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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][img][quote=Anonymous]If anyone has the ability to reliably predict future interest rates, please let me know as I’ll shift all of my investments to them.

OP, nobody knows. Also, mortgage rates respond to many economic signals besides the federal funds rate so a reduction in fed funds rate doesn’t necessarily mean a direct reduction in retail mortgage rates.[/quote]

+100. Get a mortgage now and if rates drop you can refinance[/quote]

Terrible advice. Of course rates are going to drop.[/quote]

How can that be bad advice? If you can’t afford the house at current rates don’t buy it. If you can afford it and want the house then get the house and you have protection is rates go up and flexibility if rates go down. [/quote]

because you have to pay closing costs either roll it in and increase your balance or pay out of pocket, they aren't free. It would be nice if refis were free but everyone has their grubby hands out for fees. On a $600k refinance here’s what it really looks like:

Typical fees

Application: up to $500

Origination/underwriting: $300–$500

Appraisal: $300–$700

Credit report: up to $80

Title search & related: $400–$900

Lender’s title insurance premium: about $1,500

Document prep: $50–$600

Recording fee: $20–$250

Reconveyance fee: $50–$100

Escrow prepaids

Property taxes (2–6 months): $800–$3,000+

Homeowners insurance (1 yr + 2 months): $1,400–$1,700

Taxes (Virginia specific)

State recordation tax ($0.25 per $100): $1,500

Local recordation add-on (often ⅓ of state): ~$500

Intangible tax ($0.15 per $100): $900

Totals

Standard fees: $3,000–$4,600

Escrow prepaids: $2,200–$4,700

Taxes: ~$2,400–$2,900

Overall: $7,600–$12,200

And every time you refinance you’re forced to buy a new lender’s title policy even though the title was already cleared. That’s why the title insurance industry is a $16+ billion a year business in the U.S. It feels like a racket: you pay again and again for coverage you already had, and there’s no real reason to get a new one if the title check is clean.[/quote]

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