Rental Property Investor · Newport Beach, CA · Member since 2017 · 218 posts · 138 votes
Hey BP! I'm sure everyone is actively watching the news and their impact on mortgage rates.
I'm personally losing sleep wondering if I can save more by waiting, or should I just lock in the rates today.
For those of us with loans that are well above market rate, the question of the day is: Will rates continue moving down from here? Or should a person refi immediately?
Second question that I think would help everyone: if you just got a quote, what was the rate, LTV and lender?
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
7y
@Sean McCluskey
I did a cash out refi on a SFR I own outright in June. My rate for a 15 year loan was 4.125% with 1.9 points. Took 4 weeks to get the cash. Not great, but not bad for an investment loan.
Rental Property Investor · Chubbuck, ID · Member since 2018 · 532 posts · 466 votes
7y
Rates went down yesterday after China’s currency announcement. A 25% down Fannie loan is now 4.375. Add 25 bpts for cash out. Now is the time to lock your rate.
Lender · Rochester, NY · Member since 2014 · 3k+ posts · 1k+ votes
7y
@Sean McCluskey
I have a lot of clients looking to refinance right now. I too am considering refinancing my personal home as well. I am not sure how long rates are going to stay this low......
Rental Property Investor · Newport Beach, CA · Member since 2017 · 218 posts · 138 votes
7y
@Craig Jeppesen Thanks Craig! I assume you're talking about an investment property loan. Do you mind if I ask what lender you like to use for the best rate?
@Craig Jeppesen Thanks Craig! I assume you're talking about an investment property loan. Do you mind if I ask what lender you like to use for the best rate?
Yes that is an investor loan. Personal residence rates are 3.5% today or 3.75% for cash out. I use my local credit union: ICCU
Rental Property Investor · Gulfport, MS · Member since 2018 · 113 posts · 133 votes
7y
@Sean McCluskey I'm mid refi on a SFH investment property at 4.75 fixed for 30 years. It might have ticked down a bit since the fed rate cut and China issue, but not much.
Honestly, if the interest rate being a 1/4 point different one way or another is an issue then that’s a problem you need to think about. We’re talking very small dollar amounts for these small rate changes.
Rental Property Investor · Long Island, NY · Member since 2015 · 490 posts · 301 votes
7y
@Sean McCluskey It really doesn’t pay to try and time the bond market not even the smartest economists do that well. It’s definitely worth getting pricing today from several lenders and seeing how much you can save especially if you are well above market rates.
Rental Property Investor · Newport Beach, CA · Member since 2017 · 218 posts · 138 votes
7y
Hi @Craig Jeppesen, @Cole Raiford and @Allan Szlafrok - thanks for the input! Yeah I'm looking at a personal residence refi and then cash out refis on 1-2 investment properties. The personal residence makes it feel like a bigger deal since the whole thing is just an expense, no cash flow coming off of that liability!
Mount Pleasant, SC · Member since 2016 · 13 posts · 5 votes
7y
@Tim Johnson All the major banks are predicting that rates will be significantly lower over the coming year. IMO it’s better to wait six months than refi today absent some pressing need.
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
7y
@Sean McCluskey
I did a cash out refi on a SFR I own outright in June. My rate for a 15 year loan was 4.125% with 1.9 points. Took 4 weeks to get the cash. Not great, but not bad for an investment loan.
Rental Property Investor · Newport Beach, CA · Member since 2017 · 218 posts · 138 votes
7y
@Jason McKinney Are you referring to projections of market rates ie the bond market, inverted yield curve etc? Or projections of mortgage rates specifically (or the aggregated RMBSes)?
Mount Pleasant, SC · Member since 2016 · 13 posts · 5 votes
7y
@Sean McCluskey I was referring to the 10 year which I've read is a good indicator for mortgage rates generally. I heard a presentation from a healthcare credit guy at TD bank a couple weeks back and the expectation of lower rates is hurting transaction volume. They said consensus across all the major banks was lower rates for a "soft landing" as growth slows . I'm no expert but sounds likely rates head lower. I paid 5% on 30 year second home 80% LTV in late December and want to refi.
Rental Property Investor · Newport Beach, CA · Member since 2017 · 218 posts · 138 votes
7y
@Jason McKinney I'm with you - the inverted yield curve agrees with you, that rates are expected to come down. That makes me want to wait a while longer. But then I'm looking to refi my primary in Southern California and I feel like sooner might be better in case market pricing softens.
I'm thinking I might refi soon, and then if rates are appreciably lower in a year, look for a no cost refi to drop payment again.
South Jersey, NJ · Member since 2014 · 154 posts · 50 votes
7y
I just got a quote for SFH investment cashout refi. Owe $82k home worth about $140k with $700 out of pocket I can get a 3.85% and pocket about $23k. My current rate is 6% so I'm ready to pull the trigger. Cash out $23k and my rate only goes up like $30 a month. Me and wife have credit scores over 800... I'm still waiting for the mortgage guy to tell me he messed up.