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30-Year Mortgage Rate Reaches Lowest Level Ever: 2.98%

17 points by avonmach 6y ago

markwaldron 6y ago
I've seen rates as low as 2.75% on Better (500k mortgage with 5% down). As someone who was a first-time homebuyer a.little over a year ago, I've been wrestling with the pros and cons of refinancing now to drop my 4.2% interest rate. A few friends and coworkers have done it recently, but it seems to only make sicne if you're not getting killed with closing costs.
- xur17 6y ago
  When I looked on Better, 2.75% included points.
- toast0 6y ago
  A $400k 30-year loan at 4.2% has a $2309 payment (bankrate calculator, zeroed out down payment, tax, and insurance), and a 3% loan payment is $1686. $625/month savings will quickly pay back any reasonable closing costs. If your loan balance is higher, it makes more sense.
- joezydeco 6y ago
  Find a broker that will get you a no-cost refi (they wrap the costs into the principal, raising your payment about 1-2%). You can easily do better than what you're getting now.
- hbcondo714 6y ago
  We purchased a 3 unit almost a year ago through Chase and got a 30-year mortgage at 3.75%, no points. Very tempting to refinance but our lender says the lowest he can get is 3.175% with points. I tried Better but it keeps saying "no results found"
- Gibbon1 6y ago
  Paying attention to closing costs is important. Because who likes getting screwed even if you come out ahead. Which you will because dropping your rate from 4.2% to 3% will break even around 18 months and save about $140k in interest.
tdrp 6y ago
I was rejected for one a couple of months ago even though I could have paid it in cash a few times over. They really don't like start-ups that don't have super regular income flows, and really don't look at much else if that condition isn't met. I assume a few people on here are in that bucket.
- deleted 6y ago
  [deleted]
- bequanna 6y ago
  Pay cash, ‘season’ the property for 6-12 months with renters and THEN finance. It is typically easier to get financing on property you already own vs. new purchase.
  - toomuchtodo 6y ago
    For those who need the magic incantations, this is a cash out refinance (where you’re stripping cash out of the property with your equity). If you’re not taking cash out, it’s just a “rate and term” refi (which are usually very easy to have done, depending on your financial and credit situation).
singhrac 6y ago
Out of curiosity, homeowners, would you recommend it for someone young who hasn't settled down yet, assuming you could pay off the mortgage fairly quickly? Is there a lot of hassle in renting out an apartment using a broker, is hiring a property manager difficult, are there are surprising fees that make it a bad investment?
- toomuchtodo 6y ago
  If you’re not overpaying first the property, absolutely. Renting gives you flexibility, but do you need it if you can work remote? Owning gives you control over the property, and allows you (instead of your landlord) to capture any future appreciation.
  - 0xy 6y ago
    The engineers who think this will enable them to live in North Dakota for $600/month rent and earn FAANG money are delusional. Even adjusting for cost of living you're going to get screwed in negotiations. Owning a property when you're young is a liability in that it prevents you seeking opportunities which may dramatically boost your career and income.
    - toomuchtodo 6y ago
      Not everyone wants to work for a FAANG, whether due to geography, career goals, skill set, or ethics.
      - 0xy 6y ago
        When I said "FAANG money" I really just meant Bay Area tier compensation. Obviously FAANG are in a class of their own but even startup salaries are inflated compared to anywhere else. But $200k for a fresh grad isn't going to happen anywhere other than the Bay Area. Companies only pay that due to insane competition and cost of living. Why pay $200k for a fresh grad in North Dakota when they could get four equivalent skilled people for the same price?
lowken10 6y ago
I just closed a 30 year fixed at 2.75%. I'm very grateful for such a low rate.

17 points by avonmach 6y ago

I've seen rates as low as 2.75% on Better (500k mortgage with 5% down). As someone who was a first-time homebuyer a.little over a year ago, I've been wrestling with the pros and cons of refinancing now to drop my 4.2% interest rate. A few friends and coworkers have done it recently, but it seems to only make sicne if you're not getting killed with closing costs.

xur17 6y ago
When I looked on Better, 2.75% included points.
toast0 6y ago
A $400k 30-year loan at 4.2% has a $2309 payment (bankrate calculator, zeroed out down payment, tax, and insurance), and a 3% loan payment is $1686. $625/month savings will quickly pay back any reasonable closing costs. If your loan balance is higher, it makes more sense.
joezydeco 6y ago
Find a broker that will get you a no-cost refi (they wrap the costs into the principal, raising your payment about 1-2%). You can easily do better than what you're getting now.
hbcondo714 6y ago
We purchased a 3 unit almost a year ago through Chase and got a 30-year mortgage at 3.75%, no points. Very tempting to refinance but our lender says the lowest he can get is 3.175% with points. I tried Better but it keeps saying "no results found"
Gibbon1 6y ago
Paying attention to closing costs is important. Because who likes getting screwed even if you come out ahead. Which you will because dropping your rate from 4.2% to 3% will break even around 18 months and save about $140k in interest.

tdrp 6y ago

I was rejected for one a couple of months ago even though I could have paid it in cash a few times over. They really don't like start-ups that don't have super regular income flows, and really don't look at much else if that condition isn't met. I assume a few people on here are in that bucket.

deleted 6y ago
[deleted]
bequanna 6y ago
Pay cash, ‘season’ the property for 6-12 months with renters and THEN finance. It is typically easier to get financing on property you already own vs. new purchase.
- toomuchtodo 6y ago
  For those who need the magic incantations, this is a cash out refinance (where you’re stripping cash out of the property with your equity). If you’re not taking cash out, it’s just a “rate and term” refi (which are usually very easy to have done, depending on your financial and credit situation).

singhrac 6y ago

Out of curiosity, homeowners, would you recommend it for someone young who hasn't settled down yet, assuming you could pay off the mortgage fairly quickly? Is there a lot of hassle in renting out an apartment using a broker, is hiring a property manager difficult, are there are surprising fees that make it a bad investment?

toomuchtodo 6y ago
If you’re not overpaying first the property, absolutely. Renting gives you flexibility, but do you need it if you can work remote? Owning gives you control over the property, and allows you (instead of your landlord) to capture any future appreciation.
- 0xy 6y ago
  The engineers who think this will enable them to live in North Dakota for $600/month rent and earn FAANG money are delusional. Even adjusting for cost of living you're going to get screwed in negotiations. Owning a property when you're young is a liability in that it prevents you seeking opportunities which may dramatically boost your career and income.
  - toomuchtodo 6y ago
    Not everyone wants to work for a FAANG, whether due to geography, career goals, skill set, or ethics.
    - 0xy 6y ago
      When I said "FAANG money" I really just meant Bay Area tier compensation. Obviously FAANG are in a class of their own but even startup salaries are inflated compared to anywhere else. But $200k for a fresh grad isn't going to happen anywhere other than the Bay Area. Companies only pay that due to insane competition and cost of living. Why pay $200k for a fresh grad in North Dakota when they could get four equivalent skilled people for the same price?

lowken10 6y ago

I just closed a 30 year fixed at 2.75%. I'm very grateful for such a low rate.