07/26/2021 - Best Mortgage Rates from Big & Reputable Lenders and SD Reviews (30year @ 2.75%, 15year @ 2.25% etc)

Hey guys, getting closer to closing on this one and would appreciate the keener eyes here than mine to check this LE for any red (or yellow) flags?

To me rate seems a little high but I was told by the LO due to LTV, loan amount, location, that its the best he could do. Fair enough. I'm shopping it around but so far no one can beat it. This also was affected by the refi fee so I reached out to my LO to see what he can do.

Anyway, credit report fee is perhaps a little high but it looks like its effectively a no cost loan after lender credits but I am financing some prepaids in to the loan which I'm a little confused on how they estimate that to be honest.

Any opinions welcome.

MBS is -2/32 in early trading. We will see how the FHFA reversal affects rates as investors price today. Typically, pricing gets revised between 9:30AM-11:00AM ET. But this may take an additional 24 hours for all of the investors to digest and model out.

Also, this was just announced this morning:

https://www.bloomberg.com/news/ar...new-policy

Reminder: this does not directly correlate to mortgage rates, but just goes to show how much of a long term ripple effect the last 6 months has created.

Lastly, I will be on vacation from this afternoon through Saturday night. I will be in Vermont with my wife, the 14 year old, and the dog. Anyone who has reached out for quotes, I promise I will get back to you as quickly as I can. End of the month is always nuts, and going on vacation at that time just adds to the insanity.

DP

Dont see your rate and Loan Amount etc to answer that per say....


The Section B charges do look a bit fluffed up but could be state dependent?



If the prepaid rolled in amount is higher you can change that before closing...


Other than that it looks straight forward.


Shahhere

Better seems to have already improved the rates today after the FHFA fee was pushed back. Just a data point, yesterday 2.5% was with ~$5400 (1.4%) in points on their rate sheet for me. Today it is ~$1500 (0.4%). So a full point reduction in points.

Thanks for the response meaphool. Here is hopefully information to clear up my explanation and your calculations.

* The Pool was a construction loan that totaled $54,450. Any payments made before it closed would adjust the locked in payment of the remaining balance which is probably why your calculation is off.

* The Solar loan is $34,000 with an 18 month open window to pay it down 30% using tax credits over 2 tax years before the payment adjusts and locks to remaining balance on month 19. Your calc is close to the payment if I don't pay the $10,500 in tax credits to the loan.

* Not sure of the calc difference in the car loans.

* You are calculating amortization totals to the end of the loans. I am calculating using my payment plans below. So while your differences in interest are very large looking at it 15-30 years out, I'm using the interest total of the current payment plan and readjusting from there to see how much more interest savings I can squeeze out. Which is why if I try and do a refi with cashout to pay the pool and solar, the savings don't justify the cost of the refi.

* I attempted the refi on March 20th just as Covid was bringing the end of the world. Rates were supposedly low and underwriters were backed up from previous weeks of record low rates. Amidst the uncertainty of Covid and the backlog, rates being quoted were higher at the time. Wife and I are essential employees with the state and have only missed 2 weeks of work (after vacation due to mandatory quarantine after returning from a cruise on March 15th - last cruise that has since sailed out of Tampa or pretty much anywhere for that matter). We both were still paid since we had the extra sick time on the books. I was looking at just the refi of the house and include the pool (that 7.99% kills me). Looking back I don't think it would have worked because the Solar loan has a lien on the property report and I would have had to include that payoff too. Mortgage companies I tried at the time were:

- Better.com since I have an Amex that had the $2,500 statement bonus reward option. The contact never got back to me
- RP Funding - $156k @ 4.5% on 30 year VA with a $2,500 buy down, $500 appraisal and the presumptive "No Closing Cost Mortgage"
- True Mortgage - no return call
- Loan Depot - $166k @ 4.125/4.75 for 15/30 with $10,083 closing costs on 30 year.
- Lennox/Westland Financial - $161k @ 4.875 on 30 year fixed with a follow up VA Earl to reduce the rate.
- 2 or 3 Other brokered calls from companies that I could tell were just bait and switch from the start.

Hopefully this helps you with how I'm viewing this. It would be nice to find an Equity loan even 1/2 point lower at 3.75% which would drop the interest by another $600, 3.25% would save $1180.

BTW - Where can I get the 15-year cash-out refi @ 3.25% at no cost? I could try for $182 to include the house, pool, solar, and storage shed which is 74% ltv, and make payments of $2,600/month + another $800 when the 2 cars are paid off. This would be 68 payments and interest of only $18,584 ($6,148 interest savings over my current plan).

Delay in the new fee is reflecting in rates today.

http://www.mortgagenewsdaily.com/...daily.aspx

Thanks, this information definitely helps with analysis. I will put something together on Google Sheets and share this with you.
If your SOLAR loan has a lien on the home, then we definitely need to re-work the plan slightly.

Here are 2 key thought right off the bat.

1. I would also use the avalanche method (pay off higher interest first) as opposed to snowball (pay off smallest loan amounts) to save on interest.
2. On average, rates on both 15/30 yr fixed are about .25% lower or more since the end of March so you might want to check again. Your rates seemed high.

Based on your chart, I create an excel which I imported to Google Sheets and converted to formulas.
I made it read-only for now, but I think you can create a copy and manipulate it based on the rates you actually find.


Using interest/12 * Remaining Loan Amount, I was unable to match your interest payment amount listed on your Solar/Pool/House.
I based my sheets on stated interest/12 * remaining loan amount so my #'s differ from yours slightly, but look at the formulas.
I also see you had a huge prepaid principal payments planned so I worked that into my numbers as well.

With regards to Auto Loans, I used bankrate's amortization calculator and just put in your stated original loan amount, term, and interest.
The monthly payment calculated was different than what you stated. I'm also not sure of the reason but possibly you initially had some fees tacked in or you made a slightly larger payment up front.
In my analysis, I used your existing remaining principal on each loan and your stated minimum monthly payment so I think it should be close.
I also kept your escrow payment the way you have it and kept the the same later, though I know that changes based on property tax/hazard.


If you can import your excel to google sheets and share it, I will be able to see your formulas and hopefully understand how you came up with your numbers.
(If you do share, create a copy of what you have, strip out any personally identifying information and share via URL so your account will remain private)

While below charts are not for refi, but more so purchase, it gives you an idea of the spread from last March/early April compared to now.

15-year (select 1-year) https://ycharts.com/indicators/15...tgage_rate
30-year (select 1-year) https://ycharts.com/indicators/30...tgage_rate

For the cash-out refi analysis, I ran a quote on AimLon using Florida [just a guess but if you let us know we can find lenders that work in your state]
You might be able to do better than AimLoan but I used them as a benchmark for the refi analysis.
If I put your figures in their quick rate calculator and use the county Miami-Dade, they quote 2.750 with ~$680 in fees.
My assumption based on the spread from 2.125% to 2.75% is that if you jump to 3.25% they could provide a larger lender rebate.
Also, I believe but not 100% that transfer tax would not apply since you are not changing the owner on your deed so you can remove the $1,000 cost there.
I think at 3.25% you would essentially have a no-cost refi, if not make money since credit might cover some prepaid interest and escrows.
This is also under the assumption they let you do a cash-out refi up to 74% LTV and your home is appraised at $245K.