Refinance

[RatLabGuy]

So how many times can you refi a mortgage. I have owned the house for almost 2 years and already did a refi in sept ‘19 getting us down to 3.25 fixed/ 30yrs. Wondering with the fed dropping lower since then should I look into it? I have a VA loan whether that makes a difference. TIA.

There is no limit. Whoever is doing the new refi only cares about the details of your current loan, anything prior to that is irrelevamt.
Just keep in mind, every one costs you $$ in fees. So you gotta balance that fixed cost against what you will be saving with the new rate.

some specialty loans do have minimum terms though where yo have to pay back some $$ if dropped early.

 

[cj777]

So how many times can you refi a mortgage. I have owned the house for almost 2 years and already did a refi in sept ‘19 getting us down to 3.25 fixed/ 30yrs. Wondering with the fed dropping lower since then should I look into it? I have a VA loan whether that makes a difference. TIA.

There is no limit. You just need to do the math to determine if it is worth the additional closing costs and where your break even point is to see if it makes sense for you.

 

[rodney eppes]

Pretty sure everyone knows Fed dropped to 0%. And they say it will stay there, until they see a recovery! My past experience, is mortgage rates run a few days to a week or more, behind the Fed rate. We got time to wait & see what things drop to.

https://www.cnbc.com/…/federal-reserve-cuts-rates-to-zero-a…

"The coronavirus outbreak has harmed communities and disrupted economic activity in many countries," the Fed said.

About this website

CNBC.COM

Federal Reserve cuts rates to zero and launches massive $700 billion quantitative easing program
"The coronavirus outbreak has harmed communities and disrupted economic activity in many countries," the Fed said.

 

[NickMaul]

We were seriously interested in buying a house last Friday and our lender said the mortgage interest rate jumped up. Don’t know what the hell to do right now.


Sent from my iPhone using Tapatalk

 

[Deplorable]

We were seriously interested in buying a house last Friday and our lender said the mortgage interest rate jumped up. Don’t know what the hell to do right now.


Sent from my iPhone using Tapatalk

Mortgage rates fluctuate. They always have and they always will. We have some of the lowest ever rates now. If you like the house, buy it because you like it. Not because rates increased or decreased by a few basis points...

 

[NickMaul]

Mortgage rates fluctuate. They always have and they always will. We have some of the lowest ever rates now. If you like the house, buy it because you like it. Not because rates increased or decreased by a few basis points...

That didn’t keep us from putting in an offer. Wasn’t totally in love with the house after all. It was just interesting to hear that the interest rate increased.

Looking to buy a house this year regardless


Sent from my iPhone using Tapatalk

 

[77GreenMachine]

We were seriously interested in buying a house last Friday and our lender said the mortgage interest rate jumped up. Don’t know what the hell to do right now.

Sent from my iPhone using Tapatalk

I heard they temporarily increased the rates again to slow down applications because they had more than they could process. My neighbor works for Pinnacle Bank and said she usually has about 30 mortgage applications to process each week and right now they have 80/WK.

 

[UTfball68]

I heard they temporarily increased the rates again to slow down applications because they had more than they could process. My neighbor works for Pinnacle Bank and said she usually has about 30 mortgage applications to process each week and right now they have 80/WK.

From my mortgage broker last night. Super saturated right now.

 

[Andy J.]

I just locked in on a refi 3.375% @20yr fixed conventional. Currently 2 years into a 4.5% 30yr fixed conventional.

 

[DSM Turbos]

I just locked in on a refi 3.375% @20yr fixed conventional. Currently 2 years into a 4.5% 30yr fixed conventional.

Any idea what rates for a 30 year? I'm 5 years in so I really don't want to go back to a 30 year. If I went to a 20 for that, It would be ~100 bucks more a month which isn't awful to knock 5 years off payments. (I'm at 3.875%)

Edit - if I switch to a 20 year at that rate, its about 150 bucks more per month, but over the life of the loan, I would save 50k in interest, wow.

 

[Andy J.]

