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Replies (8)
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3428
Yes. The catch is you need equity to refinance. This eliminates many homeowners in areas that have seen 50-70% declines in value.
Low rates allow lenders to have good benefits to offer customers on applications, but recent history tells us home value appreciation is the best ingredient for a "Log jam". Sprinkle in a pinch of greed and a dash of lunacy and watch what happens.
- Chris Corica, "Chris Corica"
- Contributions:1075
dozer - There is NO catch. Qualified borrowers are refinancing and taking advantage of the low rates. You are correct regarding new application's. Volume is way up and I am working at a feverish pace to keep up. Better to be busy then bored! Let's hope it lasts for a while.
- shapiroamg
- Contributions:3058
Dozer,
If you closed in June I would gather that you have a rate at 6% or more. Good time to do this. As everyone said previous, equity is key. Since you purchased in June, hopefully your equity has held. Some lenders we work with are telling us to lock for 45-60 days, but I also have sources that are closing last week, those that locked when the rates first dropped. Talk to you mortgage professional about expectations and make sure you have as much information up front which includes pay stubs, W-2s, bank statements, and you home-owner's insurance contact.
- dozer95662
- Contributions:70
I have 5.625 and a 80-10 piggyback second (to avoid pmi and a jumbo). Man I thought it was a sweet loan when I got it. Now the world is upside down.
Maybe with closing costs I'm borderline still when it is all said and done? Zillow shows about a 3-5% drop since I bought but I don't know how solid that is. I guess you have to refi the second if you refi the first? I'm sort of going on the assumption that I can roughly add 3/8% to the wholesale rate I find on the web and refi at that rate for no closing cost is that a sound assumption?
Well I'm happy for the good people among you who are gettign busy I'm sure it was tough for a while there.
- Andrew Adams, "203K Specialist"
- Contributions:9349
not a good assumption.
The difference in YSP and rates is really tight as of late. .375% in rate may not even bE .375 IN YSP
The difference in YSP and rates is really tight as of late. .375% in rate may not even bE .375 IN YSP
- dozer95662
- Contributions:70
Ah. See I have been told before that I know just enough to be dangerous :-)
Thanks Andrew
- Chris Corica, "Chris Corica"
- Contributions:1075
dozer - you don't always have to refi the second when you refi the first. If the second lien holder is willing to subordinate (stay in the second lien position) and there is no CLTV (combined loan to value) issues with the new first, You can refi the first and keep your second as is.
- Martin Wareing, "Martin Wareing"
- Contributions:3772
Doze,
We really have had about 6+ years of 6ish and lower rates.. Now we have no equity for many (most)... Yes, there is some buzz and a spurt, but it is not a stampede.. Many are finding out that REFIing is worth it, but they must have skin in the game (points/costs possibly that can;t be financed this go around)... As far as your deal... the 80/10... will be easier said than done to do.. usually will need a subordination agreement.. and I think you will be paying your costs to get there. I think you need a 1% rate spread to consider it. You are doing the right thing to look at it and more importantly pick a rate/number you want/need to make it worth your while... Find a great LO, and establish a rapport and plan so you do not "miss the bus" if if comes to town and before it leaves. keep rockin'.
is there just a crazy log jam to refinance now?
With the rates this low it seems 99% of all people with mortgage loans could improve their situation by refinancing.
So how does this play out in real life. Is the current sub 5% rate really attainable or is it in reality too hard to get the paperwork done.
I don't understand how the industry is coping with such a shock to the system.
How can I get my mortgage redone (closed in June)? Seems like free money.
So what is the catch? Seems you all would be doing refi's as fast as your hands could type up applications. Somehow someway there must be some catch right?
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