wiegie Posted January 24, 2008 Share Posted January 24, 2008 No way it makes enough of a difference when trying to cover closing costs of 2 grand. why do you hate the correct answer? Quote Link to comment Share on other sites More sharing options...
Puddy Posted January 24, 2008 Share Posted January 24, 2008 why do you hate the correct answer? Just like with everything else, academia is theory...the rest of the world is practical. Quote Link to comment Share on other sites More sharing options...
twiley Posted January 24, 2008 Share Posted January 24, 2008 No way it makes enough of a difference when trying to cover closing costs of 2 grand. Is it not common practice for your mortgage guy to cover closing costs on refis? Quote Link to comment Share on other sites More sharing options...
Yukon Cornelius Posted January 24, 2008 Share Posted January 24, 2008 Is it not common practice for your mortgage guy to cover closing costs on refis? depends on the company... u can find some everywhere that will . Quote Link to comment Share on other sites More sharing options...
Ramhock Posted January 24, 2008 Share Posted January 24, 2008 depends on the company... u can find some everywhere that will . No one, anywhere, will do a mortgage for nothing. You WILL pay for it somewhere . . . period. Quote Link to comment Share on other sites More sharing options...
Yukon Cornelius Posted January 24, 2008 Share Posted January 24, 2008 No one, anywhere, will do a mortgage for nothing. You WILL pay for it somewhere . . . period. well since i dont have one im just going on what other have told me.... one company is always better than the other Quote Link to comment Share on other sites More sharing options...
twiley Posted January 24, 2008 Share Posted January 24, 2008 No one, anywhere, will do a mortgage for nothing. You WILL pay for it somewhere . . . period. I'm sure there's something in there but my friend owns the company and I know that he's saving me a considerable amount of money now. Way more than that federal refund. Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted January 24, 2008 Share Posted January 24, 2008 If you just multiply the number of months by the monthly savings, you won't really get the right answer. What you need to do is figure out the present value of each future monthly payment and then sum those up. (e.g. saving $100 off a monthly payment that isn't going to be made for, say, 10 years is definitely not the same as saving $100 off a payment that you are making right now today). In addition to that you also have to take into consideration that you will have a smaller tax deduction with a lower interest rate. So you would need to figure out what the tax consequences are to make an informed decision. Quote Link to comment Share on other sites More sharing options...
Codwagon Posted January 24, 2008 Share Posted January 24, 2008 If you just multiply the number of months by the monthly savings, you won't really get the right answer. What you need to do is figure out the present value of each future monthly payment and then sum those up. (e.g. saving $100 off a monthly payment that isn't going to be made for, say, 10 years is definitely not the same as saving $100 off a payment that you are making right now today). In addition to that you also have to take into consideration that you will have a smaller tax deduction with a lower interest rate. So you would need to figure out what the tax consequences are to make an informed decision. Also, one should take into account whether the numbers in their new payment will require more ink when writing checks to the mortgage company. Quote Link to comment Share on other sites More sharing options...
Ramhock Posted January 24, 2008 Share Posted January 24, 2008 I'm sure there's something in there but my friend owns the company and I know that he's saving me a considerable amount of money now. Way more than that federal refund. He is certainly saving you money v. dealing with a stranger. Our owner only makes a few thousand when he does a loan for one of his buddies. Quote Link to comment Share on other sites More sharing options...
Cunning Runt Posted January 24, 2008 Share Posted January 24, 2008 He is certainly saving you money v. dealing with a stranger. Our owner only makes a few thousand when he does a loan for one of his buddies. I take it you're in the biz. If so PM me. I'm in Indiana. don't know if you're able to do business there or not, but if so, I'd be interested to see what the options are compared to what the companies that have called off my Lending Tree application have had to say. Quote Link to comment Share on other sites More sharing options...
Puddy Posted January 24, 2008 Share Posted January 24, 2008 Also, one should take into account whether the numbers in their new payment will require more ink when writing checks to the mortgage company. Quote Link to comment Share on other sites More sharing options...
Ramhock Posted January 24, 2008 Share Posted January 24, 2008 I take it you're in the biz. If so PM me. I'm in Indiana. don't know if you're able to do business there or not, but if so, I'd be interested to see what the options are compared to what the companies that have called off my Lending Tree application have had to say. We are not licensed in Indiana. Quote Link to comment Share on other sites More sharing options...
Cunning Runt Posted January 24, 2008 Share Posted January 24, 2008 We are not licensed in Indiana. Too bad. I'd have been interested to see what you had to say. Quote Link to comment Share on other sites More sharing options...
