Need help considering Refi and other options

[NotBadForADad]

Hello,

I am looking into taking advantage of the low rates to refi on my mortgage.

I owe $248,000 at 5%. I estimate the house is worth $300k.

I currently am paying $2128, which includes Insurance, PMI, & Taxes.

I have been quoted through my credit union:

Credit Union's origination charge $8,000.00

Application Fee $300.00

Delivery Fee $7,500.00

Loan Processing Fee $200.00

Your credit for this interest rate ($3,750.00)

Required services we select $1,790.20

Appraisal Fee $550.00

Credit Report $19.70

Flood Certification $12.50

Tax Service $83.00

Title - Lenders Title Insurance $425.00

Title - Settlement Agent/Closing Fee $575.00

Title - Survey Endorsement $125.00

Government recording charges $151.00

Fees paid in advance $729.17

Interest Due at Closing $729.17

Initial escrow deposit $966.66

Property Tax Escrow Deposit $966.66

Total Estimated Settlement Charges $7,887.03



It should take about 2.5 years to break even while reducing my monthly payments by ~$500 and removing the PMI from the loan.


Is this a good option, I am waiting to hear from two other sources for their rates.

Is there anything I need to worry about or look into further before pulling the trigger?

I see some people do a cash out option and what have you, should I bump up the amount borrowed and take some of the equity and pay off some lingering loans?


Thanks in advance!

[Sibley]

I don't see the new rate. Who missed, you or me? Your closing costs seem high to me, but I know it varies based on location so perhaps I'm in a low cost area.

How long do you plan to stay in the house?

I would not do a cash out refi. You'd be cutting your payment, just redirect that money to other things.

[NotBadForADad]

I don't see the new rate. Who missed, you or me? Your closing costs seem high to me, but I know it varies based on location so perhaps I'm in a low cost area.

How long do you plan to stay in the house?

I would not do a cash out refi. You'd be cutting your payment, just redirect that money to other things.

Hi, sorry I thought I pasted the new rate:

Principal & Interest $1,122.61
Real Estate Taxes $483.33
Homeowner's Insurance $65.62
Estimated Payment $1,671.56


We plan to stay for 5-7 years, we like the house but the road is far to busy and the neighbors to close for comfort. But in all honesty it'll probably be a while longer.

[affordablehousing]

You still didn't post the rate, but regardless, because of the fees sounds like a bad deal. If you're current interest rate is 5%, you should have no-cost refi options that immediately save you money not in 2.5 years.

[mozar]

I think you should refinance, but not with this credit union.

[chaskavitch]

We just refinanced from 3.625% to 2.625% on $364k with The Group/Cornerstone Lending, and had $6400 in total closing costs, including buying points and prepaying escrow. 

I'd agree with most of the other posters.  You should definitely be able to refinance to a much better rate, but you should shop around and find a better deal.

[NotBadForADad]

Interest Rate: 3.500%
APR: 3.785%

[NotBadForADad]

We just refinanced from 3.625% to 2.625% on $364k with The Group/Cornerstone Lending, and had $6400 in total closing costs, including buying points and prepaying escrow. 

I'd agree with most of the other posters.  You should definitely be able to refinance to a much better rate, but you should shop around and find a better deal.

Right. I am waiting on two other numbers right now, One of which is with my original loan officer.

I'll take any suggestions.

[Well Respected Man]

Hmm, I've used Lending Tree, and usually try to go for like a $500-$1000 origination charge, no points, and minimal closing costs. Not sure what the delivery charge is, I've never seen that. I'm currently applying for a 2.5% 10-year fixed, and there is a 2.25% rate available with more points. 15-year loans are similar. If you have the cash flow, that will save a lot over 7 years. Not to mention saving you over 10k on fees now.

[NotBadForADad]

Hmm, I've used Lending Tree, and usually try to go for like a $500-$1000 origination charge, no points, and minimal closing costs. Not sure what the delivery charge is, I've never seen that. I'm currently applying for a 2.5% 10-year fixed, and there is a 2.25% rate available with more points. 15-year loans are similar. If you have the cash flow, that will save a lot over 7 years. Not to mention saving you over 10k on fees now.

Thanks! I'll look at them too!

[NotBadForADad]

So I received a few different quotes from Churchill Mortgage, two options:

15 yr:
Rate: 2.5%
Apr: 3.375
Payment: $2385
Cash to close: $500
Borrower Paid Fees: $7,007.29
Cash to close: $500

30 yr:
Rate: 3.375%
Apr: 4.167%
Payment: $1785
Borrower Paid: $8,322.73
Cash to close: $500