Pulled the trigger on mortgage refi

[ripvanwinkle]

A few months ago I posted I was looking to refi my home but I couldn't get a good rate because I wasn't borrowing a zillion dollars . I was only looking for $70k and 15yr mortgage. I think the lowest I rate I got back then was like 3.75%. I finally found one online at 2.69% and pulled the trigger and it's only going to cost me just $20/mo more than what I pay now.

I was happy although I was a bit surprised how much they "estimated" the closing cost were. About $7k. I refi'd before in 2012 for $110k and I think it was only about $3k. And there was a lot more paperwork than I remember. Copies of last 3 mo complete bank statements, insurance coverage declaration page, last 2mo of my pay W2's, contact name of my HR person for verification etc.

I haven't closed yet but I'm glad for 2.69%

[Deleted]

Hopefully you locked your rate already...


www.cnbc.com/2020/08/13/mortgage-refinancing-more-expensive-as-fannie-mae-freddie-mac-raise-fees.html

[Bonny]

Aug 13, 2020 23:34:33 GMT -5 ripvanwinkle said:

A few months ago I posted I was looking to refi my home but I couldn't get a good rate because I wasn't borrowing a zillion dollars . I was only looking for $70k and 15yr mortgage. I think the lowest I rate I got back then was like 3.75%. I finally found one online at 2.69% and pulled the trigger and it's only going to cost me just $20/mo more than what I pay now.

I was happy although I was a bit surprised how much they "estimated" the closing cost were. About $7k. I refi'd before in 2012 for $110k and I think it was only about $3k. And there was a lot more paperwork than I remember. Copies of last 3 mo complete bank statements, insurance coverage declaration page, last 2mo of my pay W2's, contact name of my HR person for verification etc.

I haven't closed yet but I'm glad for 2.69%

Congrats! I assume your payment is higher because you were refinancing from a 30 year to a 15?

I made a couple of calls yesterday inquiring about refinancing our rental house in AZ. Thought I could drop our rate from 3.75 to 3.25 on an approx balance of $225k. Over a 9 year period (when we thought we would pay it off) I could save about 7k.

No dice unless we were willing to do a structured income loan whereby we committed to 3 years of payments. I had heard about these kinds of situations but geez we have 10+x the loan amount between taxable and non taxable accounts. 

Not worth upending our finances to save 7k over 9 years.

[tskeeter]

Aug 13, 2020 23:34:33 GMT -5 ripvanwinkle said:

A few months ago I posted I was looking to refi my home but I couldn't get a good rate because I wasn't borrowing a zillion dollars . I was only looking for $70k and 15yr mortgage. I think the lowest I rate I got back then was like 3.75%. I finally found one online at 2.69% and pulled the trigger and it's only going to cost me just $20/mo more than what I pay now.

I was happy although I was a bit surprised how much they "estimated" the closing cost were. About $7k. I refi'd before in 2012 for $110k and I think it was only about $3k. And there was a lot more paperwork than I remember. Copies of last 3 mo complete bank statements, insurance coverage declaration page, last 2mo of my pay W2's, contact name of my HR person for verification etc.

I haven't closed yet but I'm glad for 2.69%

The more the federal government has gotten involved with mortgage financing, the more demanding the application process has become.

I remember the days when mortgages were financed by the private sector.  I think my first mortgage application was two or three pages and the mortgage was about four.

Our last refi, the application paperwork alone made a stack nearly three inches high by the time we completed the application and documentation, explained that I wasn’t liable for the mortgage on a house I’d sold 30 years earlier, then three weeks later, confirmed all the information we provided in the application and documentation.

[seriousthistime]

I refi'd last year, and then just refi'd again and am about to close on that.  I always go with a no-points refi. The 30-year rate is 3% fixed. 

Unlike when I bought this place in 2017, last year there was a little paperwork, but hardly any copies of this, that, and the other account; some income documentation but not much; and no appraisal.  With this refi, it was basically a phone call, and I gave them the info they needed, they plugged it into the loan app, and I docu-signed it all. For me, things have gotten way easier on the refi.  I'm finally down to the 30-year fixed rate I landed at when I was a serial refi'er from 2006 to 2013 or so.  That was a lot lower mortgage balance, though. Unless things take a nosedive, I'll be happy with this rate until I sell the place.

I've bought, sold, and refi'd so many houses in my long life that it's irritating to me that the closer wants to explain all the documents to me.  

[Bonny]

Aug 14, 2020 17:02:47 GMT -5 tskeeter said:

Aug 13, 2020 23:34:33 GMT -5 ripvanwinkle said:

A few months ago I posted I was looking to refi my home but I couldn't get a good rate because I wasn't borrowing a zillion dollars . I was only looking for $70k and 15yr mortgage. I think the lowest I rate I got back then was like 3.75%. I finally found one online at 2.69% and pulled the trigger and it's only going to cost me just $20/mo more than what I pay now.

