Any home refinance guys here? Quick question.

[Stoner]

Need some advice on a refi to see if it makes sense to go from 3.0% to 2.75%?

Numbers look ok, but want to be sure as I'm not too smart about these matters.

PM me please.

Thanks!

[Chopped54]

Closing costs may negate any actual savings.

[Stoner]

Closing costs

Was supposed to be zero. Was then told I would need to bring $500 to the table. Sounds like shenanigans to me and maybe not worth the trouble.

[TX_92_Notch]

It sounds like you're already talking to a mortgage company. They can give you a breakdown on the costs and if they're rolling closing costs into the mortgage.

What are you trying to accomplish? Lower monthly payment? Less interest? Shorter term (15 vs 30)?

[4EyedTurd]

The last time I talked to the smoking hot mortgage girl about refinancing she said if you’re not dropping atleast a point in interest it’s not worth it.

[Stoner]

The last time I talked to the smoking hot mortgage girl about refinancing she said if you’re not dropping atleast a point in interest it’s not worth it.

Agree. I am all about not paying interest on anything other than my home loan.

Just looking for the best interest rate I can get without extra out of pocket.

I'll stick with my 3.0% to keep from having to deal with the hassle. I make extra payments toward my principal and this joker from my current mortgage Co. quote: "zero cost".

I just don't appreciate the BS of not truly being zero. Do I have recourse to hold them to the quoted "I can do zero cost or even possibly lower" email with them already knowing my loan agreement with their company?

I just need someone in the biz to look at the figures to see if it makes sense to do 2.75%. I'm not as smart as most of the ballers on here.

[Stoner]

It sounds like you're already talking to a mortgage company. They can give you a breakdown on the costs and if they're rolling closing costs into the mortgage.

What are you trying to accomplish? Lower monthly payment? Less interest? Shorter term (15 vs 30)?

No rolling cost into payments or current mortgage. Guessing they are hurting for new mortgages or trying to play their current customers. He said they would cover " all costs". He then hits me with bringing $500 to the table towards escrow.

I don't know this crap, but always looking for a better deal if I don't have any out of pocket as the original email stated basically.

[kingjason]

I am at 4.25 and if I dropped to 2.75 or something it would drop my payment about 100 bucks. That's me buying down the interest rate. Wells Fargo last time wanted no appraisal or fees, but now they have gotten greedy again, not to mention that added bullshit fee the put on a few months ago. I wouldn't mind refi and pull some out for some remodeling I have neglected. On the other hand I think I should wait for the real estate bubble to crash again, I am just not sure it is going to happen here. All these motherfuckers moving here from every other state. Sighhhh

[Stangs 4 Life]

IMO that rate drop wouldn't be worth it unless you are also below 80% LTV and drop PMI. I felt honestly liberated when I was of control of taxes and insurance.

[kingjason]

IMO that rate drop wouldn't be worth it unless you are also below 80% LTV and drop PMI. I felt honestly liberated when I was of control of taxes and insurance.

That's exactly why I did my first refi. PMI is bullshit.

[Chili]

If it's for escrow, it's not uncommon and that is not a charge. It's your money, ultimately, and will be reconciled annually anyway. They calculate how much will be needed in the escrow accounts at closing, and since you usually skip a month's payment when refinancing, they just need the escrow deficiency to ensure there are sufficient funds to cover your taxes and insurance when due.

You can confirm if they are charging any fees on the HUD-1 statement they prepare for closing, or even earlier on the Loan Estimate (they should have provided that when you applied).

As to whether it's worth it, you really just have to run the numbers. If you're truly not paying any closing costs (different that no "out of pocket), it obviously will result in less interest being charged. But if you're restarting your loan at the original term, you will likely still end up paying more interest over the duration. Of course, who ever pays out their entire mortgage as scheduled?

Now, if you reduce the interest and just keep paying the same payments you have been, you will definitely 'save' some money (assuming no closing costs), but it will possibly be very negligible, especially if you end up selling in a few years.

Rules of thumb are a decent starting point, but the mortgage amount, loan duration, and a few other factors can make a big difference. For example, if your loan is 100k on 15 years the impact will be way less significant that if you owe $300k on a 30 year.. The latter may be worthwhile where the first wouldn't be.