OT: Mortgage Rates

[huskerbaseball13]

Is now the time to pull the trigger on refinancing? Or is there a good chance the rates will go lower? We have a 30 year fixed at 3.8% right now. I can get it at 3% thru our lender right now.

We plan on spending at least another 5-10 years in our house so I’m not worried about the closing cost.

 

[NorthWillRiseAgain]

Is now the time to pull the trigger on refinancing? Or is there a good chance the rates will go lower? We have a 30 year fixed at 3.8% right now. I can get it at 3% thru our lender right now.

We plan on spending at least another 5-10 years in our house so I’m not worried about the closing cost.

I don’t see much more of a drop coming. I think the government will be looking at other ways to boost spending.

 

[Huzkers25]

Is now the time to pull the trigger on refinancing? Or is there a good chance the rates will go lower? We have a 30 year fixed at 3.8% right now. I can get it at 3% thru our lender right now.

We plan on spending at least another 5-10 years in our house so I’m not worried about the closing cost.

Typical rule of thumb is 1% lower to make refinancing worth while. With that being said I believe lower rates are coming.

 

[huskerbaseball13]

Typical rule of thumb is 1% lower to make refinancing worth while. With that being said I believe lower rates are coming.

Thanks, I may wait it out and see if it gets any lower.

 

[JohnRossEwing]

Is now the time to pull the trigger on refinancing? Or is there a good chance the rates will go lower? We have a 30 year fixed at 3.8% right now. I can get it at 3% thru our lender right now.

We plan on spending at least another 5-10 years in our house so I’m not worried about the closing cost.

30 at 3.8? When did you get that? That is a nice deal on a 30 year old.

 

[salsa red]

30 at 3.8? When did you get that? That is a nice deal on a 30 year old.

3.8 is not good right now. A friend just got 3.625 last week and they said that the rate was higher than they could have gotten if they applied then.

 

[JohnRossEwing]

3.8 is not good right now. A friend just got 3.625 last week and they said that the rate was higher than they could have gotten if they applied then.

Oh yeah, I know that 3.8 is high right now...

But that is why I was wondering when he got it.

 

[huskerfan66]

I would assume interest rates are going a little lower. Feds lowered.5 last week and sounds like another.5 coming. I would wait.

Just because the feds lower the rate doesn't mean it will all be passed on to you though. However it sure does when it goes up

 

[husker2612]

3% on a 30 is really good. We got 2.75% on 15. 5 Years ago. I think it is going to depend on this corona virus and how long it hangs around freaking people out. I could see it dropping to that 2.5 range

 

[TheBeav815]

In the process right now, I got 3.375 right before the market dived. Was at 4.34 though, so ultimately a good deal. I will also end up with a lot of cash to pay down a credit card.

I doubt rates go substantially lower.

 

[grayhairedfreak]

If you don't mind sharing, where did you get the 30-year 3% quote? That is phenomenal.

 

[Bugeater]

“I’m thinking of borrowing some money from myself, interest free, of course.”

Thurston Howell III

 

[TheBeav815]

If you don't mind sharing, where did you get the 30-year 3% quote? That is phenomenal.

If you don't mind getting bombarded with phone calls within seconds you can do sites like Lending Tree. It's basically Home Advisor for loans.

Did that for mine, ended up going with Wyndham.

Your actual rate will depend on your credit rating and the term of the refi you're trying to secure. If you want cash out, you'll end up with a higher rate.

 

[huskerbaseball13]

Oh yeah, I know that 3.8 is high right now...

But that is why I was wondering when he got it.

We built our house in 2014 but if I remember right I think we refinanced in 2015 and got the 3.8% at that time.

 

[huskerbaseball13]

If you don't mind sharing, where did you get the 30-year 3% quote? That is phenomenal.

My employer has their own credit union and to get the rates it sent me to Centennial Lending. Just checked again, 30 year fixed is at 3.125% right now.

 

[skull N crossbones]

30 at 3.8? When did you get that? That is a nice deal on a 30 year old.

I got a 30 year at 3.0% in the fall of 2012. Was the lowest 30 year my local bank had ever processed. I'm a little different than most though. I watched rates like a hawk.

