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

NEW -> Contingent Buyer Assistance Program
based on my research on IRS 2014 publication 936, it seems like if you refi in 2014 to pay off your old loan, where your old loan itself was also a refi, you can deduct the remaining amount of old loan's adjusted loan origination fee (shown in line 803 of your old loan's HUD) fully in 2014 because the life of the loan ends, instead of keep amortizing it.
 
Just completed back to back refi. It is much smoother than the last one.
Including lender credit from the last one, our net refinance cost out of pocket is less than $1k. We are quite fortunate that we locked on the lowest possible day over the last 20+ months (end of Jan): we started from 4.125%, 28 years left to 3.25%, another 30 years. Since 3.25% is "unrefinanceable rate" according to SGIP, it looks like we are officially done with refi for our primary residence.
 
The California Court Company said:
Just completed back to back refi. It is much smoother than the last one.
Including lender credit from the last one, our net refinance cost out of pocket is less than $1k. We are quite fortunate that we locked on the lowest possible day over the last 20+ months (end of Jan): we started from 4.125%, 28 years left to 3.25%, another 30 years. Since 3.25% is "unrefinanceable rate" according to SGIP, it looks like we are officially done with refi for our primary residence.
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Unless of course you join the 5/1 ARM crowd.  ;)
 
Wife will never let me do ARM and she is adamant on 30 year fixed.

I don't think it has to do with the lender; more has to do with luck and timing. if you look at it today, the same lender does not have the lowest rate compared to other Zillow lenders; but on the day we locked, they did. I think their pricing is more tied to US10Y: the day we locked US10Y was 1.6% and today is 2.1%. It was also 60 day lock free of charge...it took us about 40 days to finish everything. So plenty of margin and we did end up not paying our 1st mortgage payment for the old loan :)

It will be hilarious if we end up with Chase for the new loan. So we went from Zillow lender A to Chase to Zillow lender B and back to Chase...so essentially Chase is paying itself off, at a lower rate :)
 
you mean citigold? so you only need to be in citi gold temporarily to get the rate?

my Google research for citigold shows 0.5 discount point for mortgage, which is quite different than 0.5% in mortgage interest.

But 0.5 discount point is still better than BOA's similar reward program, for which the highest tier only gives a paltry $600 in closing credit...

But if you think about the account balance you need, it may not be worth it. For example, $50,000 in Citi bank account can get you 0.125% less mortgage interest but the balance earns 0.05% APR.  You can find online saving account with APR of 1.1%. Depending on the mortgage balance, the interest earned can be more than the interest saved, unless you do the temporary trick.

i1 said:
Citi can do 3.25% 30 yr fixed 80% ltv jumbo loan. But catches are new purchase vs refi, credit score and relationship (can be temporary).
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that makes much more sense. unless you have an investment account with them, it is hard to justify having 1 million dollars in bank accounts (checking/saving/CD) in order to get the maximum benefits of 0.375% off interest rate + $2500 closing credit.

Let's use $250k, FDIC insurance limit, for a typical American family, you only get $1000 closing credit and no difference in rate.

i1 said:
The California Court Company said:
you mean citigold? so you only need to be in citi gold temporarily to get the rate?

my Google research for citigold shows 0.5 discount point for mortgage, which is quite different than 0.5% in mortgage interest.

But 0.5 discount point is still better than BOA's similar reward program, for which the highest tier only gives a paltry $600 in closing credit...

But if you think about the account balance you need, it may not be worth it. For example, $50,000 in Citi bank account can get you 0.125% less mortgage interest but the balance earns 0.05% APR.  You can find online saving account with APR of 1.1%. Depending on the mortgage balance, the interest earned can be more than the interest saved, unless you do the temporary trick.

i1 said:
Citi can do 3.25% 30 yr fixed 80% ltv jumbo loan. But catches are new purchase vs refi, credit score and relationship (can be temporary).
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yeah. it is citigold. there are different levels of benefits. I don't think you'll find on the web but any citi loan officer will tell you (too bad not many branches around now). it is discount to the interest rate, not points. they are very open that the relationship can be temporary so its not really even a trick.

edit: they also have "mortgage rate protection" - an addendum to loan that lets you bring down rate one time in 1st 3 years at zero cost - like a refi but without paperwork.
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Most banks have some sort of loyalty/new money program. The company I'm with doesn't just offer a $500-$600 credit - not much incentive here in The OC, but in Ohio, that's almost 1/2 point in fee..... It's all relative to ones market. There are additional tiered pricing or rate opportunities at every bank beyond what might be discoverable on-line.

The Citigold screen capture doesn't go into all the gritty details, surprising "gotcha's" or unique long term benefits that their loyalty program offers. Neither would ours, or Chase, WF, etc from the ads you can find on-line.  There are some loyalty programs that have lower account balance thresholds. Some cannot be used on refinances. Some cannot be used with ARMs. Although if one was to move $1m to the bank, It's reasonable to expect .375 off a 3.50% rate. In some cases, the bottom rate you can get is no lower than 3.25% which means less money is needed to be moved over. Might a $2.9m Hidden Canyon buyer be able to lock in an extraordinarily low rate in for the duration of a 9 month build cycle? I know it's possible with some banks products, but not with others.

Because customer expectations don't always line up with every mortgage program terms, it's best to talk with a banker directly about what the details are for their specific programs.

My .02c

Soylent Green Is People.
 
Hey, ps9, since we are talking about bad investment strategies (Papa Murphy? Really?), are you going to divulge about falling off the ARM train?
 
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