I have the ability to get a 15 year fixed at 4.375. Anybody in the business? Should I wait or go for it.

how much lower do you think it could get realistically?

It depends on what your current mortgage rate is, and how much are the refi fees (including points paid for).

You also need to compare what that new mortgage payment is, and whether you could simply pay your current mortgage off sooner w/ higher payments.

15 year fixed at 4.375 is a GREAT rate...but you can't get past all the other factors.

Thanks......

Factor in what it's going to cost to refi. If you have 5% right now, it's probably not worth it. 5.5%, I'd go for it. If you have ANY ARM I'd go for it.

Based on the little information provided, I'm seconding the recommendations - go for it. Mortgage rates can only go up from 4.35%!

But can you ballpark the closing costs for us?

If it is $10k +, do your math to see if just applying $10k to your mortgage principle isn't a better idea (assuming you are paying cash for closing, and not rolling the closing costs into the new loan)

Certainly you need to understand and do the math on Dr. Torch and Rebel's notes.

And make sure you understand the tax implications in 15yrs when you no longer have mortgage interest to deduct from your taxes.

LS - do you know anything about these no closing cost Mortgage outfits? They claim they make there money from servicing the mortgages, and your rate may be higher than market too?

JM Nutter in Missouri is one I know of.

Of course you should. Feds gonna have to start raising interest rates in the next few years to curb inflation from gov't spending.

(10-01-2009 09:40 AM)GGniner Wrote:  LS - do you know anything about these no closing cost Mortgage outfits? They claim they make there money from servicing the mortgages, and your rate may be higher than market too?

JM Nutter in Missouri is one I know of.

Are you looking to take cash out, or refinancing for a better rate?

(10-01-2009 10:07 AM)Lord Stanley Wrote:  

(10-01-2009 09:40 AM)GGniner Wrote:  LS - do you know anything about these no closing cost Mortgage outfits? They claim they make there money from servicing the mortgages, and your rate may be higher than market too?

JM Nutter in Missouri is one I know of.

Are you looking to take cash out, or refinancing for a better rate?

already did from 6.375% to 5% at no cost, just wondering how they did it. They claim its all about the servicing fees and I read that the rates tend to be a little higher than market, so probably getting me there. but saved the $2k plus it would've cost elsewhere, if not alot more.

You all are giving great advice. Mach, give these guys more info on costs and points and they can nail it for you.

In process, Thanks Lord

(10-01-2009 10:11 AM)GGniner Wrote:  

(10-01-2009 10:07 AM)Lord Stanley Wrote:  

(10-01-2009 09:40 AM)GGniner Wrote:  LS - do you know anything about these no closing cost Mortgage outfits? They claim they make there money from servicing the mortgages, and your rate may be higher than market too?

JM Nutter in Missouri is one I know of.

Are you looking to take cash out, or refinancing for a better rate?

already did from 6.375% to 5% at no cost, just wondering how they did it. They claim its all about the servicing fees and I read that the rates tend to be a little higher than market, so probably getting me there. but saved the $2k plus it would've cost elsewhere, if not alot more.

On the risk of talking out my ace without more details, one of the reasons a mortgage bank will do no closing costs loans is to make sure your mortgage stays with them. So the bank continues to make money off of you (but a little bit less now), rather than you going off and refinancing with another company.

And remember as well, a little higher rate is not that much more money out of your pocket - what is the difference between 5% and 4.85%? Not enough to matter! I've said it once and I'll say it again:

Having the lowest mortgage interest rate is nothing more than cocktail party small talk

Anything at or below 5 makes you a real winner in the mortgage game. And a refi to something less than 1/2 pt from your 5% probably wouldn't make financial sense......

The reason I started this is I wanted to lock in yesterday which I did. I'm meeting with the bank today and she goes if you lock in it goes both ways. Like I shouldn't of locked in yesterday...............

Well, if you lock and it goes lower, you lose and the bank wins. It's a crap shoot. You know rates were this low in the 1960s. I spent most of my life with loans at 9% or in the Cater Years 13-15%. So since Carter and Obama are stacking up to be the weakest presidents of modern history, I'll let you draw your own conclusions about where the interest rate is going. As soon as there is any sign of recovery look out.

(10-01-2009 11:46 AM)Machiavelli Wrote:  The reason I started this is I wanted to lock in yesterday which I did. I'm meeting with the bank today and she goes if you lock in it goes both ways. Like I shouldn't of locked in yesterday...............

Did they give you an estimate of closing costs?

Hate to say this but I know people who stopped making payments for 3 months and then try to strong arm the bank into a better mortgage deal. The ding on their credit is negligible because so many people have been foreclosed on. If it works, they walk away winners. If the bank puts up a fight then they simply make the back payments and all is well with the world.

This might work in So Cal where there are thousands of foreclosures. It might be different where you live.

Go for it out of the goodness of your heart. Refinancing data will look better, banks will earn fees from refis, and a loan officer will get a commission check. All of this will help the economy. Every bit helps. Be a patriot. Do your part.

(10-01-2009 06:16 PM)STLouis Blazer Wrote:  Go for it out of the goodness of your heart. Refinancing data will look better, banks will earn fees from refis, and a loan officer will get a commission check. All of this will help the economy. Every bit helps. Be a patriot. Do your part.

....not exactly things that would make my decision for me.

Mach, if it's good for you, do it. Damn everything else. All the others are secondary.

Im doing it now with BB@T @4.5. from 5.5 on a 15 refi. Adding 3 years to my existing note...financing an extra 25k to put a new roof and HVAC on my house and still coming away with $120 per month less payment. I would be fool not to do this.....That rate is the best I have heard....If you are dropping a point...it is probably worth it.