OT: Refinancing: Worth It?

[DaveHuskiesFan]

did they bundle closing costs into the total mortgage? I won’t do that.

I didn’t have closing costs, I got paid Roughly $1,300 to refi. But if you end up having closing costs they allow you pay upfront or roll them into the loan. Whichever you want

 

[huskiesNhoos]

does anyone know, can I simply start paying every 2 weeks or does it require a formal process for an existing loan? I currently have a 15 years and I pay extra money every month? Thanks in advance.

You can just start making extra payments. No formal process needed

 

[husky8273]

I haven't asked. You mean just keep the 30 year and then just negotiate the % down?

exactly

 

[uconnyankee]

Just signed papers to sell our house in Vermont (more or less inherited from my in-laws) and the buyers have a rate similar to that, I think 2.275% on a 15 year. I haven’t really watched the rates. I’m still at 4.1% on my 15 year but there is no point in refinancing with 6 years left.

Crazy right!!! Historically 4.1% is a great rate.

I’m pretty conservative but I know folks that have cashed out at lower rates knowing they could make more in markets or other investments.

can’t wait to not have mortgage payments.

 

[jleves]

Crazy right!!! Historically 4.1% is a great rate.

I’m pretty conservative but I know folks that have cashed out at lower rates knowing they could make more in markets or other investments.

can’t wait to not have mortgage payments.

I was able to grab a 2.5% 15 year with almost no costs 7 years ago when the rates dipped. I've been looking, but can't find anything to actually save me money.

 

[Hey Adrien!]

Ended up with a refi from my company I already have a loan with:

• 26 years remaining to 24
• 3.375% to 2.875%
• $2k in closing

Payments will be the same but on my first payment, $200 will be proportioned to principal rather than interest. Basically it’ll pay for itself after one year and should get us off PMI at least one year sooner.

 

[ZenConn]

I just closed on Saturday and used better.com which was super easy.

Was at 4.125% for a 30 and went to 3.125% for a 20. I could have gotten 3% for a 20, but they paid me $2,300 to take a higher rate. Break even is about 7 years on that so i took the cash upfront. They gave me an appraisal waiver so my closing costs were $1,000. Basically got paid $1,300 to refinance.

Better.com right now has a 20 year refi at 2.875 and they'll pay you $1,500 to take that. You'd likely be paying very little out of pocket.

Thank you for this. I also just closed at better.com last week. I went from a 4.5% 30yr to a 2.18% 15yr. I locked in about 2 weeks ago or so.

 

[HooperScooper]

Thank you for this. I also just closed at better.com last week. I went from a 4.5% 30yr to a 2.18% 15yr. I locked in about 2 weeks ago or so.

Was there any money down for this rate?

 

[ZenConn]

Was there any money down for this rate?

I put down a little over 3k for that rate.

 

[temery]

I put down a little over 3k for that rate.

How long did the process take?

 

[huskiesNhoos]

How long did the process take?

Most are taking 30-45 days right now. Mine was just over a month. FILO is an interesting new one that is saying they can close in 15-20 days but they're only licensed in a handful of states currently

 

[temery]

Most are taking 30-45 days right now. Mine was just over a month. FILO is an interesting new one that is saying they can close in 15-20 days

Did they do an appraisal or just go off your assessment?

 

[huskiesNhoos]

Did they do an appraisal or just go off your assessment?

They waived it for me in CO but my brother in NC is required to get an appraisal. We're similar financial situations so dunno if its based on location or what

 

[ecasadoSBU]

Using better.com to refi my multi-family investment in JC, NJ. Should be closing by the 15th of this month.

Thanks to this thread I got into the idea of refi and I will be able to get rid of the FHA monthly MI, shaved 6.5 years off the term (from 26.5 to 20) , and still saving about $300 per month. Was able to catch a 3.0% rate (went down from FHA 4.25%). It wasn't the lowest rate but I tried to minimize closing costs so I'll be paying about 1.7k cash to close. Better.com makes the process a lot smoother than I thought.

Thanks to whoever recommended the site here in the previous pages. Great experience so far. I hope my closing goes without any hiccups

EDIT: I see some people essentially got paid to refinance. That is freaking awesome. I wonder if loan size has something to do with it. I still have 498k payoff. My refi will cost about $1.7k which isn't bad IMO, but I'm glad others have gotten paid to do it. What a great deal that must be!

 

[Scot-e]

Just finished a refi. 4.3 % to 2.75%. Saving $500 a month ( which I already have been spending on bourbon so kinda a break even).

 

[temery]

Just finished a refi. 4.3 % to 2.75%. Saving $500 a month ( which I already have been spending on bourbon so kinda a break even).

What you need to do is plan on being an alcohol consultant. Post here in the beer thread, or start your own. Then you can write off your booze as a business expense.

 

[HuskyHawk]

What you need to do is plan on being an alcohol consultant. Post here in the beer thread, or start your own. Then you can write off your booze as a business expense.

