Author Topic: Picking the Right broker when Refinancing ... going from 3.75% to 2.75%  (Read 654 times)

Steven37NJ

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I plan to pull the trigger today and refinance my 30yr mortgage (27 years left to pay) from 3.75% to a 2.75%. Most likely going with 25yr term.

After speaking with multiple brokers, it's interesting that their offers are somewhat similar. Best one I got was to go to 2.75% with $2,500 cost (title, credit report, notary, etc) and 4 months or so upfront escrow (taxes). Others came very close, all at 2.75% but $3,500 instead of $2,500 in closing costs.

My question is ... if they all are so similar, what else do you go by? One broker I already did mortgage with and all went fine but he is about $1,000 more than the other reputable broker.

What else is important that I should be asking when picking the right broker to go with?

Thank you.

P.S. Yes, I plan to be in this house for a long time. I already add extra $500/mo towards principal but feel uncomfortable going into 15yr term so will stick with 25 or 27yr.

Kl285528

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If you like and trust your previous mortgage broker, and they did a good job, then tell them where you are with shopping around, and see if they can match your lowest offer. Coming from the husband of a mortgage broker, I've seen my wife have to give a little but it still was worth it to get the business. One thing I have seen (I'm a real estate guy) is that the cheapest lender often (not always) has execution risk, meaning closing on time and hassle free might be sacrificed to get the lowest rate. So, if you have experience with someone that you know will perform well, try to go with them if they are close in pricing.

August26th

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If they are competitive, go with someone you know, like, and trust.

Additionally right now, so many lenders are slammed with business and the customer service and their “turn-times” to get your loan completed can be significantly more. It’s a weird time in lending (and I’ve been in the business for 17 years) so find someone that is great and that you trust, and go with it. My 2 cents.

cooking

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If they are competitive, go with someone you know, like, and trust.

Additionally right now, so many lenders are slammed with business and the customer service and their “turn-times” to get your loan completed can be significantly more. It’s a weird time in lending (and I’ve been in the business for 17 years) so find someone that is great and that you trust, and go with it. My 2 cents.

@August26th, since you've been in the lending business for so long, could you please take a stab at my question on this thread? https://forum.mrmoneymustache.com/real-estate-and-landlording/refiance-question/  So far, have not rec'd any replies.  Thanks for any help you can offer.

August26th

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Sorry @cooking, I just saw the post and replied over there.

Dicey

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Hmmm, seems time for an update. How's it progressing, @Steven37NJ?

talltexan

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The talltexan household had long-planned to refinance this year. Will be interested to see what rate is available. How much improvement on the rate do you estimate you're getting by shifting from 30-year down to 25-year?