Mortgage interest rates at a 3 year low? Just refinanced a rental...

Laguna21

New member
Went into the bank the other day to take care of some business unrelated to refinancing our mortgages, and happened to talk to a woman there who said rates are at a 3 year low. I gasped when she said 2.8%/no points on a 5/1 arm and 3%/no points on a 7/1 arm. Needless to say, we refinanced our rental since the 5/1 arm was coming up in a year, and updated to a 7/1 arm at 3% locked in.

If there was any lull in home sales these past few months, I would think this will give it a nice boost for the time being!
 
Laguna21 said:
rates are at a 3 year low. I gasped when she said 2.8%/no points on a 5/1 arm and 3%/no points on a 7/1 arm. Needless to say, we refinanced our rental since the 5/1 arm was coming up in a year, and updated to a 7/1 arm at 3% locked in.

MMn.  I was going to comment that it can't be 3 year low since just a few months ago PS9, bones, and USC Trojan got 2.5% rate but then I realized you are talking about rental refinancing.  Didn't even know that you can get that low with no points for rentals.  Is Primary then lower than 2.5%?  Which bank?
 
The WF rates are spot on with BofA.

These are BofA's numbers:

5/1 2.75% no points

7/1 2.75% no points

30 year fixed 3.625% no points

these are all for loans over 417K
 
I own a mortgage company in Irvine and we are a Direct Lender.  I would love to help homeowners get into a lower rates before they start going back up.
Below are examples of interest rates for conforming loans available today.

TRUE NO CLOSING COST LOAN OPTION

Based on a $417,000 Loan Balance

30 Year Fixed Conventional
Rate: 3.45%
Payment: $1,860.90
Points: None
APR: 3.45%
Fees: None

15 Year Fixed Conventional
Rate: 2.75%
Payment: $2,829.85
Points: None
APR: 2.75%
Fees: None

7/1 ARM Conventional
Rate: 2.875%
Payment: $1,730.10
Points: None
APR: 2.875%
Fees: None

5/1 ARM Conventional
Rate: 2.49%
Payment: $1,645.49
Points: None
APR: 2.49%
Fees: None

BBB A+
Apply on line:http://www.visionquestlending.com/free-quote/

Sincerely,

Tony Nguyen  | NMLS#93776
Vision Quest Lending  | 2860 Michelle Drive, Suite 140, Irvine, CA 92606
714-464-8042  | 877-318-0992 x6502  | Fax 866-394-9352                                                   
Email | tony@vqlending.com                                                                     
Website  |  www.visionquestlending.com 
 
@Woodburyowner:

I'm not a lender, just simply provided the numbers based on loans over 417K - if you want to know specifics with regards to LTV's, you would need to call BofA or WF and discuss your specific scenario.
 
Is it for rental refi?

Laguna21 said:
The WF rates are spot on with BofA.

These are BofA's numbers:

5/1 2.75% no points

7/1 2.75% no points

30 year fixed 3.625% no points

these are all for loans over 417K
 
@gld2: Those numbers there were specifically for a refi on a primary residence as someone else had asked about it, but the rental refi numbers were also good. I can't comment on the LTV as you would have to call specifically and ask them given your scenario.

We got a 7/1 arm at 3% interest with no points on a rental refi. But our loan to value ratio was about 50%, so we have a lot of equity in our rental. Not sure what the numbers would have been if the LTV was lower. But we are just looking to lower our rate from our current 4% interest and overall the numbers made sense, that we would be saving money in the long-term. But our plan as always is to pay it off before the 7 year term is up.

They also said anything above the 417K mark in terms of the loan will get you a better rate, anything below that, she told us the rates were higher.

Also, on a rental, a 5/1 arm was quoted at 2.8% with no points. I don't know what the 30 year fixed rates were, but I believe they were under 4% on the rental, or in that range.
 
