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Anyone refinanced lately at a low rate...without excessive fees, etc. - and was happy with the process?
My current rate is 6.25%, so I wouldn't mind refinancing - but paying a bunch of points and fees doesn't interest me. I might as well just pay that money directly on the principle of my existing loan...reducing the overall cost. I want to avoid lousy customer service and nightmares, so I'd like to go with a company someone has had recent experience with.
This isn't for subprime, etc. - I should qualify for the anyone's best rate. Looking for maximum of 80% LTV....credit score is in the high 700s, 22 years on the job, low debt/income ratio, only debt other than the house is one credit card, reasonable assets in savings, 401K, IRA, etc.
We've gotten 4.75% on a 15 year with no points and no origination (closing costs will be around $1700), and I've got a friend who got the same on a 30 year. No brainer if you are currently at 6.25, you'll break even in less than a year.
We've gotten 4.75% on a 15 year with no points and no origination (closing costs will be around $1700), and I've got a friend who got the same on a 30 year. No brainer if you are currently at 6.25, you'll break even in less than a year.
I hate to sound uneducated but I really don't know that much about refinancing. We want to do that, we have 15 yrs. left on the old original 7% and also want to roll in a 2nd mortgage for upgrades (that we got screwed out of because the contractor went belly up with our money) - we have good credit scores, I did a check several months back w/our credit union and they offered some good rates but w/points.
I don't know but I think we should look at a no point/fee re-fi? Still would want a 15 yr. but paying less per month.
My current rate is 6.25%, so I wouldn't mind refinancing - but paying a bunch of points and fees doesn't interest me. I might as well just pay that money directly on the principle of my existing loan...reducing the overall cost.
The key to refinancing is the break even point. Let's say you refi with $2000 closing cost and lower your payment by $200/mo. In 10 months you would have recouped your $2000. Then after that you continue to save $200 per month. So in another 10 months you have saved another $2000.
As lenders go, I recomend ING. They have very low closing costs.
We've gotten 4.75% on a 15 year with no points and no origination (closing costs will be around $1700), and I've got a friend who got the same on a 30 year. No brainer if you are currently at 6.25, you'll break even in less than a year.
I hate to sound uneducated but I really don't know that much about refinancing. We want to do that, we have 15 yrs. left on the old original 7% and also want to roll in a 2nd mortgage for upgrades (that we got screwed out of because the contractor went belly up with our money) - we have good credit scores, I did a check several months back w/our credit union and they offered some good rates but w/points.
I don't know but I think we should look at a no point/fee re-fi? Still would want a 15 yr. but paying less per month.
Thanks for any help.
If you are at 7%, refinancing will save you a ton. You should be able to refi both loans into a 15 year fixed for under 5%, with no points and no origination fee.
If your current balance is 200K, a refi to 5% saves you 4000 in the first year alone, which will swamp any closing costs you have.
You - the client- decide what your rate and fees will be not the bank or loan officer.
You qualify for a loan program that has associated rates that is something like this on a 30 year fixed:
4.375%- you pay-.5% discount, 1% origination , 3rd party closing costs. Below wholesale rate- ie discount points.
4.625%- you pay-.1% origination , 3rd party closing costs. Wholesale rate.
4.875%- you pay-3rd party closing costs. Slight markup to include broker fee.
5.125%- you pay-no fees. Marked up to pay broker and 3rd parties.
There are no magic lenders with magic loans and rates. No one works for free so there is no true no closing cost loans- it is paid for through a higher rate.
You have to decide whats best for you and your family based how long you plan on staying in your home. Remember that you pay bills with you significant other not the neighbor on the deck or the guy at the water cooler. What I mean by this is don't worry about what soemone else got or that it sounds good to say " I got a no closing cost loan, I'm a tough negotiator and I don't pay fees". The reality is you did one way or the other so find out what is financially best for your family and don't worry about what it's going to sound like at the next block party.
That is certainly true, but fees can vary widely between different lenders. I'd rather start my negotiations with one whose fees are reasonable to begin with. Some lenders fees are simply ridiculous.
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