usctrojancpa
Well-known member
Funk that, you should be in the 2s with a 5/1 ARM loan.thatOSguy said:
How low can we go? 30 yr fixed at 3.75% with no fees...
- Thread starter ps99472
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Went with sebonic today.. Enough credits to cover all cost and some to prepay my HOA. 2.5% 5/1 ARM.
We all know you only do cash.
the difference in interest was 60K but then when you deduct that 60K, you would save (or at least i would) about 43% in taxes. so the 60K is really 34,200.
so a 5/1 arm 500K loan at 2.5% vs a 30 year at 3.75% would result in an extra interest of 30,408 through month 60. the tax benefit from the interest deduction at a combined rate of 43% would be 13,075, so the next cost is 17,333 over 5 years, or about $288/month
ps99472
New member
Here's what I got for you at 70%LTV (assuming the inputs below are similar to your own):
So both lenders can close at 2.875% with more than enough credit to cover all fees, and leftover for your escrow account. You usually need about ~$2500 in lender credit to cover all fees at closing, so you'll come out ahead if you go this route. Annie Mac offers ~$6100 in credit and Sebonic at ~$5100.
But let's compare at 55%LTV (holding all other variables the same):
Smarter and Annie Mac are the best deals. I would go with the lower rate with less credit. At ~$3200, that's still more than enough to close.
I would check again when markets open tomorrow. Did you submit request thru Zillow? Or did you call Residential Mortgage direct? My deal at 2.5% 5/1 ARM 55%LTV is thru a Zillow request. I saw them post a 2.625% with about $4000 in credit. I put in a inquiry thru Zillow to see if they can do 2.5% with enough credit to cover all fees at closing. They responded, haggled thru email a little back and forth, and finally agreed upon $71 in out of pocket fees for me at closing for the 2.5% rate.
That's why I thought it would be a good deal today, since they posted the same 2.625% rate with the same credit that caught my attention a few weeks ago, I'm thinking the 2.5% would be attainable again.
Good luck, I'll buy you a McRib if you dump your interest bleeding 30 year and refi into a 5/1
So both lenders can close at 2.875% with more than enough credit to cover all fees, and leftover for your escrow account. You usually need about ~$2500 in lender credit to cover all fees at closing, so you'll come out ahead if you go this route. Annie Mac offers ~$6100 in credit and Sebonic at ~$5100.
But let's compare at 55%LTV (holding all other variables the same):
Smarter and Annie Mac are the best deals. I would go with the lower rate with less credit. At ~$3200, that's still more than enough to close.
I would check again when markets open tomorrow. Did you submit request thru Zillow? Or did you call Residential Mortgage direct? My deal at 2.5% 5/1 ARM 55%LTV is thru a Zillow request. I saw them post a 2.625% with about $4000 in credit. I put in a inquiry thru Zillow to see if they can do 2.5% with enough credit to cover all fees at closing. They responded, haggled thru email a little back and forth, and finally agreed upon $71 in out of pocket fees for me at closing for the 2.5% rate.
That's why I thought it would be a good deal today, since they posted the same 2.625% rate with the same credit that caught my attention a few weeks ago, I'm thinking the 2.5% would be attainable again.
Good luck, I'll buy you a McRib if you dump your interest bleeding 30 year and refi into a 5/1
irvinehomeowner
Well-known member
That's the biggest pro for me, reducing my principal faster and paying less interest.
I did the math with a 5/1 vs a 7/1 vs a 30 year and at the time, the 7/1 was the best match for me since the interest rate against the 5/1 was not that much difference (but huge compared to the 30).
I did the math with a 5/1 vs a 7/1 vs a 30 year and at the time, the 7/1 was the best match for me since the interest rate against the 5/1 was not that much difference (but huge compared to the 30).
homer_simpson
Well-known member
ps9 said:Here's what I got for you at 70%LTV (assuming the inputs below are similar to your own):
So both lenders can close at 2.875% with more than enough credit to cover all fees, and leftover for your escrow account. You usually need about ~$2500 in lender credit to cover all fees at closing, so you'll come out ahead if you go this route. Annie Mac offers ~$6100 in credit and Sebonic at ~$5100.
But let's compare at 55%LTV (holding all other variables the same):
Smarter and Annie Mac are the best deals. I would go with the lower rate with less credit. At ~$3200, that's still more than enough to close.
I would check again when markets open tomorrow. Did you submit request thru Zillow? Or did you call Residential Mortgage direct? My deal at 2.5% 5/1 ARM 55%LTV is thru a Zillow request. I saw them post a 2.625% with about $4000 in credit. I put in a inquiry thru Zillow to see if they can do 2.5% with enough credit to cover all fees at closing. They responded, haggled thru email a little back and forth, and finally agreed upon $71 in out of pocket fees for me at closing for the 2.5% rate.
That's why I thought it would be a good deal today, since they posted the same 2.625% rate with the same credit that caught my attention a few weeks ago, I'm thinking the 2.5% would be attainable again.
Good luck, I'll buy you a McRib if you dump your interest bleeding 30 year and refi into a 5/1
Went with sebonic today.. Enough credits to cover all cost and some to prepay my HOA. 2.5% 5/1 ARM.
irvinehomeowner
Well-known member
Lies.#FARM said:
We all know you only do cash.
irvinehomeowner
Well-known member
You have to use qwerchete's numbers for him to see the LEDs.
We somewhat know his ballpark purchase price and if he's going to pay off his loan in 10 years, he probably put more than 20% down.
ps9... can you do the breakdown on $500k loan 5/1 vs 30, no extra payments and see what the interest savings are?
We somewhat know his ballpark purchase price and if he's going to pay off his loan in 10 years, he probably put more than 20% down.
ps9... can you do the breakdown on $500k loan 5/1 vs 30, no extra payments and see what the interest savings are?
qwerty
Well-known member
ps9 said:qwerty said:
Wouldn't that tax benefit apply to all interests regardless of 30yr or 5/1 ARM? The comparison I did above shows you'll save almost $60,000 in interest payments over 5 years by going with the 5/1. So ~$1000/month, you can pay your HOA fines with that
the difference in interest was 60K but then when you deduct that 60K, you would save (or at least i would) about 43% in taxes. so the 60K is really 34,200.
qwerty
Well-known member
irvinehomeowner said:
so a 5/1 arm 500K loan at 2.5% vs a 30 year at 3.75% would result in an extra interest of 30,408 through month 60. the tax benefit from the interest deduction at a combined rate of 43% would be 13,075, so the next cost is 17,333 over 5 years, or about $288/month
irvinehomeowner
Well-known member
And what is the remaining principal after Year 5?