Can you refinace your home loan with your current mortgage company?
- Thread starter TheSiege
- Start date
I'm in a similar situation. I refinanced last year at 6.375 and am looking at taking advantage of the 5.48 current avg. There shouldn't be a reason why you can't refinance with your current lender. The only question is if they can make it worth your while. If you end up saving $200/month while paying $2500 in closing costs, then its a no brainer, the refi will pay for itself in a year. If your bank is charging something obscene, then you'll need to figure out if you can recover those costs before you decide to move.
Since you refinanced so recently, your lender may be able to wave some of the closing costs. For instance, I believe my CU will wave my appraisal fee. Some research in the fatwallet finance section indicates that some lenders offer "loan modifications" or "streamline loans" where they wave many of the fees. Who is your current lender through?
Since you refinanced so recently, your lender may be able to wave some of the closing costs. For instance, I believe my CU will wave my appraisal fee. Some research in the fatwallet finance section indicates that some lenders offer "loan modifications" or "streamline loans" where they wave many of the fees. Who is your current lender through?
Just be careful and do the math. Just because you get a lower rate doesn't mean it's a good move. There's closing costs (which they love to roll into your mortgage, free money for them) plus your term is another 30 years. Meaning your 30 year mortgage just became a 31, one year down, 30 to go and the amortization starts all over again.
Just call them up and they'll shoot you some numbers to work with.
JulesMaximus
No Lifer
- Jul 3, 2003
- 74,544
- 924
- 126
JulesMaximus
No Lifer
- Jul 3, 2003
- 74,544
- 924
- 126
LOL, watch out for them pushing the home equity line of credit when you go to refinance if you have 20% already in the price of the house. Because they'll want it.
"so, we can refinance you on your principal for another 30 years, waive closing costs (what this really means is add those costs to your principal, for 30 years)...AND! This one time offer give you a home equity line of credit at prime plus 1!!!!!"
I am in the same boat as you with an 80/20. Dont just refinance your first.
Firstly, if your house hasnt appreciated, you can probably forget about it. 100% financing is history at the moment. You wont get a competitive rate when the people refinancing your first find out you are still at 100% CLTV (combined loan to value)
If your house has appreciated, you want to refinance both so you can put more principal into the lower rate on the 1st mortgage. I bought my house at 100% for 250K 1.5 years ago. My original balances were around 200K on the first, and 50K on the second. By refinancing both, after 25K in appreciation, I am getting an additional 20K of principal into the first mortgage, and financing less into the higher rate 2nd, which saves me quite a bit more.
can you elaborate more, I'm kinda confused. My first is 123k @ 6.375% w/29 years remaning and my second is 15.5k @6.8. w/ 14 years remaining.
Thats where the principal stands as of this month. I pay about 1k a month and an extra 50 bucks or so to the principal on the first loan a month which should change my payoff date to November 2027. I bought this house Jan of 07
zillow says my house is worth between 159k and 223k
WHOAH! WHOAH, WHOAH, WHAOH.
You really have a 80/20, I can almost guarantee that your 20 is variable. Please seek advice on financial forums and NOT ATOT. What you're doing is gambling on rates and the housing market in your area and how long you're staying. This is a fine strategy as long as you are outpacing your interest on investment and your location/market can guarantee appreciation, if you're not then you're throwing money away.
It all depends on how long you plan on staying, something which can be beyond your control. Be careful.
Originally posted by: JulesMaximus
Maybe if they throw in a shave and a haircut?
Your posts lately have been disturbing.
I'm looking at the paper work right now, its fixed, and its not 6.8 its actually 6.5. I am 100 percent sure its not variable
That would be unusual. Look closer. Sorry to say you're become a victim of "creative" financing.
-edit-
What I mean to say is you have an unusual situation. Your decision to refi on either loan depends on other factors like how long you plan on staying (plans don't always work out). Be careful.
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