Latest Experiences on Refinancing??

[disneybound31]

We are in the process of refinancing our current 15 year at 4.625% to another 15 year but at 3.125% and with that we did a cash out amount of around 20k to pay off our only car payment vehicle and also to put the rest with our current savings as we plan to add a family room onto the back of our home next spring. Our payment stays pretty much the same, but we will save more than 10k in interest over the life of the loan, plus the saved interest from the car loan that we had another 4 years to pay on.

Our closing costs are just at 3K, so even though it has taken a long time (3months and we still don't have a closing date) and the paperwork has been plentiful...we are happy with the result and it means we can add on the room a year earlier than we originally planned- and pay cash for the re-model. Plus, it is a year earlier that our fast growing kids can get use from the room in our relatively small home (1500 sq feet) where we bump into each other, especially with friends over to hang out.

Oh, and we are moving the loan from Regions Bank to our small, local credit union which makes me VERY happy. Regions has given us nothing but grief for years and we have been model customers. They mess up our escrow payments every year, no fail. Going with no escrow on the new loan.

 

[Frannie115]

We're closing next week on 30 year refi at 3.75%. This is with a local bank that sells the mortgage immediately. So it had to go through underwriting at a "big" bank which was not easy. We would provide what they asked for and they'd come back with other items. Some things twice. This went on for two months. This is with credit scores of almost 800. I almost gave up but my processor at my bank was very good and kept me sane.

 

[tinatark]

We refinanced with Lending Tree last month. Took about a month from application to close.

We went to 4.5, 30 years, from 5.75 - had negative points which covered most of the closing costs. That house is for sale (took it off the market to refi) so we paid a higher rate than if we had rolled all the closing costs in, but still are saving $500/mo.

 

[DawnM]

We refinanced in October of 2011 to a 3.37% on a 15 year.

There were no closing costs to pay the bank. Closing costs were around $1,800 and there was a rebate of $1,800, so it was no cost. However, we did have to pay the $400 appraisal and we did have to pay a full year of escrow up front, but that is money to US and not to a bank.

Dawn

 

[ColoradoMom!!]

OP here - thought I would post an update.

We went through a broker that a bunch of my DH's co-workers have used. We got a great rate, but paid closing costs - that was the trade off. We were able to roll those costs into the loan, but in reality, it is money we had to pay.

We went from a 15 year at 4.75% with 13 years left on it to a new 15 year at 3%. We also took out about $20,000 to help (not completely cover, but help) with our son paying for college starting this fall and add a bit back into our tiny savings account we raided with our kitchen renovation. Part of the reason we wanted to re fi was looking at other loans, we just couldn't beat the 3%.

We don't plan to sell anytime soon, and figured it will take about a year and a half to recover the closing costs. For the life of the loan, we decided it was worth it. Funny thing - our broker ended up at Wells Fargo where our loan is now. I called Wells before this broker, and the diff was .25% (Wells offered 15 year at 3.25% + closing).

 

[sookie]

We're closing next week on 30 year refi at 3.75%. This is with a local bank that sells the mortgage immediately. So it had to go through underwriting at a "big" bank which was not easy. We would provide what they asked for and they'd come back with other items. Some things twice. This went on for two months. This is with credit scores of almost 800. I almost gave up but my processor at my bank was very good and kept me sane.

We went through the same thing - and our credit scores are high 700's, great income, never a late payment on either record... I was shocked that we had such an ordeal! Our loan has already been sold and at least it seems to be a good processor... But honestly, getting our loan approved seemed INSANE at times. I mean, I would give them what they wanted then they would just pull something else out of their back pocket! they even wanted to know my "daycare costs". really, can they ask for that?! arg.

 

[BridgetBordeaux]

Here's my update........

I was post number 9 on Jan 12th. We closed on our refi Feb 23rd. Our process went quite smoothly and there were no surprises. We even closed the refi in our house at about 6pm. THAT was very convenient for us!

 

[Cynt]

Thanks for this info. I'm considering refinancing too. Lots of options. Keep it coming.

 

[si-am]

Gah! We were in the middle of this process-- were to refinance for another 30 years (we've only been in our house 4) and it would decrease our monthly payment by close to $300. No closing costs!

But it fell through right in the middle. Our house value dropped again between December and January and it suddenly dropped some kind of number below the acceptable percentage to qualify. They told us we could try again in a few months if values start rising again.

 

[meriface11]

we are closing today on our HARP refinance with Citi, our current lender. it's taken more than 3 months...they actually had to extend our interest date past the date the rate lock was to expire. other than that annoyance, it was painless...had an appraisal and the only thing we had to provide was our licenses. they also did employment verifications. they said it took longer than expected since they are so busy with HARPs. the closing company is coming to our house at 7pm--very convenient. our closing costs are $5500 including the appraisal and application fee, but we paid about $1K on points. the one thing i didn't expect since this is our first refinance is that we don't have a payment due until May 1, so in terms of OOP costs, it's almost a wash since I would have had to make payments on Feb 29 and March 29. we had money earmarked for the closing, so now i am wrestling with what to do with that "found" money. we have a piggyback mortgage that we are aggressively paying down and should be paid off in less than 2 years, but making the extra lump sum only shaves 7 months off the schedule, so it doesn't have much impact on the amortization schedule on an interest deductible loan.

 

[hsmamato2]

Looking to refi with my local credit union drop rate from 5.8 to 3.25 and turn our 20 years (left) into a 15 year mortgage
I got the rate with no points, and looking to roll closing costs into the loan-
QUESTION- is buying points worth it to drop the rate?
If this goes through, our mtg. will be paid sooner, and we should save over 25k interest while doing that while payments remain about the same.....