Time to refinance?

bringsmewomen · 10-09-2008, 10:47 PM

The fed dropped rates 1.5%.... Considering refinancing.

I currently have 6.25% on my mortgage. How much better do you think I can do? And what's the best way to negotiate?

stooken · 10-09-2008, 10:57 PM

Quote:

Originally Posted by Laszlo

LOL! Good luck getting a loan on Monday.

+1

getting a loan right now probably won't be that easy.

bringsmewomen · 10-09-2008, 11:26 PM

who knows. maybe theyll cut again

MadDog · 10-09-2008, 11:35 PM

Quote:

Originally Posted by bringsmewomen

The fed dropped rates 1.5%.... Considering refinancing.

I currently have 6.25% on my mortgage. How much better do you think I can do? And what's the best way to negotiate?

A drop in the fed rate doesn't necessarily translate to a drop in mortgage rates. Check with your bank and see what they're now charging.

frahuang · 10-10-2008, 12:31 AM

Quote:

Originally Posted by bringsmewomen

The fed dropped rates 1.5%.... Considering refinancing.

I currently have 6.25% on my mortgage. How much better do you think I can do? And what's the best way to negotiate?

Rates for ARM will drop a little. Not so much for fixed programs. Check www.bankrate.com. Good luck.

StrifeM3 · 10-10-2008, 12:18 PM

Rates i dont think will get better till credit situation calms down. Right now rates are not as good as they should be...

SoYank · 10-10-2008, 12:58 PM

Quote:

Originally Posted by Laszlo

LOL! Good luck getting a loan on Monday.

Especially with the banks closed for Columbus Day.

LJE92 · 10-10-2008, 01:05 PM

well i work for a mortgage bank and rate are not looking to drop untill
a week or so but not by that much...
any questions let me know .

Oregano123 · 10-10-2008, 03:08 PM

i gonna apply for a liar loan

Sh0cker · 10-10-2008, 03:58 PM

The 30-yr fixed rate hasn't moved much in the last several months...the banks can borrow money cheaper but they won't pass along the savings to the consumers

mpimping · 10-10-2008, 08:48 PM

it's like 6.125 for a 30 year fixed and 5,625 for a 15. What type of loan do have? If you want a 15 it might make sense.

ska///235i · 10-12-2008, 10:06 AM

Good time to buy a home

Voltigeur · 10-12-2008, 10:59 AM

Quote:

Originally Posted by bringsmewomen

who knows. maybe theyll cut again

I expect FF is going to 1%. Doesn't mean the mtg rate follows suit. In fact, private financing rates have gone up even as FF has gone down due to the dearth of liquidity in the funding markets. In other words the risk premium spread has gone up.

Whatever, anyone doing refi will need a good FICO under present conditions and a decent chunk of equity to get a fair rat

ska///235i · 10-12-2008, 11:30 AM

so where did the $700 billion bailout money went?

Scarecrows25 · 10-12-2008, 12:59 PM

The Fed lowering it's overnight rate has little to nothing to do with the rate you get on a mortgage, since it's a short term rate. The difference you'll see is in credit cards, car loans, and shorter term debt.

Long term rates on mortgages are driven by the bond market, and specifically, the yields being returned on bonds. Bond price and yields move in opposite directions; when the price of a bond goes up, the yield goes down, and vice versa. So ideally, you want people to be buying bonds, which raises the price and lowers the yield.

However, since inflation decreases today's value of a dollar, and since bonds return a fixed income, inflation makes bonds less valuable. When something is less valuable, less people want to buy it, so the price goes down to attract buyers. When it's a bond, the low price makes the yield move higher, which makes the rate you'd likely get on a mortgage higher, too.

Like someone else said, watch Bankrate.com to keep an eye on rates. Although, with the credit mess we're in, expect stricter guidelines to qualify for a loan.

simslater · 10-13-2008, 10:37 AM

Many people actually refinanced their house to the point of no equity. Many are actually negative at this point. So in that scenario your supposed to go for a loan modification right? or are there other alternatives?

