Is there any reason to not refinance?

[Clonefan32]

Working with my local lender now on refinancing. Because I was relatively new to self employment when we bought our house I'm on an adjustable rate now. Want to get locked in, not only for the good rate, but because lord knows what things will be like in a few years when the rate is set to adjust.

 

[cowgirl836]

hmmm may have to look into this again. I think when they were right at 3-3.2 it did nothing for us and I needed them under 3 to be worth investigating. 3.625 5 years ago for us.

 

[khardbored]

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.

This!

I can't speak to specifics, but the biggest "con" to refinance is resetting the amortization schedule. For example, our loan originated in Dec. 2015 roughly, and that means at 4 years in, I'm paying roughly 35% of each payment as principal. If I refi, that resets to close to 0%.

 

[alarson]

This!

I can't speak to specifics, but the biggest "con" to refinance is resetting the amortization schedule. For example, our loan originated in Dec. 2015 roughly, and that means at 4 years in, I'm paying roughly 35% of each payment as principal. If I refi, that resets to close to 0%.

Some banks will let you set a custom am schedule if you want. You could also just pay the right amount extra to get it knocked out in however many years you currently have remaining.

 

[dmclone]

Another thing to think about is that you can get the loan for any amount of time you want. For example, I could get a 22 year term but it would probably have a 30 year rate. Very few people do this but it's possible.

 

[zarnold56]

Are there any issues when trying to refinance a conventional loan purchased with a first time home buyers down payment grant? I'm only 2 years into a 30 year. I did the original loan through Wells Fargo with the IFA and the loan was transmitted to another company after the first payment.

 

[mywayorcyway]

Not a banker, so please don't print this and take it to your banker.

I do not believe there is such a thing as a "free" re-fi. As in, there is no such way to do this where you simply reduce your interest rate and take off from where your balance currently sits. They're always going to get you somewhere. Closing costs are often lumped into the loan balance and if they're not, you're probably not getting the absolute best rate you can get or you're paying them out of pocket.

You'll need to calculate a break-even point, usually in months/years. At some point you will cross that threshold where the re-fi is saving you money every month. The threshold is determined by your situation and options. Given the current rates and what your current rate is, that point may be very near...but it isn't 100% free.

That's not to say that it isn't a good idea to do. If you're planning on being in your house for a long time and it's going to save you money, do it. But it isn't a straight-up no-brainer.

 

[CloneGuy8]

Refinanced a few weeks ago at 3.25%. Kind of pissed I didn't wait a couple extra weeks, oh well.

 

[alarson]

Another thing to think about is that you can get the loan for any amount of time you want. For example, I could get a 22 year term but it would probably have a 30 year rate. Very few people do this but it's possible.

Though, unless you just want the bank to force you to do it, you could always just take the 30 year term but pay ahead. If you're not getting a rate break for it, you may as well have the flexibility if **** happens.

 

[motorcy90]

USAA

currently have been on hold with USAA for 2hrs 40 min but they have 2.875% and 3.153% apr showing for todays rates potentially.

 

[Gunnerclone]

Refinanced a few weeks ago at 3.25%. Kind of pissed I didn't wait a couple extra weeks, oh well.

Same boat. But oh well.

 

[CycloneNorth]

currently have been on hold with USAA for 2hrs 40 min but they have 2.875% and 3.153% apr showing for todays rates potentially.

I called 10 minutes ago and they gave me a wait time of 1 hr 36 min. We’ll see how it goes.

 

[cmjh10]

2 years in on my mortgage. Im assuming this is something that I should really look into? Not sure of my interest rate of the top of my head. Besides whats in this thread, any tips?

4.25% interest

 

[motorcy90]

I called 10 minutes ago and they gave me a wait time of 1 hr 36 min. We’ll see how it goes.

it took an hr for the first agent who just verified my info, then passed me off to hold again for the next available loan officer but said they have been swamped all day. about to give up as will need to run to the grocery store and get dinner started here soon...

 

[alarson]

2 years in on my mortgage. Im assuming this is something that I should really look into? Not sure of my interest rate of the top of my head. Besides whats in this thread, any tips?

Going to depend on what the interest rate was at the time for you in particular, but you're probably looking at a decent drop, at least a half point if not more, if you can get down into a 3.0-3.125%

Definitely worth it. Hell, if you can get a no-cost option (which i know Luana is doing) there's literally no downside to it.

 

[motorcy90]

it took an hr for the first agent who just verified my info, then passed me off to hold again for the next available loan officer but said they have been swamped all day. about to give up as will need to run to the grocery store and get dinner started here soon...

and right after I posted that the loan officer was on the line

 

[CycloneDaddy]

There is no rush to get the refi locked in, rates are not going up anytime soon.

 

[motorcy90]

There is no rush to get the refi locked in, rates are not going up anytime soon.

yeah the loan officer I was working with said she expects the rates to go down next week even.

 

[CycloneNorth]

and right after I posted that the loan officer was on the line

2 hours and 4 minutes, but worth it.

 

[motorcy90]

2 hours and 4 minutes, but worth it.

what the ****?? I mean I was on the phone for 3hr 40 min total. majority of that on hold....