PDA

View Full Version : Refinancing Questions


sniper7
10-05-2012, 11:52
I am looking to refinance my house. Currently at 4.75% fixed, 30 year loan. I know there is better out there and wouldn't mind saving the extra money each month.

Anyways, if anyone has refinanced lately, or knows of somewhere good to go, let me know.

I would prefer no money down, not sure if it is possible, and can bring money down to the table if the deal is right as well.

I have never refinanced before, so I may ask some dumb questions! Anyways, thanks in advance for the help!
kwando
10-05-2012, 12:00
Pm bside303, he has a guy that refis to FHA loans, no money out of pocket. No increase in principle. He gets kickback from the govt, FHAs are nice because there is no appraisal.

Conventional loans that are no cost refi, closing costs are rolling into the loan.
Sharpienads
10-05-2012, 12:01
The first thing you need to do is figure out if the lower interest rate is worth whatever closing costs you're going to pay. In other words, will you save more with a lower interest rate than the cost of closing. I think. I'm not a re-fi expert.
sniper7
10-05-2012, 12:06
Pm bside303, he has a guy that refis to FHA loans, no money out of pocket. No increase in principle. He gets kickback from the govt, FHAs are nice because there is no appraisal.

Conventional loans that are no cost refi, closing costs are rolling into the loan.


I'll give him a shout.

I just checked on wells fargo and their rates are 4.230 APR, so a 1/2 point savings. About $2200 up front though even with an FHA it looks like.
savings of about $100 a month, so not terrible, 2 years to make up the $$, then over $30K in savings not including interest savings over the life of the loan.
bside303
10-05-2012, 12:09
PM sent
Teufelhund
10-05-2012, 12:10
Use one of the many mortgage calculators online to see a visual representation of the money you'll save by reducing your interest rate. If you are planning to keep the house until it's paid off, the savings are substantial with even fraction of a percentage lower rate. I've refinanced twice in the last 18 months to take advantage of the dropping rates. Down from 4.75% to 3.75% now and it is going to save me over $40,000 over the life of the loan. I've got a VA loan, so I've never had to bring any money to the table at closing; I don't know much about the other types of loans.
HBARleatherneck
10-05-2012, 12:28
delete
sbouslog
10-05-2012, 12:28
Done
BUC303
10-05-2012, 12:32
Yeah depending on your credit you should be able to get well below 4.23% interest rate today. If you have an FHA loan you used to be able to "streamline" them and not pay any out of pocket costs or fees to get a new rate (not sure if that has changed). I would talk to a broker don't just rely on your bank or you won't get the best rate possible, you'll get the best rate they want to offer you.
TRnCO
10-05-2012, 16:59
My wife is an loan underwriter and tells me that as a simple rule of thumb, if you can't shave off at least one point of interest, it's not usually worth doing the refi...
ChunkyMonkey
10-05-2012, 17:13
I'll give him a shout.

I just checked on wells fargo and their rates are 4.230 APR, so a 1/2 point savings. About $2200 up front though even with an FHA it looks like.
savings of about $100 a month, so not terrible, 2 years to make up the $$, then over $30K in savings not including interest savings over the life of the loan.

Rate as of today is 3.25% I closed one last week at 3.375% that's already paying me over 1 point in commission. FYI. Look into streamline.. no income, no appraisal if you are w/ wells, as long as you have been paying on time. Turn around time on good rate lender is over 45 days.. so brace for that. You may also skip upto 2 month mortgage payment if your loan officer arranges your interest credit correctly.
ChunkyMonkey
10-05-2012, 17:15
My wife is an loan underwriter and tells me that as a simple rule of thumb, if you can't shave off at least one point of interest, it's not usually worth doing the refi...

Typically true, it depends on your balance. E.G. 1% of 250k is 2500 a year saving. 30 year loan translates to $75000 in less interest.
hghclsswhitetrsh
10-05-2012, 17:21
Rate as of today is 3.25% I closed one last week at 3.375% that's already paying me over 1 point in commission. FYI. Look into streamline.. no income, no appraisal if you are w/ wells, as long as you have been paying on time. Turn around time on good rate lender is over 45 days.. so brace for that. You may also skip upto 2 month mortgage payment if your loan officer arranges your interest credit correctly.

What kind of credit rating are they looking for for one of these loans.
ChunkyMonkey
10-05-2012, 17:24
What kind of credit rating are they looking for for one of these loans.

I hope you know that credit rating will give you either approval or denial. If you are approved you are qualified for the best rate in the market. Some loan officers use lower credit score to justify the higher rate for commission/yield reason. This is strictly for 'profit.' Those days of subprime (worse credit rating = higher rate) is long gone.

FHA streamline requires 640 score overlay by most lenders. If your score is above this and you have no federal liens, judgment, bankruptcy/foreclosure the past 3 years, or 1x30 late on your mortgage, you are qualified.

EDIT sorry if I misunderstood your question. I get asked on daily basis "if my credit score is low, how high is my interest."
sbouslog
10-05-2012, 17:59
Gone
KestrelBike
10-05-2012, 18:01
Use one of the many mortgage calculators online to see a visual representation of the money you'll save by reducing your interest rate. If you are planning to keep the house until it's paid off, the savings are substantial with even fraction of a percentage lower rate. I've refinanced twice in the last 18 months to take advantage of the dropping rates. Down from 4.75% to 3.75% now and it is going to save me over $40,000 over the life of the loan. I've got a VA loan, so I've never had to bring any money to the table at closing; I don't know much about the other types of loans.

Nice!
scratchy
10-05-2012, 19:42
I just refied with provident funding. They hold and service the paper. We got 3.5 with -1.5 points (Yes, you read that correctly, they paid us points) 3.35 was available with .5 points. Cash out of pocket was about 800 on a 275k loan. Check with them, they have been very good for us. Note, credit score is important here too. to get the sub 4 rates, you need 740+

Here's the rate chart from 2 minutes ago:

30 Year Fixed (https://www.provident.com/Origination/Information/LoanPrograms/LoanPrograms.aspx) 3.125% 0.000% 3.207%


15 Year Fixed (https://www.provident.com/Origination/Information/LoanPrograms/LoanPrograms.aspx) 2.500% 0.500% 2.712%


5/1 LIBOR ARM (https://www.provident.com/Origination/Information/LoanPrograms/LoanPrograms.aspx) 2.625% 0.000% 2.735%
sniper7
10-09-2012, 22:08
Looks like it will be 3.25% fixed for 30! now to get the details done!

thanks for the help guys[Beer]
Fentonite
10-09-2012, 22:12
Looks like it will be 3.25% fixed for 30! now to get the details done!

thanks for the help guys[Beer]

Who did you go with? I need to do this. I'm paying over 5%!!!
sniper7
10-09-2012, 22:27
Who did you go with? I need to do this. I'm paying over 5%!!!

PM sent
cfortune
10-09-2012, 22:31
I'm in the middle of refinancing right now. Just waiting on my appraisal. If my house appraises for what's on the paper work, I can drop to a 20 year with a slightly smaller payment or save nearly $300 a month if I stick with a 30 year. I hate to say, I don't even recall my current interest rate but I'd be dropping down to a 3.75 (my credit isn't awesome, have some things lingering from being a broke college student).