How low can we go? 30 yr fixed at 3.75% with no fees...

[Irvinehomeseeker]

Completed refi with Cashcall today....very smooth process and I paid zero fees, no appraisal too. My original loan was at the rate of 4.25 .After multiple refi, I have now brought it down to 3.25. Just thought I will share

 

[Irvinity]

Did the 3.25 rate sail away? We tried calling a few agents over the weekend, and the last couple days and could only get 3.375.

 

[usctrojancpa]

Did the 3.25 rate sail away? We tried calling a few agents over the weekend, and the last couple days and could only get 3.375.

No way, we are heading to 3% on the 30-year fixed rate this year.

 

[Kings]

Did the 3.25 rate sail away? We tried calling a few agents over the weekend, and the last couple days and could only get 3.375.

No way, we are heading to 3% on the 30-year fixed rate this year.

just sprinkle a little more coronavirus on it

 

[sgip]

Never say Never - which makes little sense because I just said "never".... - but I digress....

Pretty solid rally in Treasuries today, even though mortgage rates are not based on the 10-Yr T. Indications are through the movement of the 10 year T that rates will indeed fall some, but we have to see improvement in the MBS market as well.

Some may have read this from me before, but for those who have not: "Fridays are a terrible day to price loans". The reason? Aggressive on Friday means rate changing news can erode value/pricing on Saturday and Sunday. Come Monday, Friday's aggressive rate quotes may be of zero worth to the funding lender's investors. due to profit margin compression. Example: What happens if Mayor Pete or Biden pull off an amazing upset in Nevada on Saturday? What might that do to rates? What if a vaccine to cure this Coronavirus is made available? See the issue? Bad news is good news for rates. Good news is bad news for rates. Much can happen over the weekend which is why pricing today, after a nice rally, hasn't really sweetened at all.

We should see those at 3.375 (standard conforming/50% LTV/ on-line lenders) move to 3.25 Monday, providing margins are still good and no impactful news hits during the weekend.

My .02c

 

[woodburyowner]

Guys, check out lenderfi.com.  Rate is now 3.125% no fee (ie. negative points) for 30 year fixed conventional.

 

[alphag]

Guys, check out lenderfi.com.  Rate is now 3.125% no fee (ie. negative points) for 30 year fixed conventional.

I went to check the rate at lenderfi.com just now and 3.125% for 15 yrs, not 30 years and has a -ve points: -$1,608.  It also has a closing cost of $1,608.  So you pay no closing cost for refi.

I just did a refi two weeks ago, the rate is the same but I have a credit of -$2800 and the closing cost was $2200.  I had $-600 at closing.  Rate is 3.125% for 15 years.  Guess my deal is much better than lenderfi.com. 

 

[usctrojancpa]

Guys, check out lenderfi.com.  Rate is now 3.125% no fee (ie. negative points) for 30 year fixed conventional.

I went to check the rate at lenderfi.com just now and 3.125% for 15 yrs, not 30 years and has a -ve points: -$1,608.  It also has a closing cost of $1,608.  So you pay no closing cost for refi.

I just did a refi two weeks ago, the rate is the same but I have a credit of -$2800 and the closing cost was $2200.  I had $-600 at closing.  Rate is 3.125% for 15 years.  Guess my deal is much better than lenderfi.com. 

Why not refi into or 7-year or 10-year ARM if it's in the 2%s instead when you plan on paying off your home in less than 15 years?  The thought is that you can make your payment the same as a 15-year fixed payment so with a lower rate you will accelerate the payoff to less than 15 years and any interest rate risk would be minimized. 

 

[woodburyowner]

Guys, check out lenderfi.com.  Rate is now 3.125% no fee (ie. negative points) for 30 year fixed conventional.

I went to check the rate at lenderfi.com just now and 3.125% for 15 yrs, not 30 years and has a -ve points: -$1,608.  It also has a closing cost of $1,608.  So you pay no closing cost for refi.

I just did a refi two weeks ago, the rate is the same but I have a credit of -$2800 and the closing cost was $2200.  I had $-600 at closing.  Rate is 3.125% for 15 years.  Guess my deal is much better than lenderfi.com. 

I'm inputting <50% LTV to match owning.com's quoted rate requirements. 

 

[woodburyowner]

Why not refi into or 7-year or 10-year ARM if it's in the 2%s instead when you plan on paying off your home in less than 15 years?  The thought is that you can make your payment the same as a 15-year fixed payment so with a lower rate you will accelerate the payoff to less than 15 years and any interest rate risk would be minimized. 

Right now, ARMs are only priced aggressively for loan sizes above the conforming limits and even better for jumbo loan sizes.  Anything within the conventional limit will have an ARM rate almost the same as a 30 year fixed.

 

[sgip]

Part of the reason why ARM rates are frozen at these present levels is that the replacement index for LIBOR is not yet known. The Banks, The Agencies, and The Fed all have a giant problem on their hands as the sunsetting of LIBOR nears rapidly.

It will all get figured out in time, but in the short run ARM rates will in some cases exceed fixed rates.

My .02c

 

[irvinehomeowner]

Guys, check out lenderfi.com.  Rate is now 3.125% no fee (ie. negative points) for 30 year fixed conventional.