Ha. If you get paid to do it enough to write it off against those earnings. I'm friends with one of the most known internet booze reviewers and even he doesn't pull that off.

 

[temery]

Ha. If you get paid to do it enough to write it off against those earnings. I'm friends with one of the most known internet booze reviewers and even he doesn't pull that off.

In 2020 alcohol should be considered an acceptable business expense.

 

[ZenConn]

How long did the process take?

I started on Sept 10th and was just funded yesterday. Honestly I dragged my feet for a few tasks which would have knocked a few days off of this.

 

[ecasadoSBU]

Using better.com to refi my multi-family investment in JC, NJ. Should be closing by the 15th of this month.

Thanks to this thread I got into the idea of refi and I will be able to get rid of the FHA monthly MI, shaved 6.5 years off the term (from 26.5 to 20) , and still saving about $300 per month. Was able to catch a 3.0% rate (went down from FHA 4.25%). It wasn't the lowest rate but I tried to minimize closing costs so I'll be paying about 1.7k cash to close. Better.com makes the process a lot smoother than I thought.

Thanks to whoever recommended the site here in the previous pages. Great experience so far. I hope my closing goes without any hiccups

EDIT: I see some people essentially got paid to refinance. That is freaking awesome. I wonder if loan size has something to do with it. I still have 498k payoff. My refi will cost about $1.7k which isn't bad IMO, but I'm glad others have gotten paid to do it. What a great deal that must be!

update: After closely looking into the CD I realized they include Q4 of property tax in the closing costs which amounts to $2k. That means that after reviewing things well... even though i'm paying $1.7k in closing costs when you subtract $2k i'm in effect also get paid to re-finance too. That made my day. lol.

I just found out that apparently I don't have to make a payment till December 1st which is even better.

Its amazing the times we are living in with extremely low interest rates. Those that have studied finance know very well that in the 1980s we had 15-20% interest rates. I would say go to better.com if you have the chance and at least look at the rate they provide you. They are very transparent. It only takes a few minutes

 

[Scot-e]

What you need to do is plan on being an alcohol consultant. Post here in the beer thread, or start your own. Then you can write off your booze as a business expense.

Genius.

 

[JonnyRI]

I just took a 15 yr refi. Paid 3 points but got me a 1.75 rate. Apr of like 2.3. No joke. Best apr I could get. Will be in my house for at least another 10 years so a no brained as only need 4 years for the savings to offset the points.

 

[JonnyRI]

Looking to refinance from 30-year (with 25 yrs left) to a 15-year while rates are much lower than ours and hoping for as little upfront cost possible. Is LenderFi, Better, LendingTree or seeing what existing mortgage company can do the best play to start here?

I just used quicken loans rocket mortgage and was super easy. I had 22 years left on a 30 and refi to a 15.

 

[cap10mayhem]

Personal finance experts of the BY: is it worthwhile to refinance a mortgage that I just took out last year?

I'm paying 4% interest on a 30-year mortgage right now, but could potentially refi down to 3% (also 30 years) and reduce the monthly payment by $200.

Depending on how long I take to pay it off, I could save somewhere in the ballpark of 25K in interest over about 20 years. Mortgage interest tax deduction isn't likely to be a factor. Closing costs would be 5K.

FWIW, turning 5K into 25K over 20 years is equivalent to a 9% annual return, which seems pretty good.

Should I go for it? Anything seem out of line?

TIA.

Look at a 15. Rates are usually significantly lower and because a big chunk of your monthly mortgage payment goes to taxes and fees it really doesn't make your mortgage crazy. We are going from 28 years left to a 20 right now. Wanted a 15 but the payment was too much of a stretch for us. Any term over 20 might as well be a 30. Most mortgage companies will allow you to match your current term as well so if you have 28 years left you can do a 28 instead of a 30. Stretching your mortgage back to 30 years and/or taking cash out of your home are two of the biggest financial mistakes people make today. Hope this helps!

 

[Tenspro2002]

Look at a 15. Rates are usually significantly lower and because a big chunk of your monthly mortgage payment goes to taxes and fees it really doesn't make your mortgage crazy. We are going from 28 years left to a 20 right now. Wanted a 15 but the payment was too much of a stretch for us. Any term over 20 might as well be a 30. Most mortgage companies will allow you to match your current term as well so if you have 28 years left you can do a 28 instead of a 30. Stretching your mortgage back to 30 years and/or taking cash out of your home are two of the biggest financial mistakes people make today. Hope this helps!

Well, we already went ahead with it. We're doing the 30 year (we had 28 years left on our current 30-year anyway), but with the intent to pay extra principal along the way and pay it off in 20. Getting the 20-year wouldn't have come with a better interest rate, and the tradeoff with the 15 is a lot less flexibility for a slightly better rate, not worth it.

Appreciate the advice anyway.