So much more goes into a rate quote than what's posted at a bank, or online. APR comparisons don't tell the true and complete story either. Rate data at any Bank, Mortgage Banker, or Broker, goes much deeper than what's often being advertised. I get 2-3 calls a day that start with "Hi, I saw your info on xyz12345. What's your rate?" and that's all! Here's a few points to consider that will help focus things down from a big picture to a deliverable product:

Refi?
Purchase?
Primary?
Second Home?
Rental?
How many rentals do you own?
County?
State?
Banking relationship?
FICO score?
BK?
Short sale in past 7 years
Foreclosure in past 7 years.
Mortgage lates in past 24 months? (Why? some "high FICO" borrowers have 2 yr old BK's and mtg late pays....)
Length the last loan has been on the books?
Loan To Value?
Condo?
Detached Condo?
High Rise Condo?
PUD?
SFR?
New Construction?
Flipped property?
Family sale?
Non-Occupant Co-borrower?
30 day escrow?
45 day escrow?
60 day escrow?
120 day new build?
Litigation?
Locked at application?
Locked at approval?
Up front fees/deposits?
Do you sell the servicing?
Who will my loan go to?
Conventional?
Conforming Jumbo?
Bank Portfolio?
FHA? (some low rate quotes are actually FHA loans, no matter the LTV!)
ARM adjustments and margins?
Etc.
Etc.
Etc.

You get the picture.

Quoted rates in bullet point form tell the consumer zip a dee doo dah how competitive the terms are or if they're even available under the best of circumstances. Moral of the story? Ask questions before committing other than "What's your rate?" as I'm certain everyone in the market wants the deal they eventually get to be the same as what they were expecting from the start.

My .02c

Soylent Green Is People.


 
Laguna21 said:
The WF rates are spot on with BofA.

These are BofA's numbers:

5/1 2.75% no points

7/1 2.75% no points

30 year fixed 3.625% no points

these are all for loans over 417K

If you don't mind sharing, what kind of credit score and loan amount (jumbo/conforming), and LTV on your rental?

I am very tempted to follow hte suit.
 
Soylent Green Is People said:
So much more goes into a rate quote than what's posted at a bank, or online. APR comparisons don't tell the true and complete story either. Rate data at any Bank, Mortgage Banker, or Broker, goes much deeper than what's often being advertised. I get 2-3 calls a day that start with "Hi, I saw your info on xyz12345. What's your rate?" and that's all! Here's a few points to consider that will help focus things down from a big picture to a deliverable product:

Refi?
Purchase?
Primary?
Second Home?
Rental?
How many rentals do you own?
County?
State?
Banking relationship?
FICO score?
BK?
Short sale in past 7 years
Foreclosure in past 7 years.
Mortgage lates in past 24 months? (Why? some "high FICO" borrowers have 2 yr old BK's and mtg late pays....)
Length the last loan has been on the books?
Loan To Value?
Condo?
Detached Condo?
High Rise Condo?
PUD?
SFR?
New Construction?
Flipped property?
Family sale?
Non-Occupant Co-borrower?
30 day escrow?
45 day escrow?
60 day escrow?
120 day new build?
Litigation?
Locked at application?
Locked at approval?
Up front fees/deposits?
Do you sell the servicing?
Who will my loan go to?
Conventional?
Conforming Jumbo?
Bank Portfolio?
FHA? (some low rate quotes are actually FHA loans, no matter the LTV!)
ARM adjustments and margins?
Etc.
Etc.
Etc.

You get the picture.

Quoted rates in bullet point form tell the consumer zip a dee doo dah how competitive the terms are or if they're even available under the best of circumstances. Moral of the story? Ask questions before committing other than "What's your rate?" as I'm certain everyone in the market wants the deal they eventually get to be the same as what they were expecting from the start.

My .02c

Soylent Green Is People.

I would hope that everyone who refis understands that all the information you provided above goes without saying. Of course the rates vary depending on all of those factors, but if you don't already know that, then you probably have no business taking out a mortgage in the first place.

