Calling Homeowners - Time to refinance

[Aharami]

i bought my place for 280K w/ 10% down 3 yrs ago. Now I owe 242K. Just called my lender and he's seeing property values at 237 - 250K. That seems really low to me because I know for a fact that a unit 3 doors down just sold for 275K! Is there any way to fight the bank's assessment? What site do they use to find recent sales in the area?

 

[highland145]

i bought my place for 280K w/ 10% down 3 yrs ago. Now I owe 242K. Just called my lender and he's seeing property values at 237 - 250K. That seems really low to me because I know for a fact that a unit 3 doors down just sold for 275K! Is there any way to fight the bank's assessment? What site do they use to find recent sales in the area?

When we did the heloc several years ago, they just used the county value to expedite everything. May be what he's looking at. That value should/could be lower than the actual value. Ask him and mention the other unit.

There was another issue that I vaguely remember with the local mortgage companies (not banks). Somehow, by law(?), they were being forced to use appraisers out of a different area so the $$ for the comps were coming in lower than our actual local prices and the local mortgage brokers were losing sales.

 

[Apple Of Sodom]

Is it still true you should not refi if you are going to move in the next year or two? We are at 5.06% on a 30 yr (just refi'd from 6% to this 3 yrs ago). We have $160,000 on the mortgage and $17K out of $25K home equity. So basically $177K? So we are now 27 yrs in again and I'm not sure we could necessarily afford payments going to a 20 year... A hundred hundred or two, probably. More than that, absolutely not. We are basically living hand to mouth w/ 4 kids. My wife wants to move, but she's been saying that for 5 years....so it's always like "we shouldn't be doing this, because we might be moving"....Should I be looking at this?

It can be true. Refinancing isn't free. Say it costs you $5,000 to refinance your home but you are saving $300/month on your payments. $5,000/$300 = ~17 months of savings before you offset the cost of your refinancing.

 

[Lotheron]

I'm actually starting the process to refi. From like 5% to 4.1% or something. It's more than worth it considering I'm going to be staying in my home for a long while.

 

[Zargon]

I am looking into it as well, with the rate drops and the fact that I have dropped 30K into my house in the last 2 years, I hope I may have created enough equity to be able to ditch PMI and drop the rate a little. going to be here atleast the next 5 years, no reason to move untill we have a kid and maybe think we want a different district

 

[Onita]

I'm at 5.25%. Not sure about looking into this or not...

 

[thegimp03]

We're at 5%/30 year. I calculated it out the other day and if we went to a 15 year term at the refi rate we'd pay about $300 more a month but save over $100k over the life of the loan. I'm not sure if it's worth it yet as we're not sure if we're going to hang onto this place or sell it when we want to buy a new home in the next 5-7 years.

What does a refi typically cost?

 

[edro]

What does a refi typically cost?

1% + $1000 in fees and crap

 

[Apple Of Sodom]

I'm at 5.25%. Not sure about looking into this or not...

you really should if you plan on holding onto the home for a year or two more.

 

[Cal166]

Called Wells Fargo and they said, going from 30yr/5% to 30yr/4.25% with no points but roughly $3k in closing cost. This would bring my monthly payments down like $261 a month. Worth doing?

 

[jalaram]

Called Wells Fargo and they said, going from 30yr/5% to 30yr/4.25% with no points but roughly $3k in closing cost. This would bring my monthly payments down like $261 a month. Worth doing?

Are you going to be in your house for a year at least? A simple calculation shows that you'll break even at 12 mos.

 

[Cal166]

Are you going to be in your house for a year at least? A simple calculation shows that you'll break even at 12 mos.

Yes, I have to due to the $8k tax credit i received from the govt.

 

[OILFIELDTRASH]

I just closed Thursday for a 3.875% for 30 years. No points. Woohoo!! Now just need to get into the house.

 

[Wyndru]

The last refinance we did we didn't check to see if the new bank had "free" online bill payments. When we asked them, they said online was available but didn't mention a cost. They have it online, but you have to pay $11 each month to use it. We just mail the payments in now, but it would have been nice to be able to do online payments.