10-09-2008, 10:47 PM	#1
bringsmewomen Lieutenant 262 Rep 484 Posts Drives: e90 Join Date: Mar 2006 Location: CA iTrader: (0)	Time to refinance? The fed dropped rates 1.5%.... Considering refinancing. I currently have 6.25% on my mortgage. How much better do you think I can do? And what's the best way to negotiate?
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10-09-2008, 11:26 PM	#3
bringsmewomen Lieutenant 262 Rep 484 Posts Drives: e90 Join Date: Mar 2006 Location: CA iTrader: (0)	who knows. maybe theyll cut again
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10-10-2008, 12:18 PM	#6
StrifeM3 Colonel 99 Rep 2,991 Posts Drives: 13E92 MCB M3 18 F80M3 Atlantis Join Date: Feb 2008 Location: Irvine/Walnut iTrader: (16) Garage List 2018 BMW M3 [0.00] 2013 BMW [0.00]	Rates i dont think will get better till credit situation calms down. Right now rates are not as good as they should be...
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10-10-2008, 01:05 PM	#8
LJE92 Captain 15 Rep 753 Posts Drives: 2008 BMW 335XI Join Date: May 2008 Location: JMCA QNZ iTrader: (1)	well i work for a mortgage bank and rate are not looking to drop untill a week or so but not by that much... any questions let me know .
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10-10-2008, 03:08 PM	#9
Oregano123 Banned.....j/k 28 Rep 174 Posts Drives: '09 535xi, '11 Panamera Join Date: Jun 2005 Location: South Dakota iTrader: (0)	i gonna apply for a liar loan __________________
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10-10-2008, 03:58 PM	#10
Sh0cker n00b 5 Rep 178 Posts Drives: 335i Join Date: Jul 2008 Location: NJ iTrader: (9)	The 30-yr fixed rate hasn't moved much in the last several months...the banks can borrow money cheaper but they won't pass along the savings to the consumers __________________ His: 08 E92 335i (sold), 99 Corolla beater car Hers: 09 Tiguan Previous: 09 e93 328i, 04 WRX, 07 S40, 03 E46 330xi, 04 F4i, 04 EX250 Last edited by Sh0cker; 04-12-2011 at 09:44 AM..
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10-10-2008, 08:48 PM	#11
mpimping Banned 865 Rep 336 Posts Drives: gti Join Date: Sep 2006 Location: ny,ny iTrader: (0)	it's like 6.125 for a 30 year fixed and 5,625 for a 15. What type of loan do have? If you want a 15 it might make sense.
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10-12-2008, 10:06 AM	#12
ska///235i ***** noob 1412 Rep 10,477 Posts Drives: 325xi>M235i>428GCx Mspor Join Date: Sep 2005 Location: Boston iTrader: (34) Garage List 2006 325xi [0.00]	Good time to buy a home __________________ 2006 325xi (Sold) 2014 M235I (Current) 2015 428xi Gran Coupe (STB)
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10-12-2008, 11:30 AM	#14
ska///235i ***** noob 1412 Rep 10,477 Posts Drives: 325xi>M235i>428GCx Mspor Join Date: Sep 2005 Location: Boston iTrader: (34) Garage List 2006 325xi [0.00]	so where did the $700 billion bailout money went? __________________ 2006 325xi (Sold) 2014 M235I (Current) 2015 428xi Gran Coupe (STB)
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10-12-2008, 12:59 PM	#15
Scarecrows25 Private First Class 10 Rep 191 Posts Drives: 2007 E90 - Jet Black Join Date: Jul 2007 Location: Dallas, TX iTrader: (1)	The Fed lowering it's overnight rate has little to nothing to do with the rate you get on a mortgage, since it's a short term rate. The difference you'll see is in credit cards, car loans, and shorter term debt. Long term rates on mortgages are driven by the bond market, and specifically, the yields being returned on bonds. Bond price and yields move in opposite directions; when the price of a bond goes up, the yield goes down, and vice versa. So ideally, you want people to be buying bonds, which raises the price and lowers the yield. However, since inflation decreases today's value of a dollar, and since bonds return a fixed income, inflation makes bonds less valuable. When something is less valuable, less people want to buy it, so the price goes down to attract buyers. When it's a bond, the low price makes the yield move higher, which makes the rate you'd likely get on a mortgage higher, too. Like someone else said, watch Bankrate.com to keep an eye on rates. Although, with the credit mess we're in, expect stricter guidelines to qualify for a loan. __________________ Scarecrows25 Jet Black E90 328i / 6MT / Sport / Xenons / Split Fold Rear Seat / OEM Chrome Exhaust Tips
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10-13-2008, 10:37 AM	#16
simslater Registered 1 Rep 2 Posts Drives: '09 e90 335i (soon) Join Date: Jun 2008 Location: Simi Valley, CA iTrader: (0)	Many people actually refinanced their house to the point of no equity. Many are actually negative at this point. So in that scenario your supposed to go for a loan modification right? or are there other alternatives?
	Appreciate 0 Quote