Refi Time?

[midtownnewbie]

Anybody refinance their mortgage this week?  We're close to locking in at 5.375% on a 30 year fixed.  My only hesitation is that it may keep going down!  Opinions?

[FOTD]

It will keep going down for several months.....just a hunch.

[restored2x]

quote:Originally posted by FOTD

It will keep going down for several months.....just a hunch.

How far down do you think it will go? I've been considering this, too.

[FOTD]

Never thought I'd consider this strategy of refi and putting the proceeds into the S+P Index fund.....

I'd figure another 50 basis points at least...

[Renaissance]

Yeah, I think you're more or less guaranteed another 50 points, and if you're patient you can wait and see what happens during at least the next quarter.  It won't go back up for a year.

[midtownnewbie]

Are you guys in the banking industry or is this just "gut" feel?

[inteller]

is there a calculator some place on the web that shows how low you'd need to re fi at to make it worth your while?  If it is just a half point off from where I'm at I dunno if I'd make back the closing costs before I sell again.  I would think .75 and above I'd be looking at a good reason to re-fi.

[sgrizzle]

quote:Originally posted by inteller

is there a calculator some place on the web that shows how low you'd need to re fi at to make it worth your while?  If it is just a half point off from where I'm at I dunno if I'd make back the closing costs before I sell again.  I would think .75 and above I'd be looking at a good reason to re-fi.

Some people won't do it for less than a whole point.

5.375% is higher than what I have already.

[Renaissance]

quote:Originally posted by midtownnewbie

Are you guys in the banking industry or is this just "gut" feel?

I'm no banker; I just read the Wall Street Journal.  The Fed was widely expected to lower the Funds rate at their upcoming meeting, but with the foreign markets crashing, yesterday they made an emergency rate change of 75 basis points.  The consensus among financial punditry seems to be that we can still expect a cut of 50 basis points at the next meeting, and that won't necessarily be the end of it.  Turns out that the new Fed Chair, Ben Bernanke, is a student of interest rates and their effect on money movement.  This is his bread and butter.

[FOTD]

http://www.fundadvice.com/tools/calculators/

http://www.dinkytown.net/mortgage.html


Not a banker..... gut feel is emotional.....I veer from entanglements.

[guido911]

quote:Originally posted by midtownnewbie

Are you guys in the banking industry or is this just "gut" feel?

I am getting phone calls about refi from mortgage companies. The rates are better...

[Breadburner]

Needs to be at least 2 points below what your current rate is to make it worth it....Then you need to decide if you want the extra dollars in your pocket or go for the 15 year note...Another bit of savings comes in play if you can get rid of your P.M.I.....Which you can if your L.T.V is 80% or better....

[TUalum0982]

quote:Originally posted by Breadburner

Needs to be at least 2 points below what your current rate is to make it worth it....Then you need to decide if you want the extra dollars in your pocket or go for the 15 year note...Another bit of savings comes in play if you can get rid of your P.M.I.....Which you can if your L.T.V is 80% or better....

I am buying out our PMI and by trading for a little bit higher interest rate.  We are first time home buyers (both of us are 25) and of course we dont have 20% to put down (over 40,000).  We are getting a no PMI loan for 6.25% with closing costs paid by the builder.  That saves us around 200 dollars a month.  Then in 3-4 years when we have equity in our house and the rates go down, we will refinance once again.

[inteller]

sounds like more house than you can afford....but then building will do that to you.  and 6.25 is horrible these days unless you have awful credit.  Did you shop around at all?  have you already started building?  really, you need to shop around.

[inteller]

quote:Originally posted by FOTD

http://www.fundadvice.com/tools/calculators/

http://www.dinkytown.net/mortgage.html


Not a banker..... gut feel is emotional.....I veer from entanglements.

thanks for the calculators.  Now if the bastards just didnt require Java.