Berto Posted March 21, 2008 Report Share Posted March 21, 2008 Hey guys I wanted to get everyone's experience with refinancing (hopefully recently) Currently I have a 30 yr fixed rate loan (7.25%APR) and I want to lock in a new rate with low or no closing costs (if possible) I just got off the phone with a bank that actually offered me a 15 yr loan at 9.81%APR LOL. And he kept telling me it was a good deal because i pay my house off in half the time. I told him to go pound sand because I could just put extra montly payments and pay it off in less because my current APR is less, what a damn joke. oh and its not that my credit is crappy (776). Any ideas? Quote Link to comment Share on other sites More sharing options...
Sam1647545489 Posted March 21, 2008 Report Share Posted March 21, 2008 Our credit scores are the same, wanna butt sexor??? Quote Link to comment Share on other sites More sharing options...
Casper Posted March 21, 2008 Report Share Posted March 21, 2008 We have a 6.25% 30yr fixed. If the interest rates go much lower, I'll be looking to refinance as well. Problem is, we just got our loan 4-5 months ago. Is there a restriction of how long you have to wait? At what point is it worth refinancing? Quote Link to comment Share on other sites More sharing options...
Putty Posted March 21, 2008 Report Share Posted March 21, 2008 I'm 5.785% 30 year fixed...I'm good here for a while. Don't do that 15 year stuff. Get a nice lower rate and pay it twice a month like I do...Pay off in 21.8 years. Our credit scores are the same, wanna butt sexor??? you homo? Quote Link to comment Share on other sites More sharing options...
verse Posted March 21, 2008 Report Share Posted March 21, 2008 Is there a restriction of how long you have to wait? At what point is it worth refinancing? From what I've heard, no. You could refinance a month after closing if you think it's going to benefit you. I've looked into it as well. I'm a 7.25% fixed for 30 years. I'd like to get down to 6.25-6.5% Quote Link to comment Share on other sites More sharing options...
Skinner Posted March 21, 2008 Report Share Posted March 21, 2008 We have a 6.25% 30yr fixed. If the interest rates go much lower, I'll be looking to refinance as well. Problem is, we just got our loan 4-5 months ago. Is there a restriction of how long you have to wait? At what point is it worth refinancing? no not that I have ever heard. Though right now it is hard to get lenders to do refi's. After we bought our house we did a refi the following year and got a 30 yr at 5.56%. We also went through our orginal lender (Wells Fargo). If any thing that should be you best bet. Since you're already established with them they may be able to get you a better rate to keep your business. Quote Link to comment Share on other sites More sharing options...
black00ws6 Posted March 21, 2008 Report Share Posted March 21, 2008 We just refinanced last month, got 5 flat for 15 years. Quote Link to comment Share on other sites More sharing options...
Berto Posted March 21, 2008 Author Report Share Posted March 21, 2008 where? Quote Link to comment Share on other sites More sharing options...
Casper Posted March 21, 2008 Report Share Posted March 21, 2008 no not that I have ever heard. Though right now it is hard to get lenders to do refi's. After we bought our house we did a refi the following year and got a 30 yr at 5.56%. We also went through our orginal lender (Wells Fargo). If any thing that should be you best bet. Since you're already established with them they may be able to get you a better rate to keep your business. The thing saving our ass right now is the fact our house appraised for quite a bit more than we purchased it for. Thank God. With the home prices dropping, we'll probably be breaking even. Kinda sucks, but better than getting fucked with negative equity. Quote Link to comment Share on other sites More sharing options...
black00ws6 Posted March 21, 2008 Report Share Posted March 21, 2008 where? American Mortgage Service Company Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted March 21, 2008 Report Share Posted March 21, 2008 The thing saving our ass right now is the fact our house appraised for quite a bit more than we purchased it for. Thank God. With the home prices dropping, we'll probably be breaking even. Kinda sucks, but better than getting fucked with negative equity. Don't know how true it is, but someone the other day told me prices houses over the past year in central ohio are +.3% That's really good considering housing prices, are on the whole, declining. But you've got Florida and Cali fucking the averages. Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted March 21, 2008 Report Share Posted March 21, 2008 where? Berto, that was probably when that big hit happened. The loan rates dropped like a rock for a few days and they've steadily been going back up. http://www.bankrate.com You can graph the rates there. EDIT: That was actually two months ago. And that's still a hell of a rate he got. Quote Link to comment Share on other sites More sharing options...
