Mortgage Refinance

[benjamming]

We're looking at refinancing our mortgage which is currently at 6%. Which financial institutions would be recommended to use & those to avoid? I go to Bankrate.com & there are quite a few with low advertised rates & APR, but which ones should I avoid? I'm sure many of these places are just brokers, but I don't know that I really care. I assume most of the #s quoted on bankrate are teaser type stuff. I don't want to have to fill out 30 forms to find out real #s. However, is that the best option to get the best deal? I will call a few local banks as well.

I understand how to figure whether or not to pay points to come out ahead so not concerned with that portion. We plan on staying in this house until it is paid off. I doubt another refinance would ever happen as current rates (2.75-3.5%) are pretty low.

Thanks.

 

[LoneRanger]

You may find that your local banks are competitive with the bankrate.com listings. We did. We were 5 yrs into a 15 yr note at 5.5% and refi'd locally with a 10 yr note @ 3.62% and $299 total closing costs back in October.

 

[rshaw125]

Remember to talk to the people who currently hold the mortgage. We did that and they matched another offer we had. Much less paper work. We went from a 30 year to a 15 year. Resist any temptation to take equity out of the house.

 

[Food Scientist]

I would also check with a local credit union.

 

[bepperb]

I did a no cost refi through Wells Fargo who owned our loan at the time.

We basically resigned some papers and it took about 1/2% off.

Since we've bought a new house and our mortgage is at 3.875 IIRC, 30 year fixed.

 

[HTSS_TR]

No cost refinance with shorter period, 30 year to 15-20 year or 15 year to 10 year, is sometimes the best option, because you don't actually know when you will move even you don't plan to move as of today.

 

[JTK]

Originally Posted By: benjamming
We're looking at refinancing our mortgage which is currently at 6%...


I hear you Ben. I'm on the fence with this one as well being 6mo into a 30yr @ 4.8%

4.8% is great, but I'm seeing 30yr's at a percent or more less!

Joel

 

[PZR2874]

What is the refinance fees going to run you ?

That's where they bend you over. Here in TX it's around the 7K mark to refinance. Just be aware.

I did the same thing to drop to 1.3% from 5.4 to 4.1

Only difference is that we only had 5 yrs equity.

 

[JHZR2]

I looked at rates versus fees on bankrate and then went with one of their advertisers. Worked out really well and smoothly, though I haggled with the broker a bit.

I dont recall 20 pagest worth of papers untili had to do the app. Even then it didnt take long...

 

[Vikas]

Make sure you get a *true* no cost to you mortgage and go through the closing statement with a comb to make sure you are not paying a penny and they are not rolling anything in to the new loan.

 

[JHZR2]

Yeah, document fees, overnight fees, etc are ridiculous.

But sometimes those with a teaser rate is a better deal than no costs but a slightly higher rate (they get you one place or another).

The one that gets me is title insurance.

I refi'd in may, thinking rates can't go lower than 4%. Now I want 3%, and they want the $1400 or whatever for title insurance. I'm not inclined to do it because that cost is ridiculous considering the time since it was done last, my credit, and that it won't protect me.

 

[OtisBlkR1]

im 1.5 years into a 30 year fixed at 5.5% , I stopped at a local bank and requested a quote/APR, they are currently at 3.25%.
I can re-fi my house from 30 to 15 years and my montly payment is going to increase $110.00 , Cost of re-fi would be between $1,800 and $2,500 This seems like a no brainer to me. I set a appointment for next week to get the paperwork started.

After reading the above statements, contacting my current lein holder and seeing what can be done and what options i have sounds like a smart play.. I will give them a call, cant hurt.

 

[PZR2874]

My story a few posts above this one was even with the same bank I had the loan with.... Ridonkulous. Just stay educated.

 

[Vikas]

If you get a true no cost refi, then you could refi again and again and again ... For that alone, it is worth paying a little bit more in the rate (say quarter point) so that you have your options open. We did that for all of our refi's for the last two decades.

 

[PZR2874]

I often wonder if this "no cost refi" is state regulated.