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

[Perspective]

It's funny, the company I refinanced with last year sent me a flyer with today's rates compared to the rate I had with them, and they all showed an increase in payment.

I think it was an auto-gen/mail because why would I want to refinance into a higher rate?

I believe a lender can be fined for non-compliance if they refi you to worse terms than you're current loan.  I'm guessing that during the underwriting period, your loan would be rejected if they find that you're better off with your current mortgage.

That's only true in some states, where the creditor is required to identify a "tangible net benefit" to the borrower for refinancing, but typically is required only when the rate is above a certain "high cost" threshold - e.g. comparable UST term + 5 points in a first lien loan.

 

[Perspective]

Lenders: You can double risk-taking and still remain below pre-crisis levels
Urban Institute report shows plenty of room to open the credit box
http://www.housingwire.com/articles...isk-taking-and-remain-below-pre-crisis-levels

Credit availability remained steady in the fourth quarter of 2016, well below pre-recession levels, according to the Credit Availability Index from the Urban Institute?s Housing Finance Policy Center.

Credit availability held steady at 5.2% during the fourth quarter, according to the HCAI. However, as seen in the chart below, which used data from eMBS, CoreLogic, the Home Mortgage Disclosure act, IMF and the Urban Institute, it is still far below the pre-crisis years.

The HCAI measures the percentage of home purchase loans that are likely to default, or go unpaid for more than 90 days past their due date. A lower HCAI shows lenders are not willing to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan, whereas a higher HCAI shows lenders are looser in their lending and take more risks, making it easier to get a loan.

The current level of 5.2% is up from 2013?s third-quarter low of 4.6%, however it is down significantly from the 12.5% average seen from 2001 to 2003.

The Urban Institute report shows there is significant room for expansion within the credit box. In fact, the current risk could be doubled across all channels and still be well within the pre-crisis standards set from 2001 to 2003.

To see the index?s extensive 35-page explanation of its data usage and methodology, click here.

 

[Collins]

Anyone refi this month?  What kind of rates are we looking at for  5 year arm, 7 year Arm and 30 year?

Are rates on retail banks safe to assume?

 

[aquabliss]

JJ you should have went with CashCall instead, could have got 3.375 no fees.

Once again the wrath of the Mother In Law comes back to bite you.

I never hit the stock market at the bottom or sell at the top, but finally in my life once I did it right with my mortgage.  1 year ago this month locked in 3.375% no closing costs, no fees, cashcall credited me for appraisal, no out of pocket. 

Took some cash out as well and invested in what I thought was the top of the market, but done considerably well since then.

I should bask in this for awhile, because I'm usually on the other side of the fence. 

 

[meccos12]

.

 

[ps99472]

Is that money gonna factor into the equation to getting the loan?  if so don't move it, why risk a pita situation on the biggest purchase of your life?  and we're talking what?  maybe a couple hundred more interest?  so if you're planning to get a mortgage.  the less activity the better.

 

[jmoney74]

Don't think it affects it. You just need to show them statements showing where the money moved to.

 

[aquabliss]

I put some in American Express Savings at 1.15%https://personalsavings.americanexpress.com/home.html

It's a well known name and rate (while not the best) is good.  Transfers in and out have also been really quick, usually next business day and not 3-4 days like other online banks.

Customer service is also easily reachable and good.  You'll probably get Philippines if you call after hours or weekends but all the reps have been helpful.

 

[sgip]

It's OK to move cash. Be sure to paper trail it.

Some banks offer a mortgage rate improvement if you keep the funds with them for 90 days or more. Do the math: Is a 1% deposit rate improvement as beneficial as a .125 to .250% lower mortgage rate? My guess is the loan terms will compare better than what you earn at an on-line bank.

PM me if you'd like to go over your personal specifics rather than here on a public forum.

My .02c

Soylent Green Is People

 

[Roger]

I put some in American Express Savings at 1.15%https://personalsavings.americanexpress.com/home.html

It's a well known name and rate (while not the best) is good.  Transfers in and out have also been really quick, usually next business day and not 3-4 days like other online banks.