 

[JohnRossEwing]

I got a 30 year at 3.0% in the fall of 2012. Was the lowest 30 year my local bank had ever processed. I'm a little different than most though. I watched rates like a hawk.

Yeah, me too!

 

[cornhustler]

In the process right now, I got 3.375

Same as me right now. Wanting to wait to see if I can get 3%.

 

[usejsch]

If you don't mind sharing, where did you get the 30-year 3% quote? That is phenomenal.

First National Bank. ReFi 15 Yr. fixed at 3.2% with a buy-down of .375 for another $700. Purchased this house less than a year ago for 15 year at 3.35%. Well worth the expense.

 

[jmliehr]

At 3.5% 30 year started in 2013, on pace to finish paying off in 6 years though. The low rates are tempting, but the closing costs with our aggressive payoff schedule means we should probably not deal with it at this point. I’d have to get a sub 2% rate to equal out the closing costs.

 

[skull N crossbones]

At 3.5% 30 year started in 2013, on pace to finish paying off in 6 years though. The low rates are tempting, but the closing costs with our aggressive payoff schedule means we should probably not deal with it at this point. I’d have to get a sub 2% rate to equal out the closing costs.

I ran the numbers the other night and for a 15 year refinance to make sense rates would have to go below 2%. Otherwise I would be better off just making extra payments and skipping the closing costs and fees.

 

[JohnRossEwing]

Yeah, I did a 15 year...and pay extra.

A buddy of mine teaches...he put all he tax return cash and coaching cash on the loan...got it paid off in 13 years...now he rents it out to the organization that uses rental homes for adults with disabilities...so he banks on that and then went and bought he dream house.

 

[GretnaShawn]

I just got a 30 year at 2.875%. That is a nuts.

 

[LuckyHusker2]

I just got a 30 year at 2.875%. That is a nuts.

@GretnaShawn you mind sharing where you got that rate? Based on your username, I'm assuming its a bank in the Omaha area. Thanks!

 

[JohnRossEwing]

@GretnaShawn you mind sharing where you got that rate? Based on your username, I'm assuming its a bank in the Omaha area. Thanks!

Yeah that is LOOOOOW for a 30 year...

 

[GretnaShawn]

@GretnaShawn you mind sharing where you got that rate? Based on your username, I'm assuming its a bank in the Omaha area. Thanks!

Veridian Credit Union
2525 S. 144th St, Omaha, NE 68144
Gabe Wilcox is the guy I used.

 

[Sodakred]

Is now the time to pull the trigger on refinancing? Or is there a good chance the rates will go lower? We have a 30 year fixed at 3.8% right now. I can get it at 3% thru our lender right now.

We plan on spending at least another 5-10 years in our house so I’m not worried about the closing cost.

In process for a 2.25% (.125 points) 15 year to replace the last 26 years of a 30 year 3.875. A real no brainer.

 

[LuckyHusker2]

Veridian Credit Union
2525 S. 144th St, Omaha, NE 68144
Gabe Wilcox is the guy I used.

Ha, I've actually used him before. Did you have to pay any points?

 

[SomedayHusker]

I am in the refinance process right now. 3% at a 15 year. My uncle thinks we follow Japan and go negative rates. I could see it

 

[GretnaShawn]

Ha, I've actually used him before. Did you have to pay any points?

Only some closing costs.

 

[chicolby]

Just curious to the people who pay off more aggressively - what goes into that thought process? Just a desire to not have debt?

I had been told that if you have more to pay than minimum, you should plug it all into an S&P 500 fund. Your money would work harder for you earning rather than paying off.

While I think the numbers part of this equation work out, I do think there is an accomplishment state of mind that also has a benefit of paying off a loan.

welcome all opinions.

 

[Bugeater]

Just curious to the people who pay off more aggressively - what goes into that thought process? Just a desire to not have debt?

I had been told that if you have more to pay than minimum, you should plug it all into an S&P 500 fund. Your money would work harder for you earning rather than paying off.

While I think the numbers part of this equation work out, I do think there is an accomplishment state of mind that also has a benefit of paying off a loan.

welcome all opinions.

