Refi question
- Thread starter utmck
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The Eyes of Texas
500+ Posts
look at the difference in interest rate and calculate if you're going to save money over the life of the loan if you refinance.
<edit> another thing to consider is how long you plan to be in the house....
<edit> another thing to consider is how long you plan to be in the house....
biganakhanhda
500+ Posts
If it is really going to cost you only $400 then I would say do it. Your break even point like you mentioned is only 4 months, so if you plan to be in the house for another 4 months then you've already won.
But I find it hard to believe that BOA or any lender who is willing to refinance any loan for only $400. That may be what you have to pay at closing, but are they rolling in any closing costs into the new loan? Because I am sure there are more fees you will have to pay, whether it is up front or rolled into the new loan. If not, then go for it, then keep paying the same amount now and apply the $100 in savings towards your principal, this will help you lower your principal more quickly and shed years off your note if you are consistent with it.
Any further questions or if you would like me to give you some more options then feel free to PM me or email me at [email protected]
But I find it hard to believe that BOA or any lender who is willing to refinance any loan for only $400. That may be what you have to pay at closing, but are they rolling in any closing costs into the new loan? Because I am sure there are more fees you will have to pay, whether it is up front or rolled into the new loan. If not, then go for it, then keep paying the same amount now and apply the $100 in savings towards your principal, this will help you lower your principal more quickly and shed years off your note if you are consistent with it.
Any further questions or if you would like me to give you some more options then feel free to PM me or email me at [email protected]
Y
YoLaDu
Guest
my hesitation with re-fiancing is the resetting of the loan to 30 years. If you are strapped for cash and need the extra $100 a month, i could see doing it, but resetting the loan, means your interest vs principle paid each month is going to be weighted heavy toward the interest again, which will mean building equity will be a slow go.
If you can afford to take the 100 a month you have saved and pay down the principle, that is a great idea.
what is the interest rate you have now vs. the one you are going to get?
If you can afford to take the 100 a month you have saved and pay down the principle, that is a great idea.
what is the interest rate you have now vs. the one you are going to get?
orangecat1
500+ Posts
hmm, do all of the big banks do an "in-house refi"?
I've got the same int. rate he does, kind of a low principal though, 111k.
I've got the same int. rate he does, kind of a low principal though, 111k.
As a mortgage loan officer I am shocked at that rate. What they are doing is "Charging you closing costs" and paying them for you by charging a higher rate. So in a since, you are financing your closing costs through a higher interest rate for 30 yrs.
Why not look at getting something in the mid to low 4's and go to a 20 year...see if it will keep your payment the same.
Almost all refi's that i'm doing right now is taking people from 30 yr mortgages to 10, 15, and 20 year terms.
Why not look at getting something in the mid to low 4's and go to a 20 year...see if it will keep your payment the same.
Almost all refi's that i'm doing right now is taking people from 30 yr mortgages to 10, 15, and 20 year terms.
What are they doing with your escrow account if you have one?
As far as bank pricing goes, the bank is probably making a 2-3pts off the loan with that rate. So you see, they are making their money up somewhere.
You need to ask them to show you what if they charged 1% origination fee on the front of the loan and what your payment will be.
Yes your closing costs will increase but you need to ask yourself what are your goals with the house. Is it long term (more than 5 years)? Or short term (less than 5 years)?
By going to a shorter term, you will be applying more to the principal faster and have greater equity in the home down the line if you ever end up selling it.
As far as bank pricing goes, the bank is probably making a 2-3pts off the loan with that rate. So you see, they are making their money up somewhere.
You need to ask them to show you what if they charged 1% origination fee on the front of the loan and what your payment will be.
Yes your closing costs will increase but you need to ask yourself what are your goals with the house. Is it long term (more than 5 years)? Or short term (less than 5 years)?
By going to a shorter term, you will be applying more to the principal faster and have greater equity in the home down the line if you ever end up selling it.
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