Home refi......

5.7 hemi · Apr 30, 2021

We just did a Streamline Refi (VA backed loan) and it cost us $4900 and we got 2.25% and it will take us just under 2 years to recoup that money.

My question is......why are the home interest loans so low and yet everything else is sky high?

NJRR · Apr 30, 2021

It's all based on the Fed fund rate, which they are keeping low to boost the economy. That is keeping the 10 year bond rate low also. Mortgage rates and interest rates you get from a bank are all based on those factors. Everything else is sky high because the dollar is worth less because the govt is printing money ( spending trillions that it doesn't have) and also because of shortages from the last year of shutdowns ( supply and demand) and increased costs of labor and energy. It's very complex but that's the simplified version.

R413 · Apr 30, 2021

How many years is your new loan? 15 or 30?

5.7 hemi · Apr 30, 2021

I did 30, no prepayment penalty’s. So the savings of the lower mortgage will be applied to the payment and that will knock off a few years. Haven’t penciled that out as of yet.

Our original loan was 3.125 and now 2.25, almost a full point so it was worth it to do.

Budnicks · Apr 30, 2021

here's my take
Aides in people buying or owning more property/homes
with these crazy low & affordable mortgage rates helps

why pay rent ?
pay someone else's mortgage for them :poke:

when you can own for less or the same $$$

but;
then you have to pay property taxes as a property owner
or Mello-Roos bonds, water & or school bonds on top of it
to pay for pet projects, for local &/or municipal spending,
in some cases
there's always some way they get in your pocket
:usflag:

those taxes greases the wheels of local govt.
but;
that Co. property tax base,
could aide or stimulates the county where you live
for local projects & funding local govt.
your property taxes,
will be based on the org. purchase price
or on the reassessed amount/value on the new property/home loan
in some cases (not 100% sure how that plays into it)
here it's only 1%, of org. purchase price
we have no Mello-Roos, here where I'm at

Thank Goodness,
I was paying that extra $800 a year in Rancho Murieta,
in Mello-Roos bonds for schools, water & water treatment bonds
on top of my 1% County property taxes
it was an unincorporated Rural area, gated Golf community
about 20 miles outside of eastern Sacramento Co.

enjoy the new lower rates & new home

funknut · Apr 30, 2021

2.25% is a smoking deal, congrats!

YY1 · Apr 30, 2021

Were you already in a 30? If so how many years?

Did you factor that in?

65-440 · Apr 30, 2021

Who did you go through to get 2.25? I called the bank last week and they said 3.1, 30yr fixed

5.7 hemi · Apr 30, 2021

Quicken Loans/Rocket Mortgage.

We bought the house last September 30th, first payment was November 1. Had to wait 180 days before I could refinance and interest rates were dropping. So when we hit the 180th day, I called around. They had the best rate and because of my VA Disability rating, I wasn’t charged the full amount of $6k. So the $4900 I paid upfront, I get back $500 at close as a credit. So I’m all in at $4400 on paper.

Just got an email and underwriting is all done. We are good to go.

5.7 hemi · Apr 30, 2021

Commiefornia is 1% of purchase price or assessed value, which ever is lower, then add in the school bonds and other crap for your yearly property taxes. Also, since I have a 100% Disability Rating from the VA, I have what is called Disabled Veterans Property Tax Exemption. It’s scaled according to how much the household income is. We make too much to get the max in SLO County do I get the basic which is $149k off. So that equals a savings of $120 a month. I’ve already been approved by the county for it so we are waiting for another branch in the county to get off their butts and issue a refund of property tax money to us.

So all in, we will be saving almost $380 a month total.

Mike67 · Apr 30, 2021

5.7 hemi said:
Commiefornia is 1% of purchase price or assessed value, which ever is lower, then add in the school bonds and other crap for your yearly property taxes. Also, since I have a 100% Disability Rating from the VA, I have what is called Disabled Veterans Property Tax Exemption. It’s scaled according to how much the household income is. We make too much to get the max in SLO County do I get the basic which is $149k off. So that equals a savings of $120 a month. I’ve already been approved by the county for it so we are waiting for another branch in the county to get off their butts and issue a refund of property tax money to us.

So all in, we will be saving almost $380 a month total.

There are amortization tables out there that will let you add additional payments to principals and give you the actual payoff in years. I think 1 principal payment every year reduces a 30 yr approximately 7 yrs. It may be more now since the rates are lower.
It's pretty cool.
I think I'm doing an extra 150 a month and its knocking off 10yrs and saving me about $60k

NJRR · Apr 30, 2021

YY1 said:
Were you already in a 30? If so how many years?

Did you factor that in?

Doesn't matter. you're paying the interest rate on the amount owed annually. You can always reduce the term by paying extra principal. He went down .875%, that's $875/$100k saved every year no matter the term.

Triplegreen500 · Apr 30, 2021

i just started getting my accounts moved to a new bank (BB&T), to get away from Bank of Amerika. One of the things in their orientation stuff is their low mortgage rates - 15 fixed refi rate, 2.25%; 30 fixed refi, 2.875%. I'm at 4.0 right now - once I get a new job sorted out I may apply and see how things look for me. Right now, I don't have the income to qualify...unless they have some "covid policy" for being generous on approvals lol

5.7 hemi · Apr 30, 2021

If you’ve got less than 20% to put down or not a Veteran, it might prove difficult to get a loan until your job is sorted out.

Triplegreen500 · Apr 30, 2021

Yep, I know. I have equity, 10yrs good standing with this mortgage, and decent rental income on a property I own free and clear...but it isn't enough on its own to float a fresh loan.

I'm OK with my payments now...but if I can save some, I'll take it. Just hope my status gets in-line before rates start to climb.

Scott Engelhardt · Apr 30, 2021

My bank does not have closing costs as long as you refinance less then your original loan. 10 years ago I refinanced and added 20k for siding and windows. I locked in at 2.95 at that time. House is paid off now, just in time for new septic and roof

1967coronet · Apr 30, 2021

Jmho, if your going to be buying and selling homes like people do cars then the variable low interest loans will work.
Folks at that point are just basically renting but with the privilege of paying taxs and upkeep , insurance ect.
If you plan to stay put get the best deal on fixed rates you can for 15 or 20years.
A few years down the road 3 or 4 percent fixed money is going to look like one hell of a deal.
The economy can not support these low rates forever.

khryslerkid · Apr 30, 2021

Banks aren't like they used to be. Now days they sell your loan in a weeks time to some who knows who and use foreigners to contact if you have any questions. I hate talking to someone with broken english about important information. My loan has been sold twice in seven years.

Just went through this a couple of weeks ago when they notified me that my county won't send them a copy of the real estate bill anymore without charging a fee. What a pita trying to communicate.

NJRR · Apr 30, 2021

khryslerkid said:
Banks aren't like they used to be. Now days they sell your loan in a weeks time to some who knows who and use foreigners to contact if you have any questions. I hate talking to someone with broken english about important information. My loan has been sold twice in seven years.

Just went through this a couple of weeks ago when they notified me that my county won't send them a copy of the real estate bill anymore without charging a fee. What a pita trying to communicate.

That's why any mortgage I've ever done is a no escrow loan. I pay my own taxes and own insurance. If they won't write the loan that way, they don't get my business.

Mopar Hunter · May 1, 2021

Buy down the interest rate, it will save you a bundle.

Home refi......

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