Historically low interest rates

[fisherdog19]

As most of you may know, rates have really dropped in the recent weeks. Now is a great time to move ahead with a purchase of a new home or a refinance of an existing home. Current rates find the 30 year conventional at 4.25% and the 15 year conventional at 3.75%, on approved credit. I honestly don't ever remember seeing rates this low. There are still programs available for those of you in declining markets where your loan to value may be greater than 100%. Please call or email me with any question you have or any scenario's you may want me to run.

[BLACKJACK]

Peter,

I'm about 10 years from retirement and have seven years left on my mortgage, I don't want to extend that mortgage out any farther, can you refinance for a loan length of seven years? Or even five years?

[fisherdog19]

10 years is the shortest available. At this point in the game, refinancing would not be in your best interest with only 7 years left.

[BLACKJACK]

Peter, Thanks for getting back to me!! I think that I'll find out what my balance is, current rate, and then make some calls to find out exactly what it would cost to refinance and how much it would save per month. I could always invest the difference and then pay off the loan in 7 years.

[backlash 1]

Blackjack, I would say if there are closing costs, don't even think about refinancing. Just knock that principal down by makeing larger monthly payments on your loan each month or bi-monthly if possible. Don't know what your current rate is, but lets say its 6%. Any amount you can pay over and above your normal payment is going to save you a guarenteed 6%. If you know any investment that can guarentee that or better in 7 years, i'm all ears

[fisherdog19]

You can email me that information and I can give you an idea of the potential savings and cost's involved.

[fisherdog19]

Bi-Monthly payments wont' do anything for paying down the loan; Bi-weekly however will help as you will make an extra mortgage payment over the course of a year with 13 total payments.

[backlash 1]

Woops, bi-weekly, Thanks for catching that Peter.

[BLACKJACK]

Blackjack, I would say if there are closing costs, don't even think about refinancing. Just knock that principal down by makeing larger monthly payments on your loan each month or bi-monthly if possible. Don't know what your current rate is, but lets say its 6%. Any amount you can pay over and above your normal payment is going to save you a guarenteed 6%. If you know any investment that can guarentee that or better in 7 years, i'm all ears

When I talked to a financial advisor about adding an extra $200-300 to my house payment every month she advised me not to, that the house payment was actually 'good debt' when you consider you can deduct the loan interest from your taxes. But I'm thinking that if I can cut my payment just by refinancing... Worth checking into.

[BLACKJACK]

You can email me that information and I can give you an idea of the potential savings and cost's involved.

Thanks Peter, I will get back to you.

[hockeybc69]

Quote:

that the house payment was actually 'good debt' when you consider you can deduct the loan interest from your taxes.

I am not a financial advisor in my wildest dreams, but if I didnt have a house payment, I would be one happy dude!

I am refinancing to a 15 year this week. I cant take debt in any form.

[solbes]

We're refinancing again too. 5.625% with 9 to go down to 3.875 on a 10. It's not huge savings but it does have a pretty quick break even point.

I only wish we had these rates in 5-7 years when we will be ready to build our cabin.

[fisherdog19]

I'm glad to see people are taking advantage of the low rates. I really appreciate the business I get from the good folks here at HSO, they have always been great to work with and good borrowers, which makes my job a bit easier.

[fisherdog19]

Rates remain low, the conventional 30 and 25 year are 4.375%, the 20 year is 4.25%, the 15 year is 3.875%, and the 10 year is 3.75%. The FHA 30, 25, and 20 year are 4.25% while the 15 and 10 year are 4%. All are fixed rates based on a $200,000 loan amount with an LTV of 95% or less. If you have any questions, don't hesitate to contact me.

[gunmunky]

Bi-Monthly payments wont' do anything for paying down the loan; Bi-weekly however will help as you will make an extra mortgage payment over the course of a year with 13 total payments.

Bi-Monthly payments COULD / WILL pay your loan down faster. The interest is re-figured every 2 weeks instead of monthly (at least this is how my lender does it). Call your lender and have them set it up for you.

[fisherdog19]

That's fooey, an amortization schedule follows a specific path, the interest accrual does not change; only the principal balance can be reduced with extra payments, but even then, the payments remain fixed on the schedule. Every month, the interest payment is less and the principal reduction increases.

If your lender told you that, they either don't know what their talking about or the loan isn't a conventional fixed loan. Once you close and the note is recorded, it is final and the terms will not change. On a 30 year note you make 360 payments or 1 per month for 30 years, if you pay half of the payment 2 times a month it's still 1/360th of the total payments. Unlike a revolving line where the interest only accrues on the outstanding balance, the amortized loan does not change. The only way to reduce your interest is to pay the loan off early ie pay more than your required payment every month to reduce the principal balance quicker than the am schedule.

