Refinancing Question ?

Question

Paul I. · Answer

@Andrew Postell

No, it was not a profession specific loan.

It is straight up 10% down, no other mortgage tied to it.

I am working through a broker so I will to check my notes for the exact bank.

Paul I. · Answer

@Andrew Johnson

Thanks for the info.

I figure after I close I will talk with some banks to see what I can find.

Andrew Postell · Answer

@Paul Idziak that is true about Jumbo loans.  I have a feeling that your refinance rates will likely be about the same as your purchase rates.  Do you mind me asking which bank offered the 10% down on a Jumbo?  Was it a profession specific loan - meaning did you have to be a doctor or something to qualify for it?  Or did they wrap a 2nd mortgage in there to make it be 10% down?

Paul I. · Answer

@Andrew Postell

It's a non-conforming loan that allows 10% down on a Jumbo loan.

I am using the loan to put a minimal amount of money down as possible.  From there my plan was to try to refinance at a lower interest rate.

It's been extremely difficult to find a Jumbo loan with requiring only 10% down.

Andrew Postell · Answer

@Paul Idziak I feel that there is something here we are missing - why are you closing on a higher than normal interest rate?  It is extremely unlikely for you to refinance right away to get a lower rate.  Rates have been increasing over the past several weeks and are likely to continue.  If you feel that you could refinance to get a lower rate - why not just go with a lender that has a lower rate right now?

Paul I. · Answer

@Stephanie Potter @Chris Mason

Thank you for the information, I really appreciate it.

Stephanie P. · Answer

@Paul Idziak

Hey Paul,

Many lenders still do no-cost refinancing, but you're going to have add-on's to the rate for loan to value and condo, not to mention the increase in the rate to cover the costs with yield spread and then the mortgage insurance on top of that...  Just saying your rate may not be that much different unless you've got a really high rate on the purchase money.  Just saying be prepared.  I'm sure Chris will be more than fair when it comes to rate, but there's only so much a human can do.

Stephanie

Chris Mason · Answer

Six months if you want to pull equity out, 1 day if you just want to drop the interest rate.