|
10-31-2007, 08:16 PM
|
|
|
|
49 posts, read 165,102 times
Reputation: 44
|
|
|
We bought a house in NJ a month or so ago (closed on Sep 15th). The house cost 1.4 million and we took out a $1 mil mortgage. Our rate is 6.75% 30 year fixed with a 10 year interest only payment option. Of course, since we closed rates have dropped twice and the so called credit crunch seems to be easing (at least to the outsider). Do you think it makes sense to re-fi our mortgage, even though it's so new? I am seeing rates online for 6.25 % but I'm not sure if they are real. We plan on staying in the house for 16 years until the kids are all out of school.
Also, before I approach our mortgage broker on this I am interested how he got paid on our 1st mortgage. Does he get paid when we close or do we have to keep our mortgage a year before he gets his money? - I thought I read that somewhere. Not that it will change my decision but I am interested to see where his head will be.
Thanks in advance.
|
|
10-31-2007, 08:37 PM
|
|
|
|
71,970 posts, read 53,958,753 times
Reputation: 44547
|
|
Quote:
Originally Posted by SunnyNJ
We bought a house in NJ a month or so ago (closed on Sep 15th). The house cost 1.4 million and we took out a $1 mil mortgage. Our rate is 6.75% 30 year fixed with a 10 year interest only payment option. Of course, since we closed rates have dropped twice and the so called credit crunch seems to be easing (at least to the outsider). Do you think it makes sense to re-fi our mortgage, even though it's so new? I am seeing rates online for 6.25 % but I'm not sure if they are real. We plan on staying in the house for 16 years until the kids are all out of school.
Also, before I approach our mortgage broker on this I am interested how he got paid on our 1st mortgage. Does he get paid when we close or do we have to keep our mortgage a year before he gets his money? - I thought I read that somewhere. Not that it will change my decision but I am interested to see where his head will be.
Thanks in advance.
|
I would talk to your current loan holder...they may do a no-fee, fast refi to keep you and they just underwrote your risk. A "do-over" if you will.
I did this 5 years or so back after I'd been in the house about a year and rates had fallen a lot. They sent me a packet, I filled it out....mailed it back...no fuss, no muss.
It may not be available but it is an idea.
Also, now might be a good time to convert that sucker to a fixed %.
Good luck. |
|
10-31-2007, 10:52 PM
|
|
|
|
2,197 posts, read 7,171,166 times
Reputation: 1701
|
|
|
I can't see a lender giving you a "do-over" for 1/2 a point. Not a lot in it for them. Jumbo loans are still pretty hard to get. I'd do the math and think it through. JMO.
|
|
10-31-2007, 11:54 PM
|
|
|
|
Location: Back home to Northern CA
157 posts, read 608,254 times
Reputation: 106
|
|
Quote:
Originally Posted by SunnyNJ
We bought a house in NJ a month or so ago (closed on Sep 15th). The house cost 1.4 million and we took out a $1 mil mortgage. Our rate is 6.75% 30 year fixed with a 10 year interest only payment option. Of course, since we closed rates have dropped twice and the so called credit crunch seems to be easing (at least to the outsider). Do you think it makes sense to re-fi our mortgage, even though it's so new? I am seeing rates online for 6.25 % but I'm not sure if they are real. We plan on staying in the house for 16 years until the kids are all out of school.
Also, before I approach our mortgage broker on this I am interested how he got paid on our 1st mortgage. Does he get paid when we close or do we have to keep our mortgage a year before he gets his money? - I thought I read that somewhere. Not that it will change my decision but I am interested to see where his head will be.
Thanks in advance.
|
I spoke with a Wells Fargo loan officer today re: a possible refi on our jumbo mortgage. He said the rates are about 6.25 % |
|
11-01-2007, 07:53 AM
|
|
|
|
71,970 posts, read 53,958,753 times
Reputation: 44547
|
|
Quote:
Originally Posted by goodbyehollywood
I can't see a lender giving you a "do-over" for 1/2 a point. Not a lot in it for them. Jumbo loans are still pretty hard to get. I'd do the math and think it through. JMO.
|
That's a possibility...there may be other factors at work though.
In any event, it's a VERY small investment in time that can carry a substantial benefit. Low odds, high return....no downside.... |
|
11-01-2007, 10:58 AM
|
|
|
|
5,284 posts, read 13,524,791 times
Reputation: 4534
|
|
Quote:
Originally Posted by SunnyNJ
We bought a house in NJ a month or so ago (closed on Sep 15th). The house cost 1.4 million and we took out a $1 mil mortgage. Our rate is 6.75% 30 year fixed with a 10 year interest only payment option. Of course, since we closed rates have dropped twice and the so called credit crunch seems to be easing (at least to the outsider). Do you think it makes sense to re-fi our mortgage, even though it's so new? I am seeing rates online for 6.25 % but I'm not sure if they are real. We plan on staying in the house for 16 years until the kids are all out of school.
Also, before I approach our mortgage broker on this I am interested how he got paid on our 1st mortgage. Does he get paid when we close or do we have to keep our mortgage a year before he gets his money? - I thought I read that somewhere. Not that it will change my decision but I am interested to see where his head will be.
Thanks in advance.
|
6.25% on a jumbo...I don't buy it. I would say the par price for a jumbo with the interest only feature is more like 6.75% today.
Just because the FED has cut rates twice since you purchased for a total of a .75% reduction...that does not mean mortgage rates have dropped by .75% or at all.
It looks like you got a pretty good deal and it would make no sense to pay for a refinance at this time.
ps. The broker may or may not have his pay "taken back" if the loan is paid off right away.
pss. The credit crunch in the mortgage world has not eased. Investors continue to tighten lending guidelines. |
|
11-01-2007, 11:02 AM
|
|
|
|
Location: Charlotte, North Carolina
5,137 posts, read 16,116,781 times
Reputation: 1008
|
|
We know that the loan officer is lying....
https://www.wellsfargo.com/mortgage/rates/
30-Year Fixed 6.750% 6.904%
that's what their rate says.......
You can definitely get 6.375% for 3/1 or 5/1 ARM.
I'll look into the 30yr fixed Jumbos....
Also you have a Super Jumbo...which means the rate is higher. |
|
11-01-2007, 11:15 AM
|
|
|
|
Location: Charlotte, North Carolina
5,137 posts, read 16,116,781 times
Reputation: 1008
|
|
|
30yr fixed are at 6.625% - 6.75%......up to 1.5million.
|
|
11-01-2007, 12:00 PM
|
|
|
|
49 posts, read 165,102 times
Reputation: 44
|
|
|
Thanks all for your advice. Looks like my deal isn't too bad right now.
|
|
11-01-2007, 12:04 PM
|
|
|
|
Location: Charlotte, North Carolina
5,137 posts, read 16,116,781 times
Reputation: 1008
|
|
Yep....wait till next year....at least you have it fixed for 10yrs which is very good!
Quote:
Originally Posted by SunnyNJ
Thanks all for your advice. Looks like my deal isn't too bad right now.
|
|
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.
|
|
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.