[gunmunky]

I don't want to start a heated debate but my lender sent me the paper work, that I filled out and signed, that states that my interest is re-figured every 2 weeks with the bi-weekly payments.. I am by no means an expert on the way mortgages work, I'm just stating the way mine is.

[jerkbait]

Hey Fisher, what kind of inerest rate would I be looking at to refi 185,000? Would like to roll our heloc into the mortgage. We currently owe 167,000 and the 185,000 would iclude the heloc and closing. The house is appraised at 260,000 this spring when we took out the heloc. Our credit score is about as high as it can be. We are currently at 5.125. Thanks

[fisherdog19]

4.375% on a 30 year with a principal and interest payment of $924 per month. 3.875% on the 15 year with a principal and interest payment of $1,357 per month; that's what the market closed at today. Let me know if you have any other questions.

[hanson]

I owe Peter & Valesco Mortgage a big THANK YOU as I closed on my refinance yesterday!! Woo Hoo!!

I just bought my house 2 years ago at 6.125% and refinanced down to 4.375% on a 30 year FHA. My house appraised 10k higher than what I bought it for as well! Its not all bad out there in home ownership land!

I never intended to refinance at this point but just had some general questions about the process. Peter pretty much told me we can save you a lot of money. I was like 'really'? Thought it through for a few days, crunched the numbers best I could, and said lets do it. Was a done deal as of yesterday!!

Got to meet Jackpine Rob yesterday as well. Was one of those weird moments... "Are you Jackpine Rob on FM?" Very nice guy and made the closing easy. Alot more fun talking fishing while signing documents.

Thank You Peter!

[fisherdog19]

Thanks for the kind words Chris, I'm glad it all was stress free and simple for you. Rates are still super low, I encourage everyone to take advantage of them if it makes sense.

[muddpuppy]

Fisherdog..... Where do you see the intrest rate in the next 60 days?

I am looking to lock in at 4.625 for a 30year I have an option to float this rate for 60 days I am currently at 6.375

[BoxMN]

I am a repeat customer of Peter's (two places), and just closed last Weds. with 4.375% 30 year - we locked at the right time. All went smooth, and had a good conversation again with Jackpine Rob during signing. Thanks gentlemen, you are true pros, and I will like that extra couple hundo in my pocket each month

[fisherdog19]

Mudpuppy, I would say 4.625% is high so whoever you are dealing with is making a lot of money on that rate. Give me a call and I'll give you an honest rate quote that is fair to everyone.

Can't give you any insight on rates and where they may go, the market is so unstable that I'd hate to give bad advise. I can't imagine them getting lower so I would take 4.375 or 4.5 and run with it. I'd love the chance to earn your business; if you haven't gotten quotes from at least two lenders then you are doing yourself a disservice.

Box, it's always a pleasure doing business with you; thanks again for your trust and business.

[muddpuppy]

Mudpuppy, I would say 4.625% is high so whoever you are dealing with is making a lot of money on that rate. Give me a call and I'll give you an honest rate quote that is fair to everyone.

Can't give you any insight on rates and where they may go, the market is so unstable that I'd hate to give bad advise. I can't imagine them getting lower so I would take 4.375 or 4.5 and run with it. I'd love the chance to earn your business; if you haven't gotten quotes from at least two lenders then you are doing yourself a disservice.

Box, it's always a pleasure doing business with you; thanks again for your trust and business.

I have got a couple quotes they were all in the same ball park I am currently with Well F, I saved almosk 2k in closing staying with them and talked them down to 4.5 with no points and $1800 out the door. If you think you can do better PM me I have not signed anything.

[Nick Kuhn]

I wish I could take advantage of this. But I do think Peter could help answer a few questions. Currently I'm on an open ended contract position, looking to find a permanent job. In the meantime I'll just rent and pay off my car, from there I will be saving some for an eventual home purchase. How long should I be on a more permanent position and what kind of savings should I have before considering a purchase. I hear 10-20%, but is that across the board? My credit is pretty good, only one hiccup (thanks to the old quirky Direct Loans online payment system that didn't work right) in I think 5 years now of credit history.

I have a ways to go but I'm weighing the options of taking a bit of a fixer upper for dirt cheap and later selling to move to a better home vs. just saving longer and going straight for a nicer home.