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Main => Everything Else => Topic started by: ChadTower on December 18, 2008, 11:04:08 am

Title: mortgage rates
Post by: ChadTower on December 18, 2008, 11:04:08 am

Anyone else looking at this week's rate drops thinking it might be a good idea to look into a refi?  I'm seeing talk of fixed rates in the 4.75 range right now.
Title: Re: mortgage rates
Post by: FrizzleFried on December 18, 2008, 11:07:11 am

Anyone else looking at this week's rate drops thinking it might be a good idea to look into a refi?  I'm seeing talk of fixed rates in the 4.75 range right now.

If it gets to a point where fixed rates are sub 5%,  it would then behoove me to refinance and tack on my 2nd.   My first is currently at 6.125% with my second at prime - .5%  (I think it was 4.25% last month).   I am not a fan of the adjustable rate mortgage,  but for the small size of the 2nd (less than 19K) it was a wise choice since my focus is to pay that off quickly....but if fixed rates get to a point where it's close...damn...I am all over that.
Title: Re: mortgage rates
Post by: ChadTower on December 18, 2008, 11:15:29 am
Fixed rates are well below 5% today.  Even my tiny local banks, that are usually higher than big banks, are posting 4.75.

I'm sitting at 5.875 and if I've run it right I'll save about 115/month going to 4.75.  Assuming that's all interest I could add that 115 to principal and be paid off 6 years early without a change in today's required payment.  Since I already send in an extra 50/month, 165 extra gets me paid off 8 years early without changing what I actually send in now.

Hrm.
Title: Re: mortgage rates
Post by: lokki on December 18, 2008, 11:21:15 am
Ran into this today...

http://www.mymoneyblog.com/archives/2008/12/good-time-to-ask-about-refinancing-your-mortgage-i-might-save-50000.html

Title: Re: mortgage rates
Post by: 2600 on December 18, 2008, 01:32:38 pm
I think my mortgage rate is pretty low, but I may have to look into this as well.  Can splain to me "points" easily?
Title: Re: mortgage rates
Post by: lokki on December 18, 2008, 01:38:43 pm

http://www.bankrate.com/brm/Calsystem2/Calculators/InterestVsPoints/Default.aspx

Title: Re: mortgage rates
Post by: 2600 on December 18, 2008, 02:02:27 pm

http://www.bankrate.com/brm/Calsystem2/Calculators/InterestVsPoints/Default.aspx



Ahh, now that makes sense.  For some reason trying to listen to someone explain it to you just never clicked with me.
Title: Re: mortgage rates
Post by: RayB on December 18, 2008, 03:32:59 pm
Just wait for them to cut rates even more. It will be like -1% soon, where they give YOU money.
Title: Re: mortgage rates
Post by: pinballwizard79 on December 18, 2008, 06:27:20 pm
The fed rate does not affect mortgage rates, look closer @ the 10-year T-bill fluctuations to forecast fixed rates. I am pretty sure its (fed) at like 0.250% as of a few days ago.

HELOC "Prime rate" based 2nds are hot right now for sure I bet (congrats to frizzle), prime hasn't been this low in like 5 years I think.

ARMS are based on the LIBOR.

So Prime, t-bill & LIBOR are what to look for rather than the fed rate.

Anyway yeah I think next week will be a good time to shop lock & close.

But what do I know?