wait to refi now that we know rates wont go up?

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Submitted by scaredyclassic on September 18, 2020 - 11:15am

was going to lock in a 2.375% 15 year cash out refi, but since the fed says they aren't raising rates to 2023 or so, is it worth the risk of waiting to see how low is low? things tend not to stay the same, either they go higher or lower, and the fed says they wont let it go high, so...

maybe mortgage rates will ultimately slide out of their control, but generally one should not fight the fed, as they say. Is getting a refi now "fighting the fed"?

PRO REFI

maybe beat the new .5% refi fee.
stop checking mortgage news daily.com
pretty good beats optimal if you get nothing
dont have to wait for lower payment

CON REFI

Rates seem more likely than not to go lower.
wouldcost me 2400 to do this refi. maybe it'll be free soon
I hate being a sucker.
screw them and their stupid fee, it doesn't ahve all that big an impact on pricing, maybe .125 points? not sure. not gonna jump just because fannie mae says refi now. makes me want to NOT refi

Submitted by ocrenter on September 18, 2020 - 3:44pm.

Just got done with refi with HLS, amazing guy, fantastic to work with, highly recommended!

Submitted by carlsbadworker on September 20, 2020 - 5:58am.

How do we know that rate won’t go up?

RateRate

Also, +1 for HLS.

Submitted by scaredyclassic on September 20, 2020 - 3:47pm.

carlsbadworker wrote:
How do we know that rate won’t go up?

RateRate

Also, +1 for HLS.

Interesting.

But as fed fund rate decreases, there is less room for rising and falling of mortgage rates, which do not appear to ever exceed the fed rate, although the mtg rate oscillates under the fed rate curve.

If the fed rate were very low, the os cillation would become tiny.

Does that change things?

Submitted by gzz on September 21, 2020 - 12:29pm.

I think you should do it now, no question. The new .5% fee is pure loss to you when it kicks in.

The bigger question is if you should accept a higher rate to avoid the $2400 cost you mention.

I calculated the breakeven on paying the fee v higher rate is about 6 years most of the time, and here I am doing a refi 8, 6, and 3 year into each of my mortgages, so it didn't matter overall.

Just get it done and stop thinking about it.

Submitted by Ready2Invest on September 21, 2020 - 3:17pm.

Can you please PM their specific contact? Thanks!

Submitted by scaredyclassic on September 25, 2020 - 11:10am.

Ok, i locked.

2.5%
15y
Cash out.

Pretty stimulated by this.

Submitted by HLS on October 1, 2020 - 9:00am.

Many lenders have already factored the .50% fee in to their pricing.
One major lender it starting today.
There are still several that have not added it yet, but will next week.

The .50% fee is not added to the interest rate, it is a pricing hit of .50, so on a $400,000 loan it is an additional $2000.
There will still be options for no cost loans, as it is built into the rate/pricing..
The Dec 1st date is a delivery date to FNMA, not a loan application or funding date.

It's still possible to get no cost loans and save tens of thousands of dollars of interest over the life of a loan.

Refinancing is not a one time event. Regardless of what the Fed says, there still has to be a market for mortgage backed securities.

It's crazy how many people still have mortgage rates above 3.50% and just don't understand the benefit of refinancing either at zero cost or a small cost, and will waste literally tens of thousands of dollars over the life of their loan.
The objection that I hear most often is "I don't want to start over at 30 years"
That's when I know that they don't understand their situation. OR those who think you need save at least 1% to make it worthwhile.
When you can save at least .25% at zero cost, it's worth refinancing.
Sad that so many people don't have a clue how much they are wasting
It's no too late to save thousands ;-)

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