U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 07-20-2012, 12:50 PM
 
Location: Cary, NC
114 posts, read 243,372 times
Reputation: 52

Advertisements

I am refinancing with SunTrust (which also services my current loan) and want to be sure there is no catch. It is my first house and first refinance. Greatly appreaciate your input. They have sent my HUD statement and asking if I can close on Monday.

Current loan info (30-year fixed, $439,000 house with 5% down on 1/25/2008 with
original Loan Amount of $417,000.00)

Pay off statement:
The current total unpaid Principal Balance is: $ 339,542.88
Interest at 5.62500% 1,517.48
Less Current Escrow Balance -4,489.24
Recording Fee .00
* * * * TOTAL AMOUNT TO PAY LOAN IN FULL * * * * * $ 336,571.12

New loan amount: $340,000
Interest rate 3.5%

I put down 50k recently and got rid of PMI and last payment date changed to 12/01/2031. My monthly payments will be going up from $2400 to $2440 but I will be paying off 4.5 years sooner. Cash needed to close is 4500 with $5500 going to escrow. Is this a no-brainer?
Rate this post positively Reply With Quote Quick reply to this message

 
Old 07-20-2012, 03:55 PM
 
3,576 posts, read 6,275,966 times
Reputation: 1432
Quote:
Originally Posted by majidmo View Post
I am refinancing with SunTrust (which also services my current loan) and want to be sure there is no catch. It is my first house and first refinance. Greatly appreaciate your input. They have sent my HUD statement and asking if I can close on Monday.

Current loan info (30-year fixed, $439,000 house with 5% down on 1/25/2008 with
original Loan Amount of $417,000.00)

Pay off statement:
The current total unpaid Principal Balance is: $ 339,542.88
Interest at 5.62500% 1,517.48
Less Current Escrow Balance -4,489.24
Recording Fee .00
* * * * TOTAL AMOUNT TO PAY LOAN IN FULL * * * * * $ 336,571.12

New loan amount: $340,000
Interest rate 3.5%

I put down 50k recently and got rid of PMI and last payment date changed to 12/01/2031. My monthly payments will be going up from $2400 to $2440 but I will be paying off 4.5 years sooner. Cash needed to close is 4500 with $5500 going to escrow. Is this a no-brainer?
Was quoted 2.75% zero points no app fee yesterday for 15 year
3.375% no points for 30 year fixed. I locked in 30 year rate. Conventional without pmi.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-20-2012, 04:17 PM
 
Location: Oro Valley AZ.
1,024 posts, read 2,443,330 times
Reputation: 1185
Quote:
Originally Posted by majidmo View Post
I am refinancing with SunTrust (which also services my current loan) and want to be sure there is no catch. It is my first house and first refinance. Greatly appreaciate your input. They have sent my HUD statement and asking if I can close on Monday.

Current loan info (30-year fixed, $439,000 house with 5% down on 1/25/2008 with
original Loan Amount of $417,000.00)

Pay off statement:
The current total unpaid Principal Balance is: $ 339,542.88
Interest at 5.62500% 1,517.48
Less Current Escrow Balance -4,489.24
Recording Fee .00
* * * * TOTAL AMOUNT TO PAY LOAN IN FULL * * * * * $ 336,571.12

New loan amount: $340,000
Interest rate 3.5%

I put down 50k recently and got rid of PMI and last payment date changed to 12/01/2031. My monthly payments will be going up from $2400 to $2440 but I will be paying off 4.5 years sooner. Cash needed to close is 4500 with $5500 going to escrow. Is this a no-brainer?
3.5 is no bargain for a 15 year loan. Just closed on a 30 yr deal with my clients getting 3.5.
Shop around.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-20-2012, 07:22 PM
 
5,507 posts, read 9,616,960 times
Reputation: 2292
As others have said you can probably get lower. I got 3.25 on a 15 year back in December of 2011.

No question 15 year is the way to go for you though.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-21-2012, 06:18 AM
 
14,256 posts, read 16,078,614 times
Reputation: 13743
I just refinanced last month and got 3.125% on a 15 year fixed.

