Refinancing Again!

bruceb58 · Sep 28, 2012

Going with my 3rd refi in less than 2 years. No cost loan(nothing at all out of pocket and nothing added to loan amount) for 2.875% 15 year. I did have a 4% 30 year that I was paying down with extra principal payments so that it was already like a 15 year so decided to go with the shorter term.

Another broker had the same 15 year loan at 2.75% but you had to pay closing costs of around $2K.

I asked my mortgage broker if it was worthwhile paying points at all and he said the only reason you would do that was if you thought it was absolute bottom. His reccomendation was not to do it.

Eric 3.7LX Alpha 1 · Sep 28, 2012

Re: Refinancing Again!

Congrats on the good rate.
I have been also looking into it as well.

What did that do to your payments?

tpenfield · Sep 28, 2012

Re: Refinancing Again!

One concern I would have about frequent re-financing is that it may tend to hammer your credit score down a bit.

I might take advantage of the historically low rates and get an equity line of credit . . . just in case I see a Formula 292 Fastec at a good price.

bruceb58 · Sep 28, 2012

Re: Refinancing Again!

tpenfield said:
One concern I would have about frequent re-financing is that it may tend to hammer your credit score down a bit.

My 3 credit scores are all between 800 and 813 which is the same every time I did a refi.

bruceb58 · Sep 28, 2012

Re: Refinancing Again!

Eric 3.7LX Alpha 1 said:
Congrats on the good rate.
I have been also looking into it as well.

What did that do to your payments?

The payments got bumped up going down to the 15 but I was already making bigger payments anyway. I have around $250K on my loan so the lower interest rate saves around $2800 of interest in the first year. Obviously as you pay off the principal, the interest savings will be less all the time but that is big savings over the life of the loan. Probably $20K in 15 years total. After tax around $12K. My goal is actually to have the loan paid off in 10 years.

ToemanDoug · Sep 29, 2012

Re: Refinancing Again!

Good Deal for you !

I am clear across the country in the great Empire (Tax & Fee State) and would love to know where to find a re-fi that costs nothing out of pocket and adds nothing to the principle.

bruceb58 · Sep 30, 2012

Re: Refinancing Again!

I think they are available nearly anywhere.

This is the deal. Go to a mortgage broker and see what a zero point loan will be. In my case that would be 2.75% for a 15 year plus closing costs. By going to a 2.875% with no fees(closing costs), its almost like a reverse point. For me, the difference of paying closing costs and getting the loan down to 2.75% wasn't worth it.

Kiwi Phil · Oct 1, 2012

Re: Refinancing Again!

Wow!! with interest rates like that, no wonder you dollar isn't worth much.
Cheers
Phillip

ngt · Oct 1, 2012

Re: Refinancing Again!

Nice rate man! I couldn't afford the 15 year, but dropped my 5% down to 3.75 on a 30 year. Not 2.85, but I'm happy. Knocked my $1930 monthly payment down to $1659. Just closed it on the 28th of sept.. I think that will be fine for a while. Now if I could just get off my butt and change my insurance, I could chop some more off of that total.

ToemanDoug · Oct 1, 2012

Re: Refinancing Again!

Ahhh..... the devil is in the details Bruce. Thanks for the reply.

I have not heard of such a mortgage offered here, perhaps they are and I have not asked the right question..... We have all kinds of zero point mortgages, but every one I have seen requires closing costs paid or added to the principle financed. Paying a (slightly) higher interest rate would allow the "bank" to recove the closing costs. We have mortgage recording fees equal to at least 1% (point) to fund our government....smoebody has to pay it.

bruceb58 · Oct 1, 2012

Re: Refinancing Again!

ToemanDoug said:
Paying a (slightly) higher interest rate would allow the "bank" to recove the closing costs. We have mortgage recording fees equal to at least 1% (point) to fund our government....smoebody has to pay it.

Its actually not the bank/lender. Mortgage brokers get rebates from the lenders for the various loans. He just gets a bigger rebate with that particular loan and then applies it to my costs. Last year his rebates were so high on the 30 year loan I received that not only was the loan no cost but he basically gave me $3k of it. It was applied to my taxes at closing.

Refinancing Again!

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