Interest rates are back in the 5% range again. How long do y'all think they will be this low? I hear the FED is going to slash rates again but I'm not sure how much impact that has on mortgage rates.
if you have super super great credit or decent amount of equity then do it. the credit market is really tight now. if you don't have both of then you can't get a loan to take advantage. if you do you still might want to be a bit patienent as they will probably drop again.
I just got off the phone with a friend of mine in the mortgage business. He said while they have seen a drop, in the last day they have seen a pretty quick recovery in some interest rates...almost 3/8% in some cases. It totally depends on your situation, but he doesn't see rates going much lower than they are now in the near future, so if you have a high enough rate to refinance, now would be the time.
I think I am going to look into it. I currently have an 80-20 and the rate on the 20 is a lil higher. Maybe if I can get into a pure fixed one. I just bought my house in october though….
Update: Ok, now I can refinance and go from a fixed 80 (6.625%), 20 (9.25%) loan to a fixed 100% loan (5.75% as of today, not locked though). Since the refi is with the same bank the only closing costs would be a $725 processing fee and title company costs. I will already save $$ with the current rate but do y’all think the rates are going to drop again? I know they went up this week compared to last….
the fed is going to continue to cut rates but i don't know how much it will effect mortgage rates if at all.
Historically, 5.75 is a terrific rate. I've got a 5% 15 year on our pad, but considering the volatility, you should think hard about doing it, IMO.
Thanks for posting your experience. I have an appointment next week at the bank to do the same thing. I have an 80/20 as well. I am hoping it will save me quite a bit to consolidate... and I am staying with the same bank that I have those first two loans with. Can I ask how long you had been paying on your mortgage? And about what percent of the borrowed cost you had paid back?
Not very long. I purchased my house in 9/07, so I hadn't really paid anything back. If you are going with the same bank then I would assume they could do a no-document refi like mine. I used Countrywide....
You re financed with Countrywide while having a mortgage less than a year? Wow, I'm calling them ASAP.
