For Anyone Considering a Refi

FWIW I just dropped my primary from 5.875 to 3.75, paid off a second, and reduced the term to fifteen years. My payment is the same. The holder of my primary mortgage was Citi. I was poking around on their website's refi section ("does it make sense for you?" kind of deal) and a loan officer popped up asking if I'd like to chat. I couldn't think of a reason not to, so thirty minutes later I was very impressed with her knowledge, demeanor and candor and agreed to let her send me the initial paperwork. The process was pretty painless and they were always very forthcoming with information even if the loan officer or processor assigned to me wasn't available. The entire process took around five weeks and would have been quicker if I had provided the necessary paperwork more promptly. Just thought I'd share my experience in case anyone is trying to decide whether it's a good option.

Re: For Anyone Considering a Refi

I too have Citi and they overnighted (via UPS) an offer to refinance from 5.875/30 to 4.875/30 or 4.875/23.

A "cold call offer" as I have not inquired anywhere about doing any refinance.
The package included a prepaid overnight return envelope for my response.
They wanted an answer in one week.
Supposedly no out of pocket cost to me.
But I am sure there was plenty of fees to be rolled into the amount financed in the end.
I shreaded it instead.

Re: For Anyone Considering a Refi

I just refi'd with a 4.0% 30 year with close to $4k in rebates and no costs/points. Rebate was applied to my property taxes.

Re: For Anyone Considering a Refi

Rates are low, that's for sure. Worked out well for the Coops. Everyone's sitch is different.

Re: For Anyone Considering a Refi

I did mine about two years ago, very similar situation. Went from a 30 year@5.6 to a 15 year @ 3.875. If I take the mortgage to term(hope to pay off in 8 more years) I figure to save about 65,000 dollars. At least my wife did not argue with me about this one.

Re: For Anyone Considering a Refi

Yup, mortgage rates have taken a dive in the past 6 months or so . . .

Probably 'cuz very few people can actually borrow any money these days.

We re-financed with our local bank . . . my wife happened to be at the bank and just asked the teller about the rates. Later that day, the bank manager called us and said that they would do 3.75%, no point, no closing, 10 year amortization. Huh ??? OK, done.

The funny thing is that the prior loan was with them, or at least their mortgage branch. I'm not totally sure why they wanted to reduce the interest that they earn, but OK. . . .

Re: For Anyone Considering a Refi

tpenfield said:

I'm not totally sure why they wanted to reduce the interest that they earn, but OK. . . .

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Because they typically don't own the loan within a week and they get a kickback for the new loan.

10 year loans should be less than 3.5%

Re: For Anyone Considering a Refi

It all makes me wish I had a use for a mortgage. Seems a shame to not be able to take advantage of these rates (house paid off) but methinks the axe will be likely to fall before too long and that will not make the economy any better off. The other day I heard it likened to shaking up a bottle of Pepsi. Watch out when the cap gets removed.