Ramhock Posted January 24, 2008 Share Posted January 24, 2008 Too bad. I'd have been interested to see what you had to say. So would have I. Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted January 25, 2008 Share Posted January 25, 2008 30y mortgages back up to 5.75!!!! Quote Link to comment Share on other sites More sharing options...
wiegie Posted February 21, 2008 Share Posted February 21, 2008 I honestly can't believe that the markets aren't forecasting more inflation over the next few years than what is indicated by these low 30-year fixed rates. :insert comment here about blind squirrel: Mortgage rates skyrocket By Holden Lewis • Bankrate.com Mortgage rates skyrocketed this week as investors fretted about a pickup in inflation. The benchmark 30-year fixed-rate mortgage rose 41 basis points, to 6.37 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.4 discount and origination points. One year ago, the mortgage index was 6.29 percent; four weeks ago, it was 5.57 percent. The 30-year fixed hasn't been this high since the middle of October, when it was near 6.5 percent. The benchmark 15-year fixed-rate mortgage rose 41 basis points, to 5.87 percent. The benchmark 5/1 adjustable-rate mortgage rose 27 basis points, to 5.77 percent, and the 30-year fixed jumbo, for loans of more than $417,000, went up 39 basis points, to 7.55 percent. The refinancing boomlet of a month ago is merely a wistful memory, like a shipboard romance. A little math explains why: The 30-year fixed has risen more than three-quarters of a percentage point in four weeks. According to the Mortgage Bankers Association, refinances have decreased about 31 percent in three weeks. It was "really party time" when rates were close to 5.5 percent, says Michael Moskowitz, president of Equity Now, a mortgage lender based in New York City. Now business has slowed again. He's waiting for the higher limits on conforming loans to kick in, but no one knows when those will be available. Inflation looming The reason for the sharply rising rates is simple: "People are concerned about inflation," Moskowitz says. "People see the loosening of Fed rates. They think demand in China and India is still up. Oil is in the high 90s." With worldwide demand strong, and with commodity prices rising, inflation seems a threat. And inflation is the enemy of low mortgage rates. "Lenders, who are going to be investing money for a rate that's locked into a 30-year period, are going to be very concerned about inflation," says Barry Habib, publisher of the Mortgage Market Guide, an online resource used by mortgage bankers and brokers. Habib, like Moskowitz, traces the inflation fears back to the Federal Reserve's series of short-term rate cuts. "When the Fed cuts rates, the economy typically is the beneficiary," Habib says. "If it's deemed that the economy is going to get some stimulus from it, the economy is going to perk up, businesses do better, more sales are made." Manufacturers, service providers and retailers are more free to raise prices in the face of climbing demand. Mortgage rates follow bond rates "The bond market figures this out instantaneously," Habib says. Bond yields rise and mortgage rates follow. Mortgage lenders find that their customers are suspicious about this dynamic. When people hear that the Fed has cut short-term rates, they expect long-term mortgage rates to move in the same, downward direction. But it's a stubborn fact that when Fed rate cuts are deemed inflationary, long-term mortgage rates go up. And that's what has been happening in the past few weeks. As Habib says, it didn't take long for the bond market to figure out the inflation picture. On Wednesday, the Consumer Price Index indicated that overall prices rose 0.4 percent in January (up 0.3 percent excluding food and energy). That translates into an annual inflation rate of almost 5 percent. By that measure, a rate of 6.37 percent for a 30-year mortgage seems like a bargain. Bankrate.com's corrections policy -- Posted: Feb. 21, 2008 My only hope is that these rates hold out until the summer because I want to buy a house when I get back to America.dammit Quote Link to comment Share on other sites More sharing options...
Rebellab Posted February 21, 2008 Share Posted February 21, 2008 Mrs. Rebellab and I have been looking for a house, and we made an offer on a house on Friday and didn't get it. Good thing because of this. We are still holding out hope that they will recede a little. Quote Link to comment Share on other sites More sharing options...
Big Country Posted February 21, 2008 Share Posted February 21, 2008 Mrs. Rebellab and I have been looking for a house, and we made an offer on a house on Friday and didn't get it. Good thing because of this. We are still holding out hope that they will recede a little. Don't sweat the rate too much. Focus on getting the house you want at the price you want. Remember, you can always negotiate the rate in a refinance, you can never negotiate the price. Quote Link to comment Share on other sites More sharing options...
Avernus Posted February 21, 2008 Share Posted February 21, 2008 Don't sweat the rate too much. Focus on getting the house you want at the price you want. Remember, you can always negotiate the rate in a refinance, you can never negotiate the price. Quote Link to comment Share on other sites More sharing options...
Ramhock Posted February 21, 2008 Share Posted February 21, 2008 What a volatile market!! 30 yr rate down 1/4 today. Quote Link to comment Share on other sites More sharing options...
Avernus Posted February 21, 2008 Share Posted February 21, 2008 What a volatile market!! 30 yr rate down 1/4 today. real estate is the new stock market Quote Link to comment Share on other sites More sharing options...
TimC Posted February 21, 2008 Share Posted February 21, 2008 real estate is the new stock market I hope not. My 6.5% mortgage I got 2 years ago is dying to be refinanced. Quote Link to comment Share on other sites More sharing options...
Missoula Griz Posted February 21, 2008 Author Share Posted February 21, 2008 I hope not. My 6.5% mortgage I got 2 years ago is dying to be refinanced. Now that the prime is at 6%, arms are starting to look pretty attractive. 7/1 arm is at 5.0% today. Quote Link to comment Share on other sites More sharing options...
Avernus Posted February 21, 2008 Share Posted February 21, 2008 I hope not. My 6.5% mortgage I got 2 years ago is dying to be refinanced. yeah I'm just joking....or am I? I hope I'm just joking.. Quote Link to comment Share on other sites More sharing options...
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