I am editing this, now that I know a little bit more about the fed's lowering the rates and how that has nothing to do with interest rates for a home mortgage. I ran into this, and decided to update this topic:
EDIT - LINK REMOVED
I think the best investment,with overall $$cha-ching is Real Estate. Now is the time to buy b/c the interest rates are still at a historic low. Make sure,however,you lock in when the goings good.
This message has been edited. Last edited by: LetsGoRedSox,
Could not agree more, just refinanced,locked in a fixed 4.8% 15 yr mortgage. I am very Happy! Haven't even tried to kick the dog lately since I did this.
Chapwood, I know about 15 yr mortgages (mine is 30), but I am wondering if you can refinance for odd year mortgages, say 20 or 22 year mortgages. I wonder if you would get the same 4.8%? If so, I will be heading down to refinance mine too!
I've been telling clients who own and plan to live in their house to refinance while they can....we'll all be reading about the refi wave a month from now and the demand will drive rates up.
Originally posted by Badge3157: Chapwood, I know about 15 yr mortgages (mine is 30), but I am wondering if you can refinance for odd year mortgages, say 20 or 22 year mortgages. I wonder if you would get the same 4.8%? If so, I will be heading down to refinance mine too!
You may get under 5% on a 20 year if you pay points. Could be expensive, but you would recoup your investment rather quickly. Besides the fees can be rolled back into the new loan. Also recommend only paying points if plan to "keep" the home for a long time. Good Luck!
Originally posted by Badge3157: Chapwood, I know about 15 yr mortgages (mine is 30), but I am wondering if you can refinance for odd year mortgages, say 20 or 22 year mortgages. I wonder if you would get the same 4.8%? If so, I will be heading down to refinance mine too!
Just a quick follow up. Closed on refinancing this passed monday. We are saving over $374,400 just in payments we will no longer need to make on the second half of previous mortgage. Those are real numbers. Saving money is a great thing! This doesnt include the savings we are going to enjoy on the new lower interest rate our new mortgage. Which comes out to $55,800. As Jed Clampett used to say, "Yeeeee doggggie"! As you can see, it PAYS to do this, especially if you are keeping the propery for awhile. Good luck out there on refinancing.
Chapwood............
This message has been edited. Last edited by: chapwood,
Would it even be worth it to refinance right now if the house is on the market for sale or rent? I am trying to sell the house or rent it but the rent price, which would be my mortgage payment is unreal. I have a VA fixed 30 year mortgage at 7% right now and payments are killing me....
While I'm neither a realtor or broker, and I didn't sleep at a Holiday Inn last night, I'd offer the following....
One option is to look into a refinance with the VA using what's called a Interest Rate Reduction Refinance Loan, or IRRRL. It's a simplified method to refiance your home loan when rates drop. You can find more info at the VA site.
I'd recomend you get with a reputable loan officer or mortgage broker and get some information on refinancing. For example, Navy Federal is currently offering a 4.75% 15-year VA home loan with zero points. They also have a 5.25% 30-year VA loan, again with no points.
I don't know how the selling/renting weighs into things. But with a whopping decrease from 7% to roughly 5%, you may consider hanging onto your home and renting it out since the mortgage would have dropped significantly. (Being a land baron has some great financial rewards, too.)
Get some good info and crunch the numbers. Knocking 2% off a home loan would be a massive windfall. All the best.
This message has been edited. Last edited by: Brian_Jordan,
Originally posted by Brian_Jordan: While I'm neither a realtor or broker, and I didn't sleep at a Holiday Inn last night, I'd offer the following....
One option is to look into a refinance with the VA using what's called a Interest Rate Reduction Refinance Loan, or IRRRL. It's a simplified method to refiance your home loan when rates drop. You can find more info at the VA site.
I'd recomend you get with a reputable loan officer or mortgage broker and get some information on refinancing. For example, Navy Federal is currently offering a 4.75% 15-year VA home loan with zero points. They also have a 5.25% 30-year VA loan, again with no points.
I don't know how the selling/renting weighs into things. But with a whopping decrease from 7% to roughly 5%, you may consider hanging onto your home and renting it out since the mortgage would have dropped significantly. (Being a land baron has some great financial rewards, too.)
Get some good info and crunch the numbers. Knocking 2% off a home loan would be a massive windfall. All the best.
Brian,
I called my company, also Wells Fargo, and they said I could do it and it would drop from 7% to 5.4% and payments would be a little over 200 dollars cheaper a month. The thing is...that when you do that IRRRL after closing you end up owing more than before.
example: I only owe $223,000 to the bank. After the IRRRL closing, I would end up owing $226,000 which is what my original loan amount was back when I purchased this home. I dont know what to do...should I do the IRRRL anyways or should I wait and just sell it anyways? Also, you cannot take advantage of the IRRRL if your home is on the market, unless you just dont tell them it is for sale.
I'm kinda in the same situation...did you decide to lower your rate and add on to your loan? It would really be beneficial if I could save monthly. Thanks!
I'm in the process of goingfrom 5.75 30 yr to 4.375 for 30year. It is going to cost me $4400 in points and closing. I will roll that into the new mortgage. If I continue to pay the same amount I do now it will be gone in around 15 Months.
If you have enough equity in your house have any of you VA loan folks looked into banks/mortgage companies for your refinance?
I just bought a house through the VA and I locked in on a 5% 30 year fixed rate. No money down. The seller is paying the closing costs. With the lender that I am using, if the rate drops more than .50 of one percent before I close, I will automatically lock into the lower rate. I close on April 23rd and am hoping that the rate will drop, but I am pretty darn happy with 5%!!!
Congrats! We close on our house Tuesday. We went with the VA loan as well. We ended up buying 3/4 of a point to get down to 4.75%. We're hoping that this is our 'forever' house. I'll probably be a geo-bachelor for my last tour / tour-and-a-half so that we can keep it. We're pretty excited though.
This doesnt include the savings we are going to enjoy on the new lower interest rate our new mortgage. Which comes out to $55,800. As Jed Clampett used to say, "Yeeeee doggggie"! As you can see, it PAYS to do this, especially if you are keeping the propery for awhile. Good luck out there on refinancing.
sc
