U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 07-24-2020, 11:56 AM
 
6,636 posts, read 1,955,255 times
Reputation: 11395

Advertisements

Supposedly over 15 million people could refinance, dropping an average of $300/month in their monthly nut.
Reply With Quote Quick reply to this message

 
Old 07-24-2020, 12:23 PM
 
Location: Herndon, VA
2,212 posts, read 2,429,951 times
Reputation: 8200
We are in the process of refinancing our 30 year VA loan with a 2.5% IR. No points other than the standard IRRRL .5% funding fee.
Reply With Quote Quick reply to this message
 
Old 07-24-2020, 12:28 PM
 
Location: North Las Vegas NV
619 posts, read 434,139 times
Reputation: 660
[quote=Robert20170;58729924]We are in the process of refinancing our 30 year VA loan with a 2.5% IR. No points other than the standard IRRRL .5% funding fee.[/QUOTE

That is a good rate with no points. Who is your lender?
Reply With Quote Quick reply to this message
 
Old Yesterday, 05:28 AM
 
119 posts, read 124,484 times
Reputation: 95
Yes which lenders are in the 2s?!
Reply With Quote Quick reply to this message
 
Old Yesterday, 05:49 AM
 
3,790 posts, read 1,564,858 times
Reputation: 9814
Quote:
Originally Posted by RationalExpectations View Post
Supposedly over 15 million people could refinance, dropping an average of $300/month in their monthly nut.
Be very careful of apples-to-oranges comparisons.

I have a 15-year mortgage at 3.0% and just got an offer yesterday to refinance at 2.5%. I borrowed $100K and 5 years later I owe about $70,000. They're offering me $100K at 2.5% and the payment is a bit lower than my current payment- but now instead of being paid off in 10 years the clock is re-starting at 15 years.

Many of these great offers have lower payments not just because the interest rate decreased but also because you're borrowing less (having already paid off some principal) and the "finish line" has been extended.

Heck. I got one offer with cash out and a lower payment but a HIGHER interest rate. It was a 30-year mortgage instead of 15 years.
Reply With Quote Quick reply to this message
 
Old Yesterday, 05:51 AM
 
81,049 posts, read 79,152,055 times
Reputation: 57255
Quote:
Originally Posted by athena53 View Post
Be very careful of apples-to-oranges comparisons.

I have a 15-year mortgage at 3.0% and just got an offer yesterday to refinance at 2.5%. I borrowed $100K and 5 years later I owe about $70,000. They're offering me $100K at 2.5% and the payment is a bit lower than my current payment- but now instead of being paid off in 10 years the clock is re-starting at 15 years.

Many of these great offers have lower payments not just because the interest rate decreased but also because you're borrowing less (having already paid off some principal) and the "finish line" has been extended.

Heck. I got one offer with cash out and a lower payment but a HIGHER interest rate. It was a 30-year mortgage instead of 15 years.
yep ... can you imagine having only 5 years left with a small balance and little interest , only to refinance to a new 15 year and start the clock all over ?

so what is left on the mortgage certainly matters .
Reply With Quote Quick reply to this message
 
Old Yesterday, 07:41 AM
 
Location: Washington Park, Denver
8,222 posts, read 7,615,980 times
Reputation: 9295
Quote:
Originally Posted by mathjak107 View Post
yep ... can you imagine having only 5 years left with a small balance and little interest , only to refinance to a new 15 year and start the clock all over ?

so what is left on the mortgage certainly matters .
If you were in a cash flow crunch due to the current economic situation, which plenty are, I think this would provide needed short term flexibility. You can always reassume your higher payment later, making the term whatever you want it to be, once your employment situation was more clear. This is a far better solution than digging into securities or savings.

Just make sure there is no pre payment penalty.

Last edited by SkyDog77; Yesterday at 07:51 AM..
Reply With Quote Quick reply to this message
 
Old Yesterday, 09:09 AM
 
7,558 posts, read 2,813,325 times
Reputation: 9909
At AimLoan.com (well known online mortgage company that's been in business for 20+ years) they have this notice posted on their rate quotes:

Adjustable rates are currently higher than fixed rates and are therefore not displayed.

This is odd. I have to wonder if fixed rates are artificially low due to Fed market operations?
Reply With Quote Quick reply to this message
 
Old Yesterday, 09:53 AM
 
81,049 posts, read 79,152,055 times
Reputation: 57255
Quote:
Originally Posted by SkyDog77 View Post
If you were in a cash flow crunch due to the current economic situation, which plenty are, I think this would provide needed short term flexibility. You can always reassume your higher payment later, making the term whatever you want it to be, once your employment situation was more clear. This is a far better solution than digging into securities or savings.

Just make sure there is no pre payment penalty.
If you are in a cash crunch refinancing may not be an option
Reply With Quote Quick reply to this message
 
Old Yesterday, 12:13 PM
 
Location: NYC
16,816 posts, read 10,826,567 times
Reputation: 20052
Quote:
Originally Posted by athena53 View Post
Be very careful of apples-to-oranges comparisons.

I have a 15-year mortgage at 3.0% and just got an offer yesterday to refinance at 2.5%. I borrowed $100K and 5 years later I owe about $70,000. They're offering me $100K at 2.5% and the payment is a bit lower than my current payment- but now instead of being paid off in 10 years the clock is re-starting at 15 years.

Many of these great offers have lower payments not just because the interest rate decreased but also because you're borrowing less (having already paid off some principal) and the "finish line" has been extended.

Heck. I got one offer with cash out and a lower payment but a HIGHER interest rate. It was a 30-year mortgage instead of 15 years.
Not worth doing it unless you plan on keep more cash for long. With your loan balance it makes more sense paying it off earlier.

Everytime refi you have to eat the refi costs and it further delays your loan repayment. I am paying an extra $300 a month on my mortage just to speed up the payoff as well as doing bi-monthly payment.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top