Mortgage refinance

[C_Dick_Run]

Anybody refinance their home mortgage recently or in the past? With rates staying low we are seriously considering it at the moment. I went through a preliminary process of seeking quotes on rates, terms, etc. online and I'm getting a rate quote that almost seems to good to be true with no closing costs, just a $500 "application fee". I was always under the impression you would have closing costs similar to the original home loan? Or is the application fee a way to get a quick $500 from me and then find out the rate quote they sold me on isn't available. Just wondering your experiences/opinions...

 

[SAJ-99]

Anybody refinance their home mortgage recently or in the past? With rates staying low we are seriously considering it at the moment. I went through a preliminary process of seeking quotes on rates, terms, etc. online and I'm getting a rate quote that almost seems to good to be true with no closing costs, just a $500 "application fee". I was always under the impression you would have closing costs similar to the original home loan? Or is the application fee a way to get a quick $500 from me and then find out the rate quote they sold me on isn't available. Just wondering your experiences/opinions...

The quote is the quote. Once they approve the amount on the application, if you like the rate, tell them to lock it in. What was the rate? National average is showing at 3.40% for 30yr fixed and 2.86% for 15yr. Pretty good rate, but I have seen them lower. I think the current economic scare has widened the mortgage-treasury spread so borrowers need to be on solid financial ground in the application.

 

[belshawelk]

I just did a refi on my rental house. Pulled some equity out. I used Rocket Mortgage. Easiest and best I have ever done. Fast all online and they were honest on everything. Would use them again without hesitation.

 

[C_Dick_Run]

The quote is the quote. Once they approve the amount on the application, if you like the rate, tell them to lock it in. What was the rate? National average is showing at 3.40% for 30yr fixed and 2.86% for 15yr. Pretty good rate, but I have seen them lower. I think the current economic scare has widened the mortgage-treasury spread so borrowers need to be on solid financial ground in the application.

They quoted me 2.875% for a 30 year fixed.

 

[wa_archer]

We just got 2.75 for 15 yr. pulled some money out and bought some future retirement property. Plan is pay 15yr off, retire, sell and build with cash.

2.875 seems a little low for 30yr but they did crash last week with fed announcement so if you hit the nail on the head and locked good for ya.

 

[Elkmagnet]

Are you sure it wasn't an appraisal fee?
Here in Idaho the only fee that is typical to pay up front is the appraisal fee usually -$500 to 700. Because it is a third party cost. Everything else it settled at closing. I would be leery as it sounds like you are.

 

[mdunc8]

We refinanced a few weeks ago. They waved an appraisal and knocked $500 off closing costs for being a Costco member. Cashed out to pay off our condo and our home payment only went up $200/month for a net win of about $500/month.

 

[LaSportsman]

Closed in May. Locked at 2.875 right as rates crashed first time. We were already getting ready to refi so got lucky to drop from 3.25 to 2.875 on a 0/0 30 year VA. You do have closing costs but may not be as much as first mortgage. Some mortgages allow for rate adjustments. VA has Interest Rate Reduction Loan (IRRL). Some lenders will streamline a rate drop on an existing mortgage. You won't get the lowest going rate but your costs are lower as well.

 

[brownbear932008]

We locked in a 2.25% a few months ago on a 7/1 ARM which works great for us as we double down on payments each month and are scheduled to finish in about 8 years doing that. Closing is a little pricey but well worth it in the end. Our payment dropped almost a third which allows us to place even more into principle payments. We hit it at a great time it seems they shot up the next week after locking. Haven't looked at them recently though. Some good deals out there.

 

[grizzly_]

I'm a realtor and just had a client lock in at 2.375 on a 30-yr fixed USDA (no money down) loan. Make sure you're shopping around a bit for the best lender. In my experience I can never predict who will be the cheapest on any given day.

 

[bowhuntmontana]

I've been looking into it a bit. We are aggressively paying our mortgage down and hope to be done within 2.5 yrs. As near as I can tell, there is no true no cost refi, it is just a choice of pay up front or roll the costs into the loan balance. If I could find one that was truly no cost, I'd probably jump at it for the interest savings, even in that short of a timeframe. But the closing costs outweigh the interest savings for us.

 

[Sytes]

I'm a realtor and just had a client lock in at 2.375 on a 30-yr fixed USDA (no money down) loan. Make sure you're shopping around a bit for the best lender. In my experience I can never predict who will be the cheapest on any given day.

Great for those up to 115% median county income and rural. Valuable option for certain... A few other aspects such as a 700 score or is it 600 and steady income over a base 12 months(?).
On the flip side there are some great SBA loans for those interested in purchasing/building for rural rental purpose as well.

 

[406LIFE]

I just did a 2.5% on a 30yr with a VA IRRL. I reached out directly with the lender and did a streamline with no fees. Keeping the same payement as I had before refiing I'll be done in 12 yrs.

 

[MNSportsman]

We refinanced a few weeks ago. They waved an appraisal and knocked $500 off closing costs for being a Costco member. Cashed out to pay off our condo and our home payment only went up $200/month for a net win of about $500/month.

What company was this through?

Thanks.

 

[Moosie]

Lots of banks give a No cost refinance if you refi with them. Rates are stupid low right now. I have a SBA loan at 9%. I can pull Equity out at 3%. on $200k thats a $1k a month savings.

I was just there 2 days ago to pull some...... I decked out in my C-SIK gear (Since I own the apparel company). I figured if I couldn't be fishing, I'd look the part :=)

 

[Sytes]

Looking good wet line or desk duty!

We did 7/1 w/ cash out @ 3.25%. No origination fees (Credit Union).

 

[mdunc8]

What company was this through?

Thanks.

Solidify. I would not recommend them. It was painful working with them.

 

[huntin24/7]

I just locked in at 2.5% refinance for 15 years after having a 30 year 4.25% rate. Between the extra money we’ve been paying on our loan and the refinance, our 30 year mortgage will be paid off in 16-18 years total at most.

 

[homers]

My 2 cents (not a financial planner or accountant)
Refi can make sense but
- don't pull money out for normal expenses or repaying credit cards (most people's habits won't change and you'll be back in a few years).
- Don't reset the payback period (ie, you've paid 7 years on a 30 year mortgage, don't refi back to 30 years)
-Don't pay fees unless you run the numbers and are going to stay long enough to justify (and don't add fees/cost to your loan)

 

[NDGuy]

Just did our refinance went from a 30 year @ 4.625% to a 20 year @ 2.625% with 2k of closing costs.

Definitely shop around. Our payment didn't change but we doubled our principal amount on our payments.