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Old 08-22-2011, 11:25 AM
 
39 posts, read 80,565 times
Reputation: 17

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I was contacted by my mortgage company with a Rate and Term Refinance offer at No Closing Cost, No appraisal, No Requalification and No Underwriting on our equity in the home. We are told they are doing this to maintain their customer base.

Current Loan
$98547 (Pay-off will be round up to 99K) 2028 Loan Maturity, 30yr fixed 6.785%

New Numbers based on offer:
• Fixed 15 year at a Rate of 3.625%= $714.50 (principal+ taxes) 727.09 (escrow) $1441.59 (new monthly payment) $168 savings per month
• Fixed 20 year at a Rate of 4.375%= $620.25 (principal+ taxes) 725.09 (escrow) $1347.34 (new monthly payment) $262 savings per month
• Fixed 30 year at a Rate of 4.62%= $509.48 (principal+ taxes) 727.09 (escrow) $1236.57 (new monthly payment) $373 savings per month

We are considering moving within 3-5yrs. Is there any downside to a Rate and Term Refinance?

Last edited by jerome8283; 08-22-2011 at 11:53 AM..
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Old 08-22-2011, 03:28 PM
 
Location: NJ
17,579 posts, read 43,111,498 times
Reputation: 16209
It is costing you no money and you can reduce your monthly payment. I can't see any possible downside. Personally I would go with the 30 year since you are planning on moving in 3-5 years.
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Old 08-22-2011, 03:37 PM
 
39 posts, read 80,565 times
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I'm pretty sure we are going with the 30yr. This is our first time refinancing and I just wanted to make sure there was nothing else we should be aware of with this type of Rate and Term Refinance plan.

Thanks
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Old 08-22-2011, 03:55 PM
jw2
 
2,028 posts, read 2,957,902 times
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What is that $727/month escrow?

Rates are very low today and it is good to take advantage. Read the fine print.
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Old 08-22-2011, 11:13 PM
 
Location: Long Island (chief in S Farmingdale)
19,914 posts, read 17,080,492 times
Reputation: 4336
Quote:
Originally Posted by jw2 View Post
What is that $727/month escrow?

Rates are very low today and it is good to take advantage. Read the fine print.
Taxes & Insurance
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Old 09-16-2011, 07:01 PM
 
39 posts, read 80,565 times
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If I refinance would I receive a better tax deduction since I'll be starting over with a new loan?
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