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Refinancing my house questions

I spoke with a mortgage lender in Newnan today . 15 year rate was 2.37 (I think) no points no origination . Not a refi , a purchase.

Closing and prepay @ 3% of loan. SHop shop shop
 
How long is the original mortgage and how far along are you? I just refied from 14 yrs deep on a 30yr@4.75% to a 15yr@2.8%. It will save me about $35k over the life of the loan.

To your question regarding the 2 month pass. The first payment was likely paid from the escrow transfer and most mortgages start the following month. Thats where your 2month pass came from. Make the payment anyway and it will go to principle.
 
Stick with a 30 year note! You can always turn a 30 year into a 5,10,15 or whatever. But you can never turn a 15 year note into a 30 year note. As far as the mysterious 2months free, it's not free,and it will cost you dearly over the length of the loan. Basically the 2 months added to the end of the note will be carried every month with interest until it is paid off in 30 years. That adds up to a lot. Given specific dates and numbers it can be figured to the penny. Just my .02 worth!
Good luck my friend
 
I spoke with a mortgage lender in Newnan today . 15 year rate was 2.37 (I think) no points no origination . Not a refi , a purchase.
Closing and prepay @ 3% of loan. SHop shop shop
THIS ^^^^^ ALL DAY
UptaCamp UptaCamp You have an advantage of a low principal. Simple math says @4% of 100k borrowed, interest costs you 4k annually. @3% of 100k borrowed = cost of 3k annually. Rough math says you save about...15k for the life of the loan and will take 18 months for you to break even on a 15 year loan.

TheGman TheGman says...shop around. You are literally handing money to your mortgage guy in the tune of 10% of all of your loan savings. That's a bit steep. They make 10% from you and then...you dont know what they make on the back side with the back end from the exchange when they selll the loan to whoever.

Rates are moving everyday. what others paid for a week ago doesnt matter. you start with finding a good loan broker. compare that to retail (wells fargo). compare that to Georgia's Own credit union (and if you go there, give me the referral). PM me on Georgia's Own

It is my honest opinion that you will probably go with Georgia's Own for the best rate and stay local to Georgia.

On the Mortgage Broker side...when you talk to them...use the key word...PAR RATE. "Hey Joe, Im looking to compare what you have on your sheets for 30yr fixed vs 15 year fixed vs 7ARM, 800 Credit Score, conventional, 70 or 60 LTV, but I want a PAR RATE. I can do a quick lock and close but I want PAR RATE JOE. send that to me in an email."

that's it. you're basically putting them on notice that you've not new to the block on refi's and you're not there to waste their time. They will want you to put down an application, and etc etc...that being the case...you just say...i just want the rates. i know it aint locked and i wont hold you to it. Im shopping my options.
 
THIS ^^^^^ ALL DAY
UptaCamp UptaCamp You have an advantage of a low principal. Simple math says @4% of 100k borrowed, interest costs you 4k annually. @3% of 100k borrowed = cost of 3k annually. Rough math says you save about...15k for the life of the loan and will take 18 months for you to break even on a 15 year loan..
I know you were trying to keep it simple but this is materially incorrect. You have a continually declining principle on which interest is calculated. The savings in interest in the above scenario is only $8,839.13. Depending on the various closing costs and most importantly the time the person stays in the home it may or may not make sense to refi.
 
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