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I started this mortgage in February 2009 (so I am a year and 1/2 into the 15-year loan). It is through BB&T. I have never even thought about refinancing since my rate was so low, but now with the 3.75% being thrown around for a 15-year fixed, do you think it will be worth it? My loan amount was originally for 224K, the house sale price was 280K so I of course put the 56K down (20%). The loan currently sits with around ~210K left on it. So i would be refinancing this rate.
From crunching some numbers, it looks like 3.75% vs. 4.5% for the next 13 years and a few months results in a savings of about 12K-13K over the life of the loan. Do you think this is worth it? I figure to refinance and everything will run a min of 3K, so do you think that 9K-10K you save over the next decade is worth it? Or would you not hassle with it? What will the process exactly be if I decide to go through with it? Thanks!
I dont think you should refinance as the breakeven point would be well over 10 years. Even if you think you will be in this home that long... a lot can change in your life that totally changes those plans.
Regardless, i dont think even the lender would approve the refinance. Typically, they require you breakeven on closing costs within 48 months. Take total closing costs and divide by monthly savings.
Even if the refinance benefits you over 15 years, the lender realizes that most home owners will not keep the home that long.
Regardless, i dont think even the lender would approve the refinance. Typically, they require you breakeven on closing costs within 48 months. Take total closing costs and divide by monthly savings.
Even if the refinance benefits you over 15 years, the lender realizes that most home owners will not keep the home that long.
I agree with Victor - underwriting probably would not approve the loan because there is no benefit....
I am in the same boat you are in. Brought our home in 1992 - last year refinanced $200k @4.5% at 240mths. Have P/I payment of $1265.
Like you been watching the rates drop. Yes the possibly getting a loan at 3.75% does sound nice. 180mth loan equals a P/I payment of $1407.
We have been sending $200+ extra into our payments ($1435.00), now have a balance around $192k. By you sending in extra payment a year, using a mortgage calculator - figure reducing our term to just under 16 years.
Our savings 11 months off current loan and $27 monthly savings. Total saving over 15yrs = $5157.......
I haven't done the math, only because I think it would be best if you contact BB&T and ask them about refinancing that loan. I'm betting they may not even require an appraisal and most likely have something in place for their refinances. Have you called them, yet?
From crunching some numbers, it looks like 3.75% vs. 4.5% for the next 13 years and a few months results in a savings of about 12K-13K over the life of the loan. Do you think this is worth it? I figure to refinance and everything will run a min of 3K, so do you think that 9K-10K you save over the next decade is worth it? Or would you not hassle with it? What will the process exactly be if I decide to go through with it? Thanks!
I can only speak from my experience of refinancing my house currently, but you think you'll only owe 13 years, but it actually will be another 15 year loan. I have a 30 year loan with 28 years left on it and the bank told me they don't do 28 year loans.
Also, you state your closing costs would be a minimum of $3000...with my refi I have to fund the escrow, which is about $2500, and it's going to cost me a half a point to get the new loan. I'm bringing about $3800 to the table. Of course I get the escrow amount back from my original loan, but not for 60 days. Something to think about.
Also, you state your closing costs would be a minimum of $3000...with my refi I have to fund the escrow, which is about $2500, and it's going to cost me a half a point to get the new loan. I'm bringing about $3800 to the table. Of course I get the escrow amount back from my original loan, but not for 60 days. Something to think about.
You are thinking of a regular refinance - which means closing costs.
By doing a streamline refinance with the existing leader, the closing costs are nil!!!!!
My refi last year @ $zero points - cost me a total of $956 (including appraisal)...
Call you lender your self - if you have a history of on time payments, why wouldn't they want to work with you, to reward and keep you as a good borrower?
I started this mortgage in February 2009 (so I am a year and 1/2 into the 15-year loan). It is through BB&T. I have never even thought about refinancing since my rate was so low, but now with the 3.75% being thrown around for a 15-year fixed, do you think it will be worth it? My loan amount was originally for 224K, the house sale price was 280K so I of course put the 56K down (20%). The loan currently sits with around ~210K left on it. So i would be refinancing this rate.
From crunching some numbers, it looks like 3.75% vs. 4.5% for the next 13 years and a few months results in a savings of about 12K-13K over the life of the loan. Do you think this is worth it? I figure to refinance and everything will run a min of 3K, so do you think that 9K-10K you save over the next decade is worth it? Or would you not hassle with it? What will the process exactly be if I decide to go through with it? Thanks!
3.75%????? Wow! what are the chances of first time buyers getting this rate?
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