Interested in Refinancing Mortgage (Point: insurance, lender, how much)

[emirate25]

What are the steps to take and what should I avoid. This will be my first time ever doing this....

[HookTheBrotherUp]

Whatever steps you take, make sure you will recoup the costs based on how long you may stay in your home, else it may not be worth the cost. For example, depending on your current interest rate, you may be better off just paying more on the principal and have better results in the end... money in your pockets! Low interest rates don't always mean it makes sense to refinance.

[citizen_jane]

We're currently in the process of refinancing too. We paid down a big chunk of our principle a few months ago but you can also do that when you refinance. We contacted our current mortgage provider because we've had good service with them. It was extremely easy. We just we were interested in refinancing and they took it from there. They gave us several options and all the closing costs. We will recoup our costs in just a few months. Here is one thing I did not expect! Because Harris county (and I assume surrounding counties as well) was declared a federal disaster areas within the last 3 years (IKE) we were required to have our home reappraised. Not a big deal but it was an extra expense. Our mortgage company PNC is handling it and it's been very easy so far. We also have our insurance and some bank accounts with USAA. USAA also does refies and their rates were good. In the end we just stayed with our current company because it was easiest.

[HoustonRonnie]

Originally Posted by emirate25

What are the steps to take and what should I avoid. This will be my first time ever doing this....

My anwer would depend upon you answering one question: "Why do you want to refinance?".

ronnie

[emirate25]

My current interest rate is 6.5% and i owe around $60,000 in my mortgage. I am trying to pay off my house within 10 years

[Oildog]

I guess just call your current lender and ask...rates are near 4.5% so you would save big on the payments.

[GayleTX]

I harrassed a young friend of mine until he checked on refi last week......he owes about $120K on his house, paying 6.25% - he got it reduced to 3.75% at 15 years (payment just went up about $100)......will save him a total of $76,000. He owes me a dinner!!

[HoustonRonnie]

Originally Posted by GayleTX

I harrassed a young friend of mine until he checked on refi last week......he owes about $120K on his house, paying 6.25% - he got it reduced to 3.75% at 15 years (payment just went up about $100)......will save him a total of $76,000. He owes me a dinner!!

Gayle:

What were the:

1. Points
2. Underwriting Fee
3. Processing Feee
4. Whateveryouwannacallit Fees?

Best advise them of that. It's not just going from 6.25 to 3.75.

Thanks,

[GayleTX]

He's well aware of all the trimmings. It's all in writing from the mortgage company.

[City Love]

Like stated. One of the most important details is how much longer do you expect to be in the home. Even with a lower interest rate, it will take several years to break even after you consider the closing costs associated with refinancing.

One of the biggest tips I can give is something that was mentioned already. If you plan to be at the home for a while. Consider refinancing your home for 15 years. Given the much lower rates, you might be paying very little more on a 15 year mortgage than a 30 year mortgage. If you've lived there a few years and have already paid down some principle or have been paying extra every month, then you should definitely check it out.