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Old 10-07-2013, 09:42 AM
 
472 posts, read 397,763 times
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I closed with 'No points!! No closing' costs + $200 back ('coz of some reduced charges) & essentially looking for the same deal now with the new lenders. Between 4.625 - 4.125 i save about 30k over the lifetime of the loan (I know not many hold a loan through 30yrs but I'm just using it sake of comparison).
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Old 10-07-2013, 10:52 AM
 
Location: Southern California
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Why do you need to find the same deal with another lender after you closed? Are these investment property loans and the previous lender doesn't want to lend you any more money?
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Old 10-07-2013, 11:37 AM
 
Location: Mount Laurel
4,146 posts, read 8,403,315 times
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Quote:
Originally Posted by thelopez2 View Post
Why do you need to find the same deal with another lender after you closed? Are these investment property loans and the previous lender doesn't want to lend you any more money?

OP is looking to refianance after closing on a new purchase to get the rate down from 4.625 - 4.125. What he/she fail to understand is that refinancing cost money. You almost never refinance for the sake of a rate drop if it's less than 1% difference. Why? Refinancing cost money.. no one work for free.
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Old 10-07-2013, 10:48 PM
 
Location: Southern California
4,350 posts, read 4,944,071 times
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Quote:
Originally Posted by sj08054 View Post
OP is looking to refianance after closing on a new purchase to get the rate down from 4.625 - 4.125. What he/she fail to understand is that refinancing cost money. You almost never refinance for the sake of a rate drop if it's less than 1% difference. Why? Refinancing cost money.. no one work for free.
I get it. It should be possible if rates fall enough, the larger the loan, the less the rates would have to fall. So if the OP could get a 4.125 at no cost, there is no reason that they shouldn't try, they are saving money.

The OP might even get a deal if they go back to the first lender.

To the ThisDammLife how do you find this lender?
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Old 10-08-2013, 12:24 AM
 
Location: Boca Raton, FL
4,856 posts, read 8,331,774 times
Reputation: 5488
Smile Rate drop

Quote:
Originally Posted by ThisDamnLife View Post
Rate lock does not talk about the 'float down' option but I've emails where they 've talked about this option & how it applies if the rate goes down > 0.25%.



Current lock expires 10/9. The rates were @ 4.25 last friday from what I've got from other lenders.



I understand some members intention is to sound wise but my questions were based on what I could think of @ the moment I asked.

I'm not necessarily looking to file a complaint/sue but I'm looking for strategies/tips that could help me or others in the future.

I did go through the closing but as I understand the lender loses lot of money if I refinance right away. Probably, that would make them listen to me.
If you were even eligible for the float down and the APR changed over .125%, that could have delayed your closing. I know it's poor timing but just throw an extra $100 toward your payment each month and that will help get your mortgage balance down. Refinancing shortly thereafter does cost the lender and there could be repurcussions for the broker or loan officer. Your float down, even if offered, isn't set in stone, and each lender has their own requirements for this.

Now, go and enjoy your new home!
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Old 10-08-2013, 12:27 AM
 
Location: Boca Raton, FL
4,856 posts, read 8,331,774 times
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Smile Really - no such thing

Quote:
Originally Posted by ThisDamnLife View Post
I closed with 'No points!! No closing' costs + $200 back ('coz of some reduced charges) & essentially looking for the same deal now with the new lenders. Between 4.625 - 4.125 i save about 30k over the lifetime of the loan (I know not many hold a loan through 30yrs but I'm just using it sake of comparison).
It's called lender credit. It's what the lender pays for each rate. Higher the rate, the more lender credit is.

Sometimes, this can work to your advantage if you only have the 20% down and it's hard to come up with the closing costs.

Also, remember, that your interest on new payment is tax deductible and may help you in that realm.
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Old 10-08-2013, 01:41 AM
 
Location: Southern California
4,350 posts, read 4,944,071 times
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Fast forward 12 months from now and the OP ask the question " Should I refinance my loan at 4.125, my current rate is 4.625, and I have an offer to do this at no points and no closing cost, and save $130 a month, my current payment is $1300 a month?" ( I don't know actual numbers of the OP). What would most people say?

No one wants to work for free, but the current system can leave the broker holding the bag. For independent mortgage professionals it sucks, but if they want change , they need to form a stronger lobby/association like every other strong group.
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Old 10-08-2013, 07:43 AM
 
Location: Mount Laurel
4,146 posts, read 8,403,315 times
Reputation: 3410
Quote:
Originally Posted by thelopez2 View Post
Fast forward 12 months from now and the OP ask the question " Should I refinance my loan at 4.125, my current rate is 4.625, and I have an offer to do this at no points and no closing cost, and save $130 a month, my current payment is $1300 a month?" ( I don't know actual numbers of the OP). What would most people say?

No one wants to work for free, but the current system can leave the broker holding the bag. For independent mortgage professionals it sucks, but if they want change , they need to form a stronger lobby/association like every other strong group.

That's a different scenerio. The way I read it, OP noticed a slight dropped in rate advertised by another lender a few days before closing (4.625-->4.125) OP asked broker for the float down but got turned down. OP went ahead and closed on the loan (which happened to be no point, no closing cost.

OP is now looking for a new lender that will offer 4.125 with no point and no closing cost. Do you think that is likly going to happen? It has been recommended numerous time for OP to just move on and enjoy the new purchase.
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Old 10-08-2013, 08:31 AM
 
472 posts, read 397,763 times
Reputation: 186
I'm just adding some more information that my give a better perspective of my situation. Monthly payments are P&I only.

Loan Amount: 417000
Current Rate: 4.625
Current Monthly $: 2144

Prospective Rate: 4.25
Prospective Monthly $: 2051
Savings (over 30yrs): 33,326

Prospective Rate: 4.125
Prospective Monthly $: 2021
Savings (over 30yrs): 44, 270
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Old 10-08-2013, 09:22 AM
 
Location: Mount Laurel
4,146 posts, read 8,403,315 times
Reputation: 3410
Quote:
Originally Posted by ThisDamnLife View Post
I'm just adding some more information that my give a better perspective of my situation. Monthly payments are P&I only.

Loan Amount: 417000
Current Rate: 4.625
Current Monthly $: 2144

Prospective Rate: 4.25
Prospective Monthly $: 2051
Savings (over 30yrs): 33,326

Prospective Rate: 4.125
Prospective Monthly $: 2021
Savings (over 30yrs): 44, 270
It's a no brainer that the two later options is better and that's what I would go with because.

1. You are not really resetting your amortization much since it's a new loan

2. but what's the real cost of closing on the new loan? If you can get a those refi rate with true zero fee, go for it.
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