Author Topic: What Should I Look Be Looking For When Shopping for a Home Refinance Deal  (Read 636 times)

NextTime

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I just did a short check at Sofi and was offered 3.0% (current is 3.95%) on a 30 year fixed, but the closing costs were $3,600.  That seems excessive to me.

Anyone have any tips on going through this process?

What is a reasonable amount for closing costs?

I have exceptional credit, so would expect to get close to the lowest rate.  Amount remaining on my mortgage is around $230k.
« Last Edit: March 09, 2020, 07:48:15 AM by dcozad999 »

MishMash

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closing cost is going to depend on the state. In FL I am being quoted 6k closing plus 5800 in pre paids.  Rates on a 30 are 3.25 and 2.75 on a 15 according to 2 brokers this morning.  In CO I refinanced in 2011 for about the same you are being quoted, but took a .13% increase in rate for a lender credit that paid 2k of it

Check and see what your origination cost is (usually 1%) and if you take a higher rate (usually .25%) they will cover it.

NextTime

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The Origination Fee is $1695.

Rough calculations are it should lower my payment by $239/month, so break even on the closing costs would be around 15 months.

MishMash

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The Origination Fee is $1695.

Rough calculations are it should lower my payment by $239/month, so break even on the closing costs would be around 15 months.

If you are planning on staying in the home a while then it's worth it.  Also, take a look at your original mortgage and see what your closing costs were then, it's probably similar.  Most lenders will waive the 1% origination fee for a higher interest rate.  If you have the cash to close, this normally isn't worth it in the long run, but if cash is tight, or you don't plan on living in it for 5+ years it can be worth it.