IRRRL finance rates?

[gpeach]

What is a good rate for an IRRRL at this time?

What if they are charging a 1% orgination fee? What kind of rate should I get? 

When should I get a GFE from the broker? 

Do you recommend a certain company? BOA, NFCU, USAA???

[BrianB_The_Loan_Professor]

Just checked two different rate sheets and for a point you should be at least getting 3.75% to 3.875% on a 30

Crazy thing is the same rate sheet was paying 2.5% towards closing costs at 4.25% (obviously without charging any points) so a lot of range in between.

if you can afford to cover the costs you can go for the lower rate and if not you can still get an amazing rate and not have to come out of pocket with much

Hope this helps

B

[Anonymous]

Rates are quite a bit different for lender paid compensation and borrower paid compensation, as Brian had pointed out. We are seeing a lot of IRRRLs that are being done without adding much at all to the existing loan balance. Some of what can be done will be determined by your loan amount and closing costs (which are impacted somewhat by your local taxes, etc).

I suggest getting a few quotes from lenders and analyzing what meets your short and long term goals best.  See what your break even point is, and make sure that fits with your plans.

Good luck and thanks for serving.

[gpeach]

Getting three and picking best.

Big Bank basic info: 1: 3.75% no points. 

Our Big Bank current holder: no info yet

Broker we used to buy house: no GFE yet 

BUT the broker was talking 4.0 with 1% origination fee when we were talking a few weeks ago. If they come back with that should I ask them to match the big bank? Would they? I asked them for the info but have not gotten anything yet. They pulled our credit and are putting an app together. But still no GFE.

[Anonymous]

Sure..you can ask them to match any other offer. You should get a GFE with the application. Keep in mind, the new GFE is really lacking in applicable info. What you need to look at is the amount your loan amount is going up and monthly savings. That is the real comparison on a refi.

[gpeach]

So I ended up going with BOA that holds the loan. They offered us 4.25 no orgination fee. Ad we get one float down. Hoping for 4.00....

They do not do an apprasial. Due to market changes we were afraid we may be slightly underwater. So this is best route. 4.25 is great considering everything. We will save more in the first year than the cost to do the refinance! 

Takes 30-45 days..... will update my experience for others considering this route. For other VA loan holders IRRRL seems to be a great way to refinance for little cost if you can. 

[Anonymous]

Are they increasing your current loan amount? They should also be able to do an escrow impound transfer to avoid starting a new imoound account, which will also keep your new loan amount lower.

[gpeach]

It will be aprox 2000 for va fee and the refinance costs. They can roll those into the loan. And yes he said they will transfer the escrow.  

[BrianB_The_Loan_Professor]

I assume you are getting a huge credit to cover the closing costs - that is a great way to go if you are short the funds needed to close - it is also nice that you can do this without the appraisal - it keeps the costs down and like you said ne stress when it comes to the value -

Good Luck with the loan

B

[Anonymous]

This is how the new rules are slanted to favor big banks. They are not required to disclose on page 2 of the GFE in box 2 the amount they are making on the loan. They can check the first box, while others need to check the second box. We are limited in how much we can make on a loan. At 4.25%, you should be getting a BIG discount towards your closing costs, if not in fact paying all of them, thus reducing your total loan amount or keeping your new loan amount the same as your current.