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Old 01-30-2012, 07:57 PM
 
Location: Denver, CO
3,135 posts, read 10,570,215 times
Reputation: 2478

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I'm looking at my options to refinance our 2.5 year old 30 year 5.0% fixed conv. mortgage. I have been putting $200/mo towards the principal for the last 6 months, so I figure I might be best to refinance with the rates so low. I want this thing paid off ASAP!

I talked with a local mortgage broker and he quoted me a 3.4% for a 15 year and 4% (par) for a 20 year. He said closing costs would be $3,000, plus almost $2,000 for escrow. Loan would be for $218,000.

These rates seem a little high, no? I don't believe he added fees to pay down the rate, so maybe this is why they are higher than I thought. The wife and I have around 800 FICO scores as of July (leased a car), so excellent credit.

I would really like a 3% 15 year with under $3,000 closting costs, etc. Is this realistic?

Any mortgage brokers on here want to give me a good deal? =)
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Old 01-30-2012, 08:06 PM
 
106 posts, read 347,333 times
Reputation: 62
I got a quote for a 165k loan at 4% with paydown fees in reverse, so my closing costs would be $400 bucks, 20 yr loan. 1/2% difference than a 15yr loan with $2k in fees
Im thinking about it.
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Old 01-31-2012, 06:23 AM
 
4,101 posts, read 5,676,639 times
Reputation: 2720
Quote:
Originally Posted by PokerMunkee View Post
I'm looking at my options to refinance our 2.5 year old 30 year 5.0% fixed conv. mortgage. I have been putting $200/mo towards the principal for the last 6 months, so I figure I might be best to refinance with the rates so low. I want this thing paid off ASAP!

I talked with a local mortgage broker and he quoted me a 3.4% for a 15 year and 4% (par) for a 20 year. He said closing costs would be $3,000, plus almost $2,000 for escrow. Loan would be for $218,000.

These rates seem a little high, no? I don't believe he added fees to pay down the rate, so maybe this is why they are higher than I thought. The wife and I have around 800 FICO scores as of July (leased a car), so excellent credit.

I would really like a 3% 15 year with under $3,000 closting costs, etc. Is this realistic?

Any mortgage brokers on here want to give me a good deal? =)
you won't get 3% but you you can currently get 3.25% on a 15 year. that's what i was quoted if i was willing to pay closing costs (which you mentioned you're paying). without closing, the guy was able to get me a 10 year at the same 3.25% rate. (i chose the latter.)

ps. don't worry too much about your escrow.....it's true that you'll pay that amount at the refi. but you will get whatever amount is in your 'current' escrow amount back within a few weeks of closing.....and it's typically close to the amount you'll pay at the closing...so it's usually a wash. worry about getting that 3k down as much as possible. there's lots of room for reduction of costs paid to the title company. (i went from 1900 down to 1000 after shopping around)
Also, keep in mind that if you refinance with the same lender you're with, you save about 800 or so in your case in taxes. (you only pay taxes on the appreciatation whereas if you go with another lender, you pay on the loan amount)

good luck.
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Old 01-31-2012, 07:02 AM
 
Location: Austin
7,238 posts, read 20,000,682 times
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15 year for 3%? Not going to happen. 4% for a 20 year is high. 4% would be more for a 30 year, did you hear him right on the quote?
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Old 01-31-2012, 09:13 AM
 
5,103 posts, read 13,038,507 times
Reputation: 4051
Quote:
Originally Posted by PokerMunkee View Post
I'm looking at my options to refinance our 2.5 year old 30 year 5.0% fixed conv. mortgage. I have been putting $200/mo towards the principal for the last 6 months, so I figure I might be best to refinance with the rates so low. I want this thing paid off ASAP!

I talked with a local mortgage broker and he quoted me a 3.4% for a 15 year and 4% (par) for a 20 year. He said closing costs would be $3,000, plus almost $2,000 for escrow. Loan would be for $218,000.

These rates seem a little high, no? I don't believe he added fees to pay down the rate, so maybe this is why they are higher than I thought. The wife and I have around 800 FICO scores as of July (leased a car), so excellent credit.

I would really like a 3% 15 year with under $3,000 closting costs, etc. Is this realistic?

Any mortgage brokers on here want to give me a good deal? =)
3% on the 15 year is possible today. I would guess your closing costs would be higher than $3k though. Does the $3k include any kind of origination fee or discount points? At 3% today I would say you would probably be paying .5%-1.0% origination fee + all the other costs (appraisal, title, county). I would also say you should be able to obtain a $0 closing cost 15 year deal at 3.375% or 3.5%.
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Old 01-31-2012, 09:45 AM
 
Location: Denver, CO
3,135 posts, read 10,570,215 times
Reputation: 2478
Thanks everyone. If I can get a 15 year 3.375/3.5% for $0 closing, I would be verry happy. I will continue to shop around.

Anyone recommend any brokers to check out?
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Old 01-31-2012, 07:50 PM
 
5,507 posts, read 9,906,842 times
Reputation: 2299
Quote:
Originally Posted by FalconheadWest View Post
15 year for 3%? Not going to happen. 4% for a 20 year is high. 4% would be more for a 30 year, did you hear him right on the quote?
Credit union I used has 3.15% on 15 now with a 1% origination.
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Old 01-31-2012, 07:59 PM
 
Location: Needham, MA
7,515 posts, read 11,730,402 times
Reputation: 6757
Quote:
Originally Posted by Thinking-man View Post
Also, keep in mind that if you refinance with the same lender you're with, you save about 800 or so in your case in taxes. (you only pay taxes on the appreciatation whereas if you go with another lender, you pay on the loan amount)
The closing process and expenses can vary quite a bit from state-to-state. I'm curious what taxes you're talking about? Here in MA when we refinance there are no taxes to pay closing costs are escrow (if applicable), recording fees, attorney's fees, origination fee from the bank, title insurance, and I'm probably forgetting a couple other fees but no taxes. If you sell a house in MA you do pay tax stamps at the registry on the sale price but not refinancing.
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Old 01-31-2012, 08:12 PM
 
Location: Austin
7,238 posts, read 20,000,682 times
Reputation: 9968
Quote:
Originally Posted by Gatornation View Post
Credit union I used has 3.15% on 15 now with a 1% origination.
3.15% with 1% origination means 3.375%, or close to it. That's not 3%... ANyone can get 3% if they want to pay for it... several points that is...
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Old 01-31-2012, 08:23 PM
 
5,507 posts, read 9,906,842 times
Reputation: 2299
Quote:
Originally Posted by FalconheadWest View Post
3.15% with 1% origination means 3.375%, or close to it. That's not 3%... ANyone can get 3% if they want to pay for it... several points that is...
Right. Which is not very far away from 3%. To claim it's "not going to happen" is a reach when it is possible. If asked two years ago you probably would have said you'd never see the rates we have today.
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