Refi Now, Or Wait?

onewhippedpuppy · 01-08-2009, 10:51 AM

What does the braintrust think? My bank has offered to refinance my 20-fixed at 5.75% down to 5%, it would save me about $120/month. Fee is $700. It's a total no-brainer, but I'll wait if rates are projected to drop further. Anyone have an informed opinion?

Carrerax · 01-08-2009, 10:58 AM

I just got 4.875 fixed on a 20 with no points. Closing cost were $250. My bank will always refi for $250. If you are new it is $450. I went from a 30 year to a 20 year for about $50 month. I looked into this a few days ago and decided that I would do it if they went below 5%. On Tuesday the best I could get w/0 points was 5.25 and the next morning (Wed) they emailed me with the 4.875 and she said to jump on it and I did. Im pretty happy about it. Even if they go down a bit I can refi fr cheap or just sit tight. When you get much under 5% the difference isnt that huge.
Disclaimer, Im a financial idiot........

onewhippedpuppy · 01-08-2009, 10:59 AM

Damn, I thought I was getting a good deal for $750. At least I don't pay PMI.

Carrerax · 01-08-2009, 11:03 AM

$750 is good!

RANDY P · RANDY P's Garage

take it. the skipped payment will pay for that. it really is a good deal.

Aurel · Aurel's Garage

I just locked a 30yr fixed 4.99% rate with no points, and the bank fee is $199, but the total cost is ~$2,400 rolled in the new mortgage. Saving over $300/month, I break even in eight months. When you guys talks about $250-$750 closing costs, is that absolutely all it costs you? From this perspective, I am paying a lot, but I am in NJ, and got several similar quotes.

911Rob · 911Rob's Garage

You get 5% interest FIXED for 20 years? That's virtually free money!

Aurel · Aurel's Garage

Quote:

Originally Posted by 911Rob

You get 5% interest FIXED for 20 years? That's virtually free money!

Yeah, virtually free, soon to be worth nothing money

.

Axeman · 01-08-2009, 12:56 PM

Just skip 3 months payment, then ask for a government bailout. They'll let you stay in your house for a lot less than you owe on it. Seems it works for everyone else, especially on Wall Street!

rexav8r · 01-08-2009, 01:04 PM

Check web sites too. Every day.

Just closed on a Web Only ("For a Few Hours Today") special through Wells Fargo, got 4.75 fixed for 30 years. No pts.

widebody911 · widebody911's Garage

I called my current mortgage co - the late Washington Mutual - and the ESL dropout I ended up with in the call queue quoted me 5.5/30-year and 4.75/15-year I'd also have to pay a $300 app fee up-front with a credit card.

RANDY P · RANDY P's Garage

everyone just do it when it makes sense.

By the time you realize it's a good deal it's too late. The indices aren't following historic tracking methods.

If it's a free loan you can always refi again if it goes down, not like your balance is going up.

rjp

Drdogface · Drdogface's Garage

Check bankrate.com for a 15 year fixed. You can get 4.5% and save a bundle !

Hugh R · 01-08-2009, 06:11 PM

Don't go back to a 30 year, you'll begin paying lots of interest again. You pay interest at the beginning of the loan, and principal at the end. If you have say a 30 with 25 left to go, go with a 20 or 25. Otherwise, you'll just be paying lots of interest.

HardDrive · 01-08-2009, 06:36 PM

Can you guys name some banks here?

Neilk · 01-08-2009, 06:58 PM

Quote:

Originally Posted by rexav8r

Check web sites too. Every day.

Just closed on a Web Only ("For a Few Hours Today") special through Wells Fargo, got 4.75 fixed for 30 years. No pts.

Dude!!! How did you find that deal? I think I might wait for the Obama to enter office at this point to see what kind of crazy stimulus pack he might announce.

therotman · 01-08-2009, 08:38 PM

The $700 fee is made-up, kinda like when you go to a car rental place and they tell you how much the "upgrades"are. They are just trying to get what they think they can.

Tell them you will pay $200 and they just make take you up on it or at least give you a counteroffer.

RoninLB · 01-08-2009, 10:05 PM

afai know, jumbos are a different game getting a lower rate?

can anyone comment?

right now I'm in at 6.75% 30year.

I got the mortgage this past summer when banks were tighter than a crabs ass and that's water tight.

HardDrive · 01-08-2009, 10:53 PM

I believe the current limit for 'conforming' loans is $625,000. Rates for jumbos are a least a point higher.

RoninLB · 01-08-2009, 11:22 PM

It better be lower for the lower style mortgage.

I'm in for a $550k mortgage as a jumbo.

My bride manages this crap so my numbers may be a tad off. I'll check when I take her to the Good & Plenty choo choo in the am.

We did have to pay the higher rate. That much I know.

thx