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I have been shopping around for refinancing of my 30-year fixed mortgage with rates sliding. My current loan is owned by Wells Fargo and has approx. $439,000 remaining at 5.125% (yes, entirely too high). My home was assessed at $595,000 last summer at the time of first getting the mortgage. I am hoping our credit scores will at a minimum be 720+, but I have been asking for quotes in the different ranges. A few current quotes for a 30-year fixed rate mortgage refinance include:
Wells Fargo:
-4.06% APR with $3,500 in closing costs (assuming 740+ credit score)
-4.125% with no closing costs and a lender credit of $3,000 (how is this possible? maybe I misunderstood)(assuming 740+ credit score)
-"Loan Amendment" where I apply for a mortgage, lock in a rate, and hope I get approved for an amendment. This would be ideal as I maintain my current mortgage, but with a lower rate. No closing costs associated with this.
-4.03% with $3,500 in closing costs (assuming 720 credit score)
-4.13% with $2,000 lender credit (assuming 720 credit score)
Cambridge Savings:
-3.75% with no points and $2,780 in closing costs (assuming 740+ credit score)
-3.875% with no points and a half point ($2,195) towards the closing costs (assuming 740+ credit score)
-3.875% with no points and credit of $1,646 (assuming 720 credit score)
-4.0% with credit of $2,195 (assuming 720 credit score)
Eastern Bank:
-3.875% (APR 3.912%) with $3,000 in closing costs (assuming 720 credit score)
The best case scenario would be the "loan amendment" through Wells Fargo, but I don't want to put all my eggs in one basket and get stuck with them if I don't end up qualifying for it. In lieu of that, it seems like a no brainer to move forward with Cambridge Savings Bank. I am assuming I will end up with the 3.875% and a credit of $1,646 when all is said and done. I am still expecting a few more quotes this morning and will update as I receive them. Is there anything instantly glaring that I am missing and should reconsider?
. Is there anything instantly glaring that I am missing and should reconsider?
How much are your savings per month with each loan and how many months will it take to break even on the cost to refinance to start to see the savings.
I put in $439 K at 5.125% and got $2390 per month principal and interest.
at 3.75% it's $2,033 plus costs.
Ok looks like I'm going to go ahead with one of these two options:
-3.875% with no points and lender credit of $1,646 towards $2,780 in closing costs
-4.0% with no points and lender credit of $2,195 towards $2,780 in closing costs
Now I am stuck trying to determine what is the better option knowing full well there may be another recession or further rate decreases in the near term. So am I better off with the higher rate, but further reducing my closing costs? Or vice versa? I'd pay $585 for closing costs with the 4.0% rate or $1,134 with the 3.875%.
I have been shopping around for refinancing of my 30-year fixed mortgage with rates sliding. My current loan is owned by Wells Fargo and has approx. $439,000 remaining at 5.125% (yes, entirely too high). My home was assessed at $595,000 last summer at the time of first getting the mortgage. I am hoping our credit scores will at a minimum be 720+, but I have been asking for quotes in the different ranges. A few current quotes for a 30-year fixed rate mortgage refinance include:
Wells Fargo:
-4.06% APR with $3,500 in closing costs (assuming 740+ credit score)
-4.125% with no closing costs and a lender credit of $3,000 (how is this possible? maybe I misunderstood)(assuming 740+ credit score)
-"Loan Amendment" where I apply for a mortgage, lock in a rate, and hope I get approved for an amendment. This would be ideal as I maintain my current mortgage, but with a lower rate. No closing costs associated with this.
-4.03% with $3,500 in closing costs (assuming 720 credit score)
-4.13% with $2,000 lender credit (assuming 720 credit score)
Cambridge Savings:
-3.75% with no points and $2,780 in closing costs (assuming 740+ credit score)
-3.875% with no points and a half point ($2,195) towards the closing costs (assuming 740+ credit score)
-3.875% with no points and credit of $1,646 (assuming 720 credit score)
-4.0% with credit of $2,195 (assuming 720 credit score)
Eastern Bank:
-3.875% (APR 3.912%) with $3,000 in closing costs (assuming 720 credit score)
The best case scenario would be the "loan amendment" through Wells Fargo, but I don't want to put all my eggs in one basket and get stuck with them if I don't end up qualifying for it. In lieu of that, it seems like a no brainer to move forward with Cambridge Savings Bank. I am assuming I will end up with the 3.875% and a credit of $1,646 when all is said and done. I am still expecting a few more quotes this morning and will update as I receive them. Is there anything instantly glaring that I am missing and should reconsider?
It does not matter who you end up going with. Your loan will probably get sold back to Wells Fargo anyway under the new terms. Almost 90% of loans are sold within 30 days of closing.
my house is 600k...I have a standing balance of 459k and I was quoted around 5-6k for closing cost..not sure how you came up with 2-3k closing cost. my credit score is 750+ ... Maybe the state/county (VA/LOUDOUN county) we live matters.....i got a quote from WF @ %4 rate and %3.875 from Ally.... again i am not sure how these small online banks (Ally) can give me lower rates???? can they process everything correct and complete the refinancing ? i have question marks on that...however on the other side WF is very good, fast and everything is processed online but again this is the numbers game, lower the better....
never heard of loan amendment and I doubt WF will accept that?Should I at least ask ? i don't want to look stupid though....but lowering the payment without paying the closing cost sounds great...
is it a better idea to wait a few more months ? can we see lower rates like %3.5 or at least 3.625 ?? any ideas from bankers and finance people ?
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