I was simply stating that we went into the bank, refinanced our rental at a good rate - without getting into the nitty gritty details, and that interest rates are at an all time low.

But as I said in an earlier post, making it crystal clear, if you want YOUR interest rate details, call the bank, give them your scenario, and ask them  yourself. :)

Never in my post did I say that everyone would get the interest rates that we did. But again, I emphasize that the article I posted, and the person at the bank said interest rates, generally speaking, are at a 3 year low.
 
Cornflakes said:
Laguna21 said:
The WF rates are spot on with BofA.

These are BofA's numbers:

5/1 2.75% no points

7/1 2.75% no points

30 year fixed 3.625% no points

these are all for loans over 417K

If you don't mind sharing, what kind of credit score and loan amount (jumbo/conforming), and LTV on your rental?

I am very tempted to follow hte suit.

Our credits scores are in the high 700's to low 800's roughly, and the LTV ratio was right around 50%, and our loan amount was 475K.
 
Laguna21 said:
Cornflakes said:
Laguna21 said:
The WF rates are spot on with BofA.

These are BofA's numbers:

5/1 2.75% no points

7/1 2.75% no points

30 year fixed 3.625% no points

these are all for loans over 417K

If you don't mind sharing, what kind of credit score and loan amount (jumbo/conforming), and LTV on your rental?

I am very tempted to follow the suit.

Our credits scores are in the high 700's to low 800's roughly, and the LTV ratio was right around 50%, and our loan amount was 475K.

Thanks. This helps quite a bit. My LTV is not as low as yours. Will see what bank has to say.
 
Cornflakes said:
Laguna21 said:
Cornflakes said:
Laguna21 said:
The WF rates are spot on with BofA.

These are BofA's numbers:

5/1 2.75% no points

7/1 2.75% no points

30 year fixed 3.625% no points

these are all for loans over 417K

If you don't mind sharing, what kind of credit score and loan amount (jumbo/conforming), and LTV on your rental?

I am very tempted to follow the suit.

Our credits scores are in the high 700's to low 800's roughly, and the LTV ratio was right around 50%, and our loan amount was 475K.

Thanks. This helps quite a bit. My LTV is not as low as yours. Will see what bank has to say.

No prob! Good luck with the refinance!
 
No disagreement Laguna21. Your posts have all been very straightforward. There are plenty of ways to hear about mortgage rates, but without context based pricing, most of these super sexy rate quote ads aren't much more than tissue thin potential terms that .0001 percent might qualify for. There's plenty of scum and villainy still in this business ready to prey on people chasing what appears to be a great deal that's really more like a mirage. Better to know than to be surprised.

My .02c
 
Soylent Green Is People said:
No disagreement Laguna21. Your posts have all been very straightforward. There are plenty of ways to hear about mortgage rates, but without context based pricing, most of these super sexy rate quote ads aren't much more than tissue thin potential terms that .0001 percent might qualify for. There's plenty of scum and villainy still in this business ready to prey on people chasing what appears to be a great deal that's really more like a mirage. Better to know than to be surprised.

My .02c

That is indeed very true ;) I would think banks like BofA and WF would have to be very straight forward with their approach though, however villainy things have been in the past with the all too easy loan approvals from random lenders.

But I agree with you and don't think that will ever change. Even the CDO's of the past are operating under the guise of a new name - they're still doing the same crap they did before the market crash.

But just to clarify with everyone - I was simply stating that rates are at an all time 3 year low. Anything beyond that including all variables such as credit scores, debts, liabilities and so forth are out of my control. I'm also not a lender, just giving the scoop on how we were able to refi our rental, because it wasn't just 2 months ago that we attempted to refinance, and the rates were roughly 4% - our financial scenario has not changed in the last 2 months, so clearly, the rates have dropped. But of course, it goes without saying, you need to be qualified to get those rates.
 
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