wedding
Emerald
Posts: 14,402 Likes: 77,820 
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Post by wedding on Mar 27, 2020 20:43:06 GMT -6
We have a pretty good mortgage rate already 3.625% and are only three years into a 30 year. I would be interested in seeing if a 20yr or 15yr would work for us or if it would be worthwhile to refi at a lower rate for a 30yr but continue to pay our current amount or more.
We have only purchased two homes and the first was with a first time homebuyers program and the other was through a bank my uncle worked at and honestly the process was horrible so I don’t want to use them again. How do I go about shopping for rates without having my credit run a zillion times? How difficult is the process? I would assume it’s gathering employment and tax info?
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slenle
Sapphire
Posts: 3,181 Likes: 26,368
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Post by slenle on Mar 27, 2020 21:20:55 GMT -6
wedding. We just did this today. We had a similar interest rate to yours and have been in our house 5 years. We switched from a 30yr to a 15yr, so cut 10 years off. The new internet rate is 2.375. We will be paying about $300 more/month but at the end of it, we will save over $70k. Dh dealt with it, but it was mostly done over the phone and sending in tax returns and bank statements. He worked with a banker in town that he’s heard good things about. We will close on it May 1st and start paying on it In July.
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Post by flamingo on Mar 27, 2020 21:32:09 GMT -6
Wow that's amazing slenle ! We just got a 2.85 for 30 year (new mortgage, not refi) and were thrilled with that. wedding , when rates spiked last week the best our broker could do was a 3.625 with a buy-down, and by waiting until this week to lock in we saved over $200/month. So even if you kept your 30 year terms you might be able to put some extra funds toward the principle each month. I would get recommendations for a good mortgage broker in your area. Rates are fluctuating daily right now b/c of the market unrest, so essentially you'll put in an application so that as soon as a good rate pops up, you lock in--they're not running your credit every time they look at rates. I'm in a RE investors FB group where refi’s come up a lot and people are seeing big daily swings in rates, so you may just have to bide your time as long as the markets are a bit crazy. |
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Post by peachsmama on Mar 27, 2020 21:40:58 GMT -6
How much did you pay out of pocket to refi?
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mwhip
Opal
Posts: 9,174 Likes: 56,609
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Post by mwhip on Mar 28, 2020 6:35:48 GMT -6
peachsmama we didnt pay anything out of pocket when we refid last spring. The only thing you might have to pay would be the appraisal. Closing costs are rolled into your new mortgage.
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slenle
Sapphire
Posts: 3,181 Likes: 26,368
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Post by slenle on Mar 28, 2020 6:37:09 GMT -6
How much did you pay out of pocket to refi? I think it was somewhere around $1500, but that just got rolled into the loan, so not out of pocket. |
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chrisy01
Emerald
Posts: 11,000 Likes: 51,875
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Post by chrisy01 on Mar 28, 2020 7:00:37 GMT -6
When we refi’d a couple years ago C handled it all. But it got delayed so the appraisal happened right after we had E. All the costs were rolled into the new mortgage. It was pretty easy. Having your bank run the numbers for you doesn’t cost a thing so look to se rod it can save you some money.
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Post by lahdeedah on Mar 28, 2020 7:09:26 GMT -6
Do you have to go through the bank that currently holds the loan, or any bank/ mortgage broker?
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joelies
Sapphire
You must chill
Posts: 4,686 Likes: 33,805
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Post by joelies on Mar 28, 2020 7:13:48 GMT -6
I would love to refi - we could definitely handle a few hundred more a month to cut the terms. Unfortunately our credit has taken a bit from DH forgetting to pay bills on time...
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mwhip
Opal
Posts: 9,174 Likes: 56,609
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Post by mwhip on Mar 28, 2020 7:18:50 GMT -6
Do you have to go through the bank that currently holds the loan, or any bank/ mortgage broker? You can use anyone, doesn't have to be your current mortgage company. We did use the same broker after I called a few other places. |
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wedding
Emerald
Posts: 14,402 Likes: 77,820
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Post by wedding on Mar 28, 2020 8:43:19 GMT -6
Does having a mortgage broker cost anything? Is it better to use a broker than go right to the banks themselves?
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Post by flamingo on Mar 28, 2020 8:57:25 GMT -6
Does having a mortgage broker cost anything? Is it better to use a broker than go right to the banks themselves? No, no extra cost to you. The advantage of a broker is that they can see rates from multiple lenders, vs a bank where they only have their own product to sell you. Similar to insurance brokers. |
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kim22
Amethyst
Posts: 5,503 Likes: 36,599
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Post by kim22 on Mar 28, 2020 10:38:57 GMT -6
We use a broker who is a friend of DH. wedding I think you are a government employee so you should ask if they have any special programs. When we first did our mortgage, we used a company that worked with my teacher’s union. We refinanced the beach house in February from a 4.5 to a 3.49% because we were less than a year into a 30 year. We paid nothing out of pocket because they accepted our appraisal from when we purchased the home last year. Otherwise, I want to say the appraisal is usually $300-$500. Total fees and costs rolled into the loan are usually about $10,000. (My numbers are based on several refinances we have done, first to get out of our original 80/10/10 mortgage, then to do our remodel, but I am certainly no expert on this). Our primary house is at a 3.75 with 15 years left and our broker ran the numbers and the savings wasn’t worth the costs because we now pay way more to principal than to interest. Make sure if your going to look into it, you do not take on any other lines of credit right now. MH opened a credit card to get airline miles for our trip in the fall while we were in the middle of this and almost lost our refinance because of that. |
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