[missingaddi]

I just called my current lender and asked what a 15 year fixed refinance rate would be....

5% with 0 points. WOW! I am current 6.125 and I get substantially reduced title/escrow fees because my wife is an escrow officer.
I just might have to take them up on that.

Anyone else thinking of taking advantage of the credit crisis?

Do you think the rates will continue to decline?

 

[Woodfighter]

I thought I read somewhere that they expect another cut.

I was wondering the same thing on mortgage rates. How much of a drop does it take over your current rate to make it worth while to refinance? 1%, 1.5%, 2%?

 

[Chuck S]

I wouldnt jump on the bandwagon just yet ... it's gonna get better soon wink:

I am hoping to see the 15 yr around 4.25 and the 30 under 5.00 soon :mrgreen:

Thats when I'm pulling the trigger Tup:

 

[DBAppraiser]

The rates can't get too much lower because then those mortgages aren't as attractive to investors. If you can drop a point on your current rate then it is worth doing. Trying to hit it just right is a risky business as rates actually fluctuate almost daily.

 

[Quill]

We got our 15 year fix for 5.125, and that was 5 years ago. 5 more years and we should have it paid off. I smile every time I think about owning the house. So so close.

 

[X5fishinmachine]

Yes, the rates should drop a tad bit more soon.

Quill...you may want to research the pros and cons of owning your home outright, you may be surprised!

 

[setdahook]

Rates may drop one more time in a few weeks, but like DB said, lenders may not and do not have to lower rates. If the investors dont want to buy the loans, rates wont change.

 

[X5fishinmachine]

Jumbo rate will increase substantially also, which will help in refi's............it's about time....and long overdue.

 

[fishinfoolz]

When the Fed cut rates it's the short term/discount rates being cut for Fed banks. Not what you and I get from the bank as personal or real property loans. The discount rate is the 24hr loan rates Federal Reserve banks are charged to borrow money from the Federal Reserve. The mortgage industry bases it's mortgage rates to consumers on the Bond Market which fluctuates every hour of every day and banks do not necessarily pass on those saving to the consumer. Back in 2003 the discount rate was below 1%. I refinanced my home into a 3/1 arm at a starting rate of 4.25% and refinanced before the adjustment to end up at a fixed rate of 5.25%. Typically your mortgage rate will be about 3 points above the Fed discount rate. Think of it this way. If everyone waited and did nothing after this 3/4 basis point rate cut the fed will probably cut again, if there is adequate stimulus from this recent cut, they'll probably leave it alone. So the moral of the story is DO NOTHING now so they'll need to make another cut... Tup:


Forgot to add. Everytime you refinance you start the 30 year clock over. Unless of course you get a shorter term on the loan. Since most people try to lower their monthly payment with refi's and get lower rates they typically go with the 30 year loans to benefit from the lower payment. Tup: