Mortgages - refinance rate usually higher first time rate?

[beaujolais]

Mortgages - Is the refinance rate usually higher than a first time mortgage rate? And why don't banks list the refinance rate on their website site (seems sneaky to me)?

Thanks so much knowledgeable & sparkly friends !

 

[sonnyjane]

Re: Mortgages - refinance rate usually higher first time rat

Most people refinance for a LOWER rate. That's why I'd imagine most banks don't advertise it, they don't want people paying less. Are you having a different experience?

 

[beaujolais]

Re: Mortgages - refinance rate usually higher first time rat

Oh, yes, I am refinancing for a lower rate than my original rate.

Right now, on the TD Bank website it says a certain rate but I hear that is for new mortgages and that a refinance rate is higher than an original mortgage rate (but they don't list the refinance rate anywhere).

thanks so much

 

[sonnyjane]

Re: Mortgages - refinance rate usually higher first time rat

Oh oh, are you saying that the refinance rate for someone that has an existing mortgage is higher than SOMEONE ELSE'S rate if they were to take out a new mortgage? Yes, THAT can be true. I thought you were saying that the refinance rate you were offered was higher than YOUR original mortgage rate, to which I was going to say forget that!!!

 

[rubybeth]

Re: Mortgages - refinance rate usually higher first time rat

Interest rates are going to vary based on a number of factors, so yes, someone's refinance rate could be higher than someone else's first-time rate. People with larger down payments get lower rates, and people who have more principal paid down may also get a lower rate. Buying a smaller, cheaper house might mean you get a lower rate than someone buying a larger, more expensive house. Higher credit scores will get you a lower rate, or banks that do manual underwriting (looking at your whole financial picture, not just your credit score) might give you lower rates, as well. This is why banks can't just advertise general rates. Each individual loan gets a unique rate. I might have a worse credit score than you, but have a larger down payment, and so get the same rate as you.

 

[beaujolais]

Re: Mortgages - refinance rate usually higher first time rat

thanks so much all !