I closed on my house on May 2, 2024, with a rate of 5.875%. Now, I can refinance at no cost (though that cost might be added somewhere) for about 5.5%.
Using mortgage calculators, it looks like I could save around $90,000 over the full 30-year loan and about $300 a month.
Is it worth refinancing? Most loan officers are saying no, but wouldn’t I just keep paying more interest if I wait a few more months?
What do you mean by no-cost refinancing? Are the closing costs covered by a lender credit, or are they being added to the loan amount?
Through lender credit, my jumbo loan will either have the 3-4k costs covered or I will receive a rate of around 5.54 instead of 5.5, for instance.
There’s no way that $4-5k only gets you one-hundredth of a point.
If you choose not to roll costs into the loan, that’s a personal preference. Consider whether the money you save justifies the effort of refinancing. With a $0 cost loan, you start breaking even in the first month. I’ve seen many people go this route. The key is to avoid rolling costs into the loan.
What’s the difference between lender credit and costs rolled into the loan? I thought they were the same, provided the rate is the same.
Refinance if there are no costs involved. Who is offering a rate of 5.5? The best rate I’ve found so far is 5.85.
Where did you find 5.85?
You can secure a 5.5% rate on jumbo loans with a relationship discount. My loan amount is $1.25 million.
Where did you get that rate? Which lender is it from? I have a jumbo loan with BECU, and the best rate they quoted me a few days ago was about 6.125…
Morgan Stanley provides highly competitive rates along with a relationship discount. They could be a good option.
I’m also curious. My rate is 6%, but that includes a relationship discount.
When did they provide you with a quote? The last three days have been brutal. The rate may no longer be available now.
It was four days ago; are you suggesting that rates have increased again?
If you received a quote on Monday, that rate is likely no longer available unless it’s from a large bank that only updates rates once a week.
If it is a big bank, be sure to lock in your rate tomorrow. Otherwise, that rate is probably gone for good.
We’ve had two lock alerts this week.