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Got the mortgage in February 2009. Mortgage was for 224K.
The update is I just contacted my loan officer that did the original loan, and she said that I qualify for the Obama Refi program so I don't have to get an appraisal for the refi (saves $400). I currently owe 207K on the loan, and if I refi, I plan on bringing 7K in cash to closing to have an even 200K mortgage. My GFE for closing costs will be $1,900 (alot cheaper than I thought, but its b/c I do not have to pay any original fees or points). The rate will be for 3.75% fixed with no points or fees.
I need you City-data financial gurus to let me know what you think. I think its a no brainer to refi now, even though the rule is 1 point reduction at the minimum (I would be going down 0.75%). She originally didn't think so just looking at my original rate of 4.5%, but when she crunched the numbers, she was like actually maybe you want to b/c it will save probably around 1K a year at least for us. We plan on being here for the next 15 years.
That said, what I think I have decided to do is keep my current mortgage, but put a $15,000, one time payment to principal this month. Since I still have 13 1/2 years left, it said I would save almost 12K by doing this 1 time payment, so I think that is what I am going to do. Can I get some opinions from you guys before I pull the trigger? And no, I will not be stretching us thin at all by doing this $15,000 payment if anyone is curious, so that will not be a problem.
I am not doing a no closing cost at 4%. They do not offer it. I would be doing 3.75% fixed 15-year with the total fees/closing costs being $1,900. I have to pay no points.
My bigger question is, which option should I go with of the 3:
A) Refinance for the 207K balance owed on my mortgage, then put $15,000 down on the first payment
B)Refinance for a new mortgage amount of 192K, bringing $15,000 with me to close.
C)Do not refinance, keep the 4.5% rate, and just put a $15,000 one time payment to principal in this month
I cannot really find something online that shows me what the best option in this scenario would be. I have currently paid around $14,500 in interest so far over the last 18 months on this current mortgage, btw. Just give me any feedback on these situations if you will, especially in regard to determining how much the savings difference is between options A or B.
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