The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: luminajd on September 22, 2016, 04:01:57 PM
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Current state:
Bought home in 2003, 51,000K mortgage, 5.25 percent
Currently owe $33,000
Ive gotten some face punches and am told to refi. I talked with Quicken loans today and they say:
15 year term, 3.125%, $2800 closing costs.
Thoughts? He certainly did a lot of sweet talking but I like the deal. Ive done some googling and other quotes through places without pulling my credit score (Quicken did), and Im having a hard time finding lower closing costs.
Also, do I roll closing costs into the loan? I thought I had read that is dumb to do? We just sold camper so I do have $6,200 cash lying around if its best not to roll.
Thank you!
Jessica
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I'm signing the closing refi docs for a 30-year mortgage at 3.25 with close to 0 closing costs (APR 3.255 or something like that). Ours is with Homepoint Financial, which we chose because they had the cheapest rate posted through Zillow. Unless you have an emotional desire to pay off your mortgage, the longer term with reinvesting the difference in payment works out better from a math perspective.
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Run the same numbers at PenFed. Their 15 year rate is lower (2.625% / 2.880% APR).
Many of us have PenFed mortgages - their all-online service, and great rates make them a winner.
https://www.penfed.org/compare-mortgages/ (https://www.penfed.org/compare-mortgages/)
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It gave me a Apr of 3.1 with closing costs of 4,700 for my numbers