mortgage refinance question (1 Viewer)

[jazzjack]

Hold out a couple of months and contact your lender for a streamline refinance. Lower closing costs. Rates will usually fall a bit in the spring/early summer and go up in the fall.

 

[varanook]

Hold out a couple of months and contact your lender for a streamline refinance. Lower closing costs. Rates will usually fall a bit in the spring/early summer and go up in the fall.

Thanks,
Good ole countrywide.

 

[saintmdterps]

any more help out there?

It never costs anything to call reputable home lender. If you can't find one of those, call your bank, ask for the loan officer, and ask him/her for recommendations.

We refinanced in 2003 and cut our loan from 30 to 20 years with a monthly payment increase of only $50. We had just bought the house in 2001 for 86k, luckily when prices were low.

I'm going to call shortly and see if there's a benefit to refinancing once again. Like youself, I'm only interested in refinancing the balance owed.

 

[Jeff Miller]

Would it be worth it to refinance at this time?

What morgage company is currently advertising no closing costs?


I currently have a 30 year fixed at 6.75%, I bought in August of 2007 when the rates were a little higher because I had an offer on my previous home and wanted to sale it quickly.

i contacted my previous loan officer at Quicken Loans (which i highly recomend by the way, their service was exellent in every way), here was her response....


I took a look at the loan we have done for you and your rate is fixed in at 6.25%. I promised you that if there was ever a time for us to refinance I would be the first to let you know. When the FED cut rates that only applies to short term rates like home equity lines of credit, and adjustable rate mortgages, it has no effect on long terms rates. Even with them cutting rates it doesn't a big impact on the adjustable mortgages just yet. If anything was to happen I promise I am the first person you will always hear from. Ill talk to you soon. Thanks for contacting me. Have a wonderful night!

 

[ChiTowns Wife]

I dont know what your loan amount is, but for an average size conventional 30 year fixed loan with no points or origination & extremely low lender fees I can quote around 5.75%. I dont know what your circumstances are, but that may be worth it. I am a local lender, just let me know if you would like more details.

 

[efil4stnias]

I dont know what your loan amount is, but for an average size conventional 30 year fixed loan with no points or origination & extremely low lender fees I can quote around 5.75%. I dont know what your circumstances are, but that may be worth it. I am a local lender, just let me know if you would like more details.

I was always told unless you are saving 1-1.5% your wating up your savings in closing costs? Thats what I was told anyway....

 

[St. PJ]

Also, say your house is appraised for 200,000 when you intially made the loan. Since, you have built a shed, or other houses have gone up around you, or whatever, and your house is now worth around 240, 000. You would now have 20% equity in the house, and you could call your mortgage company to see about getting the PMI taken off, which would save you 70-200 per month, depending on how much you pay. It might cost you 400-500 for the appraisel with their guy, but it is worth it to not pay PMI for the next 15 years or so. Also, on a 30yr fixed rate loan, if you make one extra payment per year, like with you income tax refund, and you tell thim to add it to your principle, this knocks 10 years off the loan.

 

[Tapxe]

Also, say your house is appraised for 200,000 when you intially made the loan. Since, you have built a shed, or other houses have gone up around you, or whatever, and your house is now worth around 240, 000. You would now have 20% equity in the house, and you could call your mortgage company to see about getting the PMI taken off, which would save you 70-200 per month, depending on how much you pay. It might cost you 400-500 for the appraisel with their guy, but it is worth it to not pay PMI for the next 15 years or so. Also, on a 30yr fixed rate loan, if you make one extra payment per year, like with you income tax refund, and you tell thim to add it to your principle, this knocks 10 years off the loan.

I've been sending minimum 200 extra per payment since I got the loan; I'm up to 500 min now that the wife is working. It works out to a minimum of 3 years payments per year to principal and then I dump the income tax on it once a year as well. At the current rate, I'll pay the house off in 8-9 years and save 160K+ on interest. It doesn't take a whole lot to make a major difference. I'm only a couple payments from dropping PMI without even needing to appraise.

Yeah, I could invest that and maybe make more, but I consider having a paid for house a much bigger nest egg. Plus, it's much less volatile than the markets. Once the house is paid, I'll start making those payments to retirement funds.

 

[ChiTowns Wife]

I was always told unless you are saving 1-1.5% your wating up your savings in closing costs? Thats what I was told anyway....

I have not heard that one. You should be able to roll your closing costs back into the loan. If you have 100% financing then you do have to wait until you get some equity in your home.
I look at it more as to how long you plan on being in your home to determine if a refi is worth it. For example: If your loan amount is $150K your priciple & interest (PITI) is $923 per month. If you roll in your closing costs lets just assume your loan is going to go up to $152K (depending on what you are paying for taxes & insurance). On $152 with a 5.625% rate PITI is $875. That is about $50 savings per month. If you look at lender fees, appraisal & title attorney fees you will be at about $1400 of purely what it costs to do the loan. I divide what you are essentially putting into the loan to refinance & divide it by how much you are saving monthly to determine if it is worth it to you. In this example you would be saving money in about 2 year. So, if you plan on being in the home for more than 2 years refinancing is worth it. Hope this makes sense

 

[NCSaint]

Bumpity Bump Bump...

Can someone let me know how to avoid an escrow account and just pay taxes/insurance myself once/qtr? I am on the refi fence as well.

 

[dapperdan]

Bumpity Bump Bump...

Can someone let me know how to avoid an escrow account and just pay taxes/insurance myself once/qtr? I am on the refi fence as well.

There is an escrow waiver option, it should be available at virtually any lender as it is a Fannie Mae/Freddie Mac pricing option. It will cost you 0.25% in fee, or $250 per $100,000 in loan amount to choose this option. Like any fee, it can be rolled into either the rate or the loan amount, if your appraised value supports it.

 

[NCSaint]

There is an escrow waiver option, it should be available at virtually any lender as it is a Fannie Mae/Freddie Mac pricing option. It will cost you 0.25% in fee, or $250 per $100,000 in loan amount to choose this option. Like any fee, it can be rolled into either the rate or the loan amount, if your appraised value supports it.

Thanks DD -- exactly what my refi guy just told me.

 

[jimwnola]

Bumpity Bump Bump...

Can someone let me know how to avoid an escrow account and just pay taxes/insurance myself once/qtr? I am on the refi fence as well.

The only way I know is to have no mortgage.