Refinancing

[fasteddieisahorndog]

Looking to refinance. Currently, I have a 7.5% rate. I've been offered 4.375% (1.65 points), 4.5% (one point) or 5% (no points).

Payoff on house is $69,000. Value is $180,000. Looking to finance $110,000. Do you think the rates are good? Any recommendations on mortgage companies?

 

[TexasEd]

I guess you have a good reason to put 41K more debt on your loan, right?

If you really need the money I would look into alternatives to putting the debt against your house as opposed to a straight up personal loan and compare the alternatives.

I think the rates are good. If you were only refinancing you current principle I would tell you to look at net cash flow, total future payments and the time to recoup the closing costs.

Adding in the extra $41K adds a lot of complexity.

 

[gdavis]

4.75% and no points

 

[BA93]

Were you told those rates included adding to the loan amount? When I recently refinanced, I thought about taking out a little cash as my house has appreciated a fair amount in the last few years.

My broker said that that scenario would cause the rate to go up, and that my best option was to refinance and then go get a HELOC. This was even when I have 30-40% equity in the house.

In hindsight, I wished I had waited a few weeks to refinance. I would have paid a little less in points. Oh well. Who knew it would definitely drop like it has in the past 2 weeks.

 

[Stuck_At_Work]

In reply to:

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[fasteddieisahorndog]

S A W, My community has not been affected by the housing crisis and property values have remained steady or on the rise. I would never be in a position to default as I have a government pension, TSP, and other funds available to me. Retiring from the military at 42 years of age really paid off for me.

This refinance would consolidate all my current debt and leave me with only my mortgage payment. Three ex wives , putting my two kids through college (SMU and St Louis University) , and some bad dicisions put me in heavy credit card debt. Fortunatly, never being late and paying above the minimun for many years has kept my credit rating excellent.

Anyway, I have not made any final dicision on what to do. Right now, I'm looking for the best rate possible and I have already been preapproved on a couple of the rates I've already mentioned. Another factor is the fees associated with these mortgage lenders. They vary quite a bit.

Is my decision to refinance this amount flawed?

 

[chango]

Sorry but it amazes me a) how much the general public thinks they know about refinancing, b) how much people like to talk about it , and c) how little people really know.

You're at 7.5%. Find a MORTGAGE professional you trust and do SOMETHING. It doesn't matter what rate you are ore approved on-- the rate means nothing until it's locked with the lender. You don't have to lock in at the bottom, just take action or you'll watch rates forever and wind up stuck at 7.5%!!!!

 

[fasteddieisahorndog]

Chango, Thats for your insight. I started actively pursuing this about 10 days ago and plan to commit in about a week. I may be wrong, but I think the rates will stay low and even go lower for at least a month. After that, who knows.

 

[heritage]

You have some really good questions and there is not nearly enough space here to try to address them and besides, a lot of the answers will depend on your personal situation and preferences, If you want to PM me, I will try to help you with the questions you have asked and perhaps some that you should ask. I am a mortage lender and have been making home loans in Texas for 36 years and have gobs or references. Brooks Hiller

 

[Stuck_At_Work]

You're right. I don't know your exact situation. Sorry to come across so harshly. Whatever you do, do the math. Math doesn't lie.