Mortgage refi Q

stomachmonkey · 04-17-2009, 10:33 AM

Looking to refi.

Currently at 5.9%

Product is just under 1 yr old.

Wife talked to our bank today and this is what they said.

Quote:

Hey- talked to Chuck over at nat city mort. Discussed re-fi. They can get us a rate right now at 4.5. Brings our payment down $182 a month. If we float the loan a few days and wait for a rate of 4.25, it will bring our payments down $50 more a month. Costs will be $500 out of our pocket. What they do is add it all on to the borrowed amount, so our loan would go up by $13,000.

So $13,000 in closing costs. Seems kinda steep. Over 30 it'll save 72,000-13,000 = 59,000 Believe I paid ~$8,000 in closing on the original loan.

Seem out of whack to anyone?

schamp · 04-17-2009, 10:57 AM

I just closed in Ga on one. Rate was 4.625. 13K seems high but you didn't give the amount. They must be figuring in taxes, insurance and all the other crap they can. You might shop around and see what gives.

TechnoViking · TechnoViking's Garage

Yea, shop around.

Or better yet, just make them a counter offer. I just re-fi'd and all I said was "I'll lock in today if you do it for no points". They said "OK" without blinking an eye.

Just tell them you may have a better deal lined up and see what they'll do for you.

onewhippedpuppy · 04-17-2009, 11:40 AM

Holy hell! My loan is with a local bank, I think we paid a grand total of $800 to refinance. Shop around.

Rick Lee · Rick Lee's Garage

Taxes and insurance are escrows and, if they're tacked onto the loan amount, you'll get a fat refund when they adjust your existing escrows a few weeks after closing. Unless you plan to be in the house 30 yrs., which is very unlikely, don't even think about the amount you save over that period. Figure your break even point - total closing costs/monthly savings. Whatever that is, you need to stay in the house that many months before you really save dime. After that day, it's all gravy.

Neilk · 04-17-2009, 12:29 PM

Stomachmonkey,

I just refi'd in Dallas and paid closing costs of $3200 or so. Of that was $1,600 in scam title insurance. If you want my mortgage broker's contact let me know. We got a 30 yr fixed at 5%. Sounds like you are paying a ton of points to get down to 4.5%.

sammyg2 · 04-17-2009, 12:46 PM

I did a 4.5% refi a few months ago, total cost was 2 points ($1500). Got lots of equity and a good credit score, that helped.

stomachmonkey · 04-17-2009, 12:47 PM

Quote:

Originally Posted by Neilk

Stomachmonkey,

I just refi'd in Dallas and paid closing costs of $3200 or so. Of that was $1,600 in scam title insurance. If you want my mortgage broker's contact let me know. We got a 30 yr fixed at 5%. Sounds like you are paying a ton of points to get down to 4.5%.

Sure Neil,

PM me please.

Friggin Title Ins is a scam, just paid it 11 months ago.

Zeke · 04-17-2009, 12:53 PM

You gonna stay in that house long enough to recoup the costs? The more the costs, the longer you have to stay to break even.

mikester · 04-17-2009, 01:04 PM

I just refied for about $2500 - 13k seems way high. I didn't pay anything but my property taxes out of pocket.

stomachmonkey · 04-17-2009, 01:26 PM

I know the more up front the longer the break even which is why I've been resisting to begin with.

Be here at least 5 yrs, possibley10 but who really knows.

If I can break even at 2 max 3 years then I'll go for it.

Buckterrier · 04-17-2009, 01:56 PM

Refiing now. Got a rate of 4.75% with about $2,500.00 finance charges. Title insurance scam, certainly is.