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      03-04-2020, 04:55 PM   #23
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Originally Posted by rebekahb View Post
Since we're talking about re-fi's, how many people escrow their homeowners, flood, and property taxes vs paying them out of pocket. Ours were escrowed initially, but the current mortgage lady suggested I just pay them each year.
I have never escrowed them. Also have never been late with insurance or tax payments.
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      03-04-2020, 05:04 PM   #24
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Originally Posted by rebekahb View Post
Since we're talking about re-fi's, how many people escrow their homeowners, flood, and property taxes vs paying them out of pocket. Ours were escrowed initially, but the current mortgage lady suggested I just pay them each year.
I have never escrowed flood (pay directly), but always escrow property taxes and homeowners. Never thought of doing it another way to be honest.
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      03-04-2020, 06:33 PM   #25
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In the process of doing a refinance right now from 30 to 20yrs and my monthly payment went up 30bucks. I would say it’s a good time.
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      03-04-2020, 06:39 PM   #26
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Quote:
Originally Posted by rebekahb View Post
Since we're talking about re-fi's, how many people escrow their homeowners, flood, and property taxes vs paying them out of pocket. Ours were escrowed initially, but the current mortgage lady suggested I just pay them each year.
We have ours Escrow'd.
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      03-04-2020, 06:47 PM   #27
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In the process of doing a refinance right now from 30 to 20yrs and my monthly payment went up 30bucks. I would say it’s a good time.
That's beautiful

-
I used to prefer paying taxes and ins myself, but these days I actually prefer an inpound(escrow) acct. Never was late or anything, but it's just easier.
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      03-04-2020, 06:55 PM   #28
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Quote:
Originally Posted by rebekahb View Post
Since we're talking about re-fi's, how many people escrow their homeowners, flood, and property taxes vs paying them out of pocket. Ours were escrowed initially, but the current mortgage lady suggested I just pay them each year.
I've always used an escrow account for property taxes and homeowner's insurance. Two less bill to worry about paying. Did your banker offer a benefit to not using an escrow account?
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      03-04-2020, 07:10 PM   #29
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Quote:
Originally Posted by Clark_Kent View Post
Quote:
Originally Posted by rebekahb View Post
Since we're talking about re-fi's, how many people escrow their homeowners, flood, and property taxes vs paying them out of pocket. Ours were escrowed initially, but the current mortgage lady suggested I just pay them each year.
I've always used an escrow account for property taxes and homeowner's insurance. Two less bill to worry about paying. Did your banker offer a benefit to not using an escrow account?
No, she didn't offer a benefit. I typically pay over $600 extra each month towards principal. She said that we make good money so why tie it up each month. Theoretically, I could transfer that money each month into a side account. Was just curious since we were on the subject. Between the 3 insurances I think it's about 7k/year or a little less.
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      03-04-2020, 07:44 PM   #30
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Originally Posted by VisualEcho View Post
But you'd agree that at the moment it's a great time to refinance, correct? I mean, it could still drop, but probably won't go more than .5 less?
It's too difficult to say without knowing your current balance, current term, where you are in the term, current interest rate, product, and future plans to pay off the mortgage, how long you plan to live in it, etc. It's easy to say, "Yeah, it's a great time to refinance because rates are near historic lows."; however, if your current interest rate is 3.25% and you plan on moving to a new home in the next 18 months then I'd probably say it's not a great time to refinance. It all depends on your current situation and what you're trying to do.
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      03-05-2020, 06:45 AM   #31
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Originally Posted by TboneS54 View Post
That's beautiful

-
I used to prefer paying taxes and ins myself, but these days I actually prefer an inpound(escrow) acct. Never was late or anything, but it's just easier.
I really is! I sold my first house and made pretty good money on it, once the kids came wife wanted a bigger house so we bought our current and hopefully last house 1.5yrs ago when the market was booming but rates were not that great so I had to do 30yrs instead. Luckily they came down a lot so I save 8yrs for $30 dollars more.. my house already went up 40k in value so it’s a great time imo.
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      03-05-2020, 06:53 AM   #32
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Quote:
Originally Posted by rebekahb View Post
Since we're talking about re-fi's, how many people escrow their homeowners, flood, and property taxes vs paying them out of pocket. Ours were escrowed initially, but the current mortgage lady suggested I just pay them each year.
I escrow.
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      03-05-2020, 07:12 AM   #33
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30yr mortgage rates are typically ~1.8% over 10yr UST. They are currently ~2.2% over. The issue is that banks set their own rates and they know full well that these are historic lows. They already have a massive backlog of business at current rates so they're not inclined to drop them to gain a competitive edge.
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      03-05-2020, 07:53 AM   #34
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Originally Posted by VisualEcho View Post
Without points? Forgive me. Is this that the rate is actually lower, but they are selling it higher?
Generally you can purchase points that will lower your interest rate. It is an upfront cost that you can't get back even if you refinance the next day and the cost of each point will differ with bank and the market conditions. It takes longer to breakeven when you buy points and has never really made sense to me vs. just investing the money.

Quote:
Originally Posted by rebekahb View Post
Since we're talking about re-fi's, how many people escrow their homeowners, flood, and property taxes vs paying them out of pocket. Ours were escrowed initially, but the current mortgage lady suggested I just pay them each year.
If the interest rate is the same either way I would personally not escrow as you can earn on the money instead of it just sitting in an account. They usually hold 2+ months of additional for everything that comes out of the escrow so the balances can get pretty large for something you are earning no interest on.

