For those of you that don't follow this too closely, you might want to check out your mortgage rate and compare that to current rates.

Rates have fallen to multi-year lows and this might be a good time to refi...lock in a lower rate or take out equity or both.

Or I guess if you're on the fence about buying a place, this might be reason to accelerate the decision...money is pretty cheap right now.



I know there are some mortgage folks on here that would surely be happy to help.

Are there any negatives to refinance? (I know nothing so that might be a dumb question)

I don't know a house but my parents do and I'm sure they are got screwed with interest rates and don't know enough to do anything about it.

AggieMainland said:

---

Are there any negatives to refinance? (I know nothing so that might be a dumb question)

I don't know a house but my parents do and I'm sure they are got screwed with interest rates and don't know enough to do anything about it.

---

Potential closing costs are one. Another is if you only pay whatever the monthly statement requires, you're resetting your timer and slowing your equity growth (I'm not saying that's always bad).....but if you had a $300k mortage paid down to $200k and then you refi that $200k over another 30 years, you're going to slow your equity since you're stretching your time table.

I'm not an expert and these may not be true in all cases - just some obvious ones based on the nature of a refinance.

What are they at right now?

We're currently in the process of refinancing. Got a few local banks to bid against each other. The final offer we accepted covered 100% of the closing costs + an extra ~$1500 credit (will offset escrows at closing). Not a bad deal.

I did a calculation and figured we'd only save about $16k in interest by taking our 30 yr/3.75% note to a 15 yr/3.25% note. It doesn't seem worth it to me. Would anyone refi in this position?

Texags should give me a premium upgrade here in appreciation for all the revenue they are getting from the Lending Tree ads on the side of this post. At least that's what I'm seeing.

BoilerAg10 said:

---

I did a calculation and figured we'd only save about $16k in interest by taking our 30 yr/3.75% note to a 15 yr/3.25% note. It doesn't seem worth it to me. Would anyone refi in this position?

---

$16K is a nice chunk of change. But it's also a matter of comfort considering your monthly would likely increase. Would you be comfortable with the larger payment or would you feel better with just paying more on the principle each month to pay off early?

Maybe post over on the Real Estate Board. Quite a few broker shoppers over there.

Saw an article this morning and went searching on BankRate. Odd thing....I saw 3.125% no points, to 2.875% with points at 8am and now can't find the same offer listed.

Many also require escrow, which we don't mess with. I'd rather handle it all myself.

Couple big banks announced cuts to savings account rates... I think a fed rate cut is coming. Going to wait just a little longer and then run the numbers to see if we should refi.

I refi-ed 3 years ago to get out of a variable rate to a 30yr fix. I'm now at 4.25%. I won't look at another refi unless it gets at or below 3%

Closed last August for 4.625 fixed. Should I refinance? I guess if I get closing cost covered, there's nothing to lose, right?

3+ years in to a 30 year and thinking about going down to a 15.

It does help I have a friend who would do our mortgage at no cost.

What are rates and term on interest only?

We are 2 months into a 15yr at 3.625%

6 months into a 15 at 4.25%. Bought right at the peak when all signs were for more interest rate increases. Might need to look into a lower rate.

No Pressure said:

---

What are rates and term on interest only?

---

Wow. Interest only - would avoid that completely.

Funny 4.25% is peak... my father tells me about his first house being 18% and the one I grew up in 88'+ was 11%.

I can't even imagine how devastating 6-7% would be to home prices today. No one would be able to afford homes in Austin....or anywhere really.

In a couple of years or so we'll be in a recession and the fed will end up cutting rates to near zero.

That will be a good time to lock in a 15 year at around 1.5%

94chem said:

---

evan_aggie said:

---

Funny 4.25% is peak... my father tells me about his first house being 18% and the one I grew up in 88'+ was 11%.

I can't even imagine how devastating 6-7% would be to home prices today. No one would be able to afford homes in Austin....or anywhere really.

---

You'd see massive drops in valuations, appraisal districts would be scrambling, and the entire property tax system would cave in. Oh, and it will happen. Just don't know when. You can only live beyond your means as a culture for so long.

---

it won't happen for a long time. Low interest rates are our new culture.

Why has the spread gotten tighter between a 30 yr fixed and both the 15 yr and 5/1 ARM? I remember the spread being closer to 1% and now it's like .5%? Is this a supply and demand thing that's causing it?

IrishTxAggie said:

---

People have been saying this since '16

---

I didn't feel that way in '16. At that time my belief was that since the economy had stabilized, the fed would start increasing rates, and which it did. However the last 6 months has shown me that the slightest whiff of rate increase and the market begins to crumble. Also as long as we have Trump in office, he's going to put immense pressure on the fed to cut rates.
We will enter another recession; its just a matter of when; And when we do rate cutting seems like the only tool the fed possesses. I feel pretty confident in saying that within 5 years we'll be near zero.

3.5% currently. Would be hard pressed to refi. But anyone above 4 should definitely run the numbers.

chrisfield said:

---

We just refi'd (again) with long time Texags sponsor Jay Hurst. Rates were 3.875 (30) and 3.25 (15) plus closing costs or around 3.99 with a bunch of lender credits that almost make it zero cost. Anyone much over 4% should look into It if you plan to be in your house much longer. And jay and his team are fantastic.

---

What do you think "much longer" is defined as?

I'm sitting 1 year into a 5 year ARM...still a solid chance I move before the 5 years are up, but dropping interest rates is intriguing to me.