How much did the rate come down below what your current interest rate is before you decided to refinance? We are at 7% and someone told us its not worth it to refinance unless is goes below 6%, or a full point.
What are the fees that are associated? Is it just like the first closing?? Anything else we should know? Thanks.
Diane
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Re: For those refinancing.....
Before we got married, Jay bought the house, so he had to do a no income...(he has his own business) He was paying like 9.25%. We just refinanced, and now can claim me, so we are paying 6.2% We refinanced to a 15 year mortgage, and our payments only went up $60. We paid closing fees, and that included 1 month of our mortgage. We paid it up front, or else you can can just add it to your mortgage, but we paid it up front, so we werent paying interest on the fees.
JennRenee
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We were told the same thing ~ that it is not worth it unless the interest rate drops at least 1 point. We also told our mortgage guy that we wouldn't consider it unless it wouldn't cost us a cent out of pocket, which it (thankfully) won't. With the rate we were recently quoted, our payments would drop by about $300. That adds up because we usually make 2 payments a month.
Diane
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JennRenee...Did you refiance??? You didnt pay any closing fee?? Who did you go through then? We had a good rate considering we were paying 9% compared to 6.2
JennRenee
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We are waiting for a closing date for our refinancing. It should be in about a week or 2. The money we will get back from our escrow account will cover our closing costs, so we won't have to lay out any money. We went through Chase Mortgage company, and they've been great.
chmlengr
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We bought our house in October 2000. We got an interest rate of 8.25%. We just refinanced with my friend who works for Manhattan Mortgage and we got a rate of 6%. We just did it this past Wednesday. We continued with a 30-year mortgage, paid the fees up front (close to $5000) and we are saving a little more than $220 a month. It was worth it to us!!
Kate
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Re: For those refinancing.....
My current mortgage is with Chase. But Jennrenee, how did you manage not to pay fees or closing costs? My friend told me they got slammed for about 6,000. I'm usually pretty good at this stuff but I just don't understand how the whole refinancing works The money that we have in escrow according my recent statement is approx 4,000 so you mean that will just be part of the new closing and transferred to the new escrow account?? Thanks
JennRenee
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Kate, I'm a bit uneducated about the whole refinancing thing, but I just called Patrick for clarification, and it turns out that I was wrong about the escrow money. We get that back. The way we were able to avoid out of pocket closing costs is that when our house was reappraised, the value went up so significantly that we were able to roll the closing costs back into the loan (those are Pat's exact words... not sure I understand the concept 100%, but I hope it makes sense to you!). If the value of our house hadn't gone up so dramatically, we wouldn't have been able to do this.
Oh, and I forgot to mention that our new mortgage is through Greenpoint Bank, not Chase, which is where our old one is from.
Diane
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I dint know you can do that. Our house went up too so much after it was reappraised. hmmm. If I knew that before hand. We also got the $$ back from escrow, but 4 weeks after the whole process took place.
JennRenee
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I will happily wait 4 weeks for that escrow money...it will be for my dining room furniture. I've been waiting a year to get it, so hopefully I can hang in for another month. I'm so excited!!!!! Right now our living room and dining room are empty (except for my treadmill). We are putting in hardwood floors and getting furniture. We're hoping to have everything done in about 6 months. Can't wait!
Diane
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that is great. Yes, our escrow helped finish pay off our furniture. I cant belive how expensive everything is, but its so worth it. I Love our dining room. Having hardwood floors is the best It is so easy to clean, and you dont have to worry about spilling anything on it. I havent found that card for you, for the company we used Cant even remeber the name . Jay actually found it in the pennysaver.
JennRenee
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Don't worry about the hardwood floor guy. I'll just call every company in the Pennysaver and say 'Do you know Diane and Jay?' until I find the right one! Seriously, I can't wait to get our floors done, for every reason you mentioned!
Diane
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LOL....
IPI Skyscraper Mortgage
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If anyone is still interested in refinancing, rates continue to drop! Sometimes, it is worth refinancing even if it is just 1/2 a percent in rate. It depends on what your loan amount is. Interest rates are at an all time low right now and it's a great way to pull money out of your home. It DOES cost to refinance however, usually, your broker/banker will incorporate those costs in the loan. If you want a loan that does not cost you anything, go for a home equity line of credit (HELOC). Currently, it is at 4.75% and if you qualify for it, usually it does not cost you a dime. I suggest it to future brides as an easy, inexpensive way to finance their wedding however, it works for any occassion or renovation, new car purchase, etc.... In the end, with this type of a market, you will save!
JennRenee
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Okay, our closing was today, and as promised, we paid no closing fees. WHEW! Our mortgage person's name is Brian and he works with Demandville Mortgage Company. We had a great experience with him when we closed the first time, and after this closing, I have to give him 4 stars!! If anyone is house hunting or refinancing, I'll gladly give you the number. He's great!
IPI Skyscraper Mortgage
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Where your closing fees included in your loan amount?
JennRenee
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Yes.
IPI Skyscraper Mortgage
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Best way to do it. You should also be expecting a check from your existing bank. They need to pay you back the money left in escrow. Congrats
Kate
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IPI Re: For those refinancing.....
IPI- So if the fees are included in the loan amount, Then you still pay fees, no? in fact you are just borrowing the money to pay them. So if the closing fees are 10K, then you have just added 10k to your mortgage amount. Is this correct?
IPI Skyscraper Mortgage
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Re: For those refinancing.....
Correct! Technically, you did not pay them at the closing table but you will be over the course of 30 years (or however long your loan is for) with interest. In other words, you borrowed 10k to pay closing costs and you will pay them back with your mortgage.
