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We bought a house in NJ a month or so ago (closed on Sep 15th). The house cost 1.4 million and we took out a $1 mil mortgage. Our rate is 6.75% 30 year fixed with a 10 year interest only payment option. Of course, since we closed rates have dropped twice and the so called credit crunch seems to be easing (at least to the outsider). Do you think it makes sense to re-fi our mortgage, even though it's so new? I am seeing rates online for 6.25 % but I'm not sure if they are real. We plan on staying in the house for 16 years until the kids are all out of school.
Also, before I approach our mortgage broker on this I am interested how he got paid on our 1st mortgage. Does he get paid when we close or do we have to keep our mortgage a year before he gets his money? - I thought I read that somewhere. Not that it will change my decision but I am interested to see where his head will be.
We bought a house in NJ a month or so ago (closed on Sep 15th). The house cost 1.4 million and we took out a $1 mil mortgage. Our rate is 6.75% 30 year fixed with a 10 year interest only payment option. Of course, since we closed rates have dropped twice and the so called credit crunch seems to be easing (at least to the outsider). Do you think it makes sense to re-fi our mortgage, even though it's so new? I am seeing rates online for 6.25 % but I'm not sure if they are real. We plan on staying in the house for 16 years until the kids are all out of school.
Also, before I approach our mortgage broker on this I am interested how he got paid on our 1st mortgage. Does he get paid when we close or do we have to keep our mortgage a year before he gets his money? - I thought I read that somewhere. Not that it will change my decision but I am interested to see where his head will be.
Thanks in advance.
I would talk to your current loan holder...they may do a no-fee, fast refi to keep you and they just underwrote your risk. A "do-over" if you will.
I did this 5 years or so back after I'd been in the house about a year and rates had fallen a lot. They sent me a packet, I filled it out....mailed it back...no fuss, no muss.
It may not be available but it is an idea.
Also, now might be a good time to convert that sucker to a fixed %.
I can't see a lender giving you a "do-over" for 1/2 a point. Not a lot in it for them. Jumbo loans are still pretty hard to get. I'd do the math and think it through. JMO.
We bought a house in NJ a month or so ago (closed on Sep 15th). The house cost 1.4 million and we took out a $1 mil mortgage. Our rate is 6.75% 30 year fixed with a 10 year interest only payment option. Of course, since we closed rates have dropped twice and the so called credit crunch seems to be easing (at least to the outsider). Do you think it makes sense to re-fi our mortgage, even though it's so new? I am seeing rates online for 6.25 % but I'm not sure if they are real. We plan on staying in the house for 16 years until the kids are all out of school.
Also, before I approach our mortgage broker on this I am interested how he got paid on our 1st mortgage. Does he get paid when we close or do we have to keep our mortgage a year before he gets his money? - I thought I read that somewhere. Not that it will change my decision but I am interested to see where his head will be.
Thanks in advance.
I spoke with a Wells Fargo loan officer today re: a possible refi on our jumbo mortgage. He said the rates are about 6.25 %
I can't see a lender giving you a "do-over" for 1/2 a point. Not a lot in it for them. Jumbo loans are still pretty hard to get. I'd do the math and think it through. JMO.
That's a possibility...there may be other factors at work though.
In any event, it's a VERY small investment in time that can carry a substantial benefit. Low odds, high return....no downside....
We bought a house in NJ a month or so ago (closed on Sep 15th). The house cost 1.4 million and we took out a $1 mil mortgage. Our rate is 6.75% 30 year fixed with a 10 year interest only payment option. Of course, since we closed rates have dropped twice and the so called credit crunch seems to be easing (at least to the outsider). Do you think it makes sense to re-fi our mortgage, even though it's so new? I am seeing rates online for 6.25 % but I'm not sure if they are real. We plan on staying in the house for 16 years until the kids are all out of school.
Also, before I approach our mortgage broker on this I am interested how he got paid on our 1st mortgage. Does he get paid when we close or do we have to keep our mortgage a year before he gets his money? - I thought I read that somewhere. Not that it will change my decision but I am interested to see where his head will be.
Thanks in advance.
6.25% on a jumbo...I don't buy it. I would say the par price for a jumbo with the interest only feature is more like 6.75% today.
Just because the FED has cut rates twice since you purchased for a total of a .75% reduction...that does not mean mortgage rates have dropped by .75% or at all.
It looks like you got a pretty good deal and it would make no sense to pay for a refinance at this time.
ps. The broker may or may not have his pay "taken back" if the loan is paid off right away.
pss. The credit crunch in the mortgage world has not eased. Investors continue to tighten lending guidelines.
Yep....wait till next year....at least you have it fixed for 10yrs which is very good!
Quote:
Originally Posted by SunnyNJ
Thanks all for your advice. Looks like my deal isn't too bad right now.
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