Ed I was just quoted at 3.375 for a 30yr jumbo by Chase because mine is considered a cash-out refi. Another lender quoted the same rate. So your rate sounds right. It is hard to find jumbo lenders.
For a number of years you could find cheaper jumbo loans as the banks were happy to hold the paper rather than jump through hoops to bundle or resell. But that changed with COVID as banks are now worried about credit risk so they reversed course and don’t want to increase their risk by holding more paper.
I expect this will change as we see that most jumbo borrowers will not be defaulting but who knows.
As for conventional I was quoted 3% / 30 year / 0 points by a number of lenders but you might do better if the stock market tanks agian.
With the current situation, jumbo loans anywhere in the mid-low 3s are as good as you’re going to get if the banks are willing to lend or refi at all. I closed a refi in May w/BofA and they were already tightening the screws in late March/early April. The loan officer I was working with was saying those that have over $550k in liquid assets with positive documented income shouldn’t have any issues but others were being scrutinized more than normal.
Get your cash back under $2000, tell the lender you want a rate and term refi.
As a rate end term you should be able to drop that 1 discount pt. Basically that 1 discount pt is osting you $1670 to get back $862. Rate is decent.
We bought our townhome last year (Sep 2019)
Sale price: $400k
Appraised value: $400k
Loan: $380k @ 3.5%, 30 yr Fixed Conventional
PMI: $104
Monthly payment: $2340
We were looking to refinance and our lender came back with this:
Appraisal: not necessary, property appraised in their appraisal engine for $445k
Current loan amount: $373K
refinance loan amount: $373K @ 3%, 30 yr Fixed, conventional
NO points
NO PMI
NO Appraisal fee
closing costs: $2k
New monthly payment: $2140
seems like a pretty good deal for me, Am I missing something?
Tell your mortgage lender you want a “rate and term refi”. You do not want more than 2% or $2000 cash back. (that pushes it to a cashout refi and makes it more expensive).
One way to get a backdoor smaller cash out is to increase your loan amount to cover the new escrows for the refi and have your outgoing mortgage bank cut you a check for your existing escrow. It wouldn’t count as a cash-out refi. But of course it only helps you as far as the escrow balance.
10% down + 1 point
(2.65%) = $1,448 (Mortgage Amount $1,374 + Mortgage Insurance $74)
Any suggestions? My wife and I are planning on staying for at least 7 years, probably longer. I have not yet asked them to beat each other’s price, and I will probably spend the weekend checking back in with credit unions and banks that I contacted a month ago when this all started. My realtor’s friend is a mortgage broker as well, who was helping with a couple paperwork things, but he hasn’t actually given me a quote breakdown of what their offer would be. I have spent the past few weeks trying to hack the “best” deal, but I’m starting to dream in numbers and I’d love being told what to do.
Rates have gone done again. Make sure you do your refi if you haven’t already. If you already did a refi more than five months ago, it is probably worthwhile to do it again!
I’m not equipped to do this with just my eyeballs. Maybe someone else is.
Grab an amortization schedule template for Excel that will calculate cumulative interest.
For each loan option, add up the upfront costs paid to the lender/originator (including points) plus cumulative interest for 7 years (if that’s your intention).
If there’s no clear winner you can add in the third-party fees (appraisal, title, etc.) to break a tie, although relatively speaking there may not be much variance from one place to another.
Don’t worry about government fees (recording, etc.) or prepaids (escrow deposits, prepaid interest, etc) because they either won’t vary much or they aren’t really expenses related to the loan.
Thank you @trism and @vhooloo, I appreciate your perspective and your help!
That said… forget about those quotes I put up before! The market is even crazier than we thought!
I now have two companies offering a 2.5% interest rate, with only a 1,200 origination and 300 deposit. This was the opening offer for one bank, and another broker randomly offered to match it in my “sorry but thanks anyway” email. The broker put a timer on the match for midnight tonight. I’m super happy with that rate, and it only seems fair to give it to the banker who originally offered it to me.
But… it’s been two days and I haven’t seen a formal loan estimate from the banker. Is that normal? He said it was sent to compliance. How sure should I be that the banker follows through on his offer AND is able to close in 40 days? Is it silly or unethical to accept both, on the off-chance that one falls through?
If I can’t close in time, I strongly believe the seller will back out and not touch my offers again. It has become a seller’s market here, and I will not see that price again. I think I’ll put the $300 deposit in with the broker and let them know they are my backup, to avoid loss of sleep at night. Thank you!
