Looking for mortgage advice from mortgage professionals

[Bushwhacker]

Just because you're up to your eyes in debt from mortgaging everything you own doesn't make you a professional. I have a rate, points, cost question.

I'm looking to refinance toa 15 year fixed from a current 25 year fixed. I have 19.5 years left. Current rate at 3.99. Wife and I both have excellent credit near or above 800. Current lender is offering 2.75 with 0 points and $2600 in closing cost. Sounds good to me but should I look for lower, if so what range? I dont want to pay more closing cost to get to shave .10. Any mortgage guys have any guidance here?

 

[drc302]

In a sumular situation, subbed for answer

 

[the_great_white]

There's some good info to be found in here
And probably the same people you're looking for answers from.
https://www.theoutdoorstrader.com/t...w-mortgage-insurance-rules-and-offers.877590/

 

[Tydogg123]

Shop around. If you know you'll probably qualify for the best rates (sounds like you've got excellent credit), the posted loan estimates on a site like BankRate are a good place to start and let you play around with the numbers.

You should be able to do much better than 2.75% today while still minimizing closing costs. We just wrapped up a 15 refi and got 2.25% with appraisal waiver and $2,200 in lender credits. Cash to close was literally $186. So our monthly payment itself went up slightly, but we shaved several years off and the loan itself was dirt cheap.

Look at the whole loan and make sure it aligns with your goals of xxxx (paying it off faster? lowering monthly payment? etc.) Best of luck!

 

[Klif]

I called up Rocket Mortgage and we talked back in December. I am on a 30 year, 4.5% mortgage, 4 years in and owing less than 70K. My credit score is mid 800's and the only money I owe anyone is 2 mortgages totaling about 130K. They said they could get me in a 3.49 and with a monthly payment of $150 less than what I am currently paying. They said nothing about closing cost and 3 weeks later, when they finally started doing paperwork there was almost 6K in closing cost to me, rolled into the loan. They said I wouldn't have to put anything down at closing. Then papers changed to my cost at closing being $47 and the $150 back to me and the last time $321 cash from me. They took 6 weeks and are still not ready to close (business must be really good). So, in the end I would owe 6K more than I did before, have a $150 reduction in my monthly payment and would be saving about 1 percent on the loan.

After due deliberation I told them to pound sand and I wouldn't go through with it, so that cost me $100 earnest money but that's OK. I can achieve what I want to do by paying 1 1/2 payments per month with the over payment going straight to principal.

There are deals out there, but I sure didn't get offered one.

 

[Gingerbeard Man]

I called up Rocket Mortgage and we talked back in December. I am on a 30 year, 4.5% mortgage, 4 years in and owing less than 70K. My credit score is mid 800's and the only money I owe anyone is 2 mortgages totaling about 130K. They said they could get me in a 3.49 and with a monthly payment of $150 less than what I am currently paying. They said nothing about closing cost and 3 weeks later, when they finally started doing paperwork there was almost 6K in closing cost to me, rolled into the loan. They said I wouldn't have to put anything down at closing. Then papers changed to my cost at closing being $47 and the $150 back to me and the last time $321 cash from me. They took 6 weeks and are still not ready to close (business must be really good). So, in the end I would owe 6K more than I did before, have a $150 reduction in my monthly payment and would be saving about 1 percent on the loan.

After due deliberation I told them to pound sand and I wouldn't go through with it, so that cost me $100 earnest money but that's OK. I can achieve what I want to do by paying 1 1/2 payments per month with the over payment going straight to principal.

There are deals out there, but I sure didn't get offered one.

You should most definitely shop around. Interest rates are sub 3%.

 

[TheGman]

I have a mortgage lender friend here in Newnan who we used to refinance a new purchase in September.

I would definitely shop to get the best deal.

 

[dawg]

Always look for lower, but it’s always just a math problem.

You didn’t say how much you owe, but I plugged in your numbers into an online mortgage calculator and assumed you owe an even $200k.

With your current rate and years, you would pay $88,110 in interest over the next 19.5 years.

With the 15 year at 2.75%, you would owe $44,303 in interest plus the $2,600 In closing costs. So let’s call it almost $47,000. Much better than today.

I just looked at refinance rates for my zip code and they are in the low 2 percents. So, I think you can do even better than the 2.75%

Either way, good call to refinance.

 

[Falcon1]

HKMurkure has been a professional in the mortgage industry for 20 years. He can help out.

 

[HKMurkure]

It can benefit you to speak with other mortgage professionals based on what they can provide. Some lenders have different compensation structures with their company and can often offer better terms, etc. However, continue to look at the big picture and determine the best choice for you. How long will you have this new loan?

Hit me up with your particular situation and I will take the "Pepsi Challenge". Maybe I can do better or maybe I am a little off. But you will at least know what you are currently being offered, etc.

Thanks.

HK