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I have outstanding credit (low 800s); never missed a payment; am solidly employed. My mortgage was for about 105k, 30y, 6%. I am trying to see if I can get it to about 4.5%. The mortgage is nearly 3 years old and the monthly payment is $642.
1. Can I only do this through that bank that owns my mortgage?
2. If so, do the fees vary per bank?
3. Given the amount of my mortgage, what am I looking to pay for the refinance fees?
The fees for refi vary. The local factors can be all over the map. While there is some variation from firm to firm in a locality the best way to make sure that things are on the up and up is to talk to several lenders in narrow time frame. The answers you get should be evaluated not just on a dollars sense level but also on timeliness and clarity. Firms that try to hide anything or do not respond quickly cannot be taken seriously. Mega banks, local banks, create unions and mortgage brokers should all be considered.
There is generally no particular advantage to attempting to refi with your existing lender / servicer if you have greater than 20% equity and a standard fixed rate loan unless your loan is with a portfolio lender. The vast majority of loans are not held by the firm that originated it. There are web sites that you can check to see if you loan is in a pool held by one of the major government sponsored entities...
Rates for 30 yr fixed are currently at or below the 4.5% target you mention, so that is not a problem.
Doing a little back calculating it appears that you borrowed closer to 107k and probably still will owe over 100k until year five closes, so you have a lot of flexibility in picking just about any kind of loan you'd like.
You might go to a 20 year loan that would increase your payment from current by about $30 dollars but it would get you paid off quicker and save over $30,000 in interest over a 30 yr loan ...
1. No
2. Yes they do depending on debt to Income ratio and Loan to Value.
3. I would say anywhere between $2500 to $4000. Rates are as low as 4.25% on 30 year fixed rates. You may want to think about a 20 year or possibly a 15 year loan. I am also SAFE certified so this isn't random information.
I have outstanding credit (low 800s); never missed a payment; am solidly employed. My mortgage was for about 105k, 30y, 6%. I am trying to see if I can get it to about 4.5%. The mortgage is nearly 3 years old and the monthly payment is $642.
1. Can I only do this through that bank that owns my mortgage?
2. If so, do the fees vary per bank?
3. Given the amount of my mortgage, what am I looking to pay for the refinance fees?
Heres something to consider... I'm in the same boat dang near.. After talking to them regarding the refini at the lower interest rate vs what my interest rate is now we crunched numbers and I was BETTER off at my current rate then the lower rate. The lower rate would put me behind in the payoff/assessment area. By refinancing it would ADD about 6k to my principle balance and only lower my total payment by about $50 a month. Since I don't plan to sell in the next 5 years it makes no sense to refini at this time..
check the TOTAL figures and compare with how long you plan to stay in your place.
Definitely shop around. Get 4-5 quotes and compare them. Try and do business with manual underwriters, which can be tough to find these days, but at least you will be doing business with someone that has the authority to grant your loan.
If you can qualify for a streamline refinance, you won't need an appraisal. So that's something to consider.
When shopping mortgages, be sure and compare apples to apples. For instance, if you are willing to pay a point to get a low rate, make sure you shop other lenders with the same terms.
Definitely look into 15 year. Rates can be had under 4%. For the same payment you have right now with the 6% loan, you could have a 15 year note. You may even save a few bucks.
Hey Sprawling...I'm in the middle of a re-fi right now. The fees are going to depend on if they will charge you for that low interest rate. My FICO is in the low 700's, so I had to pay a quarter of a point to get my 6% to a 4.75%. Total closing costs are about $2600 for mine. I'm rolling it into my loan. I have to fund my escrow, which is about $2500, but I get that money back from the bank that holds my mortgage currently.
Yes, I'm technically adding 2 years to my loan, b/c I've owned the house for 2 years and they are doing a 30 year mortgage. But I'll be saving tens of thousands in interest over the life of the loan. I was thinking about doing the 20 year mortgage as a poster mentioned above, but the interest rate wasn't that much lower. If I pay an extra $165 a month, I can make myself have a 20 year mortgage anyway and not be committed to that higher payment.
Good luck, and yes, definitely shop around. I did.....
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