Customer service is also easily reachable and good.  You'll probably get Philippines if you call after hours or weekends but all the reps have been helpful.

I tried to search faq but can't seem to find the answer - does your bank charge fee when transfer to AMEX Savings account?

 

[aquabliss]

I put some in American Express Savings at 1.15%https://personalsavings.americanexpress.com/home.html

It's a well known name and rate (while not the best) is good.  Transfers in and out have also been really quick, usually next business day and not 3-4 days like other online banks.

Customer service is also easily reachable and good.  You'll probably get Philippines if you call after hours or weekends but all the reps have been helpful.

I tried to search faq but can't seem to find the answer - does your bank charge fee when transfer to AMEX Savings account?

No fee to transfer.  I mainly use Wells Fargo for transfers in and out of AMEX.

 

[Roger]

I put some in American Express Savings at 1.15%https://personalsavings.americanexpress.com/home.html

It's a well known name and rate (while not the best) is good.  Transfers in and out have also been really quick, usually next business day and not 3-4 days like other online banks.

Customer service is also easily reachable and good.  You'll probably get Philippines if you call after hours or weekends but all the reps have been helpful.

I tried to search faq but can't seem to find the answer - does your bank charge fee when transfer to AMEX Savings account?

No fee to transfer.  I mainly use Wells Fargo for transfers in and out of AMEX.

Nice! This is something I am seriously considering now.  Thanks Aqua!

 

[eyephone]

I put some in American Express Savings at 1.15%https://personalsavings.americanexpress.com/home.html

It's a well known name and rate (while not the best) is good.  Transfers in and out have also been really quick, usually next business day and not 3-4 days like other online banks.

Customer service is also easily reachable and good.  You'll probably get Philippines if you call after hours or weekends but all the reps have been helpful.

I tried to search faq but can't seem to find the answer - does your bank charge fee when transfer to AMEX Savings account?

No fee to transfer.  I mainly use Wells Fargo for transfers in and out of AMEX.

Nice! This is something I am seriously considering now.  Thanks Aqua!

I didn't want to say anything, but I will. 1.15% is low
Have you consider other alternatives?

 

[Roger]

I put some in American Express Savings at 1.15%https://personalsavings.americanexpress.com/home.html

It's a well known name and rate (while not the best) is good.  Transfers in and out have also been really quick, usually next business day and not 3-4 days like other online banks.

Customer service is also easily reachable and good.  You'll probably get Philippines if you call after hours or weekends but all the reps have been helpful.

I tried to search faq but can't seem to find the answer - does your bank charge fee when transfer to AMEX Savings account?

No fee to transfer.  I mainly use Wells Fargo for transfers in and out of AMEX.

Nice! This is something I am seriously considering now.  Thanks Aqua!

I didn't want to say anything, but I will. 1.15% is low
Have you consider other alternatives?

It's low but much better than my current bank.  What would you suggest otherwise?

 

[wbresident]

I recommend Ally bank - same 1.15% but offers same day transfers!

 

[irvinehomeowner]

I didn't want to say anything, but I will. 1.15% is low
Have you consider other alternatives?

So what are the higher rate alternatives that are FDIC insured, has no minimum, no fees and quick access to your cash?

 

[ps99472]

No name internet banks offer 1.4%

 

[eyephone]

I didn't want to say anything, but I will. 1.15% is low
Have you consider other alternatives?

So what are the higher rate alternatives that are FDIC insured, has no minimum, no fees and quick access to your cash?

The options that come to mind are not FDIC insured.

 

[irvinehomeowner]

No name internet banks offer 1.4%

I've seen those but hard to trust them... and read that many drop their rates.

 

[Bullsback]

I didn't want to say anything, but I will. 1.15% is low
Have you consider other alternatives?

So what are the higher rate alternatives that are FDIC insured, has no minimum, no fees and quick access to your cash?

The options that come to mind are not FDIC insured.

I.e., you are telling them to invest that cash.