[The J-Man]

Just got 2.25% on a 15 year refi. No points. $1200 in closing costs excluding prepaids. Appraisal was waived. I’m happy. I used Better.com. Super easy and efficient. It only took about 22 days to close from application. Closer came to my house and papers signed in 15 minutes. Not a good option unless you’re knowledgeable with the mortgage process though.

[dmk08]

Originally Posted by The J-Man

Just got 2.25% on a 15 year refi. No points. $1200 in closing costs excluding prepaids. Appraisal was waived. I’m happy. I used Better.com. Super easy and efficient. It only took about 22 days to close from application. Closer came to my house and papers signed in 15 minutes. Not a good option unless you’re knowledgeable with the mortgage process though.

I used better about 5 months ago and went into a 15 year at 2.4% with no points and about $2000 in fees. Half of which was a non negotiable title transfer fee in GA. I would use them again.

Shouldn't have to do an appraisal unless youre pulling cash out.

[David70]

Originally Posted by The J-Man

Just got 2.25% on a 15 year refi. No points. $1200 in closing costs excluding prepaids. Appraisal was waived. I’m happy. I used Better.com. Super easy and efficient. It only took about 22 days to close from application. Closer came to my house and papers signed in 15 minutes. Not a good option unless you’re knowledgeable with the mortgage process though.

What does the part in bold mean? Sounds like you prepaid other costs and then didn't count them as part of your overall costs?

[tdott]

Originally Posted by David70

What does the part in bold mean? Sounds like you prepaid other costs and then didn't count them as part of your overall costs?

Sometimes the lender will ask to prepay prop taxes, home ins, etc and put into escrow as condition of the loan.

So they typically aren't considered a cost of the refinance since you would have had to pay those anyways.

[RickFLM4]

Originally Posted by tdott

Sometimes the lender will ask to prepay prop taxes, home ins, etc and put into escrow as condition of the loan.

So they typically aren't considered a cost of the refinance since you would have had to pay those anyways.

This and you’ll get back whatever is in escrow with the previous lender after closing.

[Hawkeye]

Originally Posted by Rich150001

Can you say or message me the credit union name you used? Seems like you got the best rates so far in this thread.

I am pretty sure you have to be local to get an account or get a mortgage, but maybe you can leverage it somehow

https://www.veridiancu.org/rates/loan-rates/mortgage

It says the rates are for new purchase only, but they gave me the same rates on my refinance.

Another large credit union has the same rates available as well for my area code.

https://www.greenstate.org/rates/mortgage-rates.html

[Gray_Panther]

Refinanced some months ago. 2.45% fixed for 15 year.

Coming down from a 4.875% fixed rate for 30 years.

Funny thing is my monthly payment only went up by $48. My interest used to be 2/3 of the payment and now it is below one third!

Crazy times!

[Joekerr]

I've just requested a quote to see what my break fee is on my mortgage, though based on the calculator it is going to cost us $13.5K to break the mortgage terms right now.

I'd still be ahead by about $5K over 5 years as my current rate is 2.69% for the next 4 years and I can get a 5 year fixed today for 1.74%. So I'm dropping almost a full percentage point which is significant, even after the break fees.

I'm just hoping they want to retain me and offer some sort of concessions on the break fee if I renew with them instead of going somewhere else, which is what I offered them.

[corn18]

I think back to my first mortgage in 1993 that was 30 year fixed @ 9%. Seems crazy but that was a good rate back then.

[floridaorange]

Refi'd recently, from 4% to 2.8%, no fee's, just paid the tax on it. Good times.

[David70]

Originally Posted by Joekerr

I've just requested a quote to see what my break fee is on my mortgage, though based on the calculator it is going to cost us $13.5K to break the mortgage terms right now.

I'd still be ahead by about $5K over 5 years as my current rate is 2.69% for the next 4 years and I can get a 5 year fixed today for 1.74%. So I'm dropping almost a full percentage point which is significant, even after the break fees.

I'm just hoping they want to retain me and offer some sort of concessions on the break fee if I renew with them instead of going somewhere else, which is what I offered them.

Unless you are planning on moving in less than 5 years it seems risky to have a fixed rate for 5 then deal with current market rates then.

[RickFLM4]

Originally Posted by David70

Unless you are planning on moving in less than 5 years it seems risky to have a fixed rate for 5 then deal with current market rates then.

Mortgages in Canada differ vs. here in the U.S.

[David70]

Originally Posted by RickFLM4

Mortgages in Canada differ vs. here in the U.S.

If the rate is fixed for 5 years, what happens after this time period? If the contract already says what happens it would be good information to share.

[RickFLM4]

Originally Posted by David70

If the rate is fixed for 5 years, what happens after this time period?

Presumably another mortgage at then current rates but not sure as I am not in Canada. But I don't think they have 15- and 30-year fixed terms.

