Can the 91 day rule be broken?
Jun 21, 2013 | 9:52 am
#16
Suspended
Join Date: Dec 2006
Location: USA
Programs: All major programs
Posts: 1,403
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A week later, I refinanced my car through lending tree (five hard pulls) and secured a home loan through BNC Bank (a couple more hard pulls). I will be closing on my house next Friday and have exceeded the minimum spends on all my cards. I'd like to sign up for 2-3 more cards to take advantage of all the spend I will have coming up with the new house. In particular, I'd like to get in on the Delta Plat Biz card with 55k bonus, which expires on July 7.
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A week later, I refinanced my car through lending tree (five hard pulls) and secured a home loan through BNC Bank (a couple more hard pulls). I will be closing on my house next Friday and have exceeded the minimum spends on all my cards. I'd like to sign up for 2-3 more cards to take advantage of all the spend I will have coming up with the new house. In particular, I'd like to get in on the Delta Plat Biz card with 55k bonus, which expires on July 7.
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Jun 21, 2013 | 10:19 am
#17
Join Date: Jan 2003
Location: California
Posts: 1,434
More data:
If you locked at Cashcall about 5/1, your rate was 3.375% for a 30 year conforming loan no cost no fee.
Today, the same rate from Cashcall would be 4.375% NCNF. This is the worst possible time to spook the underwriter.
If rates were lower or similar today, I still might not AOR if I lose the appraisal fee in the process. If there is no appraisal fee to lose (that's rare today) in a falling interest rate environment, then AOR away.
There is also mortgage churning by going after the lender credit for prepaids, but that's not profitable in a rising rate environment. Mortgage churning requires a clean bank account with payroll. So you need a second checking account for the shady stuff.
If you couldn't refi in April or early May due to a very recent AOR, it really did cost you a lot of money to go after the miles and points. The low interest rate train has left the station and is already a few hundred miles away. I would not want to be in your shoes trying to figure out whether or not to lock or not at today's much crappier rates.
If you locked at Cashcall about 5/1, your rate was 3.375% for a 30 year conforming loan no cost no fee.
Today, the same rate from Cashcall would be 4.375% NCNF. This is the worst possible time to spook the underwriter.
If rates were lower or similar today, I still might not AOR if I lose the appraisal fee in the process. If there is no appraisal fee to lose (that's rare today) in a falling interest rate environment, then AOR away.
There is also mortgage churning by going after the lender credit for prepaids, but that's not profitable in a rising rate environment. Mortgage churning requires a clean bank account with payroll. So you need a second checking account for the shady stuff.
If you couldn't refi in April or early May due to a very recent AOR, it really did cost you a lot of money to go after the miles and points. The low interest rate train has left the station and is already a few hundred miles away. I would not want to be in your shoes trying to figure out whether or not to lock or not at today's much crappier rates.
Jun 21, 2013 | 3:45 pm
#18
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Jun 21, 2013 | 4:18 pm
#19
Join Date: Jan 2003
Location: California
Posts: 1,434
Even more data after the markets closed:
Cashcall repriced same day and it is now 4.5% NCNF for 30 year conforming.
3.625% NCNF 15 year conforming
4.875% NCNF 30 year jumbo
To get back to 4.000% on a 30 year this afternoon, you have to pay a whopping 4.5 points. That is $13,500 not including the other costs of the loan on $300k. Points and miles won't make up $13.5+k.
Cashcall repriced same day and it is now 4.5% NCNF for 30 year conforming.
3.625% NCNF 15 year conforming
4.875% NCNF 30 year jumbo
To get back to 4.000% on a 30 year this afternoon, you have to pay a whopping 4.5 points. That is $13,500 not including the other costs of the loan on $300k. Points and miles won't make up $13.5+k.
Jun 22, 2013 | 9:43 am
#20
Original Poster
Join Date: Sep 2012
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Posts: 190
Even more data after the markets closed:
Cashcall repriced same day and it is now 4.5% NCNF for 30 year conforming.
3.625% NCNF 15 year conforming
4.875% NCNF 30 year jumbo
To get back to 4.000% on a 30 year this afternoon, you have to pay a whopping 4.5 points. That is $13,500 not including the other costs of the loan on $300k. Points and miles won't make up $13.5+k.
Cashcall repriced same day and it is now 4.5% NCNF for 30 year conforming.
3.625% NCNF 15 year conforming
4.875% NCNF 30 year jumbo
To get back to 4.000% on a 30 year this afternoon, you have to pay a whopping 4.5 points. That is $13,500 not including the other costs of the loan on $300k. Points and miles won't make up $13.5+k.
I wasn't asking whether I should lock rates now or wait... but maybe I missed part of the conversation.
Jun 24, 2013 | 7:53 pm
#22
Join Date: Apr 2013
Posts: 260
I must have missed some of this conversation. But, if you were referring to my original post, I locked my rate in April at 3.25% and will close this coming Friday. Per the recommendations from all the earlier posts, I will likely wait until the following Monday or Tuesday before doing my mini AOR - 2 months after my previous one.
I wasn't asking whether I should lock rates now or wait... but maybe I missed part of the conversation.
I wasn't asking whether I should lock rates now or wait... but maybe I missed part of the conversation.
Even more so in your case because you're locked in at a great rate that's getting better by the day. If you blow this opportunity you're looking at a 1+% higher rate given the way mortgage rates have been rising. Your 3.25% rate is worth waaaaaaaaay more than whatever you were going to get on the AoR.
Let the mortgage fund, then do the AoR.