Lowest. Rates. EVER.

**Greebo** · 12-04-2009, 03:45 PM

30 Year Mortgage Rates lowest ever recorded

The average interest rate for a 30-year mortgage dropped to a record low of 4.71 percent this week, pushed down by an aggressive government campaign to reduce borrowing costs. The rate, published Thursday by Freddie Mac, is the lowest since the mortgage finance company began tracking the data in 1971. The previous record of 4.78 percent was set during the week ending April 30 and matched last week.

I have already called my lender. I'm at 6.25% now and even if I can't pay off the HELOC completely, they should be wiling to subordinate, and if I can put half of that locked in at under 5, it'll be a good deal.

**craftypam** · 12-04-2009, 03:55 PM

Aren't heloc rates less than mortgage rates?

**itlw8** · 12-04-2009, 03:55 PM

hmm I wonder how fast we can finish the kitchen cabinets sounds like maybe we should think about it 6.125 for us and 5% on a $6000 Heloc.

**brenda67** · 12-04-2009, 04:14 PM

Greebo..how would that work with A VA. Loan? We are currently at 6 percent? Tia...

**Greebo** · 12-04-2009, 04:24 PM

Originally Posted by brenda67

Greebo..how would that work with A VA. Loan? We are currently at 6 percent? Tia...

Same way it works with any other loan.

You find a lender you like, start the loan process, the lender will take care of the payoff of the old loan.

Check the phone book - is there a MetLife Bank rep in your area? I like dealing with them.

**Greebo** · 12-04-2009, 04:25 PM

By the way - if anyone here refinances and actually takes more money out, I *will* come smack you upside the head!!!

**Palooka** · 12-04-2009, 04:34 PM

Originally Posted by Greebo

By the way - if anyone here refinances and actually takes more money out, I *will* come smack you upside the head!!!

And that is why we are upside down on the house. Well dh did this a few years ago. Thought it was a good thing then.

**brenda67** · 12-04-2009, 04:37 PM

Thanks Greebo....I will tell dh...What do you mean by taking more money out?Sorry for so many questions! I am trying to figure it out but I don't understand it!

**itlw8** · 12-04-2009, 04:57 PM

more money out? heck I want to retire some day.

that is why we are still paying on a house we bought in 83 and owe more than we paid originally not as bad as it sounds we put an addition on but it would have all be ours.

not sure it will pay for us we only owe 20 more years... a 20 yr loan payments would be close to the same we pay now... the 15 more but not when you figure the Heloc but we only have 5 years on that.

so I need to run the numbers carefully

for Us it may just pay to increase payments again and knock off the heloc as soon as I take care of the other debts.

guess I have homework this weekend

but gee Greebo I would surely love to pave the driveway.... DUCK!

**itlw8** · 12-04-2009, 04:59 PM

Originally Posted by brenda67

Thanks Greebo....I will tell dh...What do you mean by taking more money out?Sorry for so many questions! I am trying to figure it out but I don't understand it!

joke right??? take extra money to pay bills, take a vacation etc thus finance over 30 years and pay a ton of money on that.

**ml2620** · 12-04-2009, 05:23 PM

I re-fied on april at 5.25 percent on a 321k loan. It cost me about 1500 in charges.

Given that I refinanced in April and would likely have to pay some fees for a new refi, and the savings would it be worth it for half a percentage point?

**miaumiau** · 12-04-2009, 05:37 PM

Too bad my bank won't consider a refinance if the mortgage principal is less than $100k. 5% sounds a lot better than 6.25%.

**dschipman** · 12-04-2009, 05:41 PM

Greebo, our current rate is 5.45...would you even consider this an option. My DH said a full % or nothing...what are your thoughts.

**Russ** · 12-04-2009, 05:54 PM

Originally Posted by craftypam

Aren't heloc rates less than mortgage rates?

It depends. There are variable rate HELOCS, mine is currently at 3.25% and there are fixed rates.

Originally Posted by dschipman

Greebo, our current rate is 5.45...would you even consider this an option. My DH said a full % or nothing...what are your thoughts.

Use the calculator here> http://www.bankrate.com/calculators/...alculator.aspx

Put in your new mortgage and check your payments.

NOTE: Don't just look at your monthly payments folks. Look at the TOTAL amount you would pay that includes interest and compare what you would pay if you stayed with your current mortgage.

**Greebo** · 12-04-2009, 07:40 PM

Originally Posted by brenda67

Thanks Greebo....I will tell dh...What do you mean by taking more money out?Sorry for so many questions! I am trying to figure it out but I don't understand it!

Ok lets say your house is worth $200,000 and you owe $100,000. When you refinance, you can borrow more against the house than the $100,000 you owe. You could borrow $150,000, pay off the old loan, and get a check for $50,000. That is taking money out, and that is how MOST people got to be owing so much more than their homes were worth. NOT junk mortgages - refinancing.

Originally Posted by ml2620

I re-fied on april at 5.25 percent on a 321k loan. It cost me about 1500 in charges.

Given that I refinanced in April and would likely have to pay some fees for a new refi, and the savings would it be worth it for half a percentage point?

For half a percent? Half a percent on 321k will save you $1,605 the first year. If you can refi it for $1,500 and get that half point? Yes you break even in 1 year, and of course, long term, save thousands.

Originally Posted by miaumiau

Too bad my bank won't consider a refinance if the mortgage principal is less than $100k. 5% sounds a lot better than 6.25%.

It would save you about $100/month if you could. Call around to other brokers. Your situation could make it worth paying a bit more in closing costs. Shop - ask for quotes - haggle.

Originally Posted by dschipman

Greebo, our current rate is 5.45...would you even consider this an option. My DH said a full % or nothing...what are your thoughts.

Depends on what your closing costs would be and the balance of your mortgage.