Mortgage - refinancing

Have you done the calculations to see how much the additional closing costs would be, financed at your new rate over the life of the loan?

You'd be saving 100 per month, but if you add in closing costs and another couple of years of financing, do you save in the long run?

 

Just that there are some transaction fees to be paid to do the title, lending fees, appraisal, credit report, etc. If you save $100/month on payments, you'll probably come out ahead in a year or two.

 

I'd welcome you with open arms breh. we can talk all day about movies and I'll even show you some of mine and talk about our favorite positions

 

You can probably lower your payment without adding years to your loan even with the added refinance fee. See what a 28 yr mortgage at that rate would cost.

 

I would wait for another drop. I can see another .25% soon.

 

Closing costs will be around 3-5% of current principal balance. You'll breakeven in a few years but you might need to come up with the cash right away unless the fees are baked back into your new loan. Another roundabout method to effectively lower your interest rate is to pay more toward your monthly payment each month.

 

I know there's a joke in there somewhere.

 

Do you have a relationship with a local bank and officer, or are you dealing with a conglomerate of nameless drones?

 

I'm looking at refinancing too. Anyone have experience doing an FHA Streamlined refinance? Bought my house almost 3 years ago with a 4.87% interest rate. Seeing rates advertised at 2.50 with excellent credit. Just looking for a lender with very small closing costs, if any.

 

Check out better.com
Just used them for a 30 fixed refi at 2.625 and close on Saturday. All online and the title agent comes to your house for closing.

 

I was similar to OP. Just signed the papers last week. Was at 4.25 on a 30 year that I was 6 years into. Got down to 2.35 on a 15 year. Paying around 120 extra a month now, but it is more than worth it to shave off 10 years(and all that equity if we sell in 10). If anyone needs a person you can dm. He was very professional and answered all my dumb questions. Based in Houston also, and sadly no, I don’t get any kick backs.

 

How long did their entire process take from start to finish? What did the closing costs look like?

 

Do an estimate on their site to see.

 

Every single person should be refinancing their house if they haven’t in the past year, it’s a no brainer and you are just throwing away money if you don’t.

You can get a no closing cost/no fees rate so you don’t have any up front costs.

I would recommend doing a 30 yr for most and just paying more per month if you want to pay off faster. It gives you flexibility in case life happens in the future.

Dont be lazy and refinance if you haven’t already.

 

I think, depending on what you owe, if the spread is more than 1 btw your old and what you can get now it's worth it, otherwise it gets washed away with costs or you're just saving a few hundred dollars over 30 years, like not even worth the hassle (for me personally)

Also, you can go to a shorter term to move up your payoff date, if you're into that kind of thing. I'm not but some people like that feeling.

 

That's where I am on it. We got a great rate when we bought our home last April. Rates have gone down, but I doubt we'd see a spread of 1...and with closing costs, just don't see it being worth it. I actually just sent an email to a loan officer about that earlier this morning.

 

Same boat as you. got my home in 16 at 3.5. I doubt i save a $1 after closing costs.

 

And also the difference in interest that one can deduct on their taxes should be factored in.