I just locked in today a 15 year at 2.75%. I was at 3.75% for 30 years!
Mortgage Refi Question
- Thread starter cyfan92
- Start date
Bottom is dropping out. I’m hoping to get in to 20 year mortgage with a payment that is nearly identical to what I have on my 30 year currently and maybe even get some cash out of the deal to buy some securities or for home improvement.
Definitely something not right at the moment. Perhaps DB is blowing up or something in China. I would put money on serious problems in Europe and perhaps even Germany.
https://www.zerohedge.com/news/2019-08-07/when-you-get-email-fed-it-may-be-time-panic
https://www.armstrongeconomics.com/...t-to-the-global-economy-the-fed-responded-to/
My two cents worth.
Crazy long bull market at this point. Housing prices spiking near 2008 levels. Unknowns with trade. Huge federal deficits....and rising (which no one is seemingly campaigning on addressing.....just making larger), etc.
All things mentioned we are pretty helpless to control, but we are at risk of them negatively affecting us in numerous ways. One thing you can control: How much you owe and your monthly debt payment obligations.
If this all implodes and goes sideways, those that have minimized their exposure to debt will be in the best place to ride out the storm.
Yes, take advantage of lower interest rates but also work like heck to pay down your mortgage as efficiently as possible....assuming your other debt obligations are already addressed.
In these uncertain times, your best investing decisions maybe those that reduce what you owe others. You can't plan to later cash in a successful portfolio to "pay off debits", if there isn't anything of substance left to cash in.
(and no, I don't roll out this narrative as small talk at parties)>
Crazy long bull market at this point. Housing prices spiking near 2008 levels. Unknowns with trade. Huge federal deficits....and rising (which no one is seemingly campaigning on addressing.....just making larger), etc.
All things mentioned we are pretty helpless to control, but we are at risk of them negatively affecting us in numerous ways. One thing you can control: How much you owe and your monthly debt payment obligations.
If this all implodes and goes sideways, those that have minimized their exposure to debt will be in the best place to ride out the storm.
Yes, take advantage of lower interest rates but also work like heck to pay down your mortgage as efficiently as possible....assuming your other debt obligations are already addressed.
In these uncertain times, your best investing decisions maybe those that reduce what you owe others. You can't plan to later cash in a successful portfolio to "pay off debits", if there isn't anything of substance left to cash in.
(and no, I don't roll out this narrative as small talk at parties)>
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when you say no cost, what does that mean exactly? What is the incentive to the bank to offer it?
And if you refinance a 30 year loan at the 30 year rate again, are you paying that over 30 years or over the 27 years you have remaining on your original loan? Probably dumb questions but I know almost nothing about this topic.
I dont think its a no cost at all thing. It might be no cost for closing right now and they put in the closing cost over the 30 year loan (which is what i did) but it will cost to close somehow. If you refinance it will go back to 30 years if you choose 30 years. depending on how high your interest rate is now it might cost the same to go to a 15 yr mortgage with a lower rate.
Also keep in mind your refi amount is going to be the amount you owe now so you’re not really getting “dinged” in any way.
They say nothing out of pocket and nothing added to the loan. Its already with them, so the incentive could just be to keep the loan (and the interest generated) rather than the loan going to a competitor. Alternately, given some are offering 3.25, maybe theyre just baking in a little extra interest (some of the 3.25 ones end up with an APR of right around 3.375)
It would pop the term back up to 30 years if i did that but the principal would remain the amount it is at today. However, with the lower rate the calculator i used says i still end up paying less interest in that even if i took 30 years to repay it, and i could always put the monthly payment savings towards prepayment if i want as well.
Refinancing a House for a city dweller is how I imagine farmers feel every day.
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I am surprised that, in 2019, there is not some system that offers to automatically refinance you every time rates drop one epsilon under your previous rate.
Some robot does it -- don't even need to think about it.
That would cost the banks a lot of money. Ain't gonna happen.
Or make the first bank to offer it a lot of money given it would attract customers.
https://www.fsb1879.com/
Did everything online and via email. Only time I will have to talk to a person face to face is at closing. Super easy process.