In today's low interest environment, investing in an S&P 500 fund would be a sound idea, but in the days of higher interest like back in the 1990's, it was better to at least pay down as quick as you could. Depends on what folks think is most important, either way is a win win!

 

[GretnaShawn]

Just curious to the people who pay off more aggressively - what goes into that thought process? Just a desire to not have debt?

I had been told that if you have more to pay than minimum, you should plug it all into an S&P 500 fund. Your money would work harder for you earning rather than paying off.

While I think the numbers part of this equation work out, I do think there is an accomplishment state of mind that also has a benefit of paying off a loan.

welcome all opinions.

I logically know that I should pay the minimum and invest the difference. But I am naturally debt adverse. So I split the difference and it makes me less anxious.

 

[JohnRossEwing]

Just curious to the people who pay off more aggressively - what goes into that thought process? Just a desire to not have debt?

I had been told that if you have more to pay than minimum, you should plug it all into an S&P 500 fund. Your money would work harder for you earning rather than paying off.

While I think the numbers part of this equation work out, I do think there is an accomplishment state of mind that also has a benefit of paying off a loan.

welcome all opinions.

Yeah, for me, it is about just being debt free.

 

[chicolby]

Yeah, for me, it is about just being debt free.

So from what I'm reading - it sounds like the mental weight of being "in debt" is the primary driver. I posed this to an advisor when I was considering going to a 15 year loan which would have required me to pay an additional $1,500 per month. He said if you put that $1,500 in a fund, you can still pay it off in 15 years and have some extra juice that the money earned for you along the way.

I still agree with many on here though - there is a mental breakthrough to not be in debt.

 

[LuckyHusker2]

Just curious to the people who pay off more aggressively - what goes into that thought process? Just a desire to not have debt?

I had been told that if you have more to pay than minimum, you should plug it all into an S&P 500 fund. Your money would work harder for you earning rather than paying off.

While I think the numbers part of this equation work out, I do think there is an accomplishment state of mind that also has a benefit of paying off a loan.

welcome all opinions.

I'm struggling with this exact thing right now. The math says it's a no brainier to borrow as much cheap money right now and invest with the excess.

Granted this requires actual discipline and follow through.

I've also read that from studies of millionaires, the vast majority pay their home off early and don't keep mortgage debt.

In my case, I'm thinking about doing a cash out refinance and then investing that big lump I pull out instead.

 

[JohnRossEwing]

So from what I'm reading - it sounds like the mental weight of being "in debt" is the primary driver. I posed this to an advisor when I was considering going to a 15 year loan which would have required me to pay an additional $1,500 per month. He said if you put that $1,500 in a fund, you can still pay it off in 15 years and have some extra juice that the money earned for you along the way.

I still agree with many on here though - there is a mental breakthrough to not be in debt.

It is not so much a mental thing for me...it is just an easier way for me to use my money.

I would suck at saving money in the manner that you mentioned. It is like back in the day when people would "quit smoking" and said they would put that money away into a savings account...well...they never do. They spend it on other things.

But I get what you are saying...I would also say this...an advisor wants your business so it makes sense that they would tell you that, not that it is bad/wrong, it isn't.

 

[JohnRossEwing]

I'm struggling with this exact thing right now. The math says it's a no brainier to borrow as much cheap money right now and invest with the excess.

Granted this requires actual discipline and follow through.

I've also read that from studies of millionaires, the vast majority pay their home off early and don't keep mortgage debt.

In my case, I'm thinking about doing a cash out refinance and then investing that big lump I pull out instead.

I like this idea.

 

[LuckyHusker2]

I like this idea.

It is a good idea, but still struggling with it. I have a pretty good chunk of equity in my house, so would be a decent amount to invest.

I ran some numbers to compare plans side by side, and it's a huge difference by pulling the money out and investing it for 30 years and paying the minimum mortgage payment.

 

[JohnRossEwing]

It is a good idea, but still struggling with it. I have a pretty good chunk of equity in my house, so would be a decent amount to invest.

I ran some numbers to compare plans side by side, and it's a huge difference by pulling the money out and investing it for 30 years and paying the minimum mortgage payment.

I am in the same boat and I want to use it to by a rental property.