The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: Fenway on October 02, 2012, 06:46:10 AM
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Thanks to this board, I finally made the decision to refinance my home. I am currently at a 5.25% 30 year rate. My bank (a local credit union) has a 3.25% 15 year rate. Because I've never refinanced before I have some questions:
How does one shop for a refinanced mortgage? I've signed some papers from the credit union. However, it's not final yet. They were just preliminary papers. I haven't signed "on the dotted line". I'm thinking I could get a better rate than 3.25%.
Do I apply at other banks?
Do I go back to my credit union and say "this bank is giving me ___%, can you do better?" Do they really care if they lose me?
Thank you!
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The right way to shop around is to request an official Good Faith Estimate from each lender you're interested in.
You haven't paid for an appraisal yet, have you? They don't transfer between lenders.
I doubt a bank would haggle on an interest rate. I shopped for a refinance by finding the lowest rate and closing costs, which I found at aimloan.com, which has a 2.625% 15 year loan (might be for 75% LTV). The only catch I know of is that underwriters for lower-rate lenders are typically more conservative. If you get turned down, you'll have to pay for another appraisal.
Are you sure you want a 15 year? They also have a 3.25% 30-year.
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Thank you for replying.
My bank just called me and said the rate is now 3.125% at 15 years.
I most definetly want a 15 year rate. I'll be putting $10k down and my closing costs will be about $3k/$4k. The loan amount is about $130K.
I will ask other banks for good faith estimates.
Thanks again!
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My bank (and others in my area) have 15-year mortgages at well below 3%. 2.375% is the lowest I've seen. Are you sure your quote is the best you can get?
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Wow! Where do you live?
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My bank (and others in my area) have 15-year mortgages at well below 3%. 2.375% is the lowest I've seen.
Points/closing costs/APR?
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That 2.375% was 0pts. APR is (1+(2.375%/12))^12=2.40%. Other places (mega-banks) have 2.625% with 1pt. I'm in Chicagoland.
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Another place to check is bankrate.com that way you can get national rates... Credit Unions are also great places to shop rates...