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

NEW -> Contingent Buyer Assistance Program
ps9 said:
USCTrojanCPA said:
eyephone said:
rkp said:
The California Court Company said:
how soon you can start refi again? technically as soon as the day after the current refi closes?
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is there really no downside or risk to serial refinancing?  you reset the 30y clock every single time so i imagine you are paying more interest than someone not refinancing right?
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The key is to get a no cost or credit back when you do a refi. The traditional storefront bank will typically charge you fees and the processing time might be a while.
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Yeah, smaller mortgage shops tend to have more competitive rates than most storefront banks.  If rates go lower then I'll refi again (as long as I get net credits back).  Refi costs seem to be around $2,500 +/- and the best part is that you can pick your own escrow company/escrow officer. 
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I didn't know you can pick your own escrow... if you don't mind me asking.. who do you recommend?
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Alyson asked me who I wanted to use for my escrow since she knew I was a realtor.  She mentioned that you were her best customer.  haha  Check your PM. 
 
USCTrojanCPA said:
best part is that you can pick your own escrow company/escrow officer. 
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what is the benefit of picking your own escrow?  do they offer rebate or discounted rate to you as you are realtor? 
 
rkp said:
USCTrojanCPA said:
best part is that you can pick your own escrow company/escrow officer. 
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what is the benefit of picking your own escrow?  do they offer rebate or discounted rate to you as you are realtor? 
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The benefit is that I can pick the escrow officer that I've worked with previously (a known commodity to me).  Yeah, I get a small discount because I give her all the business on my listings.  But more than that she is great to work with and executes. 
 
ps9 said:
Do you get to pick the appraiser too :) ?
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Nope, the Alyson picked him.  It's a local appraiser from Orange County though.  When you refi'ed with Alyson, how long after the appraiser showed up did you close on the loan/s? 
 
USCTrojanCPA said:
ps9 said:
Do you get to pick the appraiser too :) ?
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Nope, the Alyson picked him.  It's a local appraiser from Orange County though.  When you refi'ed with Alyson, how long after the appraiser showed up did you close on the loan/s? 
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Your stuff is probably too complicated for a fast close. The underwriters  are going to ask you tons of questions is my guess. Mine is pretty simple And had to still do like five letters of explanation.
 
qwerty said:
USCTrojanCPA said:
ps9 said:
Do you get to pick the appraiser too :) ?
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Nope, the Alyson picked him.  It's a local appraiser from Orange County though.  When you refi'ed with Alyson, how long after the appraiser showed up did you close on the loan/s? 
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Your stuff is probably too complicated for a fast close. The underwriters  are going to ask you tons of questions is my guess. Mine is pretty simple And had to still do like five letters of explanation.
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I told Alyson that I'm going to be one of her more complicated clients and to let me know what documents/letters of explanations they need.  I'm hoping things have loosened up since the loan volume has dropped in the past 3+ months. 
 
Interesting LA Times article on new home loan product.

New home loan helps lower-income borrowers build equity quickly

1. Key feature of the so-called wealth-building home loan is a sharply reduced interest rate on a 15-year term
2. New loan aims primarily to help low- and moderate-income borrowers seeking to buy modestly priced homes
3. Inventors of new mortgage believe wealth-building effect is attractive to many borrowers and bankers
http://www.latimes.com/business/realestate/la-fi-equity-building-mortgage-20150103-story.html#page=1
 
Logik said:
Interesting LA Times article on new home loan product.

New home loan helps lower-income borrowers build equity quickly

1. Key feature of the so-called wealth-building home loan is a sharply reduced interest rate on a 15-year term
2. New loan aims primarily to help low- and moderate-income borrowers seeking to buy modestly priced homes
3. Inventors of new mortgage believe wealth-building effect is attractive to many borrowers and bankers
http://www.latimes.com/business/realestate/la-fi-equity-building-mortgage-20150103-story.html#page=1
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Another bubble in the making.
 
