U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 10-08-2013, 09:02 AM
 
472 posts, read 397,210 times
Reputation: 186

Advertisements

Quote:
Originally Posted by sj08054 View Post
1. You are not really resetting your amortization much since it's a new loan
The exact reason why I'm looking to do the refinance NOW .

Quote:
Originally Posted by sj08054 View Post
2. but what's the real cost of closing on the new loan? If you can get a those refi rate with true zero fee, go for it.
4.25 I'm getting w/no closing costs. 4.125 w/2.6k closing costs. I'm leaning towards 4.25 as that means if the rates were to fall further then the very fact that I've ploughed in 2.6k of my money towards closing will act as a deterrent to refi.
Reply With Quote Quick reply to this message

 
Old 10-08-2013, 10:50 AM
 
Location: Southern California
4,350 posts, read 4,935,999 times
Reputation: 2129
Quote:
Originally Posted by sj08054 View Post
OP is now looking for a new lender that will offer 4.125 with no point and no closing cost. Do you think that is likly going to happen? It has been recommended numerous time for OP to just move on and enjoy the new purchase.
I think it can happen. Who thought it was likely for a Non owner occupied loan in early 2013 for under 4%? Have you consider your rate of return of that $2600 at 4.125% What rate would it take you to refinance at a cost of $2600?

I disagree with many of the poster that the OP should move on. Why would anyone leave $100 a month on the table. If the Borrower feels so bad they are hurting their previous lender, then they can refinance , take the monthly saving and give it to their former broker. That is essentially what they are doing by not refinancing.
Reply With Quote Quick reply to this message
 
Old 10-08-2013, 11:00 AM
 
472 posts, read 397,210 times
Reputation: 186
I've created a new thread @ First time refinancer: What to look out for?... Use this thread to post your suggestions regarding the procedural pitfalls that I shall encounter during the refi process.

Thanks.
Reply With Quote Quick reply to this message
 
Old 10-08-2013, 11:05 AM
 
472 posts, read 397,210 times
Reputation: 186
Quote:
Originally Posted by thelopez2 View Post
Have you consider your rate of return of that $2600 at 4.125% What rate would it take you to refinance at a cost of $2600?
Quote:
Originally Posted by thelopez2 View Post
I disagree with many of the poster that the OP should move on. Why would anyone leave $100 a month on the table. If the Borrower feels so bad they are hurting their previous lender, then they can refinance , take the monthly saving and give it to their former broker. That is essentially what they are doing by not refinancing.
Thanks for echoing my feelings. If the loan amount or the delta in monthly payments was smaller I would've probably not bothered to look @ refi soon after closing but I don't want to miss out on what could potentially be a once-in-the-lifetime-of-the-mortgage opportunity. Also, I don't want the loan officer not to earn some money from my deal but neither would I want to be hurt financially.
Reply With Quote Quick reply to this message
 
Old 10-10-2013, 12:55 PM
 
Location: Living on the Coast in Oxnard CA
15,372 posts, read 25,586,306 times
Reputation: 19646
Another way to save money on the cost of borrowing is to simply pay more on the principle each month. You will pay off the loan quicker and save yourself lots of money in the process.
Reply With Quote Quick reply to this message
 
Old 10-14-2013, 08:13 AM
 
Location: Southern California
4,350 posts, read 4,935,999 times
Reputation: 2129
Quote:
Originally Posted by SOON2BNSURPRISE View Post
Another way to save money on the cost of borrowing is to simply pay more on the principle each month. You will pay off the loan quicker and save yourself lots of money in the process.
Well the OP is considering saving money by having a "no cost" nothing added to the loan. They'd sill be able to pay more principle each month , but even more will go towards principal.
Reply With Quote Quick reply to this message
 
Old 01-29-2016, 01:15 PM
 
1 posts, read 638 times
Reputation: 10
I see that no one takes in to consideration the current loan term or how long have they been paying on the current term... you must calculate savings based on what is left on the loan vs starting another 30 yr and then add the already lost interest and time added. the savings a month with the lower rate would be better to add that same amount to principal on the current mortgage.

typically better to save with a full 1 percentage point lower.


also a no cost refi well is you loan amount the same with the new refi or has it increased. if it has increased then I would not consider that a no closing cost refi.... also what some fail to mention is that their escrows get refunded back and the skipping of a payment or two but the loan already includes the interest for the month......
Reply With Quote Quick reply to this message
 
Old 02-03-2016, 07:19 PM
 
200 posts, read 123,882 times
Reputation: 32
Is 3.75 no points considered an OK rate at this time? My lucky friends got 3.625 last year
Reply With Quote Quick reply to this message
 
Old 02-03-2016, 10:01 PM
 
Location: MID ATLANTIC
7,600 posts, read 17,629,190 times
Reputation: 8084
It's good, but wiithout a loan to value and credit score, its hard to say. If you don't lock tomorrow, be ready for some bonco riding. Friday morning the unemployment comes out, guaranteed to drive your blood pressure sky high.
Reply With Quote Quick reply to this message
 
Old 02-06-2016, 08:30 AM
 
200 posts, read 123,882 times
Reputation: 32
Quote:
Originally Posted by SmartMoney View Post
It's good, but wiithout a loan to value and credit score, its hard to say. If you don't lock tomorrow, be ready for some bonco riding. Friday morning the unemployment comes out, guaranteed to drive your blood pressure sky high.
Are you a banker or realtor? As i hear these pressure tactic statements way too often to succumb the buyer into locking, having personally gone through it a month ago, there's no magic ball out there, just speculations and creating temporary urgency in the minds of a buyer, no wonder, the 3 money making industries in US are solely based on pressure tactic game: Stocks, Realtor Work, Mortgage Rates.

I do understand that Feds are not kidding anymore and rates may spike, but not the way it was described to me, ohh they had a meeting today, oh the rates are jumping now, oh the world will crash tomorrow, lock today and sleep peacefully forever...wtf....moments i had to endure
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top