time when compared to paying extra on my existing loan. I did about 5 calculations to decide this.

If the calculator says it is better for you to refinance (adjusting for fees and the time and effort annoyances of doing it, of course), then go for it.

My point was less about you and more about the Fed throwing money out the window and buyers gleefully throwing it all back into housing --

upload_2020-7-17_14-50-59.png

At a larger scale (the red line is mine) --

upload_2020-7-17_14-52-41.png

It is like we have not learned anything or something.

Housing prices grew with incomes from the 1940s through 2000, then we had a bubble, then it deflated, and now we have another one going.
 

ArgentCy

Well-Known Member
Jan 13, 2010
20,387
11,176
113
No refinancing is fine. If you can get the bank to agree and make the loans.

But I think people should keep this is mind...

A house with a mortgage of 4% 30 year loan (10% down payment) on a $350,000 house. P&I is $1,503 / month

If you lower the rate to 3% that same P&I of $1,503 would buy approximately $396,000 house. So the so-called value of the home has increased 13%. The market will take time to adjust but that is a big contributor to the market value increases.

If rates suddenly increased to 5% then that same $396,000 house could drop to $311,000 (>20% drop).
 

SayMyName

Well-Known Member
Jan 28, 2017
808
1,298
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ABQ
Pretty Green State is not doing refis at the moment as they dont have the capacity.
Any good leads on who does have capacity (and competitive rates / fees)? My current loan servicer proactively contacted me with their "VIP" no-cost refi offer for existing customers - 3.375% APR on a conforming 30-yr. Even their 15-yr was above 3%!

Yeah...think I'll shop that around. Thanks, but no thanks.
 

ArgentCy

Well-Known Member
Jan 13, 2010
20,387
11,176
113
Any good leads on who does have capacity (and competitive rates / fees)? My current loan servicer proactively contacted me with their "VIP" no-cost refi offer for existing customers - 3.375% APR on a conforming 30-yr. Even their 15-yr was above 3%!

Yeah...think I'll shop that around. Thanks, but no thanks.

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.
 

LeaningCy

Well-Known Member
Jan 18, 2008
2,824
4,710
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Any good leads on who does have capacity (and competitive rates / fees)? My current loan servicer proactively contacted me with their "VIP" no-cost refi offer for existing customers - 3.375% APR on a conforming 30-yr. Even their 15-yr was above 3%!

Yeah...think I'll shop that around. Thanks, but no thanks.

We just refinanced with Triumph Mortgage about a month ago and got 3% on a 25-year. Rate was the same for 30 year, might be even better now. Everything went according to plan and we even closed about a week ahead of schedule.

https://www.triumphhomeloans.com/
 

Sigmapolis

Minister of Economy
SuperFanatic
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Aug 10, 2011
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Waukee
No refinancing is fine. If you can get the bank to agree and make the loans.

But I think people should keep this is mind...

A house with a mortgage of 4% 30 year loan (10% down payment) on a $350,000 house. P&I is $1,503 / month

If you lower the rate to 3% that same P&I of $1,503 would buy approximately $396,000 house. So the so-called value of the home has increased 13%. The market will take time to adjust but that is a big contributor to the market value increases.

If rates suddenly increased to 5% then that same $396,000 house could drop to $311,000 (>20% drop).

The exact same logic is a primary reason college has gotten so expensive.

We made it easier to finance in a couple of different ways, so the holder of the "principal" (i.e., the schools) increased their prices to the point they collected much of the windfall that we intended to go to students. It was a good system (for them).

Instances of this are common across the economy.
 

SpokaneCY

Well-Known Member
Apr 11, 2006
13,294
8,484
113
Spokane, WA
my house was bought for about 200k with 28% down. I did not buy the max I could afford nor do I see my house as anything other than a necessary roof - I compare everything I do to what renting might cost and base my net worth on things other than housing. I understand what you are saying and don't understand those who put every penny they have into an illiquid asset. I used to pay extra on the mortgage and with this new rate I will not unless I come into some money.

Ditto on the extra mortgage payment (for my personal circumstances anyway). I'll not rob my 6% pocket to pay my 3% pocket...
 
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baller1

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Apr 10, 2006
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DM for refinancing/purchasing info. Wells Fargo SAFE id 1951738
 
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Gossamer

Well-Known Member
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

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May 26, 2008
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Parts Unknown
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
3,942
2,429
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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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