Casper Posted March 21, 2008 Report Share Posted March 21, 2008 Don't know how true it is, but someone the other day told me prices houses over the past year in central ohio are +.3% That's really good considering housing prices, are on the whole, declining. But you've got Florida and Cali fucking the averages. Really? Hot damn! Too bad the average house is taking something like 12mos to sell right now. But by the time we're ready to sell things should be back to normal. Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted March 21, 2008 Report Share Posted March 21, 2008 I'm 5.785% 30 year fixed...I'm good here for a while. Don't do that 15 year stuff. Get a nice lower rate and pay it twice a month like I do...Pay off in 21.8 years. Me no comphrende. So you pay the same amount but just split it into two payments? If you get a 30 year loan but pay the same amount you normally would on a 15 year loan you pay it off in about 16 years, and you can always fall back on the 30 year payment amounts if you hit hard times. Quote Link to comment Share on other sites More sharing options...
Casper Posted March 21, 2008 Report Share Posted March 21, 2008 I'm 5.785% 30 year fixed...I'm good here for a while. Don't do that 15 year stuff. Get a nice lower rate and pay it twice a month like I do...Pay off in 21.8 years. you homo? I thought splitting your payment up that way was a scam and actually did nothing for ya??? Or do you make one extra payment a month????? Quote Link to comment Share on other sites More sharing options...
Skinner Posted March 21, 2008 Report Share Posted March 21, 2008 The thing saving our ass right now is the fact our house appraised for quite a bit more than we purchased it for. Thank God. With the home prices dropping, we'll probably be breaking even. Kinda sucks, but better than getting fucked with negative equity. the value of our home has stayed the same at $160. Speaking with a realitor selling it for $145- 150s was be a fairly quick sale (per the realitor). We would break even on it if it wasn't for the second mortgage we have. Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted March 21, 2008 Report Share Posted March 21, 2008 Really? Hot damn! Too bad the average house is taking something like 12mos to sell right now. But by the time we're ready to sell things should be back to normal. Yup, I don't really think there is much if any of a bubble here. I would think a bubble would imply false high housing prices, such as florida or cali. Where theres a bubble, if there were hickup prices will fall, and if there's a stumble (what I would call this) they will drop, and if theres a true fall out, they will plumet. It would probably take a true fallout for overall, non inflated, housing prices to drop, which is what I would consider the situation here. Quote Link to comment Share on other sites More sharing options...
Casper Posted March 21, 2008 Report Share Posted March 21, 2008 Watch out for the bi-monthly mortgage, which is not the same as the bi-weekly mortgage and does NOT achieve the same results. With a bi-monthly mortgage, you pay one-half your monthly mortgage twice a month as opposed to every two weeks, so you don't make an extra payment over the course of a year. You save only one month's interest on a 30-year mortgage instead of seven year's interest! http://financialplan.about.com/cs/mortgagesloans/a/BiWeekMortgage.htm Putty, do you pay twice a month or every two weeks? If you're paying it every two weeks, all you're really doing is making one extra payment per year. You might as well just keep the money in the bank to earn interest, then make you're one extra payment a year yourself. I may be completely wrong on this, but I think this is how it works. Quote Link to comment Share on other sites More sharing options...
Skinner Posted March 21, 2008 Report Share Posted March 21, 2008 I thought splitting your payment up that way was a scam and actually did nothing for ya??? Or do you make one extra payment a month????? no splitting your payment is always a option, I know a couple different people that do that. Quote Link to comment Share on other sites More sharing options...
