Author Topic: Refinance Newb - Quick Questions  (Read 279 times)

Psychstache

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Refinance Newb - Quick Questions
« on: June 13, 2019, 01:14:49 PM »
So, I just got done speaking about getting my current mortgage refinanced as rates have dropped since I bought my house.

Here's the short of it:

Current Rate - 4.625% - P&I Payment - 2027
New Rate - 4.125% - P&I Payment - 1927

Cost rolled into mortgage for refinance - 3800~

Trying to think about whether or not this is worth it. I'm assuming that I need to think about my break even cost ($100 less payment per month means 38-40 months to recoup refi costs plus interest accrued)? Any other considerations I need to think about (I'm not moving, so I don't need to worry about that)?

TIA

Another Reader

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Re: Refinance Newb - Quick Questions
« Reply #1 on: June 13, 2019, 01:21:09 PM »
You can do better.  Should be able to get a lower rate and lower fees. You need to talk to more lenders.  Right now, a good broker is likely your best approach.

Blue Skies

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Re: Refinance Newb - Quick Questions
« Reply #2 on: June 13, 2019, 03:12:34 PM »
Would the new loan be for the same amount of time you have left on the old loan, or are you 4 years into a 30 mortgage and refinancing to a new 30 term?

I know the arguments against it, but we chose to pay off our mortgage early instead of refinancing because of this issue; closing costs would have been around $4k.

Psychstache

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Re: Refinance Newb - Quick Questions
« Reply #3 on: June 13, 2019, 04:15:20 PM »
Would the new loan be for the same amount of time you have left on the old loan, or are you 4 years into a 30 mortgage and refinancing to a new 30 term?

I know the arguments against it, but we chose to pay off our mortgage early instead of refinancing because of this issue; closing costs would have been around $4k.

We are about 6 months into our 30 year mortgage.

I'm firmly in the DNPOYM club. 

Another Reader

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Re: Refinance Newb - Quick Questions
« Reply #4 on: June 13, 2019, 04:30:25 PM »
I like to reduce the rate at least half a percent with a no cost refi.  More if I'm paying fees. You should be able to shop the rate and fees lower based on what I'm seeing.  Refis are a little more expensive than purchase money, but I would aim for 3.875 with some fees or 4.0 with zero to minimal fees.  Again a good broker will shop rates and terms and then call you when they reach your target.