El Muy Picante! Lower Your Mortgage Rate for Only $395 (Third Federal S&L, maybe others?)

[Banana]

I currently have my mortgage through Third Federal S&L at 6.25 (no points). Seeing that their rate has gone down to 4.875, I checked to see if I could refi with them with minimal closing costs. The loan officer told me that instead of doing a refi, I could pay $395 to reduce the APR from 6.25 to 5.025. I think this is a great deal! Little paperwork, much lower cost than a refi, and also important, the current terms are kept (i.e. I don't have to start a 15 year repayment period all over again).

Anyone see a drawback to this? It will take me six months to recoup the $395 because the monthly mortgage payment is reduced by $50-$60.

Although this is at Third Federal, maybe your lender will do something similar if you checked.

 

[Banana]

Went in today and did the application, if you want to call it that. All I had to do was write a check, sign one document, and that's it!