Author Topic: Refinance?  (Read 274 times)

FarmerAl

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Refinance?
« on: August 28, 2020, 07:38:04 AM »
I know there has been a lot of topics about this but I am wondering if my scenario makes sense..

I got offered 2.875% for a 30 year yesterday with closing costs of $1750 ($1450 if I open a checking account with them) ... currently at 3.55% and this would lower my payment by about $130/month. This is a no brainer, right?

Is anyone seeing lower than 2.875% right now?

Thanks

dcozad999

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Re: Refinance?
« Reply #1 on: August 28, 2020, 09:17:11 AM »
Thatís pretty low. Iíd say itís a no brainer.

Iím locked in at 3.0% and supposed to close any day now. Current rate is 3.95%. Going to lower the payment by $277/month.  I kicked in an extra $1300 to get to 80% and remove the PMI.

My fees are quite a bit more than yours (Around $2,400) but I will break even in month 10.

tweezers

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Re: Refinance?
« Reply #2 on: August 28, 2020, 09:18:32 AM »
We just refi'd for 2.5% for a 30 year with a fee of $900.  Ultimately, the decision is entirely math-based and your anticipated time frame for being in the home.  There are a lot of calculators that will help you find the break even point to help you determine if that's a good financial move for you.

https://www.zillow.com/mortgage-calculator/refinance-calculator/

dcozad999

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Re: Refinance?
« Reply #3 on: August 28, 2020, 10:12:44 AM »
Nm. I’m stupid. Figured it out
« Last Edit: August 28, 2020, 10:19:27 AM by dcozad999 »

YttriumNitrate

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Re: Refinance?
« Reply #4 on: August 28, 2020, 10:15:23 AM »
I know there has been a lot of topics about this but I am wondering if my scenario makes sense..

I got offered 2.875% for a 30 year yesterday with closing costs of $1750 ($1450 if I open a checking account with them) ... currently at 3.55% and this would lower my payment by about $130/month. This is a no brainer, right?

It's probably a good deal, but how much of the lower monthly payment is attributable to a lower interest rate and how much is attributable to bumping the remaining term up to 30 years?

FarmerAl

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Re: Refinance?
« Reply #5 on: August 28, 2020, 11:08:39 AM »
Good question. I refinanced to the 3.55% in October of 2019 so I only have paid down the principal a few thousand dollars.
I am starting the application now. Have done some looking around and cannot find a lower rate right now. Even talked to my current bank and he said he can't match it. Also stated they have lost quite a few people to this bank that I am going to. He is frustrated his management won't go lower but they don't need to because they are so busy.

slappy

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Re: Refinance?
« Reply #6 on: August 28, 2020, 12:01:55 PM »
That seems like a good rate. What do the fees include? I refi'd recently and was able to shop around for the closing company, saving a few hundred bucks. They also waived the appraisal based on recent comps in my area. My total cost to refi $130k was $1300.