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I plan to pull the trigger today and refinance my 30yr mortgage (27 years left to pay) from 3.75% to a 2.75%. Most likely going with 25yr term.
After speaking with multiple brokers, it's interesting that their offers are somewhat similar. Best one I got was to go to 2.75% with $2,500 cost (title, credit report, notary, etc) and 4 months or so upfront escrow (taxes). Others came very close, all at 2.75% but $3,500 instead of $2,500 in closing costs.
My question is ... if they all are so similar, what else do you go by? One broker I already did mortgage with and all went fine but he is about $1,000 more than the other reputable broker.
What else is important that I should be asking when picking the right broker to go with?
Thank you.
P.S. Yes, I plan to be in this house for a long time. I already add extra $500/mo towards principal but feel uncomfortable going into 15yr term so will stick with 25 or 27yr.
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.
Are you a veteran? There is currently a streamline refi program VA is pushing through banks. I close next week at 2.37% 26 year fixed (I didn't change the terms of the length loan - it was a 30 year fixed at 3.25). No prepay (my plan to have the mortgage retired in ~7 years)
I had a spreadsheet comparing different offers to see which one being the lowest total cost (interests + fees).
During the application process, I learned that mortgage rates vary not only with zip codes but also with the loan amounts and of course the time when you obtain the quotes. So it would be a futile effort trying to get the same deal which somebody reported on the web.
We obtained our original mortgage (15 years at 3.25%) in January 2018 through Costco Finance. I am in the process of getting the mortgage refinanced also through Costco. I locked in the rate at 2.5% for 15 years. The lender fee through Costco is $350 for Executive member and $650 for goldstar members. I paid $120 for our Costco Executive memberships and got $80 back ($20 for the new membership and $60 for opening a Costco Visa card).
I checked with 2-3 other lending sources for our original mortgage and found not only Costco had the lowest rate but also the least hassle (no annoying phone calls, emails from many lenders). I only contacted another lending source besides Costco for refinancing and had the same experience. I had dozen of phone calls and emails after filling out loan information at lending.com. Some lenders were quite obnoxious and kept calling after I had repeatedly told them we were not interested. Through costco finance, only the lender which I selected contacted me. Everything has gone smoothly just like with the original mortgage.
Are you a veteran? There is currently a streamline refi program VA is pushing through banks. I close next week at 2.37% 26 year fixed (I didn't change the terms of the length loan - it was a 30 year fixed at 3.25). No prepay (my plan to have the mortgage retired in ~7 years)
There's something like a 3% fee on those isn't there?
It has been a while since I financed or refinanced, but I used to ask what percentage of their loans would be sold off. My current refinanced loan is through my credit union, and they keep all their loans. But in the "old days", your loan would most likely wind up with an outfit like Countrywide which I hated (because they lost payments, mixed up loans, were unresponsive, etc. I was glad when they went bankrupt).
based on the OP, the question is to look at what's included in the $2,500 vs $3,500. If it's hard lender costs, then you go with the $2,500. Is it a $500 vs $1,000 origination fee? Does one lender charge $300 and another $500 for an appraisal? Those are hard costs.
If it's estimated amounts, where one lender says "escrows $500" and another says "escrows $1,000", that's meaningless.
There's something like a 3% fee on those isn't there?
I am a disabled vet, so there is no VA fee for me, but I believe there is a cost for those without a service connected disability.
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