Mortgage rates continue to drop

Time to re-fi baby!

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Still above my current rate.

Just buy more properties then?

If your home equity is jumped up heavily, you can do cash out refi with low rate even though it is high.

Here are the two cases I knew recently, both are based on my suggestion.

Person 1) bought primary during 2011 for $360k, wanted to buy a new home soon. His home went up to $650k now, got $500k as cash out refi. He is holding it for possible future purchase. His rate jumped from 3.625 to 4%. His only aim to get a new larger home and newer home at Irvine.

Person 2) bought home during 2013 for $670k, now increased to $1.25M, trying to get a cash out. He will invest either stocks (Good at it) or real estate (as well as trying to maximize retirement account). His rate is 3.625, but do not know current one which he is working out.

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I’m so confused. You say to max the cash out refi, but you think we’re heading into a recession. Why cash out refi to buy RE or stocks when you think they are going to crash? In another thread, you said a savings account is the best places to invest $500k cash.

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I think what he meant was to cash out refi and park the money in savings account while you wait to buy at the dips when the stock market crashes.

If rockets, FOMO buy! Then market crashes :stuck_out_tongue_winking_eye:

savings account is the best places to invest $500k cash. ==> The original user is starter on investment. He does not clearly know where to invest and when to invest. If I tell him to go for stocks or other investments, he may likely lose it. Safer for him is savings (FDIC insured same rate like bonds). Even bonds may go down in value (market value) later, but savings is not. It can be taken out any time. This is not for well experienced real estate or stock investors.

No major investments during this volatile time unless the person is pretty good. Cash is the king during turbulent period.

If market is really crashed (based on yield curve inversion) we will not have low rate loan, neither great appraisal.

Why cash out refi to buy RE? Interest rate is very low (based on yield) and real estate appraisal will have better high value. Easy to cash out now.

But, you need to carefully keep the cash, if you expect a crash. When crashes (either real estate or stocks), use it like warren buffet.

This is exactly I did in pre-crash-2008 time cash out refinance (0 down payment level) when appraisal was too good. It was accidental, not planned as I was naive at that time, but worked out nicely later.

I got a phone call from my loan officer last Sunday but the rate and requirement she offered was not at all great. Thus, I am thinking of doing loan shopping for refinance now.
This is about my rental property and current rate is 30-year fix 4.375.

Here’s a few questions to experts here.

  1. Appraisal for my property was 5% higher than purchase price when I bought it last summer and I put 35% down payment, thus it was almost 40% equity at the time of purchase. However, I am afraid that new appraisal may go down by 10% (in the worst case) given the market condition was not great during last winter (very little inventory and very little transactions only on tear-down type houses in the neighborhood.). I thought that my equity was still good but my loan officer said that I might need to put more cash to keep over 35 equity. She said this is new rule for BoA. Does anyone else hear same requirement? What is typical equity to price ratio for rental property in case of refinance?

  2. The rate I got was “4.125 with no cost” or “4.0 with $4000 closing cost” with 250K cash transfer to BoA.
    I declined the deal since it doesn’t give me much benefit. However, I am hearing that other people get 3.875 for their investment property (from other board). Does anyone try to refinance their rental? If so, would you share your rate?

  3. If I do loan shopping, each loan officer would want to pull my credit. Would it affect my credit? My current loan officer already pulled my credit last Sunday and she said that mine went down since last purchase. She couldn’t figure out why and I couldn’t either since I didn’t open or close anything since then. I checked my credit score through soft inquiry but all 3 of them were near 800. Thus, I have no idea why lender credit inquiry shows lower score. May I ask for the copy of credit report from her and send this copy to other loan officers instead of letting them pull my credit multiple times?

Any feedback would be appreciated. :slight_smile:

If they did a hard pull on your credit, they’re required to send you a copy I think. But other lenders also need to do a hard pull for them to do a calculation.

In general, I found BofA underwriters terrible - their marketed rates are typically lower than most other major banks, but the underwriters are so anal and drags the process on and on. I’ve had much better success with Wells Fargo. They also do rate discount based on cash transfer. Cash transfers are fine since you can just take the money out from the account right after closing. That’s what I did. :slight_smile:


One loan guy told me last week all credit inquiries within 14 days for mortgage purpose are counted as one. Since BA already pulled once hurry up and shop around within the 14 day window.

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4% no cost with fund transfer, 3 months ago. From Chase.

Mine also drop for no good reason. Appraisal was also forced down, the appraiser of the bank gave me an appraisal and one week later bank insisted that appraised value has declined. So I suspect there is a deliberate policy by credit bureaus and lenders to lower credit rating and appraised house prices, preparing for a downturn.

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Yes, one of friends referred in this thread closed cash out refi with 14 days close. He was just like that talking to me before initiating loan, later when I checked he said loan closed and cash in bank account. Everything went split second like that!

This is why I don’t want to do a cash out refi now and lose my current rate. I suspect the appraisal will not be ideal.


Appraisal is only $500, be prepared to lose it as a cost of business

Rate is still close to rock bottom. If you can’t invest the money and make 4% return then yes better leave the equity alone.

I don’t have FOMO :wink: will consider it when all stars are aligned even if my appraisal is not as high as I want it to be.

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FOMO is in all of us. Just set it FREE!!! :scream:

You can get a huge HELOC if you don’t know how to use your cashout

:robot: you really are something.