I can't believe how low home interest rates are.

[Rot 911]

I just locked in today on a refinance on the house. Went from a 30 years at 6.725 to 15 year at 3.875! This is from my hometown bank that originated and still carries the mortgage so all done over the phone and by email.

[GH85Carrera]

Yea, how is it that when I had almost no money and bought my house I got a GREAT deal at 12.5% !!!! Some backs were charging 15% for 30 year notes back then.

Now I have just a little money and no mortgage at all I can get 1.35% on a CD. Bad timing I guess.

[RWebb]

I am wondering if it is worth the hassle to go from 5.25% to 4.75% (APR).

Wells Fargo says no fees at all - stays at 30 month term; saves $150/month.

Guess I'll see how big their packet o'crap is when it arrives.

[cgarr]

I waited for them to come down to 14.50% back in 85 and was happy!

[GH85Carrera]

Originally Posted by cgarr

I waited for them to come down to 14.50% back in 85 and was happy!

Gee, only 10% lower than today!

By the time the interest rates dropped much when I had my 12.5% loan I did not owe enough on the house to interest any lender to want to re-finance my loan.

[gr8fl4porsche]

I refi'd last month at 4.625. May have to do it again.

[s_morrison57]

I'm with in the 6 month re-finance window as soon get back home from work.

[steve911]

Just locked in 3.75% for 10 yrs - no points, replacing last year's refi of 10 years at 4.875%.
I think after this one, I'm done.

[Chocaholic]

Pls don't think there's no costs associated with each refi, despite what they say. Usually 2-3k rolled into the new loan. Lawyers don't work for free...neither do bankers. Just sayin.

[RWebb]

no fees if true could mean costs are incl. in the interest rate...

I DOUBT THERE ARE ANY LAWYERS INVOLVED.

[Chocaholic]

In the rate or the principal. Lawyers often have their hand in the closing.

[Rick Lee]

There are ALWAYS fees involved funding a loan. You may skip on an appraisal if you have a low LTV and have been there a long time. But plenty of the fees are state-regulated and there's no way around them. The only question is who's paying them. They're either built into the loan amount, which means you're financing them, or they're built into the interest rate. Find out the fees, divide that number by the amount you save in monthly payments and see how many months it takes before you break even. If you're starting a 30 yr. loan all over again, think long and hard about just making the minimum payment.

[Joeaksa]

Still remember my Mom with her VA loan that they got in the late 1950's for 4.5%. She always swore that she would never pay it off early as we would never see a rate that low again.

Unfortunately she was not right in this aspect. If they are loaning money out for this, think what CD's and other investments are paying.

[lowyder993s]

What is this mortgage thing you speak of

[RWebb]

I'll try & post if I can separate out any of theirs costs/fees. BTW - this is a refi.

[Rick Lee]

Originally Posted by RWebb

I'll try & post if I can separate out any of theirs costs/fees. BTW - this is a refi.

They're required by law to give you a Good Faith Estimate within 3 days (IIRC) of making loan application. That will disclose all the fees. You have to sign it at closing too and there are a lot of new laws in place to make sure you know exactly what you're getting into before you get to the closing table. I couldn't believe the amount of paperwork we had to sign well in advance of our latest closing. It's a whole new ballgame now. Rest assured, if your new loan balance is a dime more than the payoff quote for your old loan, the difference is your fees wrapped into the new loan.

[BeyGon]

Don't think I can do anything with mine, since neither my wife or I have had a job for over a year. No missed payments or anything but just don't think they will do much until we get a job or two.

[Schrup]

BoA assumed my loan last Spring when my bank folded. I refuse to EVER give them a penny. We did a refi through USAA, 15 years @ 4.25%. Our payment only went up $200 a month.

[einreb]

Originally Posted by RWebb

I am wondering if it is worth the hassle to go from 5.25% to 4.75% (APR).

Wells Fargo says no fees at all - stays at 30 month term; saves $150/month.

Guess I'll see how big their packet o'crap is when it arrives.

We refied our Well Fargo based loan a year or so ago from 6.125 to 5 and the out of pocket cost was $250. I didn't believe it until it actually happened. It was a ridiculous no brainer.

The amusing thing were the hoops we had to go through even though the loan being refied was with them (reappraisal, etc) and it was about 40% LTV.

[Rot 911]

Of course there are refinancing fees involved. Why should anyone work for free? Ours will be around $1000 which I will pay and not roll into the loan. But dropping almost 3 percentage points on the loan makes this a no-brainer.