Any idea what rates for a 30 year? I'm 5 years in so I really don't want to go back to a 30 year. If I went to a 20 for that, It would be ~100 bucks more a month which isn't awful to knock 5 years off payments. (I'm at 3.875%)

The 30 yr rates were about .375% higher for me. I wasn't going to refi if I couldn't get a full point off and have a sub-24 month payback period. When I talked to them last week, the math didn't work. This week it does. Who knows what will happen next week?

 

[RatLabGuy]

Any idea what rates for a 30 year? I'm 5 years in so I really don't want to go back to a 30 year. If I went to a 20 for that, It would be ~100 bucks more a month which isn't awful to knock 5 years off payments. (I'm at 3.875%)

Edit - if I switch to a 20 year at that rate, its about 150 bucks more per month, but over the life of the loan, I would save 50k in interest, wow.

Don't forget to do the math on what you would save if you made no change to your current loan, and just upped the payments to the same as a 20 yr.
Then take that number, and compare it to what you just calculated (50k) minus the cost of the refinance (probably something like $3500)
How much would you save vs $46.5k?
It will probably still be money saved, but not nearly what you're thinking it is. Then you have to decide if that final difference is worth losing the flexibility of being able to choose whether or not to make that higher payment.

The point - if you want to keep the terms the same, unless you can drop the rate pretty substantially it often dosn't save you much after you consider the cost of refi + the convenience cost of losing liquidity.

 

[LBarr2002]

Just called the loan banker at my credit union. She answered the phone with "I don't want to talk rates"

 

[DSM Turbos]

Don't forget to do the math on what you would save if you made no change to your current loan, and just upped the payments to the same as a 20 yr.
Then take that number, and compare it to what you just calculated (50k) minus the cost of the refinance (probably something like $3500)
How much would you save vs $46.5k?
It will probably still be money saved, but not nearly what you're thinking it is. Then you have to decide if that final difference is worth losing the flexibility of being able to choose whether or not to make that higher payment.

The point - if you want to keep the terms the same, unless you can drop the rate pretty substantially it often dosn't save you much after you consider the cost of refi + the convenience cost of losing liquidity.

Yeah I did that also.

Advanced Mortgage Calculator with Extra Payments: Make Additional Weekly, Monthly, Yearly and/or One-time Home Loan Payments

If I add 150 a month to my payment now which brings it up to the same thing, winds up paying 113k in interest
If I did a 20 year at the lower rate, I pay about $75k in interest

Interest doesn't really matter though that much since really its about paying it off quicker.

So:
pay off dates adding 150 a month to current loan - payoff September, 2040
new 20 year loan starting now - payoff March 2040

So if my math is working out right, it is probably a wash really since the refi costs are probably like 3k like you said.

But I might be missing something.

 

[Tacoma747]

I plan to build a house at our land and sell the current house. My initial plan was to build a shop (with cash) first to have a place to put everything, and then get a mortgage (or home equity line of that's what it is considered?) On the current house, build a house at our land with that, then sell the current house and pay off the mortgage. Current house should sell for $250k-300k depending on the market at the time ($300 may be pushing it), my plan was to get a $150k mortgage and build a simpler house, but not sure how much of a house $150k would build nowadays.

Kind of off topic, but any pointers appreciated.

 

[jeepinmatt]

I plan to build a house at our land and sell the current house. My initial plan was to build a shop (with cash) first to have a place to put everything, and then get a mortgage (or home equity line of that's what it is considered?) On the current house, build a house at our land with that, then sell the current house and pay off the mortgage. Current house should sell for $250k-300k depending on the market at the time ($300 may be pushing it), my plan was to get a $150k mortgage and build a simpler house, but not sure how much of a house $150k would build nowadays.

Kind of off topic, but any pointers appreciated.

That gets you about 800-1000sqft in today's market, so probably a LOT simpler, haha. I'm half joking, but only half.

