Has anyone refinanced lately?

[yankebabie]

I hear a lot of talk about how strict the banks are about giving mortgages now. Is it the same with a refi or is it easier to qualify for a refi than a mortgage?

 

[ProudMommyof2]

We are just going through a refi now. 15yr @ 2.75%. It also puts us back as we currently owe a little less than 14 years on the current loan but we always overpay and this will save us thousands of dollars.

 

[DawnM]

You CAN ask for a shorter term loan.

My friend had 12 years left and knew that if it were left up to them they wouldn't pay the extra, so she asked for a 12 year loan. The rate is the same as a 15 year, but it locks them in to 12 years and won't allow them to stretch it to 15 once the papers are signed, so no turning back!

Dawn

 

[ssawka]

You CAN ask for a shorter term loan.

My friend had 12 years left and knew that if it were left up to them they wouldn't pay the extra, so she asked for a 12 year loan. The rate is the same as a 15 year, but it locks them in to 12 years and won't allow them to stretch it to 15 once the papers are signed, so no turning back!

Dawn

The thing with a shorter term is that it locks you into a higher payment. If you lack the discipline to pay extra each month, I guess that could be a good thing. Personally, I prefer to not be commitment to higher payments in case something comes up during any given month.

 

[ruadisneyfan2]

You CAN ask for a shorter term loan.

My friend had 12 years left and knew that if it were left up to them they wouldn't pay the extra, so she asked for a 12 year loan. The rate is the same as a 15 year, but it locks them in to 12 years and won't allow them to stretch it to 15 once the papers are signed, so no turning back!

Dawn

The thing with a shorter term is that it locks you into a higher payment. If you lack the discipline to pay extra each month, I guess that could be a good thing. Personally, I prefer to not be commitment to higher payments in case something comes up during any given month.

I'll ask them to list monthly payments for both terms. I would think 2 or 3 years difference in loan term shouldn't make a huge difference in monthly payment amounts but it can't hurt to just inquire.

 

[DawnM]

I understand that, but OP was not wishing to extend it seemed so I thought i would mention it.

Dawn

The thing with a shorter term is that it locks you into a higher payment. If you lack the discipline to pay extra each month, I guess that could be a good thing. Personally, I prefer to not be commitment to higher payments in case something comes up during any given month.

 

[busy mom]

We are in the process now. After having a negative experience recently with a large mortgage broker, I decided to stick to a local bank. I compared rates and ended up with a 15 yr at 3.0%, 0 pts.

This will cut 8 years off of our mortgage and our payment is about $100 more. In addition, we rolled our HELOC into it, so that will eliminate another monthly payment. Such a great feeling!

As posted, do the math first. For us, it was a no brainer.

 

[ssawka]

We refinanced in the Fall solely to knock a few years off our mortgage. We were 3 years into a 20 year mortgage. By refinancing to a 15 year mortgage, we kept about the same payment after the closing costs were rolled in. We just paid off our last car loan, so now we will be adding more each month. I am hoping we will have the house paid off in 8 years.