Mortgage Rates...

smalls

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My local banks are writing loans at 4.75% today with no points.

The breakeven on refinancing my house is only about 16 months now so I think the Mrs. and I will be inking a refi tomorrow. The crappy part is that it seems that Mortgage Insurance premiums have gone up quite a bit over the last year...but I can live with that since in the short term this will decrease our payment by about $200/month.

Anyone else taking the plunge now?
 

JoseCuervo

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I am waiting for 2%, at which time a 15 year mortgage will be cheaper than my current 30 year mortgage.....


I heard that people are waiting until the 4.5% the government has been saying will be required to get the economy started.

Your $200 a month in savings should start "stimulating" the local economy.
 

sreekers

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JC, you hit on something here though, that $200 a month doesn't sound like much of a stimulus. But add that into the boost smalls got in his pocket book from the lower gas prices and it looks even better.

The key will be how long deflation on the gas prices and the housing market and other necessities lasts. If the interest rates continue to go down, many will will refinance. I am considering it as well. Over a grand scheme of things, refinancing for a lot of people frees up cash. If people don't sit on that cash, it gets spent, when it gets spent the economy grows. This however is a LONG process, and it is just part of what is necessary to fix things.
 

smalls

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Your $200 a month in savings should start "stimulating" the local economy.
Locally...very little. Most will go towards savings/retirement. Over the last 2 years both my and my wife's income has grown, but our expenses/spending has not. As eekers points out, we'll likely be able to decrease our spending this year in light of lower fuel costs. Plus vacationing looks like it will be cheaper this year than in years past, so we will probably spend less on luxury too. Although some will likely get spent on home repairs since I keep finding out that handyman work isn't my cup of tea and I'd rather pay someone else to do it correctly the first time while I sit in a fishing boat and drink beer on a summer Saturday afternoon.

Interestingly, we'll save on healthcare this year too. We transitioned our little one from the health insurance from my wife's work to mine. My employer overhauled how it offers its benefits and for whatever reason, it is about $300 month cheaper for me to enroll in an "Employee+1" plan than it was a year ago.

Hopefully all of this diligence turns itself into an Alaska 2010 trip.
 

sreekers

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That is the whole idea behind grass roots economics though. Income you didn't have in an inflated market is not being used to buy home improvements. If this happens with more people who have money now available to them, we see the economy improve slowly but surely.
 

Moosie

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What you say "No Points" are you still paying Closeing fees / Or does no Points mean no Buying the Rate down.

Whats your GFE Closing cost Estimated ?
 

smalls

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What you say "No Points" are you still paying Closeing fees / Or does no Points mean no Buying the Rate down.

Whats your GFE Closing cost Estimated ?
I'm not buying the rate down. Closing fees still apply.

To refi my $150k mortgage, the GFE is around $3000. I still think I am getting hosed here but it seems to be competitive with the rest of the institutions in the area.
 

BigHornRam

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If you are needing to carry mortagage insurance Smalls, the appraisal may end up being the hitch in your game plan. The days of liberal appraisals are over (at least until the next housing bubble starts to grow). Still, it is well worth looking into if the bank is going to cover the closing costs (Edit.....I see that is not the case here). Good luck!
 

smalls

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I am basing the decision on a conservative appraisal. Recent sales (within the last 3 months) of smaller homes in my neighborhood have all exceeded what I need to make it work. I should be on the cusp of needing/not needing MIP and anything under 90% LTV still makes sense.
 

BigHornRam

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I am basing the decision on a conservative appraisal. Recent sales (within the last 3 months) of smaller homes in my neighborhood have all exceeded what I need to make it work. I should be on the cusp of needing/not needing MIP and anything under 90% LTV still makes sense.
Sounds like you have your stuff together Smalls......best of luck to you.
 

JoseCuervo

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Went in to the Bank today. I like to go in every couple of weeks and take off all my clothes and roll around naked in my money. . .

While in there, I asked what rates were, and the loan officer lady said "4.75%". They have 1% origination, plus the title insurance, appraisal, and credit report.

I told her I would wait for 4.5% and put my clothes back on.....
 

the nikster

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smalls...

pays a dude to take care of things around the house while he's out fishing...
can I get a schedule and rate of pay...?
 

smalls

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pays a dude to take care of things around the house while he's out fishing...
can I get a schedule and rate of pay...?
smalls would LIKE to pay a dude to take care of things around the house while I'm out fishing. Hasn't happened yet, but your more than welcome to stop over on Saturday and help me tile the bathroom! :D

I pay my help 12 ounces at a time.;)
 

Moosie

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Interest rates are Crazy.. One day it's one thing.. Another day it's something else...

Jose, I can get you a 15 year 4.5%.
 

Moosie

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I'm not buying the rate down. Closing fees still apply.

To refi my $150k mortgage, the GFE is around $3000. I still think I am getting hosed here but it seems to be competitive with the rest of the institutions in the area.
I'm calling BULL CHIT on the 3k..... :confused::confused:

My guess is you're paying more. At 1% Orig fee that's $1,500.. oK, Take that out even...MAybe the Banks getting paid on the back end only. There has to be an Appraisal, Title... And on a Refi on Title you pay Both sides (Alta and Title Ins) not like a Purch. I don't have my chart in front of me but a 150k house is at least 1k. (MAybe a BAnk-BAnk on the Sam note this is Different >>> ?? )Banks have Processing fees, My guess $300-$500. Then you have Prepaids. 2-3 months ins. and 4 months Taxes.

Dude.. I'd love you to PDF that GFE and Email it my way. Nothing personal will be on it, just numbers.
 

Ridge Runner

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Is it possible to refinance with a US bank on International properties? We have 2 investment properties in Australia and with our low interest rates here and the Aussie dollar being lower than what it has been for awhile I was thinking of looking into it. would it make any sense into doing this?
 
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