Mortgage refinancing - have you seen these rates??
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Our current loan is a 15 year loan at 3.125%. Basically, I timed it so this house is paid off the same year I can retire way early, at 55. I am on state retirement, so fingers crossed, it won't collapse by the time I need it.
Some of you might remember my Mother in law rant from a few days ago. She's buying a new house, her ex-significant other is refinancing their old house, and we realized how low the current rates are.
So, we got the ball rolling, and we are refinancing our current loan to a 10 year at 2.125%. This will increase our payments quite a bit, but we're going to save between $50000-60000 in interest over the course of the loan. We had an option of 1.99%, but closing costs and points made the 2.125% option better over 10 years.
We still have our house in Denver which we are renting. It is on a 2 year lease, so we have another 12-13 months with the current renters. Once they are gone, we might sell it as the neighborhood seems to be going in the wrong direction. If we can clear 6 figures out of it, we can put that toward the new house loan, and get it down to 7 years. Also, we have about 7-8 years left from our two dogs, so in 2028 or so, we might be able to start doing long trips where we can potentially be digital nomads and work from other countries.
And, to make this somewhat car related, I might be able to buy that Porsche I want.
2% rates are insane. If you haven't looked into this, do it, especially if you're on a longer term than 15 years.
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@musashi66 At the start of the pandemic, I asked about a mortgage rate and got pre-approved at around your rate. Suffice to say, the new rates are absurd and I'm shocked more people aren't refinancing.
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In 2005, I got bought a condo on an interest only loan. Refi'd a few years later into a 30 year at %5.25, which at the time was a good rate.
My current home I bought in 2015 at %4
Never thought I'd see %2.5 for a 30 year! It's a perfect time for me since I'll be moving soon, and have accrued a ton of equity in my existing home.
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@cb said in Mortgage refinancing - have you seen these rates??:
@musashi66 At the start of the pandemic, I asked about a mortgage rate and got pre-approved at around your rate. Suffice to say, the new rates are absurd and I'm shocked more people aren't refinancing.
I just wish investment properties has better refi rates. My folks have 5 houses, 4 paid off, and one with a loan, and the rates are ridiculously high. I think I'll be able to find them a 3% but it'll come with some steep fees.
Everyone paying more than 3% should look into a refi these days.
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@saracen said in Mortgage refinancing - have you seen these rates??:
In 2005, I got bought a condo on an interest only loan. Refi'd a few years later into a 30 year at %5.25, which at the time was a good rate.
My current home I bought in 2015 at %4
Never thought I'd see %2.5 for a 30 year! It's a perfect time for me since I'll be moving soon, and have accrued a ton of equity in my existing home.
Good for you! Are you in the process of selling your property yet? I don't know what will happen with rates during the government transition.
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We bought our house this summer and got somewhere around a 3 or 3.1% on a 30 year. We were just barely able to afford the move and had low down payment. Figured it wasn't too bad for our situation.
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@musashi66 We're closing on a place on Thursday. First time home buyers, we're at 2.625% right now for a 30 year as we can't put too much down on it currently. The market in our area ('Burbs of Philly) has gotten crazy, houses will list on a Monday and be under contract 3 days later.
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We bought our house at 5% 11 years ago which was good. We looked at refinancing a couple times but we're grandfathered under the old PIM calculation so it would have cost us more to refinance.
Actually going to be selling the place now, movers are coming on Friday and the agent will be there for photos next week.
Hoping these low interest rates and rising prices help me sell it fast for a decent amount.
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I guess I got lucky, renewed at a variable rate last year. My current effective rate is like 1.24%. It's actually lower than some rate promos I get from savings accounts.
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@3point8isgreat said in Mortgage refinancing - have you seen these rates??:
We bought our house this summer and got somewhere around a 3 or 3.1% on a 30 year. We were just barely able to afford the move and had low down payment. Figured it wasn't too bad for our situation.
1% less on a 300k 30 year loan means around $60000 in savings over the course of the loan. Just something to consider.
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@misterbuttercup said in Mortgage refinancing - have you seen these rates??:
@musashi66 We're closing on a place on Thursday. First time home buyers, we're at 2.625% right now for a 30 year as we can't put too much down on it currently. The market in our area ('Burbs of Philly) has gotten crazy, houses will list on a Monday and be under contract 3 days later.
Every desirable market is insane. You'd be crazy not to take advantage of these rates.
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@jminer said in Mortgage refinancing - have you seen these rates??:
We bought our house at 5% 11 years ago which was good. We looked at refinancing a couple times but we're grandfathered under the old PIM calculation so it would have cost us more to refinance.
Actually going to be selling the place now, movers are coming on Friday and the agent will be there for photos next week.
Hoping these low interest rates and rising prices help me sell it fast for a decent amount.
House markets are insane right now. Everyone wants to buy and take advantage of under 3% rates.
