Short story: I took a $500k loan on $1M purchase one year ago, had 3 banks compete… they all started around 7.1% for 30yr fixed conventional and no points, but they incrementally “beat” each other bit by bit until one of them offered 6.65% and I went with that. The other two dropped out saying they couldn’t compete at that time. 800 credit. State of Texas. … Same lender now called offering me zero cost refi at 5.875%, absolutely no loan costs. Free appraisal. Literally not $1 from me, except the new rate being a lot higher than what’s out there potentially, for a fee. I locked it. Reasoning is: I wanna do this again in a year and don’t want any closing costs at all, even if I could get 5.65% by paying a few thousand in closing. Im worried I would refi again before breaking even on any closing cost. Am I thinking about this in the right way? Am I overlooking something dumb? Is anyone getting a better deal than this out there somewhere?
ETA: asking because I’m getting literally 25 calls a day since my credit was run. Of course none of them know my deal but they all say they can beat it “whatever it is”. I’m paralyzed and have done ZERO comparison shopping.
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Yeah makes sense. The trigger lenders are going to say anything. They paid .83 to get your info. You could probably get 5.5% right now no lender fees just title and recording so 5.875 sounds about right covering that and more. They aren’t covering your escrow account though can’t be.
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Thanks. I don’t currently (or future plan to) escrow any taxes or premiums so you’re right, that’s not part of it.
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NFCU is offering the following (as of the about a week ago…) on a 15 year conventional loan.
4.375 - .75 points/1% origination
4.5 - .5 points/1% origination
4.625- .25 points/1% origination
4.75 - no points/ 1% origination
4.875 - no points/ .5% origination
5% - No points/No origination
5.125 - .125 to buyer
5.25 - .25 to buyer
5.375 - .625 to buyer
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If you’re not paying costs and you’re saving $$ and the lender already cut costs once for you, go with them. There’s always a better deal, and if there’s not today, there will be next week when the market improves. Your strategy is good though, ride the wave down with no cost loans, then if you decide to pay costs for a lower rate down the line, do it when the market nears the bottom.
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Use a broker to shop. They will price comparison for you.
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It’s a good deal in my pov.
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