DawnM Posted August 9, 2011 Share Posted August 9, 2011 We are looking at refinancing again. We did it two years ago and went from a 5.37% 30 year mortgage to a 4.37% 15 year mortgage. We have paid down about 20K in the last two years in principal. We can now refi to a 3.25% rate on a 15 year, saving a total of $30K or so in interest compared to our current loan. ALmost $0 closing costs ($1,300 in closing costs but $1,100 credit when you refi.) It would also "save" $329 on payments, which, if added back in to the loan would save us even more interest. Seems like a no-brainer but what am I missing? Yes, we have excellent credit and over 20% equity even in this economy. Dawn Quote Link to comment Share on other sites More sharing options...
Murphy101 Posted August 9, 2011 Share Posted August 9, 2011 Yes. Quote Link to comment Share on other sites More sharing options...
happypamama Posted August 9, 2011 Share Posted August 9, 2011 In your situation, yes, I think I would refi. Quote Link to comment Share on other sites More sharing options...
Mommyof4ks Posted August 9, 2011 Share Posted August 9, 2011 Yes Quote Link to comment Share on other sites More sharing options...
Jennifer in MI Posted August 9, 2011 Share Posted August 9, 2011 In a heartbeat!!!! Quote Link to comment Share on other sites More sharing options...
1GirlTwinBoys Posted August 9, 2011 Share Posted August 9, 2011 Absolutely!:) Quote Link to comment Share on other sites More sharing options...
Chris in VA Posted August 9, 2011 Share Posted August 9, 2011 Have someone "official" run the numbers for you--if it works, do it! We refinanced and now can pay off our mortgage in 12 years. We did add a little to the payment but it's so worth the savings. :001_smile: Quote Link to comment Share on other sites More sharing options...
LaxMom Posted August 9, 2011 Share Posted August 9, 2011 We refied to a 15 year 6.5 years ago. I have 8.5 years left. I'm not sure I would refinance again at 0%. Maybe at your stage, but no. Where we are now. Quote Link to comment Share on other sites More sharing options...
LisaKinVA Posted August 9, 2011 Share Posted August 9, 2011 yes. I would Quote Link to comment Share on other sites More sharing options...
mmasmommy Posted August 9, 2011 Share Posted August 9, 2011 Absolutely. $30K + in savings seems like a no brainer. Quote Link to comment Share on other sites More sharing options...
nono Posted August 9, 2011 Share Posted August 9, 2011 Dawn, it sounds like you've already factored in the 2 year differential. If you haven't then run the amortization schedules yourself and see what the total is with the fees. Quote Link to comment Share on other sites More sharing options...
DawnM Posted August 10, 2011 Author Share Posted August 10, 2011 Yes, I did run them and I called today and had the guy verify the numbers with me. I talked to DH tonight and he agrees we need to if we can (DH has to check with work because there are certain companies/banks he can't use as his firm audits them, so he has to verify first), but if we can we are going to do it. I just wondered if there might be something this guy wasn't telling me. It doesn't seem like it, but I thought maybe someone here would know of any shady things I might be missing. Dawn Dawn, it sounds like you've already factored in the 2 year differential. If you haven't then run the amortization schedules yourself and see what the total is with the fees. Quote Link to comment Share on other sites More sharing options...
My3Monkeys Posted August 10, 2011 Share Posted August 10, 2011 Can they get you an even better rate on a 10 year loan? Quote Link to comment Share on other sites More sharing options...
DawnM Posted August 10, 2011 Author Share Posted August 10, 2011 No, the 10 year is the same rate as the 15.....odd, but that is the way it is. Dawn Can they get you an even better rate on a 10 year loan? Quote Link to comment Share on other sites More sharing options...
EmeraldGirl Posted August 10, 2011 Share Posted August 10, 2011 Any prepayment penalties? Legit bank/financer? Sounds like a great deal if it is real. Quote Link to comment Share on other sites More sharing options...
black_midori Posted August 10, 2011 Share Posted August 10, 2011 It does sound like a great deal - where do you think you'll get the refi? We are looking right now to refi our 30yr 6% to a 15 or 30 yr much lower % - it seems like closing costs range from 100 to 10,000!!! Crazy. I'm hoping that it won't be a big problem in equity - we paid 10% originally and are about 15% of the original value, but I don't know what an appraisal would say about the value right now... sigh. Anyhow, this is on my plate of things to look into this week while my hubby is in town! When you did your refi, did you have a chance after the appraisal was done and before continuing on to stop and not pay any fees?? I may be over-worrying about this (I understand home values have stayed relatively stable here), but blech! I just don't know what it will look like :) Quote Link to comment Share on other sites More sharing options...
DawnM Posted August 10, 2011 Author Share Posted August 10, 2011 The one we are looking at right now is Amerisave or Patriot Financial. They are not banks but broker firms. We are in a bit of a bind because DH can't use several banks due to his job/conflict of interest. Amerisave is 3.25% for a 15 year with $1,300 closing costs, $0 points and a $1,100 reimbursement at closing, making closing costs a total of $200. Now, to get that rate you must both have a credit score of over 750 and have some kind of debt to income ratio that is something or other (didn't understand all of that but we meet it.) and you have to be asking for only 80% or less of a loan to value percentage. When you have the appraisal done, you pay for the appraisal, so you can't get out and not pay for that once it is done. Dawn Quote Link to comment Share on other sites More sharing options...
butterflymommy Posted August 10, 2011 Share Posted August 10, 2011 We plan to refinance from a 30 to 15 year with about the same difference in interest. As I've said in other posts my husband is a financial wiz and I trust him implicitly on these issues. Quote Link to comment Share on other sites More sharing options...
DawnM Posted August 18, 2011 Author Share Posted August 18, 2011 Ok, we are going for it. But we opted for the 3.37% over the 3.25% because that 1/8 of a percent is only $16 more AND the rebate is $2,888 instead of the $1,100. We amortized it and it would take 10 years to break even with only 1/8th percent difference. We have started signing the paperwork. We are going through First Internet Bank of Indiana, but they are just a broker really, the loan will be through Chase. They offered us Wells Fargo first but DH can't use Wells because of his job (conflict of interest). Dawn Quote Link to comment Share on other sites More sharing options...
DusksAngel Posted August 18, 2011 Share Posted August 18, 2011 Yep, yep, yep Quote Link to comment Share on other sites More sharing options...
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