There are many benefits of being unemployed. Getting the respect of mortgage bankers is not one of them. I’ve been fortunate over the past 10 years to refinance multiple properties, multiple times. Economic Armageddon and easy monetary policy by the Fed is literally saving me hundreds of thousands of dollars in interest expense. To experience a recovery in stocks and real estate while not having to give up lower payments is rewarding. This disconnect will eventually lead to another asset class implosion, but we’re still a long ways away.
I’ve been sitting on a refinance high after finishing my loan modification with Bank of America this past January. They contacted me out of the blue asking if I wanted to lower my 30-year fixed rate for my vacation property down to 4.25% from 5.875% for no charge. 4.25% is not the best rate, but beggars can’t be choosers given the secondary market for condotel mortgages is still closed. The process took a total of 2.5 weeks and closed without a hitch, unlike my epic primary home mortgage refinance in the Spring of 2012.
With the 10-year Treasury yield falling back down to ~2.4% in 2H2017, I was not expecting to refinance my primary home mortgage rate of 2.625% so soon. So it was with great surprise that a Citimortgage officer cold called me asking whether I’d like to refinance my 5/1 jumbo ARM down to 2.375%! Banks are now giving up more margins to win business as competition heats up.
The move from 2.625% down to 2.375% is only a 0.25% decrease. Normally I wouldn’t waste my time for anything less than a 0.5% reduction. However, Citibank was offering to pay for all closing costs so I figured why not. I’ve been through this song and dance so many times I’m willing to bear potentially 100 days of frustration to save some money. Refi as many times as possible. As an unemployed person, every dollar counts!