4.2% 30 year fixed refinancing

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[quote author="badtime" date=1238045783]my friend just did refinancing with 4.2% for 30 year fixed.



question is it worth to buy now with that low rate?</blockquote>


who was the lender? how much was the loan for?
 
There are a lot of factors to consider though. What are the fees? What are the points? Do you plan to live there long enough to make it worth it compared to the rate you have now. Do you qualify (enough equity) or do you have the cash needed for closing?



I'm really curious about the number of points and if a 20 or 15 yr. would be less or more. If you have more info, please provide.
 
[quote author="badtime" date=1238045783]my friend just did refinancing with 4.2% for 30 year fixed.



question is it worth to buy now with that low rate?</blockquote>


Depends on the price. Even at that low rate the cost of carrying the mortgage may greatly exceed the rent costs on an equivalent property. If you believe that prices will continue to fall until the ratio of mortgage cost and rent cost is roughly 1 to 1, then you have the answer to your question. Personally, I am willing to pay slightly more to own, but only slightly.



For example if I were to buy the place I am currently renting at the closing price for the most recent comparable sale (within the last month), I would expect to pay an additional ~70% to own (making the all in payment 170% of my rent cost). Furthermore that difference does not include the opportunity cost on the 20% down payment.



At a 2% interest rate I would be indifferent between owning and renting.
 
[quote author="CapitalismWorks" date=1238048071]

At a 2% interest rate I would be indifferent between owning and renting.</blockquote>
So say we all.*



*IHB points to whoever gets that reference
 
[quote author="Mcdonna1980" date=1238046281][quote author="badtime" date=1238045783]my friend just did refinancing with 4.2% for 30 year fixed.



question is it worth to buy now with that low rate?</blockquote>


who was the lender? how much was the loan for?</blockquote>


I second this question.
 
[quote author="MacInThebox" date=1238053679][quote author="Mcdonna1980" date=1238046281][quote author="badtime" date=1238045783]my friend just did refinancing with 4.2% for 30 year fixed.



question is it worth to buy now with that low rate?</blockquote>


who was the lender? how much was the loan for?</blockquote>


I second this question.</blockquote>


Just go tohttps://www.providentfunding.comand select 30-year Conv. With enough points, you can find a 4.25% mortgage.
 
[quote author="Friarush" date=1238059717][quote author="MacInThebox" date=1238053679][quote author="Mcdonna1980" date=1238046281][quote author="badtime" date=1238045783]my friend just did refinancing with 4.2% for 30 year fixed.



question is it worth to buy now with that low rate?</blockquote>


who was the lender? how much was the loan for?</blockquote>


I second this question.</blockquote>


Just go tohttps://www.providentfunding.comand select 30-year Conv. <strong>With enough points</strong>, you can find a 4.25% mortgage.</blockquote>


And therein lies the problem.
 
Where is the best place to get a Jumbo loan for rates? I have a LTV of 75%. I have gotten some feedback on PenFed, but I was wondering if there is an easier process.



BTW, I just recently got car insurance with Ameriprise thru Costco and pricing was much better than State Farm. I don't know if anyone cared but I just love saving a dime here and there.
 
[quote author="badtime" date=1238045783]my friend just did refinancing with 4.2% for 30 year fixed.

question is it worth to buy now with that low rate?</blockquote>


Can't really answer that without rest of the purchase details.





[quote author="irvine_home_owner" date=1238049021][quote author="CapitalismWorks" date=1238048071]

At a 2% interest rate I would be indifferent between owning and renting.</blockquote>
So say we all.*



*IHB points to whoever gets that reference</blockquote>


I think the 1st season and the recent ending episode was pretty good, but in the middle, they went to la-la land.



Personally, my favorite Sci-Fi series is LEXX, and Kai is my idol.



<img src="http://upload.wikimedia.org/wikipedia/en/thumb/d/d1/Lexx403_0263.jpg/250px-Lexx403_0263.jpg" alt="" />



<em>"Yo Way Yo

Home Va Ya Ray.

