Refinance for a shorter loan period?

[drinkme]

We just got approved for a refinance with the Making Loans Affordable program. There is no fee, no appraisal. We have a 30 year fixed with 5.75% right now. We are in year 6 of this loan. We can lock in at 4% today for a 15 year loan and it will bring my payment up $178 more.

Do you think with the way the markets are going now I should jump on this? Or do you think the rates will go even lower???

I'm so mad at Wells Fargo. When the 15 year loans were at 3.5%, we couldn't get someone to even call us back!

So, has anyone seen less than 4% lately? I would hate to sign in on this, and then the rates drop next week.

 

[RitaE]

Rates vary by area but I just checked out bank's rate sheet and they are listing a 15 year fixed at 3.5% APR with 75% equity.

I honestly can't even begin to predict what rates are going to do. I know the Fed pledged to keep it's rate low for the next two years, which is a plus in your favor .... but it is a really unstable economy.

 

[Pooh_Friend#1]

My coworker was just quoted 3.8% from US Bank with closing costs being $800 for a 15 year loan.

 

[janey99]

We just locked in yesterday with a Wells Fargo refinance - 3.375 for a 15 year. Absolutely no cost at all. I'm pretty sure it is under the Home Affordable Refinance program.

Hope this helps!

Jane

 

[drinkme]

We just locked in yesterday with a Wells Fargo refinance - 3.375 for a 15 year. Absolutely no cost at all. I'm pretty sure it is under the Home Affordable Refinance program.

Hope this helps!

Jane

I emailed the WF rep today and he said if I went with a traditional refinance, it would be 3.5%. But then, I would have to pay closing costs, get an appraisal, etc. The costs would be about $5400.

Do finance rates fluctuate from where you live? I wonder if that is why you got the 3.75% yesterday, and I got 4% yesterday????

 

[janey99]

I emailed the WF rep today and he said if I went with a traditional refinance, it would be 3.5%. But then, I would have to pay closing costs, get an appraisal, etc. The costs would be about $5400.

Do finance rates fluctuate from where you live? I wonder if that is why you got the 3.75% yesterday, and I got 4% yesterday????

I have no idea how they underwrite the rates. It's worth pushing though. The rate I got was 3.375 - not 3.5, as you wrote - that's even a bigger difference from the 4 percent you were quoted!

I am in NJ, fyi.

Jane

 

[stitchlovestink]

Can someone explain what is the "making loans affordable" program? Thanks so much!!

 

[camlace]

We just got approved for a refinance with the Making Loans Affordable program. There is no fee, no appraisal. We have a 30 year fixed with 5.75% right now. We are in year 6 of this loan. We can lock in at 4% today for a 15 year loan and it will bring my payment up $178 more.

Do you think with the way the markets are going now I should jump on this? Or do you think the rates will go even lower???

I'm so mad at Wells Fargo. When the 15 year loans were at 3.5%, we couldn't get someone to even call us back!

So, has anyone seen less than 4% lately? I would hate to sign in on this, and then the rates drop next week.

I had almost the exact same numbers as you do and the same story with Wells Fargo. I jumped at the chance to go from 5.67 to 3.9 and 30 yr (in yr 6) to 15 yr. There is no certainty with where the rates will go, so I took the opportunity when it presented itself and didn't worry if the rate went down a bit more.

 

[quikah]

Shop around more. It is going to depend on your situation, credit rating and LTV.

I just got an email from my loan broker today for 30 yr fixed @ 4% for a no cost refi.

 

[DawnM]

Try a place like Amerisave. I was quoted 3.25% for a 15 year and $1,300 closing costs but with a $1,100 reimbursement at closing. No points. You must have excellent credit and good loan to value ratio (I assume 80% but maybe it was 75%???)

Dawn