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maymama
my little loves
Member since 8/08 18453 total posts
Name:
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refinancing?
is anyone in the process of closing on a new home or refinancing?
we closed on our home in June 08, before the market took a dive and interest rates dropped dramatically. We are currently paying 6.75 and would like to lock in a better rate. We were just qualified for 5.0 which would save us nearly $420 a month!!!   with Wells Fargo (who our current mortgage is through)
Has anyone heard of anything lower as far as rates go?
 TIA
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Posted 4/13/09 12:01 PM  |
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jteach
2 and through
Member since 9/07 3939 total posts
Name:
Jess
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Re: refinancing?
My dh is a mortgage broker and he just closed one of our friends re fi and he got them 4.5%
It totally depends on your credit, every 20 points brings you to a new level.
If you have any questions about anything I can give you dh's number.
Good luck
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| Posted 4/13/09 12:08 PM |
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Cheeks24
Living a dream
Member since 1/08 8589 total posts
Name:
Cheeks
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Re: refinancing?
I was always told that if it's not more than 2 points it's not worth it. We got an excellent rate when we closed last June, but I'd take 4.5 over ours!
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| Posted 4/13/09 12:10 PM |
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maymama
my little loves
Member since 8/08 18453 total posts
Name:
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Re: refinancing?
Posted by olliesmama
My dh is a mortgage broker and he just closed one of our friends re fi and he got them 4.5%
It totally depends on your credit, every 20 points brings you to a new level.
If you have any questions about anything I can give you dh's number.
Good luck
thanks so much! for us, it was more a question of closing costs. we have heard different numbers from different companies so this was the best deal (so far)... I will keep you posted if this doesnt work out, then I might need that number  
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| Posted 4/13/09 12:11 PM |
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maymama
my little loves
Member since 8/08 18453 total posts
Name:
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Re: refinancing?
Posted by Mici C
I was always told that if it's not more than 2 points it's not worth it. We got an excellent rate when we closed last June, but I'd take 4.5 over ours!
yah, ive heard that too. It is 1.75 points and would save us a TON in the long run. Closing costs are minimal (like 3k) so we figure, why not? Can it impact credit or anything negatively?
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| Posted 4/13/09 12:12 PM |
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MrsFab
this is bliss.......
Member since 10/08 1234 total posts
Name:
Mb
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Re: refinancing?
I was wondering about this too- we are at 5.75%- we bought in October- I was more concerned about the closing costs- I know you can roll them into the new mortgage, I am just really concerned about taking away the little bit of equity that we have in our coop
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| Posted 4/13/09 12:13 PM |
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Cheeks24
Living a dream
Member since 1/08 8589 total posts
Name:
Cheeks
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Re: refinancing?
Posted by MrsFab
I was wondering about this too- we are at 5.75%- we bought in October- I was more concerned about the closing costs- I know you can roll them into the new mortgage, I am just really concerned about taking away the little bit of equity that we have in our coop
That's what DH just said to me. He said we'd have to come up with all that money for closing costs again.
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| Posted 4/13/09 12:20 PM |
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Strawberry2468
It's summatime
Member since 3/09 4739 total posts
Name:
Christine
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Re: refinancing?
Refinancing wont reflect negatively on your credit. If anything your pmt will be lower so it would be better.
The only downfall would be is if you wouldnt save that much and you are paying closing costs again.
But if you say you will only pay $3K in closing and your are saving about $5K per year, its worth it even if you move in a few years.
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| Posted 4/13/09 12:21 PM |
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Cheeks24
Living a dream
Member since 1/08 8589 total posts
Name:
Cheeks
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Re: refinancing?
Posted by mrskparetta
Posted by Mici C
I was always told that if it's not more than 2 points it's not worth it. We got an excellent rate when we closed last June, but I'd take 4.5 over ours!
yah, ive heard that too. It is 1.75 points and would save us a TON in the long run. Closing costs are minimal (like 3k) so we figure, why not? Can it impact credit or anything negatively?