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@tonicipriani said in Mortgage refinancing - have you seen these rates??:
I guess I got lucky, renewed at a variable rate last year. My current effective rate is like 1.24%. It's actually lower than some rate promos I get from savings accounts.
Wow. 1.24% is insane. My folks did a variable once because the rate was low, the amount was low, and they paid off the loan within 2-3 years.
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@musashi66
We have also been looking at these rates and considering refinancing. Tuition expenses etc. tie up a lot of money, but even so, when refi costs are baked in, it's still attractive. -
@chariotoflove said in Mortgage refinancing - have you seen these rates??:
@musashi66
We have also been looking at these rates and considering refinancing. Tuition expenses etc. tie up a lot of money, but even so, when refi costs are baked in, it's still attractive.For sure, you can do a zero cost refi and roll all costs in the new loan and still come out on top, depending on the numbers.
I hate hate hate paying interest. I only pay interest on the house and cars, never on credit cards, and paying the house of early is huge for my peace of mind. We also want to pay off the cars early - one in 2021, and other in 2022.
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@musashi66 We refi'd in October at 2.25%. Crazy! I wanted to move to a 15, but given my job was uncertain at the time, we decided to stay at the same term, and just make the same payments as before the refi. Making the same payment as before the refi shaves off 11 years.
We were quoted with $0 closing costs, but ended up having to pay $3.86. Ha!
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This all timed out pretty well for us and we're actually in the process of building a new house, although lumber prices jumped before we could sign the contract. Can't lock in our loan yet but we expect it to be in the two's. Kept it at a 30 year because the payments keep us at a comfortable place and I don't expect to be there for more than five years. My parents are about five years off from retiring and searching for a lake property to build and retire on. Once they get that figured out I'm buying the acreage from them which I'm very excited about. Dad's willing to do a contract for deed, which should be super low interest, if any, so the plan is to save as much as possible and be aggressive with the down payment and paying that one off, both for my parent's sake, and mine.
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We finished a refi in september. Not at rates this low but saved over 1.5% with no costs involved. I looked at other lenders but once closing costs and fees were added in I was at a 10+ year payoff of the difference with a mortgage higher than what I started at. In less than 2 years I had paid enough to drop PMI (with a higher valuation) and we dropped the rate essentially for free
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As a financial professional, that's awesome! People should get used to checking their refi options in this economy. I'm looking to move in the spring, I'd never thought I'd get better than my current 3% but it looks like I will be lol.
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@jminer said in Mortgage refinancing - have you seen these rates??:
We bought our house at 5% 11 years ago which was good. We looked at refinancing a couple times but we're grandfathered under the old PIM calculation so it would have cost us more to refinance.
Actually going to be selling the place now, movers are coming on Friday and the agent will be there for photos next week.
Hoping these low interest rates and rising prices help me sell it fast for a decent amount.
We bought our first house 9 years ago at variable interest and were at 1.9 when we moved out 3 years ago. The new place is at 2.49, which is still not bad I guess. We'll see where we're at in just under 2 years when the term is up for renewal.
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Bought my house last April at 4.5%, now I'm refinancing down to 2.99% which isn't as low as some of you are seeing but it's like an $80,000 savings in interest over the life of the loan, and I'm paying a little more principle every month anyway so probably more like $100,000 less interest.
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Man, I wish I could get approved for a mortgage. Talked with a few financial advisors and with the amount of debt and lack of available savings (wedding money is tied up in other accounts so we don't touch it) we probably wouldn't get approved. It's gonna suck in a year or 2 when everyone is at 2.9 and we'll be at 4.5 or higher.
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@musashi66 said in Mortgage refinancing - have you seen these rates??:
@saracen said in Mortgage refinancing - have you seen these rates??:
In 2005, I got bought a condo on an interest only loan. Refi'd a few years later into a 30 year at %5.25, which at the time was a good rate.
My current home I bought in 2015 at %4
Never thought I'd see %2.5 for a 30 year! It's a perfect time for me since I'll be moving soon, and have accrued a ton of equity in my existing home.
Good for you! Are you in the process of selling your property yet? I don't know what will happen with rates during the government transition.
Not yet, but in the next 2-3 months. Gotta do some minor improvements here and there, pack stuff, stage it to sell..
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@rctothefuture said in Mortgage refinancing - have you seen these rates??:
Man, I wish I could get approved for a mortgage. Talked with a few financial advisors and with the amount of debt and lack of available savings (wedding money is tied up in other accounts so we don't touch it) we probably wouldn't get approved. It's gonna suck in a year or 2 when everyone is at 2.9 and we'll be at 4.5 or higher.
How important is that piece of paper to you? Not for everyone but I'll take a house over a party anytime. Then you can have a party in your house.
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I looked at refinancing a few months ago and the costs associated with it blew me away. I don't know what I expected, but with over $7k in closing costs I was looking at a best-case break-even (refi vs current) of like 8 years.
