Refinancing Questions

[sniper7]

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]

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]

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]

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]

PM sent

[Teufelhund]

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]

delete

[sbouslog]

Done

[BUC303]

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]

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...