I was happy although I was a bit surprised how much they "estimated" the closing cost were. About $7k. I refi'd before in 2012 for $110k and I think it was only about $3k. And there was a lot more paperwork than I remember. Copies of last 3 mo complete bank statements, insurance coverage declaration page, last 2mo of my pay W2's, contact name of my HR person for verification etc.

I haven't closed yet but I'm glad for 2.69%

The more the federal government has gotten involved with mortgage financing, the more demanding the application process has become.

I remember the days when mortgages were financed by the private sector.  I think my first mortgage application was two or three pages and the mortgage was about four.

Our last refi, the application paperwork alone made a stack nearly three inches high by the time we completed the application and documentation, explained that I wasn’t liable for the mortgage on a house I’d sold 30 years earlier, then three weeks later, confirmed all the information we provided in the application and documentation.

Since something like 90% of conforming mortgages are packaged up to sell to FNMA or Freddie Mac of course the government is involved.

And with the 2008 mortgage melt-down of course government gets heavy handed in direct contrast to the excesses of no regulation (oops I mean self policing) by the banks.


 Do we have to go through this every 10 years? Can't we ever learn?

[tskeeter]

Aug 16, 2020 17:38:21 GMT -5 Bonny said:

Aug 14, 2020 17:02:47 GMT -5 tskeeter said:

The more the federal government has gotten involved with mortgage financing, the more demanding the application process has become.

I remember the days when mortgages were financed by the private sector.  I think my first mortgage application was two or three pages and the mortgage was about four.

Our last refi, the application paperwork alone made a stack nearly three inches high by the time we completed the application and documentation, explained that I wasn’t liable for the mortgage on a house I’d sold 30 years earlier, then three weeks later, confirmed all the information we provided in the application and documentation.

Since something like 90% of conforming mortgages are packaged up to sell to FNMA or Freddie Mac of course the government is involved.

And with the 2008 mortgage melt-down of course government gets heavy handed in direct contrast to the excesses of no regulation (oops I mean self policing) by the banks.


 Do we have to go through this every 10 years? Can't we ever learn?

Good point.

It seems we would learn that, when allowed to self police, business leaders will inevitably act in their own best interest, which is often not the best interest of the public.  Business people are risk takers.  The mortgage meltdown really comes down to increased risk taking at several points in the process, specifically mortgage underwriting, sales of mortgage backed securities, and mortgage tranche rating, that combined to trigger a collapse.

[Bonny]

Aug 17, 2020 20:56:27 GMT -5 tskeeter said:

Aug 16, 2020 17:38:21 GMT -5 Bonny said:

Since something like 90% of conforming mortgages are packaged up to sell to FNMA or Freddie Mac of course the government is involved.

And with the 2008 mortgage melt-down of course government gets heavy handed in direct contrast to the excesses of no regulation (oops I mean self policing) by the banks.


 Do we have to go through this every 10 years? Can't we ever learn?

Good point.

It seems we would learn that, when allowed to self police, business leaders will inevitably act in their own best interest, which is often not the best interest of the public.  Business people are risk takers.  The mortgage meltdown really comes down to increased risk taking at several points in the process, specifically mortgage underwriting, sales of mortgage backed securities, and mortgage tranche rating, that combined to trigger a collapse.

I credit it to "No skin in the game". 

Everyone passed the buck. Mortgage originators made their money off fees and servicing fees. They passed the buck to the CDOs.

Borrowers had no or little down payments. Sure their credit was bad for a couple of years but they lost very little money.

Regulators were funded by fees generated by the folks they were regulating. Hmmm I wonder how that went wrong. 

I really liked the film "The Big Short" although I thought borrowers got off a little light. So easy to play the victim although some truly were. Some of them knew exactly what they were doing.

[tskeeter]

Aug 17, 2020 21:07:10 GMT -5 Bonny said:

Aug 17, 2020 20:56:27 GMT -5 tskeeter said:

Good point.

It seems we would learn that, when allowed to self police, business leaders will inevitably act in their own best interest, which is often not the best interest of the public.  Business people are risk takers.  The mortgage meltdown really comes down to increased risk taking at several points in the process, specifically mortgage underwriting, sales of mortgage backed securities, and mortgage tranche rating, that combined to trigger a collapse.

I credit it to "No skin in the game". 

Everyone passed the buck. Mortgage originators made their money off fees and servicing fees. They passed the buck to the CDOs.

Borrowers had no or little down payments. Sure their credit was bad for a couple of years but they lost very little money.

Regulators were funded by fees generated by the folks they were regulating. Hmmm I wonder how that went wrong. 

I really liked the film "The Big Short" although I thought borrowers got off a little light. So easy to play the victim although some truly were. Some of them knew exactly what they were doing.

Haven’t seen “The Big Short”, but I agree, many people involved in what triggered the debacle got off very easy.  There was almost no personal accountability for actions that pretty much destroyed the economy.