Interesting, so instead of a down payment, you give that money to the bank as points to buy down the rate.  On a $400,000 0.5% loan (bought down from 4%), that's a $2300 monthly payment with the interest portion starting at $166/month!  At the end of 180 months total interest is around $15,000 plus the $16,000 (4%) paid as points = $31,000. 

A traditional 30 year 20% down on $400,000 loan with a rate of 3.5% = $1437 monthly payment.  But you would've paid $31,000 in interest at month 34.  If you do get to 30 years, the interest is close to $200,000. 
 
Logik said:
Interesting LA Times article on new home loan product.

New home loan helps lower-income borrowers build equity quickly

1. Key feature of the so-called wealth-building home loan is a sharply reduced interest rate on a 15-year term
2. New loan aims primarily to help low- and moderate-income borrowers seeking to buy modestly priced homes
3. Inventors of new mortgage believe wealth-building effect is attractive to many borrowers and bankers
http://www.latimes.com/business/realestate/la-fi-equity-building-mortgage-20150103-story.html#page=1
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I first read about it back in October and posted on page 54 of this thread.

I hope this type of loan became more readily available, its especially beneficial for home owners to build equality.   

Typical 30yr mortgage don't build any significant equility in the first few years of ownership unless the home gain in value. It's almost like renting in the first few yeas with 30 yr mortgage.

One down side of this mortgage is that with the ultra low interest rate, home owner don't have much interest rate deduction when filing tax returns but I don't think most home owner with 0.125% interest rate will complain about that.

New 15-Year Mortgage May Open Homeownership Door For More Buyers
 
and if the homeowner(s) loses his/her job(s) or needs to move? then what?  let me guess? they are entitled to a refund of their upfront interest rate pay down?  surely, that feature would make this the best loan available out there?

 
ps9 said:
Interesting, so instead of a down payment, you give that money to the bank as points to buy down the rate.  On a $400,000 0.5% loan (bought down from 4%), that's a $2300 monthly payment with the interest portion starting at $166/month!  At the end of 180 months total interest is around $15,000 plus the $16,000 (4%) paid as points = $31,000. 

A traditional 30 year 20% down on $400,000 loan with a rate of 3.5% = $1437 monthly payment.  But you would've paid $31,000 in interest at month 34.  If you do get to 30 years, the interest is close to $200,000.
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So what is the break-even point? (Assuming no refund of the 4% points if you refi or sell)
 
Westsiiide! said:
and if the homeowner(s) loses his/her job(s) or needs to move? then what?  let me guess? they are entitled to a refund of their upfront interest rate pay down?  surely, that feature would make this the best loan available out there?
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Bank giving back money?  You're funny.  Still if your financially sound, the amount of interest you save is incredible compared to any other product out there. 

Not getting the interest deduction?  Perfect, why try to get pennies on the dollar?  Mortgage interest deduction is like finding a lollipop while your plane is crashing, a nice bonus but try to avoid the situation if possible.
 
paperboyNC said:
ps9 said:
Interesting, so instead of a down payment, you give that money to the bank as points to buy down the rate.  On a $400,000 0.5% loan (bought down from 4%), that's a $2300 monthly payment with the interest portion starting at $166/month!  At the end of 180 months total interest is around $15,000 plus the $16,000 (4%) paid as points = $31,000. 

A traditional 30 year 20% down on $400,000 loan with a rate of 3.5% = $1437 monthly payment.  But you would've paid $31,000 in interest at month 34.  If you do get to 30 years, the interest is close to $200,000.
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So what is the break-even point? (Assuming no refund of the 4% points if you refi or sell)
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At around 17-18 months with a 30 year you would approach $16,000 in mortgage interest.  So after 1.5 years, you would be ahead by going with the 15 year 0.5% versus the 30 year 3.5%, not to mention your principal will be quite a bit lower as well.  A win win if you can stomach the higher monthly payment.
 
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