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

I'm not sure what you mean about the HUD-1 and the guarantee that the issue won't come up again? Why would the issue come up again and how would the HUD-1 guarantee that it wouldn't?

A) The funding lender would ask for a copy of the refinance HUD-1 and see a 1st and 2nd payoff, indicating Cash Out. Some lenders won't refinance Cash Out refi's for a full 12 months.

B) The funding lender will look at the title report and see the 2nd lien not as a Purchase Money 2nd, indicating that the last refinance was "cash out". See bullet point A.

I actually have paid down most of my 2nd mortgage, but plan to re-draw some of those funds (irrespective of re-financing). Does that affect anything?

Personally, I wouldn't re-draw. It's going to botch your opportunity to refi as a "No Cash Out" for a full 12 months - assuming that you don't need the funds today for any significant purpose. Since you're going to have this new refinance loan considered "Cash Out" - draw the cash within the new loan.

I am at about 55% LTV including both mortgages, but my problem with refinancing previously has been that lenders don't like to count a lot of my household income and kill me on the debt-to-income ratio.

The ratio issue is the same, no matter it being a purchase or a refinance. With the very recent Ability To Repay (ATR) rules pushing ratios down to 43% for many lenders, what was possible with a customers debt to income ratios 2-3 years ago when the purchase was completed might not be possible if you were to purchase today.

Ever tighter the qualifying screws are turning.

My .02c
 
Soylent Green Is People said:
I actually have paid down most of my 2nd mortgage, but plan to re-draw some of those funds (irrespective of re-financing). Does that affect anything?

Personally, I wouldn't re-draw. It's going to botch your opportunity to refi as a "No Cash Out" for a full 12 months - assuming that you don't need the funds today for any significant purpose. Since you're going to have this new refinance loan considered "Cash Out" - draw the cash within the new loan.
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I just paid off most of the HELOC last week. If I re-draw again before my next statement, would anyone even know that I did this?

I do need the cash in about six months and figured the 4+% I save by "lending" to my HELOC is much better return than 0.01% I get on my savings account.
 
Yes. They will know. The payoff demand will say when the last draw was.

Might as well get the refi done soon. If the Fed pushes up .25 in June (who knows, really) that should factor into your decision.
 
anyone else get tempted to do third federals smart rate 3/1 loan? 2.29% for three years for $295 out of pocket, its 1.99 if you pay about 3,300 in closing costs.  i called to ask about the re-lock feature. they said all you do is call them, they give you the rate, if want it you pay $495 and they re-lock you for another 3 years.  i think id rather pay their fee vs having to fill out applications, meet the escrow rep and sign the loan docs etc. TBD.
 
rates have spiked a lot during the last couple of days despite virtually all economical indicators have been weak.

just did Zillow quote on 1 million purchase with 20% down - for no cost it is about 3.75% for 30 year fiexed

5/1 ARM is less sensitive to fixed price bond prices, and Alyson's company is quoting 2.875% for the amount quoted above.

FARMMMMMIE said:
how much are rates currently for a new purchase, jumbo SFR? 30 or 5/1?
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qwerty said:
USCTrojanCPA said:
Harajuku said:
NFCU has 5/1 ARM at 2.5% w/ 0.25 point. 
https://www.navyfederal.org/products-services/loans/mortgage/mortgage-rates.php
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They also have a 3-year ARM at 2.0% w/.25 point.....Hmmmmmm that's interest. 
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in a couple of months i'll almost be 1 year into my 5 year ARM at 2.75, ill have to take a look at the caps on this. 4 years at 2.75 or 3 at 2.0, very interesting.
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What's crazy is how much goes towards principal with a 2% interest rate. 
 
USCTrojanCPA said:
qwerty said:
USCTrojanCPA said:
Harajuku said:
NFCU has 5/1 ARM at 2.5% w/ 0.25 point. 
https://www.navyfederal.org/products-services/loans/mortgage/mortgage-rates.php
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They also have a 3-year ARM at 2.0% w/.25 point.....Hmmmmmm that's interest. 
Click to expand...

in a couple of months i'll almost be 1 year into my 5 year ARM at 2.75, ill have to take a look at the caps on this. 4 years at 2.75 or 3 at 2.0, very interesting.
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What's crazy is how much goes towards principal with a 2% interest rate. 
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AND $1,500 towards closing cost.  Damn.  I completely forgot about NFCU until yesterday when I was cleaning up the paperwork and found a statement.  We just refinanced two months ago.  :mad:
 
loansocal.com seems to have better 5/1 rates. NFCU 5/1 ARM jumbo 2.5% 0.25 point, loansocal 5/1 ARM jumbo 2.5% (0.375) point. Are they legit?

by the way fixed rate mortgage interest rates have been killed in the last couple of days; I think the rates are at 2015 high as of today.
 
Why are rates shooting up? 

I thought that the Fed wasn't raising until at least September?  Because Europe is upticking?

Any predictions for the next month or so?
 
Orwellian newspeak in order.

US Econ news has been double plus good. Grexit is now a thoughtcrime easing financial tensions in both Oceania and Eurasia . ISIS for the most part is an unperson. The Ministry of Plenty's goodthink is that stocks are the place to invest, not bonds.  The prolefeed telescreens say low oil = low gas = joy and DWTS and AI are almost at season's end, citizen.

Since we know that 2+2=5 and that BB says things are better, any straying is just malquoted oldthink. 

however....If Q2 preliminary indicators confirm Q1's disasterous GDP figures, the Fed will stay their hand until 2016. Rates will float between 3.50 to 4.50. Lock when you can, refi when it's good. Expect no more than 1% range over the next 12 months (IMHO)

Remember, we have always been at war with Eastasia.

Winston Smith
 
So as a follow up from yesterday, employment report comes out and you get two divergent thoughtlines:

KNX / CNBC: "Over 200k new jobs created. Unemployment down to 5.4 percent! Happy days are here again!"

ZH: "Participation Rate sinks. Over 55 yr old employees surge. Part Time jobs dwarf Full Time. The end is nigh".

The Market: Buy MBS's STAT!

So 30 fixed hit a peak in the 4.0%ish (Jumbo Conforming) range, now solidly back to 3.75 or better. Advice remains the same: Lock when you can. Refinance when it's good.

My .02c

SGIP
 
the stock market and MBS market have been against conventional wisdom the last couple of days -> poor economical data, bonds sell off...better than expected job numbers, bonds rally..
usually stock goes up and bond price goes down, but they tend move in sync nowadays
stock and bond prices have been very volatile recently (swinging between +/- 2% every couple of days), day traders' dream...

I will add to SGIP's advice. When 30 year fixed rates are high, it is probably better to get 5/1 ARM. Always get no cost loan and do not pay out of pocket for refinance related charges, unless the 30 year fixed rates are 3.25% or lower.
 
Aye caramba there's a big sell off developing in the MBS markets today. ARM's are beginning to look much more attractive in a +4 pct fixed market.

My .02c
 
Soylent Green Is People said:
Aye caramba there's a big sell off developing in the MBS markets today. ARM's are beginning to look much more attractive in a +4 pct fixed market.

My .02c
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People seem pretty sure that the Fed is going to raise interest rates.
 
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