How are your closing costs so little? I don't see how it would impact your credit negatively. As long as you're not taking out more than what you still owe, you should be fine.
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| Posted 4/13/09 12:22 PM |
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bluekat16
My boys :-)
Member since 3/09 6659 total posts
Name:
Kathy
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Re: refinancing?
We're refinancing the house on LI 5 at a 4.625% through Chase where DH has that mortgage. IF we had pulled the trigger a few days earlier we would've locked in at a 4.5%.
You need to kee your eye on the 10-year bond. That dictates the mortgage rates. So when it's down mortage rathes are lower and when it's up mortgage rates are higher. 5.0% sounds about right for this time period because the 10year bond was up...even though it's down today.
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| Posted 4/13/09 12:40 PM |
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Chris516
LIF Infant
Member since 1/09 99 total posts
Name:
Christina
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Re: refinancing?
Im a mortgage broker. Right now , i am locking people in at 4.5% ( if they pay 1 point which means an extra 1% of the loan amount in closing costs) With no points, i am locking people in at 4.875%. ( rates are for very WELL qualified borrowers).. As for closing costs, it will depend greatly on how much you owe and are looking to borrow. But dont let anyone fool you, on average closing costs for a 300k loan will run between 6k-11k, depending on if you choose to include your taxes in your monthly payment. Also, be careful of rates that sound too low. I could lock people in today at 4% if i wanted too, but it would cost them a fortune at their closing!! Theres no magic with rates or closing costs, just deal with someone you trust. HTH and let me know if you have any questions!
Message edited 4/13/2009 12:42:12 PM.
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| Posted 4/13/09 12:41 PM |
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maymama
my little loves
Member since 8/08 18453 total posts
Name:
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Re: refinancing?
Posted by Mici C
Posted by mrskparetta
Posted by Mici C
I was always told that if it's not more than 2 points it's not worth it. We got an excellent rate when we closed last June, but I'd take 4.5 over ours!
yah, ive heard that too. It is 1.75 points and would save us a TON in the long run. Closing costs are minimal (like 3k) so we figure, why not? Can it impact credit or anything negatively?
How are your closing costs so little? I don't see how it would impact your credit negatively. As long as you're not taking out more than what you still owe, you should be fine.
not sure why closing would be so little, DH is working on all of this. He said that the total at closing would be right around 3500, so in 1 year, we would save more than that by refinancining. We dont plan to move for at least another 5-7 years. I will ask him to just confirm the closing costs so that we arent getting into something we dont understand fully...
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| Posted 4/13/09 1:13 PM |
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Strawberry2468
It's summatime
Member since 3/09 4739 total posts
Name:
Christine
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Re: refinancing?
Posted by mrskparetta
Posted by Mici C
Posted by mrskparetta
Posted by Mici C
I was always told that if it's not more than 2 points it's not worth it. We got an excellent rate when we closed last June, but I'd take 4.5 over ours!
yah, ive heard that too. It is 1.75 points and would save us a TON in the long run. Closing costs are minimal (like 3k) so we figure, why not? Can it impact credit or anything negatively?
How are your closing costs so little? I don't see how it would impact your credit negatively. As long as you're not taking out more than what you still owe, you should be fine.
not sure why closing would be so little, DH is working on all of this. He said that the total at closing would be right around 3500, so in 1 year, we would save more than that by refinancining. We dont plan to move for at least another 5-7 years. I will ask him to just confirm the closing costs so that we arent getting into something we dont understand fully...
could be b/c its the same bank and they have your taxes, etc in escrow already
and you are the current owner and it was less than a year. Title costs might be cheaper.
Message edited 4/13/2009 1:19:33 PM.
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| Posted 4/13/09 1:18 PM |
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maymama
my little loves
Member since 8/08 18453 total posts
Name:
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Re: refinancing?
