Just wanted to share...

Just wanted to share...

I know many of you are going through the stresses of househunting, or mortgage closing. But I found this really interesting...

We`re looking into refinancing our mortgage, and with the rates as low as they are now .. I absolutely can not believe the difference in payments that are possible. If we were to refinance and get in at around 6.25% we could cut our mortgage to a 15 year, instead of the 30 we originally had, and still save about $500 per month!! Imagine that .. being out in 15 instead of 30, AND saving another $500 per month! All because of a 2% difference.

Now, if someone would just answer the phone at Washington Mutual. I`ve been on hold for a representative for more than a half hour!!

I don`t want to go through the mortgage process again, but if those numbers are correct, how can we not??

Oh, just so I don`t not mention it .. closing fees and costs will be several thousand dollars .. but again .. with the anticipated savings .. if I worked it out right .. we`d be even again in a few months, then coming out ahead after that.

Does anyone have any advice for refinancing??

**-PS. They finally answered the phone, then transferred me again, and now I find out I was holding all that time for nothing, because they're in California, and I need to call a NY office. You'd think their website could have said that toll free number was for California inquiries only. Oh .. and of course now it is after 5:00, so no one is there! :)

Just wanted to share...question about closing costs

I am practically clueless about the whole mortgage process but am learning from recent purchases by friends and everyone here so I can`t help with your refinancing question (but that does sound unbelieveably awesome if that works out!)...if I can piggyback another question on your post...related to closing costs - isn`t there some sort of break for first time buyers? I have heard this but I haven`t heard anyone here mention it so I am wondering if this exists? Thanks.

Just wanted to share...question about closing costs

What we learned-- I have heard about all these first time buyer programs and asked about them adn was basically laughed at buy our mortgage guy-- he said those programs are for people who dont have enough of a down payment(we are putting down 20%) and that we make too much(which we dont!!) but I think it is geared more towards low income but please correct me if I am wrong--would love to be wrong on this one
laura

Just wanted to share...question about closing costs

I think there are some programs, like SunnyMae (sp?) that let you get a mortage with very little down, or give you better rates with little or no points, but you also have to be under certain incomes, or moving into marginal or urban areas. They are designed to help give a leg-up to people who want to get into a house but might not qualify without some help.

Just wanted to share...question about closing costs

We were able to buy our house and only put down 5% (I think?) and it was a first time home buyers program through USAA. USAA is a company you can be a member of if are in the Military or are a dependent. So this may be the reason we had that. Plus we live in NC -- so it may be different by state.

Refinancing, etc.

Kel, that is a great opportunity. The thing about refinancing is to make spending the closing costs worth it. Sounds like it will be worth it for you. For example if you are spending a few thousand in closing costs and only reducing your mortgage payment by say $100 a month - it may or may not be worth it to you - you could take the extra couple of thousand and pay down some principal. But any reduction of the amount of interest you pay over the life of the loan is totally worth it - especially if you can cut it down to 15 years!! Think of how much interest you are saving! Sounds like an excellent deal. We have already refinanced once and are now looking into doing it again. The rates are so low it seems silly not to at least investigate the possible savings.

Just as an aside, those of you who are househunting and reading the above about the downpayments, you can make a downpayment of less than 20% but you will be required to pay mortgage insurance at least until you have paid up to 20% of the equity in your home (as compared to the value). So you can do it without the 20%. I don't know too much about the first time buyer breaks, but I'm pretty sure you are all correct that it is usually for lower income borrowers, or there are special programs for civil servants, etc. You should investigate all possibilities.

Lee

Just a couple of questions, since you`ve already been through the refinancing aspect of home ownership.

Is refinancing as complex as when you initially opened the loan on your house?

Do you need to compile stacks of records and paperwork .. like bank statements, canceled mortgage payment checks, pay stubs, etc?

Did you refinance through the same company who was already carrying your mortgage, or did you find another bank?

Will we need a lawyer like we did when closing on the house?

We will have to have the house appraised, right?

Hope you don`t mind the questions .. Washington Mutual hasn`t called me back.

Kel

Well, here's what happened with us. I think the process was pretty streamlined mainly because we refinanced with the same company that we took the original mortgage out with. The whole process took exactly 15 minutes. We sat down with the attorney for the bank and that's it. Our attorney wasn't there, the mortgage banker wasn't there, just me, hubby and the bank! We signed a gazillion papers just like when you first closed. Gave them a check for $500 (since we refinanced with the same co. we got a deal where we could refinance with 0 closing costs - just the $500 fee) and left the building with some temporary payment stubs. It was so ridiculously simple that we figured we had done something wrong.

We didn't need any of our old paperwork, or an appraisal, or anything. I'm honestly not sure (since this is our first home) if this is typical or only typical if you are working with the same bank where you took out your mortgage originally. My guess is that if you go with a different bank, you probably have to go through a lot more stuff, but I'm not really sure. We only refinanced about 5 months after we first bought the house, and now we are considering doing it again. Good Luck with WaMu...I got an email at work yesterday letting us know that rates on the 30 year are at their lowest rates in over 30 years - so now is a good time!

Lee

Who is the mortgage company you have? (.. if you don`t mind my asking.)

As for WaMu .. I finally got someone on the phone late yesterday, and the guy was really, really nice, and so helpful. I don`t think we`re going to have as smooth a transition as you did, but maybe that`s because your first refinance was only 5 months after, and we`re two years. But, there does seem like there will be a lot less stress this time around, and less paperwork .. but we do need to provide the last two years of W2s, most recent pay stub and most recent bank statement .. no big deal. Estimated closing costs are under $3,000 .. and we were told that`s with $1,100 savings for already being WaMu customers. I was told we could roll the closing fees into the new refinanced loan .. which I don`t think I`d want to do.

Anyway, the rate quote I was given yesterday was even better than some of the ones I had found on line .. 5.87 as opposed to 6.25, which is what initially got me excited about this.

Now the question is .. do we go 15 years and I keep both jobs, or do we go 30, and I quit one. But that may be me getting a little ahead of myself! :)

Kel

5.87 is AMAZING! That sounds great. We're debating the 15 or 30 year thing too.

Our company is Waterfield Mortgage and they are in Melville. If you want their info let me know. Our broker was excellent. We really liked him. You got me all excited about your rate - now I'm more into looking at our own rate again!