Skinner Posted March 21, 2008 Report Share Posted March 21, 2008 We just refinanced last month, got 5 flat for 15 years. I fear your monthly payment. Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted March 21, 2008 Report Share Posted March 21, 2008 no splitting your payment is always a option, I know a couple different people that do that. WTF does only spliting the payment in half and doing a bimonthly payment do for you? I could see a very slight advantage due to interest calculation over time if you pay say two weeks before the due date and on the due date, but that's going to be pretty minimal. I can see the every two weeks helping you because you have '2' more payments a year, actually one month more worth of payments a year. Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted March 21, 2008 Report Share Posted March 21, 2008 http://financialplan.about.com/cs/mortgagesloans/a/BiWeekMortgage.htm Putty, do you pay twice a month or every two weeks? If you're paying it every two weeks, all you're really doing is making one extra payment per year. You might as well just keep the money in the bank to earn interest, then make you're one extra payment a year yourself. I may be completely wrong on this, but I think this is how it works. Yup, but you 'earning' interest on your loan too, so you better have a better interest rate on your bank account than your house loan or your actually going to lose money by accruing more interest on your loan than your money would earn in the bank account. Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted March 21, 2008 Report Share Posted March 21, 2008 I'm actually doing my research right now to buy. What's a normal housing insurance rate, say in $$$ per a 100k house per year? Just as a basis to 'add' to my monthly payments. Quote Link to comment Share on other sites More sharing options...
GRN96WS6 Posted March 21, 2008 Report Share Posted March 21, 2008 I have my mortgage through countrywide... they are under investigation from the feds right now but supposedely if they go under another mortgage company takes on your loan by purchasing it. I don't think my rate would change but I am not 100% sure on that anyone care to comment? I locked in a 30YR Fixed for 5.5% so I won't be refinancing anytime soon unless they get to like 3.5% which I highly doubt that will happen. Berto have you asked your current mortgage company what they are offering currently? I don't think it would be wise for you to refinance unless you can get a fixed rate of 5.5%. And I also think you will be hard pressed to get no closing costs. Quote Link to comment Share on other sites More sharing options...
zeitgeist57 Posted March 21, 2008 Report Share Posted March 21, 2008 Mortgage rates have been all over the place over the past three weeks. Most people don't realize that in a very volatile open market rates can change not just daily but two or three times in the same day (as it did last Friday - 3 times up, and Monday - 2 times down). It can be very difficult to lock in a rate you want. For justification of a refinance, you want to look for two major factors: 1) 1.0% drop or more from current interest rate 2) Increased home value since the inception of the mortgage The second reason to refinance can be more important than just a drop in rate, but nowadays is difficult to call. If you purchased a home for a great price in an appreciating market, and your paying PMI because you're not at 80% LTV from the purchase price and the lender wouldn't waive it, then it might make sense within a few years when the home increased in value and you've paid down your principle amount to a point where refinancing effectively eliminates PMI through revaluing the note at 80% or less of the new appraised value for the home. In a decreasing property value market, this can be very difficult to gauge as home appraisers tend to be much more conservative in their valuations of your property. What seemed like a great deal in 2003 or 2004 might actually have lost value since then. Is it really worth the cost of a full appraisal to find out? A third reason (depending on the monthly savings from refinancing) would be closing costs to refinance. If you're home is worth less than $100k, then $3500-$4000 for a refinance doesn't make sense. Biweekly mortgage programs have some interest benefits to them, as the extra payments made each year (payments #25 and #26) are pure principal payments and help to reduce the interest expense down the road (like 10 YEARS down the road) leading you to a lower payment and less time to pay it off. They're not bad, but they are also not FREE. The benefit to you is a slightly more efficient program to pay down your mortgage quicker. The benefit to the Biweekly company is they can hold some of your payments in escrow and, with enough customers, make interest income off of the balances. Quote Link to comment Share on other sites More sharing options...
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