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View Full Version : 4.75% interest rates?

ducati_atx
12-17-2008, 02:41 PM
Anyone looking at doing a refinance?

Rates keep dropping like a rock....
Sixxxxer
12-17-2008, 02:42 PM
Our Rate was 5.5 Yesterday...First time buyers though.
RACER X
12-17-2008, 02:44 PM
where are you hearing that #?

5.75, 5-6 mos ago.
Sixxxxer
12-17-2008, 02:45 PM
Just google it...rates are around 5 Flat right now...Like I said we got 5.5 Yesaterday...but we didnt Lock in yet
RACER X
12-17-2008, 02:49 PM
what cost are associated w/ a refi ?
ducati_atx
12-17-2008, 02:53 PM
what cost are associated w/ a refi ?

(made some ninja edits)

https://www.wellsfargo.com/mortgage/rates?dm=DMIWFHPRAT

4.75% at wells fargo.

Refinance costs are like 1.5% of the loan amount. For my loan at 5.5%->4.75% its showing a payoff in 2.3 years. If the loan drifts to 4.5% it will be 1.8 years.

[this calculation does not take into account the savings associated with deducting the points at closing]
Rider
12-17-2008, 02:55 PM
Not worth it, I'm at 5.375% fixed. It would have to go below 4% to be worthwhile.
Trip
12-17-2008, 03:11 PM
Would it be worth it to pay a 1% origination fee to drop it from 5.25 to 4.75 or 5.25 to 5 for free?
ducati_atx
12-17-2008, 03:16 PM
Would it be worth it to pay a 1% origination fee to drop it from 5.25 to 4.75 or 5.25 to 5 for free?

usually the cross over they suggest is .75-1% delta in your rate vs the refinanance rate. The more you ow the lower that delta could be.
RACER X
12-17-2008, 03:20 PM
payment alone would drop only $100 for me.

but then again, i would recoup my refi fee's within 3 yrs, and i could keep paying the extra $100 and drop my length

or drop to a 20 yr note and keep about the same as i'm currently.
Trip
12-17-2008, 03:38 PM
Would it be worth it to pay a 1% origination fee to drop it from 5.25 to 4.75 or 5.25 to 5 for free?

oops I meant 6.25
ducati_atx
12-17-2008, 03:41 PM
oops I meant 6.25

you should have them do the calculation at your mortgage broker as alot of the "crossover" happens a couple years out.

at 6.25% you are goign to get most of the gain by getting it to 5% if you qualify (depending on your credit score.)
RACER X
12-17-2008, 04:10 PM
wonder if i could renego. w/ my current lender and forgo all the fee's ?
ducati_atx
12-17-2008, 04:13 PM
wonder if i could renego. w/ my current lender and forgo all the fee's ?

your inner athlete speaking out?
shmike
12-17-2008, 04:21 PM
wonder if i could renego. w/ my current lender and forgo all the fee's ?

Since home prices continue to fall, I'd call your builder too.

Maybe he'll offer you a refund on the purchase price. :idk:
RACER X
12-17-2008, 04:32 PM
well it' like anything else, esp. credit wise, you can jump ship to what suits you. your current lender would make some money w/ you as a client vs no $ if you goto wells F, for example.
Cutty72
12-17-2008, 05:00 PM
gotta hit about 4 for me to be worthwhile.
DLIT
12-17-2008, 06:09 PM
I called my mortgage broker to see what was locked in (we're about to close) and he aid he knew it was well below 6, which is good. Anything below 6, I'm happy with. the rates change every day, today is just a lower day. Can't complain about something you can't fix yourself.
Captain Morgan
12-17-2008, 06:45 PM
Damn, figures that I locked in my rate a month ago. But I'm getting such a good deal that I'll have some built in equity immediately. Not to mention I'll be doing a few things that will bump up the value of the house. But since I'm just now buying, I doubt I can refi for quite some time. I'm closing tomorrow at 2pm, so I can't see any rates changing for me.