Shop around and then see if your current lender can get close to market rates.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-21-2012, 06:32 AM
 
3,576 posts, read 6,275,966 times
Reputation: 1432
Actually before we get on the OP's case about the 3.5% 15 year rate.

OP said they are refinancing with same bank (sun trust).

Usually if you do streamline there are very little fees. With my wells Fargo 3 step streamline refinance last year I paid zero fee. I got 4.125% last November with zero fees vs 3.75% 30 year with about $6k in fees

So is OP paying any fees?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-21-2012, 07:18 AM
 
Location: Oro Valley AZ.
1,024 posts, read 2,443,330 times
Reputation: 1185
Quote:
Originally Posted by aneftp View Post
Actually before we get on the OP's case about the 3.5% 15 year rate.

OP said they are refinancing with same bank (sun trust).

Usually if you do streamline there are very little fees. With my wells Fargo 3 step streamline refinance last year I paid zero fee. I got 4.125% last November with zero fees vs 3.75% 30 year with about $6k in fees

So is OP paying any fees?
I think you mean you paid zero fees upfront, you are paying for the fees every month with a .375 increased interest rate on your monthly payment. Nothing is free, it's pay me now or pay me for the next 30 years. Nothing wrong with doing those, whatever works for an individual financially. There are lots of places that will roll the refinance cost into the interest rate for a "no cost" loan. Call it streamline loan, no cost loan or whatever their marketing department dreams up to call it, you pay for the closing cost with an increased interest rate. I just received my weekly rate sheet from one of the mortgage companies that represent, Wells Fargo, Bof A etc. Rate on a 15 year loan is 2.875, So even if OP is doing the "no cost" refi I still think 3.5 is too high for a 15 year IMHO.

What we don't know about the OP and are assuming is that their credt is excellent and are getting the best rate.

Last edited by RickTucsonHomes; 07-21-2012 at 07:40 AM..
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-21-2012, 07:53 AM
 
Location: Austin
7,205 posts, read 18,940,045 times
Reputation: 9808
That rate is horrible for a 15 year AND you paying your own closing costs by increasing your loan amount. I just had a buyer close on a 15 year at 3% and I thought that was high as I've had other clients getting 2.75% and 2.875% on 15 year notes. If you're paying $0 closing costs, 3.5% "might" be ok, but not when you pay your own costs.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-21-2012, 09:16 AM
 
Location: MID ATLANTIC
8,140 posts, read 19,989,830 times
Reputation: 9382
Sounds like an older lock and paying about 3 points towards closing?

What is the lender credit?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-21-2012, 03:07 PM
 
3,576 posts, read 6,275,966 times
Reputation: 1432
Quote:
Originally Posted by RickTucsonHomes View Post
I think you mean you paid zero fees upfront, you are paying for the fees every month with a .375 increased interest rate on your monthly payment. Nothing is free, it's pay me now or pay me for the next 30 years. Nothing wrong with doing those, whatever works for an individual financially. There are lots of places that will roll the refinance cost into the interest rate for a "no cost" loan. Call it streamline loan, no cost loan or whatever their marketing department dreams up to call it, you pay for the closing cost with an increased interest rate. I just received my weekly rate sheet from one of the mortgage companies that represent, Wells Fargo, Bof A etc. Rate on a 15 year loan is 2.875, So even if OP is doing the "no cost" refi I still think 3.5 is too high for a 15 year IMHO.

What we don't know about the OP and are assuming is that their credt is excellent and are getting the best rate.
I understand. I was insured if I would sell my home in the next 12-18 months when I refinance last November. That's why I took the no fee. Cause the .375% premium I paid protects me if I decided to move sooner than 12-18 month.

In my case I ended up selling my home 6 months after i did the no fee refinance. If I would have opted for the lower rate with the $6k in fees. I would have lost since I am selling within 6-7 months of refinancing.

I know the fed is going to keep rates low till 2014. Thats why if you are not sure about moving in the next 12 months. Take the no fee refinance. Start saving on interest now. Than 12-18 months later you still have option of getting low interest refinance.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 07:10 PM.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top