Posted by Strawberry2468
Posted by mrskparetta
Posted by Mici C
Posted by mrskparetta
Posted by Mici C
I was always told that if it's not more than 2 points it's not worth it. We got an excellent rate when we closed last June, but I'd take 4.5 over ours!
yah, ive heard that too. It is 1.75 points and would save us a TON in the long run. Closing costs are minimal (like 3k) so we figure, why not? Can it impact credit or anything negatively?
How are your closing costs so little? I don't see how it would impact your credit negatively. As long as you're not taking out more than what you still owe, you should be fine.
not sure why closing would be so little, DH is working on all of this. He said that the total at closing would be right around 3500, so in 1 year, we would save more than that by refinancining. We dont plan to move for at least another 5-7 years. I will ask him to just confirm the closing costs so that we arent getting into something we dont understand fully...
could be b/c its the same bank and they have your taxes, etc in escrow already
and you are the current owner and it was less than a year. Title costs might be cheaper.
that was what DH said, I will make sure we look into it just in case! 
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| Posted 4/13/09 1:27 PM |
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Cheeks24
Living a dream
Member since 1/08 8589 total posts
Name:
Cheeks
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Re: refinancing?
Posted by mrskparetta
Posted by Strawberry2468
Posted by mrskparetta
Posted by Mici C
Posted by mrskparetta
Posted by Mici C
I was always told that if it's not more than 2 points it's not worth it. We got an excellent rate when we closed last June, but I'd take 4.5 over ours!
yah, ive heard that too. It is 1.75 points and would save us a TON in the long run. Closing costs are minimal (like 3k) so we figure, why not? Can it impact credit or anything negatively?
How are your closing costs so little? I don't see how it would impact your credit negatively. As long as you're not taking out more than what you still owe, you should be fine.
not sure why closing would be so little, DH is working on all of this. He said that the total at closing would be right around 3500, so in 1 year, we would save more than that by refinancining. We dont plan to move for at least another 5-7 years. I will ask him to just confirm the closing costs so that we arent getting into something we dont understand fully...
could be b/c its the same bank and they have your taxes, etc in escrow already
and you are the current owner and it was less than a year. Title costs might be cheaper.
that was what DH said, I will make sure we look into it just in case!
If this is the case then I may look into it further for us too. I mean I don't want to pay the closing costs we paid already. We haven't been in the house that long so it's not like a lot went to the principle already.
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| Posted 4/13/09 2:09 PM |
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Chris516
LIF Infant
Member since 1/09 99 total posts
Name:
Christina
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Re: refinancing?
Posted by mrskparetta
Posted by Strawberry2468
Posted by mrskparetta
Posted by Mici C
Posted by mrskparetta
Posted by Mici C
I was always told that if it's not more than 2 points it's not worth it. We got an excellent rate when we closed last June, but I'd take 4.5 over ours!
yah, ive heard that too. It is 1.75 points and would save us a TON in the long run. Closing costs are minimal (like 3k) so we figure, why not? Can it impact credit or anything negatively?
How are your closing costs so little? I don't see how it would impact your credit negatively. As long as you're not taking out more than what you still owe, you should be fine.
not sure why closing would be so little, DH is working on all of this. He said that the total at closing would be right around 3500, so in 1 year, we would save more than that by refinancining. We dont plan to move for at least another 5-7 years. I will ask him to just confirm the closing costs so that we arent getting into something we dont understand fully...
could be b/c its the same bank and they have your taxes, etc in escrow already
and you are the current owner and it was less than a year. Title costs might be cheaper.
that was what DH said, I will make sure we look into it just in case!
There is definitely discounts if the bank will transfer escrows ( which they usually wont), the title insurance will be discounted but still run about 1k, the mortgage tax can be consolidated but still runs about 1500. Plus, attorney fee, underwriting fee, interest per diem, recording fee, appraisal, application fee. Just in my experience in the last 7 years doing this, i have yet to see someones closing costs be less than 5k ( unless the loan was really small). Also, the banks sometimes dont disclose all the third party fees becuase legally they dont have to. But, in my opinion, they should give you the full picture upfront.
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| Posted 4/13/09 2:39 PM |
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