x.62 vs x.50 (escrow, credit, rate, refinance) - Mortgages -Lenders, loans, financing, rates, foreclosures, short-sales, brokers, credit score, deed, lien, refinancing, borrowers - City-Data Forum

Gaylord_Focker · 07-24-2020, 09:56 AM

A friend of a friend, who happens to be a mortgage broker told me that, for whatever reason, on a refinance, it is much easier to get to a .62 rate than a .50 rate. So he recommended I take a slightly higher rate up front, 3.125, to ensure I'm able to get 2.625 in about 6 months on fha.

Does this sound realistic?

Pfhtex · 07-24-2020, 11:24 AM

Literally none of that makes sense.

On the first part, there might be a "break" - meaning a jump in cost, between x.625% and x.500% - - but the second part is gibberish.

simplechamp · 07-24-2020, 11:33 AM

Personally I would not let hypothetical future refi scenarios affect what rate I go with today. Nothing will ensure you can get 2.625% in 6 months. Maybe 2.625% is high by then, or maybe it's long gone and we're back in the 3s and 4s.

LoanChic · 07-24-2020, 12:35 PM

Sounds like your friend is mortgage churning to me.

Gaylord_Focker · 07-24-2020, 06:08 PM

Quote:

Originally Posted by LoanChic

Sounds like your friend is mortgage churning to me.

thanks. Can you explain a bit further? Bear in mind he's not doing my current mortgage but has a shot at my next.

Right now I'm at a 3. He's recommending I take a 3.125 because as he said "on a streamline fha refi, it is much easier to get to a .62 number than it is a .50 number."

KemBro71 · 07-24-2020, 06:21 PM

Run away. He's FOS.

LoanChic · 07-25-2020, 05:00 AM

Quote:

Originally Posted by Gaylord_Focker

thanks. Can you explain a bit further? Bear in mind he's not doing my current mortgage but has a shot at my next.

Right now I'm at a 3. He's recommending I take a 3.125 because as he said "on a streamline fha refi, it is much easier to get to a .62 number than it is a .50 number."

So not churning then, but setting you up so that he's getting future business. Keep shopping. You should be able to get 2.625 on a FHA streamline refi.

Richard818 · 07-25-2020, 06:27 AM

Waiting for 30 year 2.5% with lender credits to cover all costs except for escrows which is approximately 5k.

Gaylord_Focker · 07-25-2020, 07:27 AM

Quote:

Originally Posted by LoanChic

So not churning then, but setting you up so that he's getting future business. Keep shopping. You should be able to get 2.625 on a FHA streamline refi.

Thank you.