Is there any reason to not refinance?

Discussion in 'Off-Topic' started by cyfan964, Mar 9, 2020.

  1. cyfan964

    cyfan964 Well-Known Member

    Oct 22, 2006
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    With rates being at near an all time low is there any reason not to refinance? I understand it could potentially lower your credit score a bit, but other than that if you are paying off a 30 year fixed it almost always makes sense to doesn't it?

    Example: We're currently at a 3.625%, current rates are 3%. This would save us x number of dollars on our mortgage. It costs $1,500-1,600 in fees, dividing that number by x means that I would have the fees paid off in roughly 18 months.
     
  2. alarson

    alarson Well-Known Member

    Mar 15, 2006
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    Great time to do it.

    I'm probably doing a refi with luana, locked in 3.125 no costs last week.

    I've heard rumors of some 30 year rates dropping into the 2.8 range, but its damn near impossible to get them on the phone to confirm, theyre swamped.
     
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  3. scottie33

    scottie33 Well-Known Member

    Nov 25, 2006
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    I locked mine in at 2.5% for a 15-year through Collins Credit Union...3.0% was the 30-year and closing costs were $1,300
     
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  4. Cytasticlone

    Cytasticlone Active Member

    Mar 22, 2012
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    Is there a good "calculator" or reference for this type of thing that people use? I'm 7 years in on a 3.5% fixed 30yr. I'm wondering if a refi to 15yr fixed would be doable at the 3% rates out there now.
     
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  5. wxman1

    wxman1 Well-Known Member

    Jul 2, 2008
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    I meant to call them Friday but didn't get around to it. Should do that this afternoon.
     
  6. Gunnerclone

    Gunnerclone Well-Known Member

    Jul 16, 2010
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    Only reason not to is the small headache of having to sign your name with your middle name included 100 times.
     
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  7. dmclone

    dmclone Well-Known Member

    Oct 20, 2006
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    Worked in the refinance department pre 2006. Just a few things to think about:

    Total closing costs. It usually makes most sense refinancing with your current mortgage holder if possible. Things like appraisals may not be needed if you stay in your current loan.

    Refinancing is a great time to lower your term. A lot of people actually do the opposite and actually extend their loans for a longer period. Yes, I know rates are low but I hate the idea of people adding time to an existing loan. A lot of people also do cash out refi's where they take the equity out of their home to pay off other bills. So you pull 15k out of your equity to pay off a credit card, which makes sense with the rate difference. The only problem is that 2 years later this people have run up 15k on their credit cards again.

    It's been a long time but I don't remember it making much sense to pay down the rate. If I remember correctly, we had to provide the customers a one page document that was a true cost to refi. Or maybe we just did this because we were nice but it included the true cost.
     
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  8. ArgentCy

    ArgentCy Well-Known Member

    Jan 13, 2010
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    Only one, because I'm going to be TOO damn busy. Not my fault ya all want to do it at the same exact time.
     
  9. BryceC

    BryceC Well-Known Member
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    Mar 23, 2006
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    We just did it with Luana Savings Bank. No closing costs.
     
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  10. motorcy90

    motorcy90 Well-Known Member

    Aug 12, 2018
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    was on hold for 2 hrs with my mortgage company Friday afternoon and had to hang up and run a fire call, and trying again, currently on hold for 15min starting off all ready.
     
  11. CycloneDaddy

    CycloneDaddy Well-Known Member

    Sep 24, 2006
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    Yep no summer fun for you.
     
  12. AuH2O

    AuH2O Well-Known Member

    Sep 7, 2013
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    Looks like they are now showing 2.375% for 15 year with no points if you are in the Ames area at least.
     
  13. dmclone

    dmclone Well-Known Member

    Oct 20, 2006
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    A couple more things to consider:

    Be patient when it comes time to refinance. I helped run the phone system for the mortgage company I worked for and it's impossible to staff for these types of situations. During the early 2000's we went from having 4 loan counselors to 40+. We we first started out, we had hold times of 30 seconds, once the boom happened we had 2+ hour hold times.

    Also, if you're calling your current lender and they ask for your loan information, give it to them. If you don't give me your loan information, I'm going to assume that you're not an easy refi. On the other hand, if you give me your loan information I can see your credit score, your late payments, your current rate, etc. and I'll put you in the queue with the quickest turnaround time. Believe it or not, we wanted to help the people who were the best candidates. If you meet the requirements above, we'd get you into a streamline refi, which is a simple, cheap, and quick process.

    Also, if you meet the above requirements, just go to something like https://www.bankrate.com/calculators/mortgages/refinance-calculator.aspx and run the numbers before wasting your time.
     
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  14. motorcy90

    motorcy90 Well-Known Member

    Aug 12, 2018
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    over an hour on hold again so far today.
     
  15. NATEizKING

    NATEizKING Well-Known Member

    Feb 18, 2011
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    Post best banks for lowest rates please. Hoping to do this on Wednesday.
     
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  16. CycloneNorth

    CycloneNorth Well-Known Member

    Mar 29, 2010
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    USAA
     
  17. alarson

    alarson Well-Known Member

    Mar 15, 2006
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    This can swing by the day, but luana and green state are probably some of the better ones in general as far as rates that i've seen.
     
  18. NATEizKING

    NATEizKING Well-Known Member

    Feb 18, 2011
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    MidWest One Bank
    upload_2020-3-9_16-8-28.png
     
  19. iahawks

    iahawks Well-Known Member

    Sep 7, 2012
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    I got locked in on Friday at 2.75%. Very happy with that.
     
  20. Jmarsh13

    Jmarsh13 Active Member

    Sep 28, 2006
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    Amortization tables at end of yr 7 on a 30-yr is 85% of original principle amount. Changing down to a 15-yr at 3.00% would be a +33% increase on the monthly mortgage payments.

    You would need to be at 0% interest rate to keep your mortgage payments the same as now.
     
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