Mortgage rates going down?

I locked in too @ 4.8% on 30 year fixed jumbo on Monday. Low enough for me. I'm happy with the deal.

a week or so after you close, ask the bank to do a one-time modification for some nominal fee.

in fact you can ask them now if they will do a one-time modification post-close

Can you explain that. Why would they? Is this common?

@Mr SuttonPlace I am assuming there is a charge for a one time modification. Maybe a percentage of the loan?

It's really hard to see how mortgage rates keep going down.

1)Buyers of mortgage debt get burned each and every time a refinancing occurs due to gov't action, so secondary mortgage spreads ought to widen, unless of course mortgage debt is something the Federal Reserve buys(yet again).
2)Not everyone qualifies. Standards have gotten strict
3)Fewer lenders... so primary market prices vs secondary market prices have widened and are likely stay wide

I did it after my refinance closed.. flat fee of 500 dollars was the charge and my rate was reduced. Ask your bank.

May I ask what kind of reduction you got for $500 fee?

I'm also locked in on a loan whose closing period is about to expire. On 7/30 my rate was 4.75% for a 15-year jumbo. Is there a way I can guesstimate the new rate without asking?

I believe I received roughly the latest rate offering for my same loan. which in my situation resulted in a reduction of roughly .0285

Typically, if and when a bank does a rate modification they will modify you at slightly above market rates. The reasoning is that they assume you'll be content with a better rate, albeit not the best rate, by not having to go through the effort and cost of a full refinance.

Rvargas: 4.125% is the best 15yr Fixed jumbo rate currently, with 0 points.

Hmmm... just talked to Citi and they said they never do "rate modifications" - is that accurate, and if so which banks do?

Currently have 4.625% on a conforming 30YR ($729,750) with Citi, is there anything better out there? I remember 3 weeks after I closed I could have gotten smth for 4.375% but I could not refinance according to my mortgage broker because the minimum refi period is 90 days after closing.

PWR: Correct. Citi, and most banks for that matter, actually don't do modifications. Rates are slightly better than what you're currently at, but not low enough to justify a refinance

Can you get out of the lock/ switch to another bank. you can prob get 4.25-4.375, which would make a decent difference based on your balance

I've been approved for a mortage and looking to close late Nov/early Dec with a 30 year fixed but haven't locked in yet. My mortgage broker told me to wait as he thinks rates will go lower than 4.3% plus if I do a 15 day lock instead of 60 day lock I get a better rate.

I love my bank.

Anyway, lovetocook, some banks offer rate lock protection. http://www.mortgageqna.com/mortgage-insurance/rate-lock-and-rate-protection.html

I am surprised your "broker" didnt offer this to you -- or, maybe I am not surprised, I dont know.

also:

http://www.mlcc.com/MLHL/TopNavigation/OptionalFeatures/ratelock.htm

isn't the rule of thumb that the new rate needs to be at least 1% lower in order to refi?

or with bigger than normal loans it's profitable to refi with a smaller rate improvement? (don't know if the REFI fees are a fixed amount or they are proportional to the loan amount)

thanks!

u can love your bank, but you shouldn't "love" your bank.....

lol, no kidding!

I would say depends on mortgage size and how long you plan on staying. It normally takes a few years just to make back teh closing costs of the refi. so if you are only going to live there for a short time not worth it. If however you plan on staying for a long time then it is worth it. I would say with the amount people move around in the city not worth it.
I wll say i just started looking into it and am willing to do it for .5% difference as we plan on staying 15 years if not longer, so if we keep for the long term over the 30 years it is 70k less in payments of interest.

Does BofA offer a one one time rate modification? If everyone thinks rates will go down after Nov 3rd then why don't they go down now?

The proper way to determine if a refinance makes sense for you is in terms of how quickly you can break even on your closing costs vs. how long you plan on staying in the property.

For example, if you have a $1mm coop loan and can reduce your rate by 0.50% your break-even point is roughly 8 months ($3,500 closing costs/$416 monthly savings = 8.4 months break-even). Every month beyond that point you're accruing the $416 monthly savings.

thanks!

during the bubble i remember vividly that people doing refis were able to add the closing costs to the loan principal (basically financing them instead of having to come up with the cash).

is this still possible?

Yes, you can always roll the closing costs into the new mortgage provided that there's enough equity.

Is it alsway simple to do a one time rate modification? Locked into a 30 year at 4.25% but maybe it will go down to 4% before I close.

Gator - do you mean a 1 time rate float down while you're still in the mortgage process? If so, yes. Sunny.hong@bankofamerica.com

Yes, a one time rate float down while still in the mortgage process. Locked in at 4.25% for 30 year fixed but wondering if that will fall a quarter point in early November. Should I slow down the process and see?

Shong, not as a BofA employee but as a taxpayer do you think we should hold off paying year end bonuses until we figure out the mortgage put back issue? Okay I know your answer. How about for your parents? How about for them as taxpayers?

Since when are you worried about paying taxes?
http://streeteasy.com/nyc/talk/discussion/18080-its-official-the-irs-are-morons

@Shong Thanks for the info on the one time rate float down. I am geting my loan through BofA and will look into this. If rates come down a quarter point after the Fed announces the size of the QE then it would definitely be worth doing.
Rates seem to be jumpy in the past week.

You fking morons. If rates go to zero therez will be NO mortgage deduction! F'ka me.

High mortgages! Higher deductions!

Excelsior! Mortgage rates!

@W67th It's the interest that is deducted if I am not paying any interest I wouldn't mind there not being a deduction.

http://www.youtube.com/watch?v=iW5qKYfqALE

http://www.youtube.com/watch?v=xC9k3oB83z4&feature=related

Loves it gator. No interest no deduction. Okay back to the heart of the matter.

Nyc re going up or down? Game on!

I'm guessing rates won't go down much at all with QE since most has to be baked in already and mortgage rates not being low enough isn't what is stopping people from buying a home or refinancing. In addition people with money will put it into the market if interest rates decline. I say the 30 year stays above 4.1% after QE.

Rates are down again today. Man!

Excelsior! Does that still work?

I don't know what it means to keep saying "excelsior"

http://en.wikipedia.org/wiki/Wood_wool

Still not seeing the connection...

Who thinks I should wait until after Nov 3rd to refinance?