Question on Refinance… (refinancing, credit, loan)
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Bank A - gave me 3.75 fixed with closing cost 5775.00 plus application fee which is $450.00
Bank B - giving me 3.2 fixed with closing cost of $6000.00 plus application fee which is $60.00
But it will not lock the rate, I was told when I close what ever the rate is that’s what I am going to get. I was told I can close in about three months. Not sure what will happen in three month in terms of interest rate.
Bank B told me if I want to lock the rate at 3.2, I have to pay one point of loan, it will be $2000.00
Is it worth it? Did any one refinance lately?
Not sure if I allowed to tell the name of the bank, that's why I said as "Bank A & B "
When can bank A close. Will they lock for free now and close in a month? At 3.75 bank A is a little high right now. My bank is at 3.5 for 15 yr 0 point refi, best case credit scenario, and you would have to close in 30 days.
Hard to say whether you should lock with bank B or not. You gamble either way. Best case scenario is you float with bank B and the rate stays the same over the next 3 months. Personally I think the rate will go up 3 months from now but nobody really knows and experts predictions are about as good as weather forecasts as well. That being said, here are the numbers.
For 200,000 loan
3.2% is 1400 a month for 15 years = lifetime pay 252000 (52k in interest)
3.75% is 1454 a month for 15 years = lifetime pay 262000 (62k in interest)
if its a 15 year refi, which it must be at those rates, you save 10k over the 15 years in interest and it will cost you about 2000 now. Its worth it if you don't need the 2000 now and is not a bad investment of 2k, but if you need that money now, then obviously you can choose to just lock with the higher rate, or find another bank.
If you look around you should be able to refinance at a similar rate while having the ability to lock. Competitive closing time is 30-45 days regardless of which bank you choose.
Sounds to me like you need to contact bank C and D.
Bank A - gave me 3.75 fixed with closing cost 5775.00 plus application fee which is $450.00
Bank B - giving me 3.2 fixed with closing cost of $6000.00 plus application fee which is $60.00
But it will not lock the rate, I was told when I close what ever the rate is that’s what I am going to get. I was told I can close in about three months. Not sure what will happen in three month in terms of interest rate.
Bank B told me if I want to lock the rate at 3.2, I have to pay one point of loan, it will be $2000.00
Is it worth it? Did any one refinance lately?
Not sure if I allowed to tell the name of the bank, that's why I said as "Bank A & B "
Thanks.
If you know how math works, then use it. Bank Bs deal is very much worth it.
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