Refinancing home mortgage with ZERO % prime ?

[elitejake]

With the fed dropping the interest rate to ZERO.... ? Really. Who is going to refi a mortgage? What bank would do it? I don't have the best credit and not much spare cash. But if I can drop my interest from 4.25 to 1.25 I'd do it. I should be able to drop the PMI as well.
I think it would have to happen ASAP bc if housing prices drop it might go fast.
what are your thoughts?

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[LSWC]

I checked earlier and we'll have to see how quick the banks pick up the new rates. Everything I saw tonight was still at or above 3%.
1.5 or 2% would be nice in the long run.

 

[Oregonhunter5]

Crazy low.
My concern is folks will go buy homes because of the rates and then home prices will crash again, and that home is a worthless boat anchor.

 

[pdempsey1097]

I checked earlier and we'll have to see how quick the banks pick up the new rates. Everything I saw tonight was still at or above 3%.
1.5 or 2% would be nice in the long run.

Wife and I checked on this too. We're also at 4.5% currently on a 30 yr fixed.

Even at 3%, we could move to a 15 yr fixed, roll in $15,000 from a HELOC, save $245/mos and repay all loan expenses in 9 mos.

We'll wait a couple of days and see if the rate drops before pulling the trigger.

 

[Lazyfaire]

Have a friend who has a mortgage broker in the family. He said that they have been working 70+ hour weeks.

 

[Gbirk]

Just because the Fed is loaning the bank money at 0% does not mean the bank will lend it to you at that. Banks are slow to lower and fast to raise the rates. I locked in 2.85% on Friday with Onpoint for a 15 year fixed. We are at 4.3% right now, so I am calling it a win and not worrying about it.

If the banks see the 0% rate as short term they will just keep rates where they are or stop issuing loans. Issuing a 1% loan for 30 years when the rates will go up in a few months is not good business. The 0% Fed rate is really intended for bussinesses to get short term loans (Payroll, inventory loans ect.) while the economy copes with the virus threat.

 

[CRBMoA]

If there is a surge in refinances, it will take probably a couple of weeks at minimum to materialize.

And honestly, those that are credit-worthy have low rates, and those that could use the help are fighting each other for Charmin.

 

[CountryGent]

We nuked our mortgage, with very early prepayment in 2018, so no need.

That said, makes sense in this environment.

 

[Hueco]

We're sitting at 3.875 right now. I'd love to drop it a tad but I'm not about to take out equity. If I can get a 1:1 loan swap or some super low equity swap (~5k) then I'll pull the trigger.

 

[pdempsey1097]

We nuked our mortgage, with very early prepayment in 2018, so no need.

That said, makes sense in this environment.

Good on you for paying off the mortgage @CountryGent

We were getting there quickly until I had a job change late in 2018. We will still pay it off very early though, and a 15 year mortgage would be paid off in 8 or less

 

[Member 34319]

Lol, I was in talks with USB who had our mortgage before we moved last year. We got 2.99 and they were going to beat it, up until this stuff started. Rates are going up right now, not down.

 

[CRBMoA]

My daughter is in escrow on her first house and her rates have dropped TWICE since she locked.

She signed loan papers on Friday, and she JUST got an email telling her that they have yet again lowered her rate. That's twice since the lock on a first time home buyer.

 

[Lazyfaire]

We're sitting at 3.875 right now. I'd love to drop it a tad but I'm not about to take out equity. If I can get a 1:1 loan swap or some super low equity swap (~5k) then I'll pull the trigger.

Double up on some months or pay an extra $100-150 extra and get out of your mortgage earlier them. Might be a better bet for you.

 

[Hueco]

Double up on some months or pay an extra $100-150 extra and get out of your mortgage earlier them. Might be a better bet for you.

Both ;-)

 

[Lazyfaire]

Both ;-)

Good for you. Property around here is soooo expensive that it makes mortgages hard to obtain.

 

[elitejake]

I might do for the same payment and 15 year if it works out. That would be nice. I have not heard back from any one I've called. I might be looking for a different mortgage person. Any good people in northern WA

 

[Jonnyuma]

And honestly, those that are credit-worthy have low rates, and those that could use the help are fighting each other for Charmin.

Not sure I'm getting the connection.

 

[wired]

The house I bought 9 months ago is at 3.25% and I thought that good at the time. Realistically I could see 2.25% by the end of the week. I'll snatch that up if it happens. Thats a couple of hundred bucks a month I can spend on ammo.

 

[Member 34319]

The house I bought 9 months ago is at 3.25% and I thought that good at the time. Realistically I could see 2.25% by the end of the week. I'll snatch that up if it happens. Thats a couple of hundred bucks a month I can spend on ammo.

Yep, my thinking as well. I was already in the talks with my banker, he and I agreed to wait and see what happens. It bumped up right at the beginning of the chaos a few days ago, but he believes it will drop to silly low here shortly.

 

[v0lcom13sn0w]

geeze right when im about to sell my house and take out a very large new home loan.