My mortgage payment quote went up over $700!!! (refinancing, home)

[vince3vince]

Originally Posted by Robert A

A 360K loan at 5% for 30 years is $1932.56/month. You can use an online calculator to verify.

So I am thinking she probably included an estimated impound account when she clearly stated that was not included... UGH, I was going insane with these numbers.

[lvoc]

Originally Posted by vince3vince

Thought I'd share. For a $360k loan, I was quoted $1660 in May at 3.75%. Today, the same loan is $2380 at 5%. All because of the rate !!!!! Also, homes in my price range are roughly $25k more than they were in May so I am officially squashing my home search.

For those of you guys with low rates, I hope you hold on to those homes for a really long time. It makes no sense to move into an equal value new house as you will be paying hundreds more a month at today's rate.

EDIT: Oh, and the closing costs went up. Was quoted $3400 in may, now $8000.

They lied to you in May. Quick tour through the mortgage calculator says 2135,97 at 3.75% versus 2401.31 for 5%.

While interest rates do make a difference it ain't like that.

[PhureeKeeper]

.25 difference = $50. That sounds right.
The difference between 4.75 and 3.75 couldn't be $622 per month.

[vince3vince]

Originally Posted by lvoc

They lied to you in May. Quick tour through the mortgage calculator says 2135,97 at 3.75% versus 2401.31 for 5%.

While interest rates do make a difference it ain't like that.

I just used probably the same mortgage calculator as Robert and got the same number.

$1932.56/ month at 5% and $1667.22/ month at 3.75%. I was just in shock when I opened that email that I didn't even think to check her. Still is a big jump, $265.34/ month.

Now i am confused about those closing costs...

[PhureeKeeper]

Vince, Tip of the day: Find a different mortgage banker.

[lvoc]

Originally Posted by vince3vince

I just used probably the same mortgage calculator as Robert and got the same number.

$1932.56/ month at 5% and $1667.22/ month at 3.75%. I was just in shock when I opened that email that I didn't even think to check her. Still is a big jump, $265.34/ month.

Now i am confused about those closing costs...

mine was loaded PITI

[Ponderosa]

Originally Posted by HX_Guy

I absolutely think it will affect demand, I mean we are seeing it here first hand with the OP who is now dropping out of the market to buy a house.

I can understand if someone simply can't afford the payment, but passing on a house now because the rates have gone up shows a lack of both historical perspective and economic sense. Historically, rates have averaged 8% over the long run. In my life I have paid as much as 13% (with ex credit) and for years and years we considered anything under 10% to be low. Economically, the rates will rise from here on any recovery in the economy. Both home prices and rents will also be going up. 2013 P&I payments are going to look very good 10 or 20 years from now. So unless one is betting on another recession in the near term, it makes sense to buy now when both rates and price affordability are near historic lows.

[Jkgourmet]

Originally Posted by Ponderosa

I can understand if someone simply can't afford the payment, but passing on a house now because the rates have gone up shows a lack of both historical perspective and economic sense. Historically, rates have averaged 8% over the long run. In my life I have paid as much as 13% (with ex credit) and for years and years we considered anything under 10% to be low. Economically, the rates will rise from here on any recovery in the economy. Both home prices and rents will also be going up. 2013 P&I payments are going to look very good 10 or 20 years from now. So unless one is betting on another recession in the near term, it makes sense to buy now when both rates and price affordability are near historic lows.

Worth repeating.

[Zippyman]

Originally Posted by Ponderosa

I can understand if someone simply can't afford the payment, but passing on a house now because the rates have gone up shows a lack of both historical perspective and economic sense. Historically, rates have averaged 8% over the long run. In my life I have paid as much as 13% (with ex credit) and for years and years we considered anything under 10% to be low. Economically, the rates will rise from here on any recovery in the economy. Both home prices and rents will also be going up. 2013 P&I payments are going to look very good 10 or 20 years from now. So unless one is betting on another recession in the near term, it makes sense to buy now when both rates and price affordability are near historic lows.

+1

and the only thought I would add is that if you *expect* more financial turmoil in this country, the safe bet is not to buy "all the house you can afford", but to buy all the house you can *easily* afford. I think there's a big psychological benefit to knowing you can cover the payments even if you have to change jobs, if you lose your bonus, or if other bills unexpectedly pop up..

[vince3vince]

Originally Posted by Ponderosa

I can understand if someone simply can't afford the payment, but passing on a house now because the rates have gone up shows a lack of both historical perspective and economic sense. Historically, rates have averaged 8% over the long run. In my life I have paid as much as 13% (with ex credit) and for years and years we considered anything under 10% to be low. Economically, the rates will rise from here on any recovery in the economy. Both home prices and rents will also be going up. 2013 P&I payments are going to look very good 10 or 20 years from now. So unless one is betting on another recession in the near term, it makes sense to buy now when both rates and price affordability are near historic lows.

[mod cut-- rude] . I had a rate of 7.5% in the early 90s, I never recall rates above 10%.