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It seems from my limited experience that closing costs on a $150k loan should be somewhere around $4000 or so. Funny how that's the rough number Chas863 came up with.
OP, run the numbers. Find out how long it'll take you to payback the cost of refinancing. If that's considerably shorter than how long you expect to stay there, proceed. If it's considerably longer, don't proceed. If it seems a wash, flip a coin.
We just refinanced with Mutual of Omaha through Costco. Our loan balance is 146,360, our closing costs were $3490 which we paid at closing. $250 underwriting fee (lender fees capped at $250 through costco) The balance was title fees, county transfer tax and prepaids. Loan is 15 yrs @ 2.5% APY. This replaces a 4.25% 30 yr loan. Our goal is to pay the new loan off in 5 or 7 years. Monthly payment is $975 and change. We checked with several lenders and our credit union and they all had more fees with about the same APR. We went with the 15 yr loan because a 10 year loan was the same interest rate
I currently owe $130,000 on my mortgage. I refinanced about 2 1/2 years ago and it cost me over five grand in closing cost through Chase. Chase is now offering me a refinancing deal and which my interest rate currently is 3.65 and I can refinance to a rate of 2.75. According to Chase, there will be no fees whatsoever. I think they might be offering this to me because I’ve been paying down my mortgage a lot and extra payments almost $2000 extra a month on my mortgage.
If I refinance I would have to go from 10 years which is what my years remaining are to a 15 year but once again they are saying no fees whatsoever and I would continue to pay down my mortgage the same way I have. I’m just wondering if anybody has any experience or advice on this. My mortgage payment will go down about $300 so that $300 I guess I would add into the extra payments I’ve been doing per month.
If I keep my original loan which was a 15 year and now about 10 years left and I pay about 2000 extra month I can pay my loan off in about five years. If I refinance it I’ll go back up to 15 but I’m just trying to figure out if I should do this or not
Don't do anything. A 'deal' for the bank is a deal for them, most likely. Why would you put 5 more years back onto your loan? Pay off your mortgage and get the bank out of your life.
You just did a refinance too. Why would you put yourself though that stress again?
We just refinanced with Mutual of Omaha through Costco. Our loan balance is 146,360, our closing costs were $3490 which we paid at closing. $250 underwriting fee (lender fees capped at $250 through costco) The balance was title fees, county transfer tax and prepaids. Loan is 15 yrs @ 2.5% APY. This replaces a 4.25% 30 yr loan. Our goal is to pay the new loan off in 5 or 7 years. Monthly payment is $975 and change. We checked with several lenders and our credit union and they all had more fees with about the same APR. We went with the 15 yr loan because a 10 year loan was the same interest rate
If you paid off the new loan in 5 years you would have paid nearly 60.00 a month to refi, are you actually saving anywhere near that on a 140k mortgage ?
If you paid off the new loan in 5 years you would have paid nearly 60.00 a month to refi, are you actually saving anywhere near that on a 140k mortgage ?
That's not correct. Most of that $3400 are prepaids which have already been paid into escrow in our old bank, we will get most of that refunded. Basically the costs of the refi were title fees, property tax transfer fee and credit report for a total of around $1100, or $18.33 per month for five years.
We just refinanced with Mutual of Omaha through Costco. Our loan balance is 146,360, our closing costs were $3490 which we paid at closing. $250 underwriting fee (lender fees capped at $250 through costco) The balance was title fees, county transfer tax and prepaids. Loan is 15 yrs @ 2.5% APY. This replaces a 4.25% 30 yr loan. Our goal is to pay the new loan off in 5 or 7 years. Monthly payment is $975 and change. We checked with several lenders and our credit union and they all had more fees with about the same APR. We went with the 15 yr loan because a 10 year loan was the same interest rate
Crazy California prices....no - make that insane. That's DOUBLE what my house cost, and your's was on a refinance, not a purchase. How are young people ever going to get started in life with a house costing this much? I wonder if we are going to see a 2008 event again... it wouldn't surprise me one bit.
When it's double what I paid, and it's on a refinance....yeah. But then again, my house was bought in 2002 and it's long paid off. I decided long ago I wasn't going to slave away for life for the bank.
Realize it's apples and oranges....PA 2002 pricing not the same as CA 2021 pricing, but still....
I currently owe $130,000 on my mortgage. I refinanced about 2 1/2 years ago and it cost me over five grand in closing cost through Chase. Chase is now offering me a refinancing deal and which my interest rate currently is 3.65 and I can refinance to a rate of 2.75. According to Chase, there will be no fees whatsoever. I think they might be offering this to me because I’ve been paying down my mortgage a lot and extra payments almost $2000 extra a month on my mortgage.
If I refinance I would have to go from 10 years which is what my years remaining are to a 15 year but once again they are saying no fees whatsoever and I would continue to pay down my mortgage the same way I have. I’m just wondering if anybody has any experience or advice on this. My mortgage payment will go down about $300 so that $300 I guess I would add into the extra payments I’ve been doing per month.
If I keep my original loan which was a 15 year and now about 10 years left and I pay about 2000 extra month I can pay my loan off in about five years. If I refinance it I’ll go back up to 15 but I’m just trying to figure out if I should do this or not
Why?
What if you just stuck with the extra payments? (Be sure to specify it's principle only extra payment. Because my bank screwed up when I made a regular payment, then made a principle only payment later that same day, I'm waiting for the actual regular payment to be credited. They have no option unless I mail the payment to make both regular and principle only payment together. Ugh it's been a hassle, even with a confirmation number!)
Just by paying extra each month, a little or a lot, we've reduced a 30yr mortgage to 10 years. (Well, we've reduced in six years, have an estimated 4 years left to payoff)
We've had the option to refi, but decided the fees weren't worth it, when paying extra principle already reduces interest on unpaid balance.
I know this is purported to be "free"...but you know the drill....no such thing as free lunch.
Your mileage may vary.
Even at just the $2k extra per month, you'll retire it before you know it, instead of upping it back to a 15 year mortgage and starting all over
Oh, and our rate is 3.875%, still in no rush to pay out about $4500 just to reduce what we are already reducing monthly.
Now, if it would quit being sold and passed around because the balance is now so "low" because we've paid up extra.
Best to you...
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