Who else refinanced this week?

[sbakersub]

I put my refi app in Friday -- 30-year loan at 5% and no points with HomeStreet Bank, my current lender. Locked the rate, since I really can't see them going much lower, and I'm ecstatic to be getting 5%. Closing costs will be rolled into the loan, but I'm consolidating a 1st at 6.25% and a 2nd at about 9%, so I'll be saving $350 a month over my current payments. The refi will pay for itself in about a year, and I plan on staying in this house a good long time yet. Only downside is I have to clean up the house for the appraiser next week!

I did check on 15 and 20-year loan rates and there really wasn't much difference -- lowest was 4.875 for 15 years, -- and I'd really rather have a little more flexibility with a 30-year term and pay more principal when I can.

 

[dbelmo]

I am such a dummy when it comes to this stuff, my husband is no better.
I really want to refi, what steps should we take, what happens if our fico is not as high as some of you will that not allow us to get the lower rate, should I call my current company now and ask for a "modification" before I start the process. HELP!!
any advice would be appreciated, or any questions I should ask them on the phone.

tia
dbelmo

 

[minnie1928]

I am such a dummy when it comes to this stuff, my husband is no better.
I really want to refi, what steps should we take, what happens if our fico is not as high as some of you will that not allow us to get the lower rate, should I call my current company now and ask for a "modification" before I start the process. HELP!!
any advice would be appreciated, or any questions I should ask them on the phone.

tia
dbelmo

I would call your current lender and simply tell them that you noticed rates had been falling and that you were going to start mortgage shopping, but you wanted to see what they could do for you first. If your FICO isn't as high as others, it may still be high enough to get you a better rate than you currently have.

Also, for those that have been able to score the better rate...make sure that you get the reduced title cost if you've recently purchased/refinanced your home. When I lived in PA (and refinanced SEVERAL times) we were entitled to lower costs on our title, if I remember correctly it was a tiered pricing based on how long it had been since your last title policy was issued. If you are using a new lender/settlement company then you may need to dig out your old title policy in order to get the discount. Just an FYI...

 

[bmoncher]

We're at 5 3/4's so we'd need the rate to go down a bit more to cover closing costs, etc.

I heard the new rate needs to be 1 point lower in order for it to work out. So I'm sitting tight and hoping for lower rates.

We were offered 4.5% with 1pt - still considering it since our rate is 5.25 right now... we have 15 years left on a 20 yr mortgage - but I am still considering it now...

 

[TwingleMum]

We also want to refi to do some major renovations. Everyone else is getting a bailout why not bail us out with a great loan rate. Lots of people would refi ~ stimulating the economy by having more spending $$ People like me would refi and but lots of $$ back into economy by fixing house up thus giving lots of people work then they would have more $$ to spend. It a win win situation. I hope the talking heads in Washington are listening.

 

[quentina]

My ARM is due to change in March......if things go as they currently are, we are looking at a 2% reduction.

No need for us to refinance until we see what happens then.

 

[JacobsMommy11002]

We are refinancing as well. Our payment will stay the same, but our equity loan will be paid off! So that will save us nearly $200 a month.

 

[Iggipolka]

I'm trying to refinance from 6.25% to 5.1%, but my broker is worried that it won't go through because I have a heck of a lot of student loans and not much ready cash. We bought our house in July and then had to spend $150K to fix major problems with every single system in the house (electrical, plumbing etc) that the seller didn't disclose. So, our bank accounts are pretty damn empty.
My broker wants my tax returns going back to 2006! Doesn't that seem a bit extreme?
I'm so hoping that the refi will go through as it will save is $270 a month!

 

[robb01]

Just locked last week at 5.5 on a new 30 yr. Hoping to re-lock lower next week b/c we close on the 30th

 

[DisBride2007]

VERY interested to see this thread... when I logged onto my Wells Fargo mortgage account last week I noticed a small line that said, Refinance with no closing costs! We are currently about 1 1/2 years into a 30-year fixed at 6.125%. The past four or five months I have been paying extra toward the principle. I checked their rates and they are currently at 5.0% for a 15 year. That monthly payment would be the same as what we're paying now with the extra toward the principle. It would be beneficial though because more than half of our monthly payments would go toward principle instead of only about 20% of the monthly payment.

Think I'll give them a call this week...

