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Right time to refinance home mortgage?

Discussion in 'BBS Hangout' started by Clutch, Dec 19, 2008.

  1. Clutch

    Clutch Administrator
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    Mortgage rates fall to 37-year low
    http://money.cnn.com/2008/12/18/real_estate/Mortgage_rates/index.htm

    Just thought I'd throw that out there for those who haven't considered it. My brother-in-law is a mortgage broker with a big bank and he told me on a usual day they have to ignore about 3% of their incoming calls. Yesterday they had to ignore 60%. There are just so many calls right now from great credit, good positioned people looking to refinance.

    He said 4.75% on a 30-year is doable. I haven't started shopping yet.
     
  2. gifford1967

    gifford1967 Contributing Member
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    Now I'm regretting that we refinanced about 7 months ago. Definitely didn't see sub 5% coming.
     
  3. Harrisment

    Harrisment Member

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    If you do refi, please use Stewart Title. We need your business. :)
     
  4. IVFL

    IVFL Member

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    Oddly enough at my credit union I had people on the fence about the 4.625 rate on the 30 that we were offering, they wanted to wait and see if it would drop any more. I took so many mortgage aps the last two days that I didn't even care. I did tell them that this is a record low and to not jump on it would be a mistake. They didn't and now the rate is up to 5.85 for us, and we are the lowest in the area. My advice is if your interest rate is near 6 percent or higher, and you have not recently refinanced, don't think get any rate you can thats below 5% just make sure you go over the good faith estimate to make sure they are not including points or jacking up your closing costs.
     
  5. Deckard

    Deckard Blade Runner
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    We've had 5.15% on a 15 for a few years now, but if we didn't have such a great deal, I'd be thinking about a refinance. In my opinion, however, it'll drop some more. The Fed essentially dropped it's rate to zero and I think sub-5% is a real possibility for those with great credit. Those people who turned their noses up at IVFL's 4.625% were nuts, as that is close to as low as I think it'll go (might go lower, but a bird in hand, man!), although at those rates, anyone who doesn't go with a 15 year note is also crazy.
     
  6. JeeberD

    JeeberD Contributing Member

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    How long do you have to wait before you can refinance? We bought our house in May with a 6.375% loan and I would love to knock that down a bit if possible...
     
  7. Lady_Di

    Lady_Di Contributing Member

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    Same here...we bought the house in July with that interest rate, i think but it's defintely 6. something...
     
  8. Rockets Red Glare

    Rockets Red Glare Contributing Member

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    You can do it at anytime...typically if it drops more thn 1% it is worth looking into.
     
  9. JayZ750

    JayZ750 Contributing Member

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    anybody offering no or low closing cost re-financings at those rates?
     
  10. RocketMan Tex

    RocketMan Tex Contributing Member

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    In 2004, I refinanced to a 15 year loan at 4.5%.

    I doubt I can ever do better than that, but if by some miracle I found a place that would give me a 15 year loan at 3.5%, I would do it in a New York heartbeat.
     
  11. Lonestar28

    Lonestar28 Member

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    I have the same rate when I bought a house last June. My mortgage broker has me on the rate watch list right now. He is expecting rates to fall below 5 then it might make sense to refinance.
     
  12. DaDakota

    DaDakota If you want to know, just ask!
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    I got 4 7/8ths fixed about 5 years ago.....but will refi if it goes any lower.

    DD
     
  13. F.D. Khan

    F.D. Khan Contributing Member

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    As the housing deflationary spiral will continue, I will be renting for the next few years. I think housing is just overpriced still nationally ( though not as much in Houston) and I build a few townhomes and sold them back in 2005.

    I'll be renting for the next year at least until prices really fall as with deflation in the midst, interest rates esp for good credit borrowers will stay low for a while.

    My concern is the walk-away effect as even prime borrowers who put 20% down in many regions are 30-50% underwater. It could snowball.
     
  14. Invisible Fan

    Invisible Fan Contributing Member

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    That would be game over, wouldn't it?
     
  15. CrazyDave

    CrazyDave Contributing Member

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    Where are you guys finding sub 5%? I haven't gone in to get real numbers specific to me and my credit, but most of what I see is still just above 5?

    We talking buying points to get it lower or what?

    (Yes, I've been considering my second refi for a while now)
     
  16. CrazyDave

    CrazyDave Contributing Member

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    ah, maybe you're all talking 30 yr? I'm well into the last refi which went to 15 yr, and wouldn't do more than 10 if I did it again. They don't get too excited about those.
     
  17. firecat

    firecat Contributing Member

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    To refinance, do you have to do a full application just like the initial mortgage?

    We kind of took advantage of the shady practices that got the country in trouble in the first place by getting our mortgage based on a "declaration" of my income. Since I get a big part of my pay in cash, I didn't have solid proof of my income.

    Of course, unlike many people we can comfortably pay our mortgage, so I'm hoping that our payment history might help if we refinance.
     
  18. droxford

    droxford Member

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    I second this post. I'm seeing rates just above 5.
     
  19. pirc1

    pirc1 Contributing Member

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    If it get below 4.75 I am definately doing it.
     
  20. codell

    codell Contributing Member

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    I actually made a call to day and am hoping to lock in @ 4.75 by Monday.

    Keep your fingers crossed. Will save me $300/mo. :)
     

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