Home loans below 2% coming? Financial, mortgage, refinancing

spectr17

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Im about to refi my loan here with the rates around 3% but now im reading the rate is going to fall below 2% by next year. Anyone think that is going to happen? I can hang on for a bit but i really need to get this done.

Who has the magic 8 ball and what does it say?

Some things i have learned in this refi process.

Dont lock your credit down. I went to unlock my credit for a credit check and my Equifax password suddenly didnt want to work. I spent weeks trying to get through to them and got the "because of covid" message they were not manning the phones. I finally got through and was able to unlock my account. I use a password manager so i know it wasnt on my end.

Ive only got 100k left on my mortgage and wanted to get some cash to finish a remodel. They call this a cashout refi and the rates are not the lowest compared to regular refis. Its about .25% more on the rate on a cashout refi.

NewDayUsa.com, big veteran pitch,, teased a low rate but it turned out they wanted a home inspection and they didnt have any company in CA to do inspections yet.

Speaking of offers with no home inspections and no refi fees, that for straight mortgages. If you do a cashout refi they want a home inspection. Owning/Rocket loans is the only one Ive found that will do no points or fees so far.

Most lenders want at a loan of at least 300k for them to handle the loan

Any other tips to share?
 



Limited Out

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This is heads up thinking about increasing your long term net worth. Like so many things financial I don't believe there is a magic 8 ball. It's like trying to buy a house at the market bottom or stocks at the bottom of a pullback. Just follow the trend and get as close to the lowest rate you can. Trying for perfect timing on financial issues can leave you frustrated and sitting on your hands. As always there are three paths you can follow, the best thing you can do is the right thing, the second best thing you can do is the wrong thing, and the worst thing you do is nothing. Smart Thinking!
 

DJE

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We just had our appraisal done to refi a loan that's only a year old. Gained more than a percentage point drop and the monthly payment is gonna be down about $100.00 for us. Didn't make since not to go for it.
 

BelchFire

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I agree with Limited Out; it's rare that you'll hit the exact bottom. While you wait on that other (possible) 1%, you're paying more than you have to *now*. Go for it. My Dad always used to stall on buying a new computer. "If I wait a couple of months, I can get a faster one for the same money." or the same one for less. You've gotta jump some time. Stack your bets and make the best move you can when you're ready. There is no magic 8 ball. I've tried timing my investment purchases, but over time I've learned that the best thing you can do is to stay invested. Cash doesn't earn like an investment.

On a tangent thought ... once you refinance, take the savings in your monthly payment and add to your 401K or Roth IRA or whatever vehicle you're using to save for retirement. You've learned to balance your budget as it is, so don't change your spending habits, unless it's to save more. You'll be glad you did in the end.
 

Limited Out

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I agree with Limited Out; it's rare that you'll hit the exact bottom. While you wait on that other (possible) 1%, you're paying more than you have to *now*. Go for it. My Dad always used to stall on buying a new computer. "If I wait a couple of months, I can get a faster one for the same money." or the same one for less. You've gotta jump some time. Stack your bets and make the best move you can when you're ready. There is no magic 8 ball. I've tried timing my investment purchases, but over time I've learned that the best thing you can do is to stay invested. Cash doesn't earn like an investment.

On a tangent thought ... once you refinance, take the savings in your monthly payment and add to your 401K or Roth IRA or whatever vehicle you're using to save for retirement. You've learned to balance your budget as it is, so don't change your spending habits, unless it's to save more. You'll be glad you did in the end.
Excellent advise!
 


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