[Joekerr]

Originally Posted by David70

Unless you are planning on moving in less than 5 years it seems risky to have a fixed rate for 5 then deal with current market rates then.

Originally Posted by RickFLM4

Mortgages in Canada differ vs. here in the U.S.

Originally Posted by David70

If the rate is fixed for 5 years, what happens after this time period? If the contract already says what happens it would be good information to share.

Originally Posted by RickFLM4

Presumably another mortgage at then current rates but not sure as I am not in Canada. But I don't think they have 15- and 30-year fixed terms.

Correct, common mortgages are 5 years or less. I could get a 10 year fixed, but those rates are between 3.0%-4.1% right now and very few people take up these longer term mortgages because of the premium. It is very uncommon to have a term above 10 years.

After the 5 year term is up, you either move to another institution or renew at whatever the market rate is at that time with your current institution. Definitely more exposure than your 15 and 30 year terms in the States, but the premium on the longer term products is why we don't take them up.

[oVeRdOsE.]

Originally Posted by David70

If the rate is fixed for 5 years, what happens after this time period? If the contract already says what happens it would be good information to share.

go to the bank and take what's on that day. You may have +/- 2 weeks to take the decision and wait for the market too move. If its higher, for your loose. If lower, lucky you.

On my last renewal, the person in charge of my mortgage postponed our meeting 2 times, and and by the time the rate get up 0.8%. '''it was impossible to give me the rate 3 days ago, like impossible , like they can click on their computer the number''. I had to put my Karen face , and see the manager. lol it tooks about 2 weeks for them to get the % back, and they told me they are ''loosing money''' Ive almost cried.

I believe my renewal was in 2018, @ 2.92% for 5 years.

Last week my bro got a 1.43% for 4 years.

Also better the job you have, the more stable it is, the best mortgage you'll get. Better than someone with a 'normal' job.

[M-technik-3]

Did mine about 15 months ago went from 4.5% to 3.125% wished I had waited a bit as 2.2 is crazy speak. I wanted to do a 15 year but was not ready to make the leap. so I just make an extra payment every other month.

[David70]

Originally Posted by Joekerr

Correct, common mortgages are 5 years or less. I could get a 10 year fixed, but those rates are between 3.0%-4.1% right now and very few people take up these longer term mortgages because of the premium. It is very uncommon to have a term above 10 years.

After the 5 year term is up, you either move to another institution or renew at whatever the market rate is at that time with your current institution. Definitely more exposure than your 15 and 30 year terms in the States, but the premium on the longer term products is why we don't take them up.

Originally Posted by oVeRdOsE.

go to the bank and take what's on that day. You may have +/- 2 weeks to take the decision and wait for the market too move. If its higher, for your loose. If lower, lucky you.

On my last renewal, the person in charge of my mortgage postponed our meeting 2 times, and and by the time the rate get up 0.8%. '''it was impossible to give me the rate 3 days ago, like impossible , like they can click on their computer the number''. I had to put my Karen face , and see the manager. lol it tooks about 2 weeks for them to get the % back, and they told me they are ''loosing money''' Ive almost cried.

I believe my renewal was in 2018, @ 2.92% for 5 years.

Last week my bro got a 1.43% for 4 years.

Also better the job you have, the more stable it is, the best mortgage you'll get. Better than someone with a 'normal' job.

Interesting. For the common 5 year loan, is it really financing the complete balance? I got an original 30 year loan as this was something I could afford, then refinanced to a 15 year loan but getting a 5 year loan would end up with a giant payment.

[RickFLM4]

Originally Posted by David70

Interesting. For the common 5 year loan, is it really financing the complete balance? I got an original 30 year loan as this was something I could afford, then refinanced to a 15 year loan but getting a 5 year loan would end up with a giant payment.

It may be more like a 5 year ARM here. Amortizes over a longer period (principal) but borrower and bank only locked into rate for 5. Again not sure but that would be my guess.

[dmk08]

Originally Posted by Gray_Panther

Refinanced some months ago. 2.45% fixed for 15 year.

Coming down from a 4.875% fixed rate for 30 years.

Funny thing is my monthly payment only went up by $48. My interest used to be 2/3 of the payment and now it is below one third!

Crazy times!

Yep same here. Payment went up less than $100 going from a 30 to a 15 and I was only 5 years in. It was such a no brainer.

[dmk08]

Originally Posted by David70

If the rate is fixed for 5 years, what happens after this time period? If the contract already says what happens it would be good information to share.

This is pretty much why the whole housing crash of 08 happened. People in 5 year interest only ARM loans and then the piper came calling....

[corn18]

Originally Posted by dmk08

This is pretty much why the whole housing crash of 08 happened. People in 5 year interest only ARM loans and then the piper came calling....

I had one of those back in 2006! My broker found a way to get me a $435k, 0% down, 30 year, interest only mortgage with a 48% debt to income ratio. I was so happy! Then I wasn't.