Will cover all refinance cost?
Nothing is free, you’ll pay a higher rate so that they can cover the costs.
3 Likes
Not always.
The refi company like Better Mortgage can sell the paper (mortgage) for more than the costs they “cover” and make more on the sale than the costs. The buyer (that owns the paper, and maybe it gets aggregated into a MBS - “mortgage backed security”) makes the outlay back on the interest you are paying over the life of the loan or on the next (potential) sale to the next buyer of the paper (or group MBS). The buyer (or MBS ultimately) may be paying a 3rd party servicer to service your loan although the 3rd party servicer doesn’t own the paper.
If better does that then it explains their massive layoffs because they’re losing money or working on razor thing margins. I stand by my statement that any “free costs” come with a higher rate.
Until it doesn’t. You can stand by your statement all you like and I am sure it is true some of the time, but there are refis with zero costs and the same rate for the reasons I stated.
Since this is an automobile site, by analogy why do you think so many banks/CUs will write you a new loan on an existing car loan at a lower rate and sometimes give you a few bucks to do so?
Once again, to have the interest. Same thing with a zero cost and no rate change refi. Just a simple fact.
1 Like
Ok, yes, unicorns do exist.
If you have two identical (and I mean identical) offers that you believe are the very best available in the market, this could be a tie breaker to tip the decision to Better.
Beyond that, it’s just a marketing tactic.
Well, a deal like that for you may be a unicorn. Next time just give your throwaway money to me and I will get you a better deal so you can have your own unicorn as well.
If you’re a loan officer , then you know what you stated earlier is BS in the real world.
Ok man, you win and so you should feel better now.
I’ll send you a PM with the address to send your extra throwaway money to on your next bad refi.
No worries, but I wish your compliance team luck when auditors come in and start asking questions about your fair lending practices.
You are now arguing with yourself.
Can we please try to stay on topic by posting helpful info?
What are folks seeing for rates on a 30-year fixed mortgages? Just curious.
2 Likes
Got this on 22nd Dec from a local lender in San Diego:
$760k and having a 800 fico score.
I have 6.375% with .980 cost which is $7448.
6.625% with cost of .524 or $3982.
6.875% with cost of .193 or $1466
6.99% with a lender credit to you of .017 or $129
The rates have cooled off a bit since that date, so I would expect slightly lower now.
2 Likes
I was looking at Middlesex Savings Bank (Rates | MA Bank Loan & Account Rates | Middlesex Savings Bank). Their rates are similar. I had checked them out a while back when I was looking into HELOCs and home equity loans a couple of years ago.
1 Like
I just realized that the mortgage we got in Sep 2022 is not Jumbo anymore 
and thus would have been subject to higher rates.
for 30yr Fixed Jumbo is 5.75% while Conventional is 6.25%.
At least 10/6 ARMs appear to have the same rate for Jumbo or Conventional.
Need to wrap my mind around that…
Anyone have any experience/recommendation for construction loans or post renovation HELOC’s?
I’ve only found renofi where they use your post construction valuation for maximum lending amount…
I currently owe 400k on my home and it is valued between 650k and 700k. The work I am looking to get done is going to cost ~300k-350k. I can cover about 150-175 of that using my own funds, but trying to see what other options are available to be able to borrow an additional 200k to cover the rest. Traditional cash out refi’s and HELOC’s won’t provide enough.
They should be quite a bit lower than that, although that pricing wasn’t very good in the first place assuming strong credit.
Looks like they’ve dipped down to 5.75-6% (based on what I’ve seen perusing a handful of CU posted rates). Perhaps upper 6’s was the peak and they’ll hover in the high 5’s for a while.