r8rs4lf Posted February 11, 2008 Report Share Posted February 11, 2008 I know I can't be the only one. I'm very interested in Bush's $168 billion economic rescue package which includes raising the conforming loan limit to just under $730K. Not that I'm in a "jumbo" loan because I'm not, but because I've heard that if this is signed, the interest rate for the housing market may start to rise. That is what I'm afraid of because I'm interested in a re-fi for my home which will knock off some interest on the back end. I just don't want to jump the gun right now because what if the rate continues to drop? I'd also like to maybe pull some cash out to finish my backyard. My current loan rate is 6% which is not bad, but I'm able to get a lower one right now. It wouldn't be a whole point though. I have looked into a re-fi and as it stands right now, I can get a 5.625% rate on a 30 year fixed with some cash out and my payment jumps up about $100.00. People may be saying, "what are you waiting for", but what if the rate falls just a little more where it would be a whole point? It would just sweeten the deal even more and I'd hate to miss that. The flip side is the rate starts to rise and I miss the boat. I know no one can predict the future and that is not what I'm looking for. I'd just like to start a discussion to see if there is anything more I or anyone else for that matter can learn. I'm sure we can only help each other when it comes to this topic. Quote Link to comment Share on other sites More sharing options...
superredss Posted February 11, 2008 Report Share Posted February 11, 2008 I was thinking about a refi for my home too, we just closed about 6 months ago at 6.75%, I think right now we could get around 5.9 I think is what my wife was saying, but we are in an interest only loan and with the closing costs rolled into a refi, for us it would not be worth it. Quote Link to comment Share on other sites More sharing options...
BlkSSnCpt Posted February 11, 2008 Report Share Posted February 11, 2008 isnt the interest on the banks gonna drop soon??? i thought they just inked the deal to lower the rates for banks which inturn would lower the interest rates on homes for home owners??? sorry i cant offer more help but im still kinda young and i dont own a home myself, but i know i talked with my pops about his sh*t a couple of weeks... -Rob Quote Link to comment Share on other sites More sharing options...
GetWithIt Posted February 12, 2008 Report Share Posted February 12, 2008 (edited) I know I can't be the only one. I'm very interested in Bush's $168 billion economic rescue package which includes raising the conforming loan limit to just under $730K. Not that I'm in a "jumbo" loan because I'm not, but because I've heard that if this is signed, the interest rate for the housing market may start to rise. That is what I'm afraid of because I'm interested in a re-fi for my home which will knock off some interest on the back end. I just don't want to jump the gun right now because what if the rate continues to drop? I'd also like to maybe pull some cash out to finish my backyard. My current loan rate is 6% which is not bad, but I'm able to get a lower one right now. It wouldn't be a whole point though. I have looked into a re-fi and as it stands right now, I can get a 5.625% rate on a 30 year fixed with some cash out and my payment jumps up about $100.00. People may be saying, "what are you waiting for", but what if the rate falls just a little more where it would be a whole point? It would just sweeten the deal even more and I'd hate to miss that. The flip side is the rate starts to rise and I miss the boat. I know no one can predict the future and that is not what I'm looking for. I'd just like to start a discussion to see if there is anything more I or anyone else for that matter can learn. I'm sure we can only help each other when it comes to this topic. We are in the same boat as you.........we are planning to re-fi, and pull some extra cash as well. We currently have a friend of my father-in-laws checking to find the best package for us. I'd like to hold out as well, to see if they drop further, but I don't want to get caught up in a big increase either. It's just like hitting the button on the slot machine, you have a 50/50 chance of winning something or losing it.... Edited February 12, 2008 by GetWithIt (see edit history) Quote Link to comment Share on other sites More sharing options...
smoke03 Posted February 12, 2008 Report Share Posted February 12, 2008 Its hard to really predict anything. You'll be sick if it drops a whole point after the refi...but you'll be EVEN more sick if it jumps before the refi. Quote Link to comment Share on other sites More sharing options...
Dylan06SS Posted February 12, 2008 Report Share Posted February 12, 2008 Alex... I'd say lock in that loan soon... if not right now. The odds are it isn't gonna go much farther. We were seeing record low rates 5 years ago when I bought this place and we locked in at 5.625% it never got much better than that and I was watching closely. If the fed decides to knock off a couple more points then maybe we'd see a drop, but they've already dropped it so far I don't see them going much lower... especially with the economic bail out stuff on the horizon. If you're really worried about not getting the best rate maybe do this refi, but don't pull any equity out. That should lower your payment instead of tacking the extra $100 on... if the rate drops again to a lower level that would make it worth your effort then refi again... nothing says you can't do multiple refis. Consider also that any equity you pull out might be a wash with what the market is doing. You could actually pull equity and after the market falls farther owe more than your house is worth. Personally I'm going to try to lock in a better rate here soon just to get my payment down a little. The wife and I are looking to free up as much cash flow to help with the purchase of our 2nd house... if all works out we'll be renting this one out and moving to a bigger place before the end of the year. Quote Link to comment Share on other sites More sharing options...
drako Posted February 13, 2008 Report Share Posted February 13, 2008 Alex... I'd say lock in that loan soon... if not right now. The odds are it isn't gonna go much farther. We were seeing record low rates 5 years ago when I bought this place and we locked in at 5.625% it never got much better than that and I was watching closely. I would try and refi soon. My parents did it 5 years ago with the record lows and the recession in the midst. But to convince you, what would make your more upset, getting a rate and then finding one that is lower a few months after. Or watching the rates rise? Whatever your answer is what you should do. Quote Link to comment Share on other sites More sharing options...
jasonm Posted February 13, 2008 Report Share Posted February 13, 2008 I'm with Dylan on this one.... I don't know that I'd tap into the equity of the home right now. I'm a nervous nelly anyway, but if the market for homes continues to drop, it's going to drop the value of homes (due to the foreclosure rates -- new owners will buy for pennies on the dollar for what the home is worth.) This will, in turn, drop the values of homes in that area, making it difficult to dump for a decent price. I'm extremely impatient, and I know there are things I want done to the house yet, but I'm going to do it the old fashioned way, and just buy them as I can afford 'em. Will DEFINATELY take more time, but I'll still have a house to live in...... hopefully. On a seperate note, anyone see the GM loss? $13.7 billion. We're seeing big companies losing money hand over fist, and the other big story.... Gold. This is the second time that we've had gold sales reach the level we've hit.... The first time was just before the Great Depression. Quote Link to comment Share on other sites More sharing options...
ChevyMan23 Posted February 13, 2008 Report Share Posted February 13, 2008 Im locked in at 5.1. As of Friday 2/8. If the rates go down again, its not gonna be much enough to make a large difference according to my bank. Quote Link to comment Share on other sites More sharing options...
r8rs4lf Posted February 13, 2008 Author Report Share Posted February 13, 2008 isnt the interest on the banks gonna drop soon??? i thought they just inked the deal to lower the rates for banks which inturn would lower the interest rates on homes for home owners??? -Rob Actually, no. What is happening is the feds are lowering the rates to the banks and the banks aren't passing it along to the borrowers. They are taking it for profit. So when you see the news saying that the rate has been cut to 4.75% or whatever, that is not what you or I are getting. If you're really worried about not getting the best rate maybe do this refi, but don't pull any equity out. That should lower your payment instead of tacking the extra $100 on... if the rate drops again to a lower level that would make it worth your effort then refi again... nothing says you can't do multiple refis. We did that math and I believe we would save something like $45.00/mo. without pulling any cash out since we are already at 6%. That doesn't seem worth it to me because the whole point of me looking into this is to try to finish my backyard. Once my backyard is done, my house is done. Consider also that any equity you pull out might be a wash with what the market is doing. You could actually pull equity and after the market falls farther owe more than your house is worth. That doesn't concern me at all simply because I'm not going anywhere. If the house goes upside down, it's really not my problem, it's the banks problem. I'll continue to pay my mortgage like normal, let them worry about it. Now if I was planning to move, then it would worry me because I would get raped, but then again, I still have 70% loan to value so some equity is still there. I just added 1200 square feet with a 500 square foot garage so my home is set up for me and my family for many, many years to come. I figure in about 5-7 years, the market will correct itself, home values will be on the up and up and we'll be cool. Since I'm not going anywhere, I have nothing but time. Dylan, like I told Eric on STS, I have a gal who will close for $2500.00. If your interested, let me know. I got her good faith estimate and I'm looking at $2496.70 in fees. You can't beat that. The lowest guy I had was $6200.00, screw him! I'm with Dylan on this one.... I don't know that I'd tap into the equity of the home right now. I'm a nervous nelly anyway, but if the market for homes continues to drop, it's going to drop the value of homes (due to the foreclosure rates -- new owners will buy for pennies on the dollar for what the home is worth.) This will, in turn, drop the values of homes in that area, making it difficult to dump for a decent price. I'm extremely impatient, and I know there are things I want done to the house yet, but I'm going to do it the old fashioned way, and just buy them as I can afford 'em. Will DEFINATELY take more time, but I'll still have a house to live in...... hopefully. See that should only worry you if you are considering to sell your home in the future. If you plan on being there for a while, who cares if the house goes upside down? I'm with you on buying things the old fashioned way, but I got an estimate on my backyard cement and it came in at $10K. I figure to cover it like I want, it's gonna take another $10-$12K. Ain't no way I'm gonna save for that. At least not for a while and I want my backyard done now. Im locked in at 5.1. As of Friday 2/8. If the rates go down again, its not gonna be much enough to make a large difference according to my bank. That's pretty good, but what kind of fees are you looking at? Quote Link to comment Share on other sites More sharing options...
ChevyMan23 Posted February 13, 2008 Report Share Posted February 13, 2008 (edited) As far as closing? bout $1500. First time homebuyer too. 12K down Edited February 13, 2008 by ChevyMan23 (see edit history) Quote Link to comment Share on other sites More sharing options...
Dylan06SS Posted February 13, 2008 Report Share Posted February 13, 2008 Dylan, like I told Eric on STS, I have a gal who will close for $2500.00. If your interested, let me know. I got her good faith estimate and I'm looking at $2496.70 in fees. You can't beat that. The lowest guy I had was $6200.00, screw him! Thats the same fee my usual guy charges ($2500) only I'm not so sure hes still doing refis as the market has tanked and he mentioned he might be changing jobs before it was too late. I still have to call him... I like working with him b/c he doesn't make me jump thru the appraisal hoops or anything which is a huge time saver. If hes out of the biz I'll hit you up for a referral man. Quote Link to comment Share on other sites More sharing options...
jasonm Posted February 14, 2008 Report Share Posted February 14, 2008 See that should only worry you if you are considering to sell your home in the future. But..... see.... life happens. I'm not trying to tell you what to do, I'm just explaining why I feel the way I do. See, wives can get pregnant, jobs can get lost, people can get sick, hurt or die. Live for the here and now, and you've got no 'fudge money' in case something goes awry. As for the banks keeping the extra 1.25% for profit, sorry.... you're wrong. My bank called me to refinance, at the end of the month, because it will substantially lower my payment. It takes a month the bank lowers the rates, for whatever reason. As for service fees to re-write... my local bank charges nothing. Just like they charged when I opened the loan. Quote Link to comment Share on other sites More sharing options...
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