refinancing

[Galen Sevinne]

Looks like rates could go as low as 4.5% in the next couple of days. Can't imagine rates ever going much lower. Anyone have any thoughts on when to "pull the trigger'?

http://realestate.yahoo.com/promo/mo...1yYXRlcy1mYWxs

[4G63]

Looks like rates could go as low as 4.5% in the next couple of days. Can't imagine rates ever going much lower. Anyone have any thoughts on when to "pull the trigger'?

http://realestate.yahoo.com/promo/mo...1yYXRlcy1mYWxs

We bought a new-construction home in Hanover last year at 6.5% and just locked in at 5% for 60 days (until we actually refi). Hopefully they're right because an extra 1/2-point off would save us ~$130 month, maybe more.....

[jonboy79]

Good choice on the 60 day lock, nothing closes in 30 days anymore...

There aren't likely to be many times in the future where you can borrow money cheaper then right now, it's a pretty good time to refi for anyone that qualifies.

[Galen Sevinne]

We bought a new-construction home in Hanover last year at 6.5% and just locked in at 5% for 60 days (until we actually refi). Hopefully they're right because an extra 1/2-point off would save us ~$130 month, maybe more.....

if you lock in at 5%, how do you then change to 4.5% if it drops? Do you have to change brokers? or can you tell your current guy you want the 4.5% or you will bail? My understanding was that once you lock in, you are essentially "locked in" at that rate for better or worse.

[jonboy79]

if you lock in at 5%, how do you then change to 4.5% if it drops? Do you have to change brokers? or can you tell your current guy you want the 4.5% or you will bail? My understanding was that once you lock in, you are essentially "locked in" at that rate for better or worse.

It depends. A broker could just as easily flip the loan to another lender once the file is FULL, and it will close quickly on a 15-30 day lock. A lender, will keep yoiu at the same rate. The tricky part, is that some Lenders are really Brokers, and simply sell packages of closed loans. A lender of this ilk has some leeway as well. If you go into your local Wachovia and lock a rate you are locked with wachovia at that rate, for better or worse, but msot mortgage companies will flip your loan if beneficial to both parties.

[4G63]

if you lock in at 5%, how do you then change to 4.5% if it drops? Do you have to change brokers? or can you tell your current guy you want the 4.5% or you will bail? My understanding was that once you lock in, you are essentially "locked in" at that rate for better or worse.

I'm refinancing with my current mortgage company Countrywide. The lady we're working with is really looking out for us and basically we're gonna wait it out for a week or two and see what happens. Their fee is already agreed upon and we're not paying any closing costs, but the only thing that would change is the final numbers if it were to drop. Its basically a "streamline" loan, which is available if you have an FHA loan (it may be available for other loan types, but I'm not sure).

As Jonboy said, now is the time to buy a house if you can get into the market.

[Galen Sevinne]

I'm refinancing with my current mortgage company Countrywide. The lady we're working with is really looking out for us and basically we're gonna wait it out for a week or two and see what happens. Their fee is already agreed upon and we're not paying any closing costs, but the only thing that would change is the final numbers if it were to drop. Its basically a "streamline" loan, which is available if you have an FHA loan (it may be available for other loan types, but I'm not sure).

As Jonboy said, now is the time to buy a house if you can get into the market.

streamlines are only on FHA I think. We have been at 5.38 for about several years but would love to drop to 4.5. I am not sure if it will go that low. It is a grear time to buy especially if you don't have to sell which is pretty rare. FHA might give you more flexibility as far as modifiying already locked rates...especially the streamline ones.