Picking the Right broker when Refinancing ... going from 3.75% to 2.75%

[2sleepy]

Originally Posted by NewbieHere

I go with no point no cost, in fact I’m getting $25 back, no impounding. I locked last week before the rate went down further, I got 2.875 for 30 year fix. But I like the 30 year mortgage for comparison and cash flow. 25 years is no different than 30 years, but I plan to pay off in 10 years.
Check out the boggleheads thread on refinance, there’s a mega thread on this subject.

That's a good rate, what were your closing costs? When I checked with the credit union they estimated that ours would be around $1,900 + prepays of another $1,000. We have a really small loan balance and even though the rate was good their fee of $900 + closing and prepaids the break even point would have been about 4 years. We decided to wait for now anyway. When we lived in Reno we refinanced a loan with no closing costs or lender fees @ 3% I don't see that happening again anytime soon.

[johngolf]

They are all selling "money" so go for the overall least expensive deal as in payments, time, closing costs.

Another post of mine:

I refinanced homes more than once. It is simple math:

1. There will be closing costs so let us say $2,400 which is typical
2. Mortgage payment goes down so let us say $100 per month later.
3. In this example, after two years you will be ahead.

One time we refinanced and withdrew money. We kept the same monthly payment but increased the mortgage amount and withdrew the difference. Wife bought a new car with the proceeds.

[karen_in_nh_2012]

I'm refinancing my 10-year ARM with a starting rate of 3.125% (just under 2 years to go at that rate) to a 15-year 2.5% fixed-rate loan through my same lender (no cash out -- just refinancing a bit more than the balance to cover the closing costs). I'll pay half a point for that rate but for my loan that's <$800. I qualified for an automated appraisal and they made the process really easy. They keep and service their own loans so they have 8 years of records with me -- that probably helped.

Closing costs will likely be ~$1,500 (not including prepays, but I'd have to pay those to ANY lender, and of course I'll get a refund of what's in my escrow account with them now).

Thought about doing a 10-year mortgage (rate would have been 2.5% with no points) as I'll likely pay enough extra each month to MAKE it a 10-year loan (or less), but for <$800 I figure it's more financial peace of mind in these crazy days.

(Oh, my lender is Bar Harbor Bank in Maine if anyone's interested, but they only lend in 4 states in New England. They are terrific.)