I believe so. I called around to see if my existing 2.75 30yr could be refinanced downwards to 2.5. I was ready to pay some points to get there since I wont move soon and I am possibly reaching the point of diminishing returns, plus the inflation rate is increasing, so it didnt' seem like much of a risk.gmang wrote: ↑Mon May 10, 2021 5:15 pm Is BofA getting aggressive? My BofA rep came from out of the blue with a quote for a 2% coupon / 2.4% APR 7y ARM IO refi. Moving $500k in new assets to BAML reduces it another 25 bps for 1.75%/2.15% APR all in. That seems pretty wild for an IO. The quote actually had no penalty for choosing an IO versus an amortizing mortgage. I am not even sure it is worth looking anywhere else? I can move pretty substantial assets. This is in the SF Bay Area.
Tried Chase, BofA and WF.
Chase told me 2.625 with an eighth point and I pay closing costs. Not really worth it, paying essentially $6-7k between fees and .125 point to save $75 a month pretax, and probably $50 post tax..
BofA offered to modify my existing loan down to 2.5% for a $950 fee since it has been at least a year since I got the loan. Weirdly, it has actually been a year since the application date and not since the signing, but I am not quibbling. I took it, even without hearing back from WF (who still gives me the creeps from their prior behavior, which was well documented in the newspapers). This is about a 6.5 month payback pretax and under a year post-tax (although I didn't bother to formally calculate).
I started this journey two years ago, with 3.875% at a $4790 mortgage payment.I then went to 3.25%, at about $4400, and then to 2.75%, at $4070. Now going to 2.5% at $3922. I've saved almost 900 a month pretax, and locked it in for the next 30 years. Along the way, I also generated about $7k in cash and bonuses. I estimate the total benefit in net present value terms at $50-70k. Which is frankly, astonishing given that I had to learn about all this stuff by trial and error (and lots of effort).
I hope you guys can benefit as much as I did.
FYI, I would take the 7 year IO. that's just bonkers and even pretax is below the 2.4% implied 5-year inflation rate as measured by the St. Louis Fed.