Watch out for little annoyances like that.

 

[Eos]

The last refinance we did we didn't check to see if the new bank had "free" online bill payments. When we asked them, they said online was available but didn't mention a cost. They have it online, but you have to pay $11 each month to use it. We just mail the payments in now, but it would have been nice to be able to do online payments.

Watch out for little annoyances like that.

I wonder if your bank can send one of those e-checks on your behalf. It would save you a stamp anyway. More secure as well?

 

[Wyndru]

I wonder if your bank can send one of those e-checks on your behalf. It would save you a stamp anyway. More secure as well?

Yeah, I think they can, I've been meaning to set this up so it automatically sends it each month, or more ideally if they have something that will allow me to submit it each month, so I don't have to worry about an accidental overdraft.

 

[FelixDeCat]

This only makes sense if you get an interest only, adjustable rate mortgage with a balloon payment due in 7 years. :sneaky:

 

[KingGheedora]

Called Wells Fargo and they said, going from 30yr/5% to 30yr/4.25% with no points but roughly $3k in closing cost. This would bring my monthly payments down like $261 a month. Worth doing?

What don't you understand about this that requires you to ask us if this worth doing? It obviously is. Or did you really mean to ask "Is there some sort of catch?"

 

[cerebusPu]

Called Wells Fargo and they said, going from 30yr/5% to 30yr/4.25% with no points but roughly $3k in closing cost. This would bring my monthly payments down like $261 a month. Worth doing?

my numbers are similar to yours. Im going from 5% to 4.125% with a savings of around $200 a month. i think my break even point was 18 months.

Im at exactly 80% LTV, so the only issue to consider is whether it will appraise for at least what i bought the house for last year.

 

[Zargon]

Yes, I have to due to the $8k tax credit i received from the govt.

yeah man do it

you will be well into the black before you are allowed to move

 

[marvdmartian]

I hear ya. My friend could save around $400/month since her interest rate is so high... but her husband simply refuses. Oh, please let me add that she is the only one working (two jobs.) He is unemployed and has been for the past 4 or 5 years. He is in school (only part-time) and can find every excuse not to work.

She ought to go ahead and refinance, solely under her own name and credit. If he continues to bitch and whine, kick him to the curb!

 

[DougK62]

Thought I would bump this thread since I'm now looking in to refinancing.

A question from me: when looking at banks and credit unions to refinance my mortgage, what are some typical sneaky tactics that I should be on the lookout for? Many of these deals seem too good to be true. A local credit union is saying they'll give me a rate of 3.375 on a 15 year note, waiving all fees, appraisal costs, etc. - it would basically cost me nothing is what they're telling me.

 

[Golgatha]

A local credit union is saying they'll give me a rate of 3.375 on a 15 year note, waiving all fees, appraisal costs, etc. - it would basically cost me nothing is what they're telling me.

I doubt they are actually doing all those things for free. More likely is that they are rolling those costs back into the principle amount on the loan and you're actually borrowing more money to cover everything you mentioned. That's one of the "sneaky" tactics on no-cost refinances.

 

[Golgatha]

Thanks to the OP for planting the refi seed in my mind.

I checked into some reputable mortgage companies locally and was able to secure a 15yr at 3.5%. I was paying enough extra on my old loan of 30yr at 5.0% that I was looking at a 20 year payoff date. Basically making the same payment on the 15yr and I get to shave 5 years off the payment schedule now. This loan also flips the principle/interest ratio on my amortization table, so the $1,800 I paid out for the refinance should be recouped in home equity in less than a year. Not to mention I saved around 100k in interest over my old loan due to the lower interest rate.

Most importantly, here's to having the house paid off before I'm 50 years old (currently 33)!

 

[microAmp]

Tempting to switch from a 26 of 30 year loan to 15 year loan instead. 6.375% down to 3.25% on $99.5k I see with Wells Fargo which I'm already with. Payments go up by $50 according to a calculator and trim 11 yrs off and save $80k in interest.

My only question is, I put down 20% originally of 130k. If they estimate the house say at 115k, will I get stuck with mortgage insurance if I don't have more than 20% again?