 

[disneybound31]

If you have 20% or more you might be able to get a refund on your mortgage insurance. Even if you choose not to refinance, you can still get this back by documenting your loan balance and the appraised value of your home. I probably got about 5K back from this when we moved from my starter home to our current home.

I would think at 7% you would do well to refinance. The Truth in Lending act stipulates that all costs (closing, points, handling fees, etc) must be disclosed to you. You will probably be required to have an inspection and those run a couple of hundred bucks.

We went through Lending Tree, but definately shop around. Local credit Unions often have good rates too.

Good Luck!

Thanks for that info... we don't have mortgage insurance tho. Never have. We got an FHA loan for first time homebuyers back in 2002 and felt really good about it at the time. It had no PMI and did not have to have 20% down either... did have a few thousand in closing costs, but it got our payment to be very manageable since at the time I was a SAHM. I work part-time to 3/4 time now and we really want to try to refi our current mortgage into a 15 year and surely with the lower rates we can get the monthly payment to be about the same as we have now... that's what I am hoping.

 

[minnie1928]

My broker wants my tax returns going back to 2006! Doesn't that seem a bit extreme?
I'm so hoping that the refi will go through as it will save is $270 a month!

That's only 2 tax years, and considering all that the mortgage business has been through in the recent past I wouldn't consider it extreme.

 

[labdogs42]

We might re-fi again soon. We'll see.

 

[jerseygirl81]

We were offered 4.5% with 1pt - still considering it since our rate is 5.25 right now... we have 15 years left on a 20 yr mortgage - but I am still considering it now...

We have 10 yrs left on a 30 yr fixed at 5.25. I'm going to keep an eye on the rates and if they come down to 4.25 then maybe it will be worth it. How much is a point? Is that 1% of the loan? Linda

 

[disneybound31]

How does everyone feel about using a company like penfed.org or other 'online' mortgage bank to refi instead of a traditional brick and mortar?

I'm just feeling weird about calling an 800 number or doing these things online sue to all of the recent turmoil. What if something goes wrong and there is no 'person' to talk to?

I guess I am just looking for reassurance from those of you who have done these type of mortgages... are you out there? Any reviews of specific refi experiences?

 

[minnie1928]

When you call you are still talking to a person, just write down their name. I've done many mortgages/refinances over the phone and have never had a problem.

 

[chris1gill]

How does everyone feel about using a company like penfed.org or other 'online' mortgage bank to refi instead of a traditional brick and mortar?

I'm just feeling weird about calling an 800 number or doing these things online sue to all of the recent turmoil. What if something goes wrong and there is no 'person' to talk to?

I guess I am just looking for reassurance from those of you who have done these type of mortgages... are you out there? Any reviews of specific refi experiences?

I used Penfed for a mortgage, no problems at all. Actually, it was cheaper for us to do that than to get a bridge loan since the first house didn't have a mortgage (so we put a mortgage on it). We had no problems at all, but be warned, they ask for every shred of documentation you ever saved LOL... other than that, going with them was hassle free and saved us a bunch!

 

[shelly3girls]

Does anyone know if you can get those rates on an original mortgage loan, or just a refinance?
Thanks in advance!

Our neighbors recieved a notice that they were going to have to start paying PMI since property values dropped so much. They called Chase to complain saying they would have a hardship paying the extra money. By the end of the phone call they agreed to 3 months of PMI but a renegotiated rate a full 1% lower with no extra fees. They just had to sign some paperwork and ended up with a lower payment. She asked if this would affect their credit score in a negative way and the agent said no, it was just saving Chase from losing a customer by having them shop around to refinance.

 

[GoofyGolferGirl]

Subscribing

 

[4Seasons]

Thanks for that info... we don't have mortgage insurance tho. Never have. We got an FHA loan for first time homebuyers back in 2002 and felt really good about it at the time. It had no PMI and did not have to have 20% down either... did have a few thousand in closing costs, but it got our payment to be very manageable since at the time I was a SAHM. I work part-time to 3/4 time now and we really want to try to refi our current mortgage into a 15 year and surely with the lower rates we can get the monthly payment to be about the same as we have now... that's what I am hoping.

You should have had something called MIP (mortgage insurance premium) added into your loan at the time of closing. If you refinance into a non-FHA product you should get a prorated refund. Make sure you check that if you try to refi.