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Profile picture for Mister_S

Is this a good re-fi rate? 4.75 at 1 point?

$450,000 in Sacramento (so its Super Conforming)
Want to re-fi (No Cash Out)
4.75% at 1% point

I love the 4.75% but not crazy about the point.  My broker said most people are looking for LOWER rates, below 4.5%, but I told him 4.75% is GREAT.  But not sure about this point?  He before proposed splitting the loan, so I had a HELOC and main, but I wanted 1 total at a low rate.  Thoughts?

If I hold out, can I get 4.75% at 0 points?  Of course, I might be going crazy becfause I am sure he would offer me 4.75% at 0 points and 4.5% at 1 %.  What a crazy time! :)
  • March 05 2009 - CSUS
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Answers (6)

Profile picture for dk58
In respect to "no closing costs" loans, there are NO such thing, and I have been in the mortgage business for over a decade putting in 14 hour days six days a week. The reason they don't' have such programs aside from the fact that people don't volunteer to become mortgage loan officers, is the fact that certain costs associated with refinancing are NOT controlled by the bank. If you are paying title charges which are mandatory for each refinance, then those charges are valid which can also include interest, escrows, and most importantly an appraisal since that's the core element of providing a loan to you.
   Most lenders advertise these "no closing cost" mortgages, and provide a rate higher than what's currently available, which in thus creates much higher interest payments that are made by you. I would rather pay the standard closing costs and pay much less each month for thirty years, than suffer for 30 years and let the bank pay the closing cost.
  Absolutely shop around for the best terms on your mortgage, and remember that if your obtaining a service, most times people require compensation, which I'm sure you require as well when you work at your job. All the best,
  • November 14 2013
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Profile picture for Whitman Met
Doesn't sound like too bad of a deal - get a few quotes tomorrow morning though.
  • March 19 2009
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Depends on whether you are talking about refinancing into a 15 year fixed or a 30 year fixed Super/Conforming.

If you are being quoted for a 15 year fixed, then you shouldn't be paying a discount point for 4.75%, even assuming 45 day lock pricing (as of this morning).  If it's an origination point, whether disclosed as a broker fee or just an origination fee, you might find it a little cheaper (we cap at $2500 origination/broker fee, at the moment for Conforming or Super/Conforming), but don't forget about closing costs as well as your longer term financial goals.

If it's a 30 year fixed you are being quoted, 4.75% paying 1 point discount is pretty solid, considering the same loan @ wholesale par this morning is running about 5.25%.  That gives great value for that 1 point discount/buydown.  You will be paying a fee for the broker service (origination), plus closing costs for that rate, regardless.

Holding out is risky.  If you are happy with the new terms, then I would go for it.  You have to take into consideration opportunity costs, should rates go up.

Good luck!
  • March 06 2009
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It sounds like a good rate paying 1 point. Make sure he doesn't charge you 1 point + origination fee or broker fees.
  • March 06 2009
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Profile picture for nematoda
I'm just a consumer, but I found a 4.75% no closing cost refi at Fremont Bank (10 or 15 year fixed). I haven't applied yet, but everything I read on the site says the closing costs are exactly $0.
  • March 05 2009
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That's a great rate if it's 1 point...It's a good rate if it's 1 point and 1 origination fee...if you add a broker fee on top sot so good..
  • March 05 2009
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