 

[RatLabGuy]

I plan to build a house at our land and sell the current house. My initial plan was to build a shop (with cash) first to have a place to put everything, and then get a mortgage (or home equity line of that's what it is considered?) On the current house, build a house at our land with that, then sell the current house and pay off the mortgage. Current house should sell for $250k-300k depending on the market at the time ($300 may be pushing it), my plan was to get a $150k mortgage and build a simpler house, but not sure how much of a house $150k would build nowadays.

Kind of off topic, but any pointers appreciated.

Do you already own the current house outright? If not, or very close to it, this is going to be difficult because (1) that is a massive loan against the current home and (2) you'll be looking at two mortgage payments at the same time.

 

[77GreenMachine]

Don't forget to do the math on what you would save if you made no change to your current loan, and just upped the payments to the same as a 20 yr.
Then take that number, and compare it to what you just calculated (50k) minus the cost of the refinance (probably something like $3500)
How much would you save vs $46.5k?
It will probably still be money saved, but not nearly what you're thinking it is. Then you have to decide if that final difference is worth losing the flexibility of being able to choose whether or not to make that higher payment.

The point - if you want to keep the terms the same, unless you can drop the rate pretty substantially it often dosn't save you much after you consider the cost of refi + the convenience cost of losing liquidity.

This was my scenario. It was more beneficial to keep my current loan and shell out $300 extra on the payment and that be the same as switching to the 15 year/2%.

 

[Tacoma747]

Do you already own the current house outright? If not, or very close to it, this is going to be difficult because (1) that is a massive loan against the current home and (2) you'll be looking at two mortgage payments at the same time.

Yes, bought it last year from my mom (since my dad passed in 2017 she is downsizing). So we obviously got a great deal on it, with the good price and the sale of our old house (and sale of a military truck and trailer I had) we were able to buy it outright.

That gets you about 800-1000sqft in today's market, so probably a LOT simpler, haha. I'm half joking, but only half.

Yea that ain't gonna work haha. Honestly I was thinking of a metal building house, but not sure if it would be cheaper than a stock built or not, just figured it might go up faster. We need 4 bedrooms, two large bedrooms upstairs, and a master and a small bedroom downstairs. I don't plan on building a basement, just planning to build on a slab or crawlspace.

I guess we may could get a loan for more, I just hate to have that monthly payment hanging over my head, BUT my hope is to pay on the loan for a year, then sell the house and pay it off--and hopefully bank whatever extra. I don't really want a $250k house.

 

[awheelterd]

I plan to build a house at our land and sell the current house. My initial plan was to build a shop (with cash) first to have a place to put everything, and then get a mortgage (or home equity line of that's what it is considered?) On the current house, build a house at our land with that, then sell the current house and pay off the mortgage. Current house should sell for $250k-300k depending on the market at the time ($300 may be pushing it), my plan was to get a $150k mortgage and build a simpler house, but not sure how much of a house $150k would build nowadays.

Kind of off topic, but any pointers appreciated.

150 gonna get you a double wide with batten strips over the drywall joints.




Just kidding, but like matt, not by much

I'd get my plans firmed up then sit tight for a few months.

 

[CLRracer]

We've been looking at houses or land to build a house recently. Today I called my lender and he said rates were above 5% again and have been swinging half a percent or more on a daily basis. I think we're going to buy a piece of property and sit on it for a bit and let this mess work itself out.

Duane

 

[paradisePWoffrd]

yeah, even though the market is down, and the rest of the economy is heading that way; housing has not followed that yet. If you are planning to sell investments to purchase a house, now is one of the worst times to do that. 6 months from now, might be a different story.

 

[RatLabGuy]

Fyi, availability of mortgages likely narrowing very soon
Exclusive: JPMorgan Chase to raise mortgage borrowing standards as economic outlook darkens

 

[NickMaul]

Just locked in 3.25% fixed for 30 years. Lender said rates are going all over the place with the stimulus packages. It doesn’t get much better than when you can catch it this low.


Sent from my iPhone using Tapatalk

 

[RatLabGuy]

This can't be good...
30-year fixed mortgage rate drops below 3% for first time

But damn it could be awesome.
its got me thinking about jumping on shortening to a 15 yr. Math says I could shave $100 off a month and lose 4 years.