I had recently mentioned that I might look into refinancing my house, and I actually just mailed off my application.
I looked into a myriad of lenders, and while rates were often much lower than what I pay now, after paying for their closing costs and points I was afraid that it was not worth refinancing. I’m one of those people who is always looking for a move, and unless I stayed in the house for at least three years, I probably wouldn’t have seen any savings.
So then I contacted the broker who orchestrated my existing deal. He came back to me with three offers:
+ 5.00 with 1 point and $3000 closing costs
+ 5.20 with 0 points and $3000 closing costs
+ 5.38 with 0 points and 0 closing costs
I did the numbers and decided to go for the final option. I’m paying 5.75 now, so this will be about $80 per month less. Basically all it cost me was the time to fill out the application. Not bad. My formal appraisal is this weekend, so I’ll be interested to see what that comes out at. As soon as I get that, I’ll report how it compares to the online estimates and my own feel.
Thursday, January 8, 2009
I'm Refinancing!
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4 comments:
My wife and I are refinancing our mortgage, and were planning to roll the closing costs into the mortgage (we are paying 1 origination point). Our appraisal was lower than expected, so now we have to pay $2,000 of the closing costs at closing in order to keep our loan-to-value ratio from being over 90%.
A decent quote ... we are about to embark on a re-fi for our house too. Should be interesting.
Who did you get your quote from? That is exactly the sort of rate on a no cost loan that we are looking for.
Thanks!
Jennifer,
I used http://www.absolutemortgageco.com/default.aspx
I'm not sure if they can give you the same deal since you didn't get your current mortgage through them, but you can try!
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