Rental mortgage rate is better now. Assuming LTV 60%, FICO 760, 510k loan amount.
Rental mortgage can get 3.375-3.5%, no point no cost. Rate/term refinance.
Even for rental cash out, 3.5% is possible for no point. 3.875-4% no point no cost.
Yeah, no cost is a popular option. It’s easy to compare rates with no cost. Otherwise, very hard to compare apple vs orange.
Curious on what’s the ballpark rate these days on LTV 60%, FICO 760, but say 765k loan amount?
Few months (2-3) before, I got 3.375% no point, no cost, for such high loan with LTV 60% FICO 760+ for rental property. It was from Bank of America, but 10 year ARM, not fixed mortgage.
LTV 60%, FICO 760, 765k loan amount:
Primary Home: 3% 30 year fixed, no point no fee.
Rental Property: 4% 30 year fixed, no point. Cost $3500.
For primary home, rate for 765k is really good right now.
I closed on my primary refi finally.
US Bank took a long time. 2.75%, 5/1 arm, jumbo refi with cashout. no cost, no points and 1000$ credit into a Platinum checking out (all min balance and direct deposit requirements waived).
Rental mortgage rate has dropped. For 510k loan amount, LTV 60%, FICO 760, we can offer 3.375% 30 year fixed rate with no point no cost, and no third party fees.
Today, even high balance rate for primary home can be 2.875% no point no cost, 30 year fixed. This is a huge improvement from weeks ago.
Cash out rate is also much better.
Primary cashout 510k, 2.875%
Rental cashout 510k, 3.625%
Primary cashout 765k, 3.625%
Assuming LTV 60%, FICO 760, 30 year fixed rate, no point no cost.
How can I get this rate? Are you a mortgage agent/broker?
Like stock market, iIMO don’t try to time the rate. Refi when it makes sense.
Yesterday I finally closed my refi with Quickenloan, 2.875 30yrs fix. This is my first and will be my last with Quickenloan. They are horrible, so unprofessional. The underwriter does not even know how to sum up monthly income from multiple W2 (simple math like 1 + 1 = 2). They even contact wrong employer for VOE 
And finally when I thought everything would be over to get the final CD to review, they mistakenly freaking included my 2 credit card payoffs on disbursement section. To make it even worst the credit card outstanding amt is 2 months old which is no longer matching the current outstanding.
Just glad that is is over now. and i guess we will be stick with 2.875 for good, no more refi for this property.
A few notes on “No Cost, No Fee” refinances to consider.
When rates are in the 2’s, once you close it’s highly unlikely refinancing will make sense. We’re running out of numbers here. All this talk of sub 2% rates is pretty much a fairy tale. With this in mind, you might want to pay fees, even finance them.
For ease of number calculations, I’m going to assume a $1m loan at 60% LTV. The math works with every other loan amount, only the percentage costs of the buy down will differ.
You get an offer of 3.0% 30 fixed at “no cost”. Your payment is $4,216.64. In 10 years your balance will be $757,882
You could have gotten 2.75% 30 fixed with 1.5 points cost. If you did, and you financed your closing costs of $5,000, your balance would be $1,020,000. Your payment is $4,164.06 (-52.58 saved per month) In 10 years your balance is $765,637.
YOW. $20k in closing costs and an $8k higher balance in 10 years!!!. Hmmm… you saved $52.58 x 120 payment, or $6,309 so the difference isn’t that far off and you’re gaining ground quickly. Had you made the 3.0% payment on your 2.75% loan in 10 years your balance would be $758,314 - closer still. By paying the 3.0 rate payment on your 2.75% loan, you pay off 6 months earlier than a zero cost 30 fixed rate at 3.0%
This theory is for the long holders, not the short gamers.
That said, what if you took out a 10/1 ARM with 1.50 points? The rate would be close to 2.25%. The payment would be $3,898.91 (-$319.09 vs 30 fixed). Without a prepayment in 10 years the balance would be $750,486! That’s -$7,396 LESS owed on a 30 fixed rate! If you did make the 3.0 payment on your 2.25 loan, the balance falls to $707,736.
By making the exact same payment on a 30 year fixed rate, In 10 years would you rather owe $707,736 or $757,882?
But… rates…
Yes, no one knows where rates will be in 10 years. They would have to be consistently above 4.25% for 10 years after the first adjustment in order to equally match the 30 year fixed rates expenses. 10 years, you’re ahead and 10 more years you break even. 20 years is a vast amount of time and a great deal can happen during then.
By no means is this theory for everyone. Sub $510k loans should look long and hard at the 15 or 20 year amortizing loans. Non-Owner, Greater than $765k financing? Yeah, it’s worth a good hard look IMHO
Thanks for reading.
Who does a good loan?
Rate has improved. Last week for primary home 510k loan amount, we can offer no point no cost 2.375% rate for 15 year fixed, 2.75% 30 year fixed. High balance rate is also really good.
Rental property rate also improved quite a lot.
Jumbo rate started getting better, I think it will get lower, so there’s no rush for jumbo refinance.
How soon you can refinance? Mine sold to FNMA. Next time zero cost for sure
Most companies can refinance you even before you make your first payment. That said, the “early payoff penalty” that your previous lender must now pay is going to be huge - $10-30k depending on the loan size and structure. (Banks absorb EPO’s Brokers and Mortgage Bankers cannot) If you don’t care about the pain you’re about to inflict, that’s a separate discussion. If you had a good experience last refi and you would like the same company to help you, make the call to that loan officer and see what can be done.
A super low rate provider is also super overwhelmed with new deals. You may not get the same service levels as before. Also, if you closed in June with your new lender at an 800 FICO, the company you want to re-refinance with may pull a 750 or lower FICO. Why? You have new debt, and credit score models need to see a history of payments made to adequately judge risk.
Generally speaking, it’s best to wait 90-130 days before considering another refi.
Thanks for reading
If the Bank has already sold my loan to Fannie Mae, how is it in it’s interest in keeping me around? Point is, why will it renegotiate with me if I am getting a lower rate elsewhere(if the bank is unwilling to match the new lower rate that I am getting elsewhere)?
Do you know what the Jumbo rates are something in the $1.4M range?