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

NEW -> Contingent Buyer Assistance Program
2.15% I believe, does anyone know if I make principal payments to my IO loan, will that decrease the monthly interest payment?  I'm thinking yes since the loan adjusts monthly....
 
ps9 said:
2.15% I believe, does anyone know if I make principal payments to my IO loan, will that decrease the monthly interest payment?  I'm thinking yes since the loan adjusts monthly....
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For an arm 5/1 arm it's really low and good.

I assume it's a promotional rate for the new clients.
 
It's Morgan Stanley LIBOR IO mortgage, I posted the info previous page.

Just found out, if I make a principal payment, my interest payment the following month would go down accordingly.
 
ps9 said:
It's Morgan Stanley LIBOR IO mortgage, I posted the info previous page.

Just found out, if I make a principal payment, my interest payment the following month would go down accordingly.
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Ps9 - why not do third federals 3 year arm at 1.99 (for a couple of thousand) or 2.4% (for a couple of hundred). It's both principal and interest but seems to accomplish the same thing except you lock in your rate for three years vs letting it float month to month.
 
qwerty said:
ps9 said:
It's Morgan Stanley LIBOR IO mortgage, I posted the info previous page.

Just found out, if I make a principal payment, my interest payment the following month would go down accordingly.
Click to expand...

Ps9 - why not do third federals 3 year arm at 1.99 (for a couple of thousand) or 2.4% (for a couple of hundred). It's both principal and interest but seems to accomplish the same thing except you lock in your rate for three years vs letting it float month to month.
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Good point, I'll look into this, do you have a mortgage with these Cleveland folks?  They service right?  Easy payment online?  Any impounds?
 
ps9 said:
qwerty said:
ps9 said:
It's Morgan Stanley LIBOR IO mortgage, I posted the info previous page.

Just found out, if I make a principal payment, my interest payment the following month would go down accordingly.
Click to expand...

Ps9 - why not do third federals 3 year arm at 1.99 (for a couple of thousand) or 2.4% (for a couple of hundred). It's both principal and interest but seems to accomplish the same thing except you lock in your rate for three years vs letting it float month to month.
Click to expand...

Good point, I'll look into this, do you have a mortgage with these Cleveland folks?  They service right?  Easy payment online?  Any impounds?
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I don't have a mortgage with third federal right now.  I'm working with Alyson first to see if I can refi my 5/1 arm. Currently at 2.75 and want to lock for another 5 years at 2.75 with no out of pocket costs. Currently I have 3.5 years left on my 5/1. If I can't get something with Alyson I'll probably do the third federal. Is like the flexibility of another 5 years locked in case shit hits the fan but if I can't get 2.75 for free I'll do the three years at 1.99%.
 
So with today's market hopefully I can get the 2.5% no cost with Alyson, if not I think the Third Federal mentioned by qwerty might be a better product for me.  The MS IO loan is at 1.9% and is variable month to month (I think anytime Fed's raise rate, the LIBOR will mirror).  So it takes just 2 more rate hikes (unlikely in 2016 so far) for the IO loan to be at the same interest rate as my current 5/1 ARM.  Yes it's nice to have a lower interest payment when I reduce principal with the IO product, and I believe having a lower monthly required payment for 10 years is nice in case of income loss (sickness, unemployment).  The Third Federal is only slightly higher in interest and locked for 3 years and the re-lock for a flat fee is a good option.  So theoretically you can keep re-locking every 3 years or so to guard against high interest. 

Third Federal's interest of 2.44% to make it a low cost loan seems rather high.  Break even for paying the $3000 in cost is about 20 months.  I wonder if there's a catch... none of the 3/1 ARMs from Zillow are even close to the 1.99 rate.
 
irvinehomeowner said:
Homer_Simpson said:
Yeah that 5/1 is at 2.5% for no refi cost with Alyson.  Hopping on that wagon as we speak!
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That's probably 60% LTV. I wonder what 75-80% LTV is at? And does Alyson have fixed rates?
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Yeah that's 60+ LTV for the 2.5.

She does have fixed rates but I didn't get a chance to ask her.  I'm guessing 3.25%?
 
@IHO, sorry to hear, not sure why she didn't respond.  woodburyowner also had some issues with her service..  guess it's a hit or miss with Alyson.  I believe this is my 3rd or 4th time refi with her?  So far has been smooth, no major speed bumps with her.  But then I'm pretty much a slam dunk client and don't need my hands held (not to say you guys do).  Why not hit up SGIP?  I hear his rates are the same as Alyson's.  And if you're willing to bank with BAC or already have assests with them, can be cheaper.  Remember free museums first weekend of the month with your BofA card!
 
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