I went to check the rate at lenderfi.com just now and 3.125% for 15 yrs, not 30 years and has a -ve points: -$1,608.  It also has a closing cost of $1,608.  So you pay no closing cost for refi.

I just did a refi two weeks ago, the rate is the same but I have a credit of -$2800 and the closing cost was $2200.  I had $-600 at closing.  Rate is 3.125% for 15 years.  Guess my deal is much better than lenderfi.com. 

Why not refi into or 7-year or 10-year ARM if it's in the 2%s instead when you plan on paying off your home in less than 15 years?  The thought is that you can make your payment the same as a 15-year fixed payment so with a lower rate you will accelerate the payoff to less than 15 years and any interest rate risk would be minimized.

Some people don?t understand this concept.

 

[Maserson]

Any news on physician loan refi?s? Sitting on a 3.25 7yr ARM.

 

[eyephone]

Why not refi into or 7-year or 10-year ARM if it's in the 2%s instead when you plan on paying off your home in less than 15 years?  The thought is that you can make your payment the same as a 15-year fixed payment so with a lower rate you will accelerate the payoff to less than 15 years and any interest rate risk would be minimized. 

Right now, ARMs are only priced aggressively for loan sizes above the conforming limits and even better for jumbo loan sizes.  Anything within the conventional limit will have an ARM rate almost the same as a 30 year fixed.

From a long term perspective. I would not get an arm.

 

[usctrojancpa]

Why not refi into or 7-year or 10-year ARM if it's in the 2%s instead when you plan on paying off your home in less than 15 years?  The thought is that you can make your payment the same as a 15-year fixed payment so with a lower rate you will accelerate the payoff to less than 15 years and any interest rate risk would be minimized. 

Right now, ARMs are only priced aggressively for loan sizes above the conforming limits and even better for jumbo loan sizes.  Anything within the conventional limit will have an ARM rate almost the same as a 30 year fixed.

From a long term perspective. I would not get an arm.

My experience has been that most people don't even consider getting an ARM loan because they don't understand how an ARM loan works (along with the pros and cons).  ARM loans are not for everyone, but can work great for many people.

 

[irvinehomeowner]

Why not refi into or 7-year or 10-year ARM if it's in the 2%s instead when you plan on paying off your home in less than 15 years?  The thought is that you can make your payment the same as a 15-year fixed payment so with a lower rate you will accelerate the payoff to less than 15 years and any interest rate risk would be minimized. 

Right now, ARMs are only priced aggressively for loan sizes above the conforming limits and even better for jumbo loan sizes.  Anything within the conventional limit will have an ARM rate almost the same as a 30 year fixed.

From a long term perspective. I would not get an arm.

But who stays long term?

Many of you said not to buy the last 2 years because people don?t usually stay in a home more than 5-10 years.

ARMs are so low now that if you are looking at a 15yr fixed or know you won?t stay longer than the ARM term you should consider it... but only if you can afford a fully indexed payment.

 

[OCtoSV]

jumbo conforming 7/1 is slightly higher than 15 yr fixed (LTV<70%), and carries fees

 

[eyephone]

Why not refi into or 7-year or 10-year ARM if it's in the 2%s instead when you plan on paying off your home in less than 15 years?  The thought is that you can make your payment the same as a 15-year fixed payment so with a lower rate you will accelerate the payoff to less than 15 years and any interest rate risk would be minimized. 

Right now, ARMs are only priced aggressively for loan sizes above the conforming limits and even better for jumbo loan sizes.  Anything within the conventional limit will have an ARM rate almost the same as a 30 year fixed.

From a long term perspective. I would not get an arm.

But who stays long term?

Many of you said not to buy the last 2 years because people don?t usually stay in a home more than 5-10 years.

ARMs are so low now that if you are looking at a 15yr fixed or know you won?t stay longer than the ARM term you should consider it... but only if you can afford a fully indexed payment.

That is your opinion. But I do think of the rate is really super low. People would rather get a fixed than an arm.

 

[usctrojancpa]

Why not refi into or 7-year or 10-year ARM if it's in the 2%s instead when you plan on paying off your home in less than 15 years?  The thought is that you can make your payment the same as a 15-year fixed payment so with a lower rate you will accelerate the payoff to less than 15 years and any interest rate risk would be minimized. 

Right now, ARMs are only priced aggressively for loan sizes above the conforming limits and even better for jumbo loan sizes.  Anything within the conventional limit will have an ARM rate almost the same as a 30 year fixed.

From a long term perspective. I would not get an arm.

But who stays long term?

Many of you said not to buy the last 2 years because people don?t usually stay in a home more than 5-10 years.

ARMs are so low now that if you are looking at a 15yr fixed or know you won?t stay longer than the ARM term you should consider it... but only if you can afford a fully indexed payment.

That is your opinion. But I do think of the rate is really super low. People would rather get a fixed than an arm.

Even if the seller won't keep the home for more than 7-10 years?  This happens a lot of first purchases of attached and detached condos.  Why pay the extra interest when you won't benefit from having a 30-year fixed loan?

 

[qwerty]

I think I refinanced from a 30 year 3.75% fixed mortgage to a 5/1 arm about 6 years ago - can?t believe it?s been that long already.
The last six years I have not paid more than 2.75% and currently at 2.625 for another 4 years. All because I finally caved and listened to our fellow TI posters. Thanks again guys and gals!