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Originally Posted by Clark_Kent View Post
I've always used an escrow account for property taxes and homeowner's insurance. Two less bill to worry about paying. Did your banker offer a benefit to not using an escrow account?
Most of the banks with the best rates require an escrow and actually have an interest rate penalty (higher rate) if you chose not to escrow.
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      03-05-2020, 07:57 AM   #35
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Originally Posted by KingOfJericho View Post
30yr mortgage rates are typically ~1.8% over 10yr UST. They are currently ~2.2% over. The issue is that banks set their own rates and they know full well that these are historic lows. They already have a massive backlog of business at current rates so they're not inclined to drop them to gain a competitive edge.
The rate I got on my 30y fixed yesterday was 175 bps over the 10y, not sure where you are getting 220 bps from.
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      03-05-2020, 08:44 AM   #36
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The rate I got on my 30y fixed yesterday was 175 bps over the 10y, not sure where you are getting 220 bps from.
You got a 2.75% 30yr fixed?
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      03-05-2020, 09:31 AM   #37
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You got a 2.75% 30yr fixed?
Yeah, I called my local CU yesterday and when they told me the rate was 2.75% for a 30y fixed I jumped on it.
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      03-05-2020, 09:50 AM   #38
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Yeah, I called my local CU yesterday and when they told me the rate was 2.75% for a 30y fixed I jumped on it.
That's pretty far below market. The national average is still in the mid-3% range.
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      03-05-2020, 12:22 PM   #39
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Mortgage rates adjust slower than market rates, so that wider spread should narrow.

On escrow, a larger down payment (20%+) is often sufficient to waive the escrow requirement without a higher interest rate.

To the OP, if you are close to the jumbo limit for your state, consider paying the balance down below that limit before or as part of the refi. Jumbo loans have a higher interest rate than conforming loans. Then look at 15 vs 30, fixed vs ARM, and the other factors that have been discussed in this thread.
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      03-05-2020, 12:25 PM   #40
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Originally Posted by Clark_Kent View Post
It's too difficult to say without knowing your current balance, current term, where you are in the term, current interest rate, product, and future plans to pay off the mortgage, how long you plan to live in it, etc. It's easy to say, "Yeah, it's a great time to refinance because rates are near historic lows."; however, if your current interest rate is 3.25% and you plan on moving to a new home in the next 18 months then I'd probably say it's not a great time to refinance. It all depends on your current situation and what you're trying to do.
BAL: $114,800
PMT: $1,180
YRS LEFT: 13
RATE: 3.375%
APRSL: $250K

Probably live in it for at least 20 years, then buy a new home and rent this one out. Basically trying to pay it off as fast as possible without going overboard on the payment.

I was hoping to get a 10 year note at 2.75% to 2.95%.
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      03-05-2020, 12:40 PM   #41
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I thought mortgage companies required escrows to ensure their investment is protected. If you don't pay your flood policy and the house floats away, the bank is out far more money than the borrower.
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      03-05-2020, 12:42 PM   #42
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Quote:
Originally Posted by VisualEcho View Post
BAL: $114,800
PMT: $1,180
YRS LEFT: 13
RATE: 3.375%
APRSL: $250K

Probably live in it for at least 20 years, then buy a new home and rent this one out. Basically trying to pay it off as fast as possible without going overboard on the payment.

I was hoping to get a 10 year note at 2.75% to 2.95%.
You should be able to get that without issue. I can give you a contact if you'd like.
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      03-05-2020, 12:51 PM   #43
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It may be elementary to some on here....but just wanted to mention.....if you didn't pay 20% down when you bought your house, and now you have either enough equity or made enough payments to get to that level of 80% of the purchase price....you can eliminate your PMI payments as well.

Depending on the value of your house.....you can eliminate $2K+ a year you are paying.
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      03-05-2020, 01:36 PM   #44
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Quote:
Originally Posted by VisualEcho View Post
BAL: $114,800
PMT: $1,180
YRS LEFT: 13
RATE: 3.375%
APRSL: $250K

Probably live in it for at least 20 years, then buy a new home and rent this one out. Basically trying to pay it off as fast as possible without going overboard on the payment.

I was hoping to get a 10 year note at 2.75% to 2.95%.
Based on your numbers you could easily get that payment much lower right now (assuming that is just mortgage you are quoting and not taxes/insurance included which would muddy it up). Personally as low as rates are right now I personally am opting for the longest loan I can and will pay it as slowly as possible.

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Originally Posted by KingOfJericho View Post
I thought mortgage companies required escrows to ensure their investment is protected. If you don't pay your flood policy and the house floats away, the bank is out far more money than the borrower.
This was my understanding as well. I don't think the escrow goes away on most of the loans I have seen as it is tied to the interest rate not the LTV.

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It may be elementary to some on here....but just wanted to mention.....if you didn't pay 20% down when you bought your house, and now you have either enough equity or made enough payments to get to that level of 80% of the purchase price....you can eliminate your PMI payments as well.

Depending on the value of your house.....you can eliminate $2K+ a year you are paying.
My bank requires you to request at 80% and will automatically drop PMI when the LTV is *scheduled* to drop below 78% (assuming normal payments and not what you actually have paid)
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