For those refinancing.....

Original post by Kate

Sep 20, 2002 05:18 PM

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.

Kate Posted: Sep 26, 2002 01:41 PM

Re: For those refinancing.....

IPI-
It will be $160,000 in Oct.

Cira Posted: Sep 26, 2002 01:42 PM

Re: For those refinancing.....

We are in the process of buying a home and have dealt with a mortgage broker for a little while now. My question is this - if we signed the documents and paid the fee associated with it - are we obligated to stay with that broker. He has been quoting us still - 6% and 6 1/8% but when I look up rates on bankrate - they are down to 5.75 and 5.88%!

IPI Skyscraper Mortgage Posted: Sep 26, 2002 01:51 PM

Re: For those refinancing.....

Kate-
160k @ 7% is $1064 a month without taxes and insurance (escrows).
160k @ 5.875% is $946 a month again without taxes and insurance.
That is about $118 a month and close to $42 thousand is savings over 30 years (assuming you do not move or refinance). I hope this helps you. Unfortunaltley, I can not tell you if it is worth it for you because I do not know your situation however, if you do go for it, I checked Chase's rates for you. Even with the rate chages that have been going on, 5.875% should be available for you still (as long as you quailify) and it should be available with no points!!!

Karen H Posted: Sep 26, 2002 01:52 PM

Re: For those refinancing.....

IPI - we expect to still be there when the mortgage is paid off unless we win the lottery and hubby can buy his dream house on Dune Rd. It's got more than enough space for us and the location is good so for the forseeable future we don't expect to move. We've got more time on our side than cash right now.

We got a good fixer-upper in a good town (Sayville) at a good price that mostly requires TLC, yardwork and decorating, not much in the way of structural work right away (ie windows are new, appliances & furnace are 8 yrs old) We're in a good position to increase the value mostly through sweat equity and minimal cash investment, so even if we move sooner, we should see a nice profit unless the bottom really drops out of the market.

IPI Skyscraper Mortgage Posted: Sep 26, 2002 01:59 PM

Re: For those refinancing.....

Cira-
In your paperwork, there should be something called a Broker Fee Agreement. It probably came with your application package. On that agreement, there should be something that tells you if the broker will charge you points should you back out. If it says 0 points, then you can back out however, you lose what you have paid them. You do have rights to the appraisal but unless the broker tells the appraisal company to release the appraisal to a new broker/banker you can not use it and will probably have to pay for a new one. You can check rates on my website @ IPIskyscraper.com under 'Market update'. It gives you a good idea of what the average interest rates are however, it is an average. Rate is determined by the person applying for the mortgage. Credit and ability to repay the loan determines rate. Good credit and good income and your rate should fall below the average shown on my website.

IPI Skyscraper Mortgage Posted: Sep 26, 2002 02:11 PM

Re: For those refinancing.....

Karen-
It might be worth it for you to spend the $$ to refinance, especially since you plan on staying in your home until you win the loto. Rates are the lowest in years and although I do not have a crystal ball, I don't think that we will see a dip in the market like this for a long time. I would also suggest a 30 year fixed or even a 40 year because it will keep you payments lower then what they are now. If you continue to make the same payment as you are right now, your princ. will go down even more then if you went with a 20 year fixed. Also, if things get tight within the next 30 years (financially for you and your spouse), you won't have to worry about too high of a monthly payment.

Karen H Posted: Sep 26, 2002 02:42 PM

Re: For those refinancing.....

IPI; Thanks for the advice. I'm one of the older brides and with a 40 year mortgage I'd be 85 when it was paid off if it went full term!!!! We're agressively pre-paying the principal whenever we can. Every time I make a payment, I think back to my first house in Michigan - when I graduated from college I bought a house and I assumed a land contract at 7.5% - a great deal since I think it was high - maybe even double digit interest rates in the late 70's. The house cost $49,900 and my payments were $160 a month, including the water, taxes and road assesment

IPI Skyscraper Mortgage Posted: Sep 26, 2002 02:56 PM

Re: For those refinancing.....

How great would it be if real estate cost 49k now adays Good luck with your refi.

Kate Posted: Sep 26, 2002 03:27 PM

Re: For those refinancing.....

I'd just like to say thank you to IPI Mortgage for all of your insight and clarifications on this sometimes confusing subjest.
I assume you are a Mortgage Broker, but in no shape or form did you hawk your services. Just offered helpful advice and info.

You gave me alot to think about! Now to talk to the hubby......
Thanks again.

IPI Skyscraper Mortgage Posted: Sep 26, 2002 03:38 PM

Re: For those refinancing.....

Kate-
I thank you for your kind words. I do appreciate it. Anytime you have any questions, please feel free to post, email or call. My goal is to help get people the best rate, on a product that is best for them, that saves them time and money - even if that means just answering their questions. Thanks again.

IPI Skyscraper Mortgage Posted: Sep 26, 2002 03:47 PM

Re: For those refinancing.....

Hey,
I am new to the site and apologize for being in the newlywed section. I hope that I didn't upset anyone for being here. I will hang out in the vendor section from now on and will entertain any questions anyone has there. Again, my apologies to all.
Liz
IPI Skyscraper Mortgage.

LisaT Posted: Sep 26, 2002 04:14 PM

Re: For those refinancing.....

Liz-

I appreciate the info you've provided and have no problem with you responding in this section - its obvious the others here appreciate your help as well.

The brides (on the other side) get very defensive because there have been a number of vendors attempting to pass themselves off as brides and praise their own services.

We refer to this side at the 'calm' section.

-Lisa

JennRenee Posted: Sep 26, 2002 04:36 PM

Re: For those refinancing.....

IPI, in my opinion, you are a more than welcome addition to this board. Please feel free to stay.

februarybride Posted: Sep 26, 2002 04:44 PM

Re: For those refinancing.....

IPI -
Our current rate is 7.25 - we thought about a 7/1 ARM ... our goal/dream is to be out in 5 years, our fear is if we don't move we could be getting stuck with a high rate in yr 8... We're so confused!!!
Just as an FYI we are currently paying PMI - and with the refinance (based on reappraisal) we may be able to get rid of it (x fingers crossed x)
Isn't it better to have more equity??

Cira Posted: Sep 26, 2002 04:52 PM

Re: For those refinancing.....

februarybride - our down payment is less than 10% but we are avoiding PMI by taking out a mortgage for 80% and another home equity for 10%! Maybe you can take out a home equity for the difference and avoid the PMI -- it was worth it in payments!

IPI Skyscraper Mortgage Posted: Sep 26, 2002 04:56 PM

Re: For those refinancing.....

Feb-
First, you should not be paying PMI!!! Your banker/broker should have suggested what is called an 80/10/10 to avoid PMI. PMI (private mortgage insurance) is manditory when you borrow more than 80% of your home's value...from one bank. If you borrow 80% from one bank and 10% from another, you avoid pmi. As far as year 8 is concerned, I suggested the 7/1 arm to give you two years cushion incase you are not out in 5 years. If worse comes to worse and in year 3 you realized that you want to stay in your home forever, you can either refinance again or call your bank and see if they can do a one time transfer to a 30 year fixed. Some banks do it, some do not.

IPI Skyscraper Mortgage Posted: Sep 26, 2002 04:57 PM

Re: For those refinancing.....

Looks like Cira has a good broker!

By the way, I would like to thank all of you that don't mind me being in here.

Cira Posted: Sep 27, 2002 09:09 AM

Re: For those refinancing.....

Not a good broker, but a smart husband ... he's my finance guy, Mr. CFP!

Thanks IPI for your help too - I have to check your rates and look on our statement!

We appreciate having your useful advice on board!