No FOMO is the economy keeps recovering. Rates rising from lows.
Rates have been rising this week, after sitting around a record low for the last two weeks. Friday, the average mortgage shopper may see rates on the 30-year fixed as much as a quarter point higher, according to Matthew Graham, COO of Mortgage News Daily, which runs daily averages from lenders.
For those with top-tier credit and financials, they may only see an eighth of a point increase, but for those with lower scores and down payments, the jump could be as much as 0.375%.
A number of my customers have used Owning. They report itâs no more / no less than any other process. Some have said that the rate offered on-line isnât always going to be the rate they can really offer because most people donât look at the fine print of Owningâs disclosures (loan to value, FICO, and other factors go in to the advertised rates, as well as the rate you eventually are given). They arenât a âbait and switchâ lender, but be ready for some changes when and if you go to get a loan from them.
Also, you wonât make a 1st payment to Owning. They sell their servicing ASAP after funding. As well, if Owning has a better rate in a week (unlikely, but stillâŚ) you canât refinance with them I believe for 90-120 days.
Hope this helps.
Ally has very strong pricing right now. If you drop out, Ally might not take a new application for another 30 days - most lenders donât allow a re-application if you drop out because of a pricing issue. They have to recover some of their hedging costs whenever someone drops out like that⌠First Republic Bank has been offering a 2.99 rate for some time now, but there are a few strings attached (naturally). Wouldnât hurt to call and see what their deal is today.
Thanks for reading.
Thanks I called first republic in March and they were not competitive. I understand things change quickly. For ally I only see that magic rate under 3% for one day and itâs gone. Wish they would float down based on their own quotes but oh well!
High appraisal got us down to 3%. Now I see 2.75 for the same terms. Closing Friday, not much hope to float down. Will still be a good improvement on current position
Decided to finance closing costs. Feels weird (includes half a year of property taxes in escrow to avoid escrow waiver fee⌠will cancel escrow ASAP so itâs basically a small cash out)
Check the terms to make sure you can cancel escrow. I was led to believe by some lenders that canceling escrow will not be an option.
âDespite rising ratesâ
âThe average contract interest rate for 30-year fixed mortgages rose to 3.38% from 3.37%.â
Shocker
The Fed just ensured that mortgage rates will stay low
https://finance.yahoo.com/news/fed-just-ensured-mortgage-rates-182500307.html
Just got off the phone with owning.com. To get their rate of 2.99% on a 30-year fixed with no closing costs, they are requiring I pay off and close my HELOC. If I roll it in, it will cost me 1.5 points, and the rate will go to 3.125% due to the higher loan amt.
Is this a typical refi situation? I would like to keep my HELOC as is and just refi the 1st mortgage.
Paying off the HELOC helps LTV. There are improvements to rate based on lower LTV. Thatâs why you get the best rate by paying off the HELOC. 3.125% and rolling it in seems pretty good though.
I like the 3.125, itâs the 1.5 points that kill it for me.
Not sure it itâs typical but it seems reasonable especially if the HELOC is with the original bank.
If you have investments consider a margin loan to pay the HELOC, close refi, then take out a new HELOC to pay back margin.
Fed isnât raising rates any time soon so margin loan is relatively cheap/safe as long as itâs a very low LTV to your investments (meaning enough so you donât get hit with a margin call even if stocks tank 50%⌠think like 5-10% of your portfolio)
Interactive brokers margin rates are under 1.55%
Time to refi
Closing tomorrow. Canât get float down FRED index hasnât dropped. Poor me but no guarantee I can relock elsewhere
Mortgage will be sold to the mortgage source. Anyone have experience with them? If they are terrible will cut my losses