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12-16-2008, 08:35 AM
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Member
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Join Date: Oct 2007
34 posts, read 49,517 times
Reputation: 19
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Refinance Mortgage Rates Up or Down
Well i bought my house about 9 months ago and got stuck with a somewhat bad rate 6.55 for 30 years fixed conv. I would like to refinance and as everyone out there would like to make sure that i get the best rate possible. Right now i see the rates fluctuate between 5.5 and 5.7 for 30 yr fixed. I would like to go with 0 points option. I also understand that the rule of thumb is do not refinance uless you are cutting the rate by at least 1 percent which in my case would mean 6.55-1 = 5.55. Can anyone make any suggestions or predictions on where the rates will go from this point on. Oh and my credit score is around 780. Thank you in advance.
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12-16-2008, 09:09 AM
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Sr of Srs
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Join Date: Jul 2007
Location: Charlotte, North Carolina
5,120 posts, read 3,928,124 times
Reputation: 676
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It's not how low of a rate you will get....it's how soon you will recoup the costs from refinancing.
The larger the loan...the more likely it will be to recoup it in a shorter time period.
If you have a low loan amount then it may take longer to recoup.
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12-19-2008, 10:50 AM
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Real Estate Agent
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Join Date: Jul 2008
Location: Spring Hill, Florida
58 posts, read 47,064 times
Reputation: 16
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What are you kiddin' me---the rate always matters---the prime right now, which is what your refi rate should be attached to---is 3.5, with a 780 FICO you should be able to get that rate; esp. considering what Wall Street just got---the fed-funds is at 0%---the only problem you MAY have is that you bought the house 9 months ago---if you got a good deal however and the appraisal comes in good---you should get 3.5%---DEMAND IT MAN, who the hell's gettin' all this $700-plus billion bailout money??? and who's suppossed to get it?
Keith G.
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12-19-2008, 10:54 AM
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Sr of Srs
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Join Date: Jul 2007
Location: Charlotte, North Carolina
5,120 posts, read 3,928,124 times
Reputation: 676
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I do this for a living...and Prime rate has NOTHING to do with 1st mortgage rates
Please research what prime rate is, and how it affects actual 1st mortgage rates before giving anymore advice.
Quote:
Originally Posted by Keith G
What are you kiddin' me---the rate always matters---the prime right now, which is what your refi rate should be attached to---is 3.5, with a 780 FICO you should be able to get that rate; esp. considering what Wall Street just got---the fed-funds is at 0%---the only problem you MAY have is that you bought the house 9 months ago---if you got a good deal however and the appraisal comes in good---you should get 3.5%---DEMAND IT MAN, who the hell's gettin' all this $700-plus billion bailout money??? and who's suppossed to get it?
Keith G.
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12-19-2008, 01:07 PM
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Senior Member
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Join Date: Apr 2008
6,240 posts, read 3,803,357 times
Reputation: 1725
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I agree with renrig -- once upon a time prime and mortgage rates tracked pretty close. Then LIBOR was pretty good a while. Now the mortgage market has far more "mystery" to it and I really can think of ANY widely reported index that is tracking it particularly well...
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12-21-2008, 10:39 AM
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Real Estate Agent
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Join Date: Sep 2007
Location: OK and Cape Cod, MA
1,430 posts, read 893,957 times
Reputation: 663
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It is not the rate you pay what at WHAT rate you pay. The refi fees could be considerably ... if you put that money towards the principle of your mortgage you may be better off. You need to sit down and do the math.
In addition, credit has tightened up considerably recently. You may be better off to wait.
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12-21-2008, 01:09 PM
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Senior Member
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Join Date: Jan 2008
Location: Northern VA
497 posts, read 405,810 times
Reputation: 176
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Quote:
Originally Posted by Keith G
What are you kiddin' me---the rate always matters---the prime right now, which is what your refi rate should be attached to---is 3.5, with a 780 FICO you should be able to get that rate; esp. considering what Wall Street just got---the fed-funds is at 0%---the only problem you MAY have is that you bought the house 9 months ago---if you got a good deal however and the appraisal comes in good---you should get 3.5%---DEMAND IT MAN, who the hell's gettin' all this $700-plus billion bailout money??? and who's suppossed to get it?
Keith G.
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Keith, what line of work are you in? Unfortunately, the information you provide is closer to science fiction than fact. I wish it were true. Yeah, there are many of us upset by the bailout that is shedding all of any responsibility, all on the taxpayer's backs. |
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12-24-2008, 06:13 PM
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Senior Member
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Join Date: Dec 2007
Location: Coastal Maine
5,739 posts, read 554,427 times
Reputation: 811
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KeithG may be thinking of home equity lines of credit...
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12-25-2008, 10:02 PM
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Senior Member
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Join Date: Dec 2008
1,049 posts, read 285,195 times
Reputation: 186
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So with this in mind, are the rates going up or down?
Is a no-brainner to re-fi down 1.5 percent?
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12-26-2008, 08:46 AM
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Senior Member
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Join Date: Dec 2007
Location: Coastal Maine
5,739 posts, read 554,427 times
Reputation: 811
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Where I work the rates were at 4.75% fixed (30 years) for one day (Dec. 19th). The next day they jumped and are now at 5.25%. Not sure if they're going up or down... If you can lower your rate by 1.5%...do it...unless you plan to sell right off.
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