How low can we go? 30 yr fixed at 3.75% with no fees...

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OCtoSV said:
10 year even edged slightly higher. My broker recently offered me a no fee 5.875 refi down from the 6.5 conforming we got in March.
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You could take it, close in late October, then refinance again after the broker's new loan window re-opens (usually after 3 payments). If it was my loan, I'd look at a 25 year amortization. The lower rate should keep your payments about the same as where they are today, but take 3-4 years off of the term.

By February 2025, there should be some insight as to what is going on in housing and the economy. If rates push higher, you're good. If they go lower, you're still good. There are additional cuts in the future coming, but you cannot bank on it give how wild the political world is today (local and geopolitical).
 
sgip said:
You could take it, close in late October, then refinance again after the broker's new loan window re-opens (usually after 3 payments). If it was my loan, I'd look at a 25 year amortization. The lower rate should keep your payments about the same as where they are today, but take 3-4 years off of the term.

By February 2025, there should be some insight as to what is going on in housing and the economy. If rates push higher, you're good. If they go lower, you're still good. There are additional cuts in the future coming, but you cannot bank on it give how wild the political world is today (local and geopolitical).
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Thanks for the insights sgip. My broker’s window is 6 months but she’s done multiple transactions for me and always clean and quick so I love her else I’d come to you.
 
How do loan officers make money from refinance if they say no fee? Never done one before. I’m assuming there are other costs right
 
sleepy5136 said:
How do loan officers make money from refinance if they say no fee? Never done one before. I’m assuming there are other costs right
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If the market rate is 5.50% for 1.0 point cost (lender profit) and you accept a 5.875% rate, the higher rate yield will give the lender a 1.5 - 2.5 point rebate which they use to earn a profit and for paying your fees.

If the lender advertised "No fees at closing out of your pocket, but you pay for it over the long run"... It wouldn't bring in many customers.
 
I’m surprised this thread has gone cold given what happened post rate cut. Will the 10 yr hit 4.6%? What effect are these rates having on the Irvine market, and what is the share of Irvine purchases that are financed these days?
 
What are rates really at right now for those buying in Orange County? 30 year Jumbo with discounts for parking assets? 6%?
 
Figure 6.5 to start, 25% down, then -.375 to -.50 depending upon relationship discounts, new cash to bank, and auto pay. A 10/1 or 7/1 starts around 6 and is a better way forward. A buyer isn't going to keep an ARM forever so why not start off at a better rate?
 
Good article on why mortgage rates are high and will remain high even if the Fed cuts
www.victaurs.com

Mean Girls, Monetary Policy, And Mortgage Rates

Jerome Powell is living his own verison of Mean Girls.
www.victaurs.com www.victaurs.com
The Fed could cut short-term rates tomorrow. Powell could signal, hint, whisper, or shout. And you’d still open Zillow and see 6.7%. Because even if the Fed cuts, the long end may not follow. That part of the curve is watching something else entirely. It is watching deficits, watching spending, and watching the possibility of persistent inflation tied to structural debt addiction. The ten-year does not care about guidance. It cares about risk … and the bond vigilantes see risk everywhere. What sets your mortgage rate is not the speech Powell gives on a Wednesday afternoon. It is whether or not the market wants to hold the U.S. long bond & the thirty-year fixed-rate loan you are trying to lock in. Right now, it does not. Not even a little.
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