Yo Way Rah.

Jerhume Brunnen-G!"</em>
 
I locked today at 4.5% 30 year conforming with 1 point. Closing fees around $6500.. break even in about 10 months.. Called current lender at 3pm today and was told he can do 4.875% w/ 1 point, told him I'll think about it.. he called back 2 hours later saying rates has dropped and is now 4.5 w/ 1pt.. never knew mortgage rates can move that fast.. lender was countrywide..
 
I have locked at 4.875% with 0.875 points for a super conforming loan ($417K<x<$625K) for 30 yr fixed with Countrywide. The rates did drop about 0.5 points below my locked rate for a day or so last week but unfortunately I learned about that a bit too late and my Countrywide loan guy didn't bother to call me for me to take advantage of a one-time renegotiation.
 
[quote author="Mcdonna1980" date=1238046281][quote author="badtime" date=1238045783]my friend just did refinancing with 4.2% for 30 year fixed.



question is it worth to buy now with that low rate?</blockquote>


who was the lender? how much was the loan for?</blockquote>


BOA. ~250K loan.
 
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Most lenders today can offer 4.25% for about 1.0 point. You've got to lock in for 60 days however since it's going to take that long. Also, don't wait for lower rates. I'm not saying this because I'm in the Biz. (yes, I work for a big bank with a cartoon character on an airship...)



Here's why: The cost of loan servicing is 1/2 percent. The cost of money is about 2 and 1/2 percent. Inflation and profit expectations are about 1.0 percent. Rates cannot go lower than 4.0% without significant points being paid.



The Fed is buying treasuries and Mortgage Backed Securities. That is establishing a ceiling rate of 5.5% or so. They are not buying treasuries or MBS's below 4.0% which should tell everyone that 4.0% is the floor.



My .02 from experience.



Soylent Green Is People.
 
[quote author="kishmish" date=1238157354]I have locked at 4.875% with 0.875 points for a super conforming loan ($417K<x<$625K) for 30 yr fixed with Countrywide. The rates did drop about 0.5 points below my locked rate for a day or so last week but unfortunately I learned about that a bit too late and my Countrywide loan guy didn't bother to call me for me to take advantage of a one-time renegotiation.</blockquote>


So when is the house-warming party kish?! :)
 
High cost area conforming loans (HCACJ $417k to $729k) have unique pricing hits. In general, if you are below 75% loan to value and getting a no-cash out refi, your HCAJC loan rates should be equal to standard conforming rates. Anything above 75% or with cash out and it's about 1/2 percent in rate higher than standard conforming.



Just lock in something for a considerable amount of time. It's going to take 60+ days to refi because of this current wave.
 
I locked in alot of mortgages at 4.8375. The cost to refi is not so bad... it will take about 10 months to break even - its month 3-4 now. I have to wait for a year or else I get stiff penalities. I may pay the penality just to get to the low 4% range and stick it out. But it will save approx. 5k a month. I hope it stays there for a good while... we will see.



-bix
 
Just put down 20% and get a 30 yr fixed -- you have 400k to spend. Make sure there are no big expenses on the house. Dont buy a cheaper $380k house and get a second, dont get any more loans at all. Get a first mortgage that has payments you can make for 30 years, do the calculation up to a daily basis. Example: $1717/30.



Make sure it is an absolute fixed mortgage with all fixed payments. No 2 year, 5 year, grace/fancy pants payments. The mortgage that is sold (maybe to a third party) is an absolute fixed annuity, and simple to understand annuities will be in demand soon, so your mortgage will be in demand. The point is that you should go with someone you trust, like a local bank, or a bank you have your checking and savings at. These companies are rare but they exist.



Dont go around pre-qualing, these companies all sell your info into the world of spamfinance. Just go with the credit union and make sure YOU understand what the hell is going on, thats all that matters.
 
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