Author Topic: Refinancing to a 15-year for .5%?  (Read 1285 times)

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  • 5 O'Clock Shadow
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Refinancing to a 15-year for .5%?
« on: April 21, 2020, 03:39:40 PM »
I'm considering refinancing our home to a 15-year loan while rates are down.

Our current loan stats:
30 year loan, 24 years left
3.625%
Balance - 187k

New loan I was quoted:
15 year
3.125%
Not pulling out additional cash, so balance of 187k
Closing costs: $4300

The payment would end up being about $200 more than what we are currently paying (I make extra principal payments monthly)

Is this a lot of work just to save .5%?  My sister also brought up that I should be saving my money instead of applying principal payments in case we lose our jobs, which I suppose is true...but we already have savings and I'm not worried about that.

Neo

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Re: Refinancing to a 15-year for .5%?
« Reply #1 on: April 21, 2020, 09:17:01 PM »
You can do better than 3.125% for a 15 year. I locked at 2.625%

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  • 5 O'Clock Shadow
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Re: Refinancing to a 15-year for .5%?
« Reply #2 on: April 22, 2020, 02:41:00 AM »
Was that recent? Was it an online lender if you donít mind me asking? Iím looking to obtain some other quotes but havenít yet

YttriumNitrate

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Re: Refinancing to a 15-year for .5%?
« Reply #3 on: April 22, 2020, 07:52:08 AM »
At 3.625% you're paying ~$6,778 year in interest while at 3.125% you'd be paying ~$5,843 a year. With a savings of $935 a year, it would take ~4.6 years to recoup the closing costs. I'd pass on the refi unless you can get the closing costs and/or rate down.

Chris Pascale

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Re: Refinancing to a 15-year for .5%?
« Reply #4 on: May 17, 2020, 10:38:16 PM »
You might be better off just making extra payments.

What do you think?

Dicey

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Re: Refinancing to a 15-year for .5%?
« Reply #5 on: May 18, 2020, 12:34:23 AM »
You might be better off just making extra payments to yourself.

What do you think?
Keep the 30 year mortgage. Every month, invest the difference between the 15 and the 30. Apply mustachian principles to the rest of your life and keep cranking the investing up. In a relatively short amount of time, you will have enough to pay off your mortgage in one lump sum. By then you probably won't want to, but you could.

thisisjeopardy

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Re: Refinancing to a 15-year for .5%?
« Reply #6 on: May 23, 2020, 12:40:48 PM »
I was offered 3.125 for 30-year fixed, I'd have to assume that you could do better for 15-year.

Dicey

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Re: Refinancing to a 15-year for .5%?
« Reply #7 on: May 23, 2020, 01:25:43 PM »
I was offered 3.125 for 30-year fixed, I'd have to assume that you could do better for 15-year.
Holy Shit! Talk about letting the perfect be the enemy of the good! I would grab that sucker in a hot minute! What other costs are involved?

BTW - in related, sad news, we are learning the hard way that if your house is paid for and you want to pull money out, it's considered a cash-out re-fi and the rates are higher, no matter what your LTV oir credit scores! What the absolute fuck? Fortunately, we don't have to do this, it's mostly a thought exercise.

thisisjeopardy

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Re: Refinancing to a 15-year for .5%?
« Reply #8 on: May 23, 2020, 02:01:37 PM »
Holy Shit! Talk about letting the perfect be the enemy of the good! I would grab that sucker in a hot minute! What other costs are involved?

The rate comes at half a point. We plan on being there for many years to come so should come out ahead. I've seen some references to people getting below 3 on a 30-year fixed (local lender, didn't see what the points/costs where).

I went through a national lender.

Cassie

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Re: Refinancing to a 15-year for .5%?
« Reply #9 on: May 28, 2020, 08:16:34 PM »
We got a 30 year recently at 2.84.

FireAnt

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Re: Refinancing to a 15-year for .5%?
« Reply #10 on: May 28, 2020, 08:18:39 PM »
I was offered 2.75% for a 15 year at one credit union, and 2.85% at my local bank.

CSuzette

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Re: Refinancing to a 15-year for .5%?
« Reply #11 on: May 30, 2020, 07:22:20 PM »
I am getting 2.375 at Quicken.

Joe Schmo

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Re: Refinancing to a 15-year for .5%?
« Reply #12 on: May 30, 2020, 11:34:24 PM »
I am getting 2.375 at Quicken.
What are the closing costs on that? 1% origination?

Joe Schmo

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Re: Refinancing to a 15-year for .5%?
« Reply #13 on: May 31, 2020, 10:22:50 AM »
2.65 on 15 with a local guy I actually like.
That was the rate on Friday.
Iíll report the rate tomorrow on da lock.
Fingers crossed.

Joe Schmo

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Re: Refinancing to a 15-year for .5%?
« Reply #14 on: June 01, 2020, 08:42:41 PM »
15yr
2.65
0.4% origination