financially sensible to refinance my mortgage?

[Maximus96]

Our rate right now is 6.5% with a principle of 427k. I was quoted 5.875 for 400k and 6.125 for 27k w/o closing cost. This will end up saving me around $250 a month. Our current mortage is 20 months old and we paid about 46k in interest alone...

i have a few questions. Is it worth it to refinance and 'waste' the 46k in interest?

We plan on paying off the mortgage early...eventually


thanks

 

[DBL]

Why not 417K on the 1st mortgage which is the conforming limit? Also, It might push rates up but the limit is supposed to increase for 1 year with the new economic stimulus package.

In the end, you need to figure out how long it will take to make up the difference. If it costs you 3K to refinance and you will save $250/month, then it will be 1 year before you break even which seems like a good deal to me.

 

[Maximus96]

the loan officer said there will be no closing costs. Does this mean I pay nothing or is there so other kinds of fees I don't know about?

 

[DBL]

Originally posted by: Maximus96
the loan officer said there will be no closing costs. Does this mean I pay nothing or is there so other kinds of fees I don't know about?

I'd ask for a good faith estimate of the fees. have them send/fax you a tangible document.

 

[MikeyIs4Dcats]

You need to decide how long you plan to stay in the house and run amoritization schedules of your current rate and new rate.

We just refi'd. On a loan of approx. 88k, we will gain an addition 9k in equity in the next 2 years, and will convert our existing 30yr into a 15yr for about $15 more per month.

 

[compman25]

Did they say no closing costs or no out of pocket costs?

 

[Maximus96]

i was told 'no closing cost', how much is the actual cost, typically?

we probably will be staying at the current house for close to 30 years, if not more.

 

[DBL]

Originally posted by: Maximus96
i was told 'no closing cost', how much is the actual cost, typically?

we probably will be staying at the current house for close to 30 years, if not more.

Ask for a "good faith estimate" of the total costs. It will list almost everything. Also, total costs vary depending on your location.

 

[Maximus96]

Originally posted by: DBL

Originally posted by: Maximus96
i was told 'no closing cost', how much is the actual cost, typically?

we probably will be staying at the current house for close to 30 years, if not more.

Ask for a "good faith estimate" of the total costs. It will list almost everything. Also, total costs vary depending on your location.

thanks, i will do that...i thought no closing cost means no cost...

 

[MikeyIs4Dcats]

Originally posted by: Maximus96

Originally posted by: DBL

Originally posted by: Maximus96
i was told 'no closing cost', how much is the actual cost, typically?

we probably will be staying at the current house for close to 30 years, if not more.

Ask for a "good faith estimate" of the total costs. It will list almost everything. Also, total costs vary depending on your location.

thanks, i will do that...i thought no closing cost means no cost...

depends. some banks will say no closing costs and they mean THEY don't charge you any fees, but you still have to pay the fees for appraisals, surveys, title company costs, etc. That can easily run a couple grand.

 

[iamwiz82]

I am glad you edited out the part about the car 😉