[Bonny]

Aug 17, 2020 21:19:52 GMT -5 tskeeter said:

Aug 17, 2020 21:07:10 GMT -5 Bonny said:

I credit it to "No skin in the game". 

Everyone passed the buck. Mortgage originators made their money off fees and servicing fees. They passed the buck to the CDOs.

Borrowers had no or little down payments. Sure their credit was bad for a couple of years but they lost very little money.

Regulators were funded by fees generated by the folks they were regulating. Hmmm I wonder how that went wrong. 

I really liked the film "The Big Short" although I thought borrowers got off a little light. So easy to play the victim although some truly were. Some of them knew exactly what they were doing.

Haven’t seen “The Big Short”, but I agree, many people involved in what triggered the debacle got off very easy.  There was almost no personal accountability for actions that pretty much destroyed the economy.

Since you're a numbers guy I highly recommend it. I'm sure it's on Netflix or Amazon. It's one of the best explanations for all the pieces of the mess. And it's told in a very layman friendly way.

Even with all the reforms in place I'm not convinced that it won't happen again. As phil5185 has said the collective wisdom of the herd seems to disappear every 10 years.

[WannabeWealthy]

I refinanced about 3 weeks ago.  Went from 5% to 3.125%.

[schildi]

I just started the refi process, should have the rate lock confirmed tomorrow morning.

Refinancing the remaining $410k on our house (value is 800-850k) from 3.25% to 2.50%, no points, 30 year fixed. Total closing cost is $2,800. I don't escrow, which actually increased the numbers I mentioned. I was lucky that no appraisal was needed. No idea how that is being determined.

Keeping my fingers crossed now that everything goes through smoothly.

[schildi]

Aug 24, 2020 22:18:19 GMT -5 schildi said:

I just started the refi process, should have the rate lock confirmed tomorrow morning.

Refinancing the remaining $410k on our house (value is 800-850k) from 3.25% to 2.50%, no points, 30 year fixed. Total closing cost is $2,800. I don't escrow, which actually increased the numbers I mentioned. I was lucky that no appraisal was needed. No idea how that is being determined.

Keeping my fingers crossed now that everything goes through smoothly.

Question for those who refinanced lately ... How long did the whole process take?

I got my rate lock on 8/26, valid for 60 days. Just got feedback that most likely, the process will take > 2 months, because they are backlogged significantly, with a large number of applications pending because of the historically low rates.

I was told that I would get a free rate lock extension if it was needed.

Soooo .... back to my original question: how long did it take for you from application to closing on your recent mortgage refi?

[Cookies Galore]

Sept 26, 2020 12:23:34 GMT -5 schildi said:

Aug 24, 2020 22:18:19 GMT -5 schildi said:

I just started the refi process, should have the rate lock confirmed tomorrow morning.

Refinancing the remaining $410k on our house (value is 800-850k) from 3.25% to 2.50%, no points, 30 year fixed. Total closing cost is $2,800. I don't escrow, which actually increased the numbers I mentioned. I was lucky that no appraisal was needed. No idea how that is being determined.

Keeping my fingers crossed now that everything goes through smoothly.

Question for those who refinanced lately ... How long did the whole process take?

I got my rate lock on 8/26, valid for 60 days. Just got feedback that most likely, the process will take > 2 months, because they are backlogged significantly, with a large number of applications pending because of the historically low rates.

I was told that I would get a free rate lock extension if it was needed.

Soooo .... back to my original question: how long did it take for you from application to closing on your recent mortgage refi?

I emailed our original mortgage guy back in July, since we liked working with him so much. I believe we locked our rate July 21. We were told 45 days for closing since they were so busy. We ended up closing this past Wednesday the 23rd. The extra couple of weeks didn't bother me since we were in no rush. But overall, extremely easy process.

[schildi]

Sept 27, 2020 8:10:03 GMT -5 Cookies Galore said:

Sept 26, 2020 12:23:34 GMT -5 schildi said:

Question for those who refinanced lately ... How long did the whole process take?

I got my rate lock on 8/26, valid for 60 days. Just got feedback that most likely, the process will take > 2 months, because they are backlogged significantly, with a large number of applications pending because of the historically low rates.

I was told that I would get a free rate lock extension if it was needed.

Soooo .... back to my original question: how long did it take for you from application to closing on your recent mortgage refi?

I emailed our original mortgage guy back in July, since we liked working with him so much. I believe we locked our rate July 21. We were told 45 days for closing since they were so busy. We ended up closing this past Wednesday the 23rd. The extra couple of weeks didn't bother me since we were in no rush. But overall, extremely easy process.

Yeah, it seems to be taking a while recently, with the rush on refis.

Our broker also told us that people with the better deals tend to wait longer (being moved to the bottom of the pile).

Not sure where we stand with 2.5% for a 30 year FRM, but it seems to take a while.

Kinda sucks, costs me $8 per day ($250 a month) in extra interest that I will be saving through the refi ....

[schildi]

Finally ... closing time a week from now.
It took just under a hundred days from rate lock to closing. Crazy.