Should I refinance my house

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jennypretty
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Joined: Tue Nov 20, 2012 7:21 am
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Should I refinance my house

Postby jennypretty » Tue Nov 20, 2012 7:23 am

Hello,

I just called a loan officer and asked him for a GFE for refinancing my house.
Here is the current situation:

My house mortgage total: $230,000
I have paid it for 2 years at 4.5% for 15 years
Monthly payment: $2290 (insurance and tax included)

He offers me 3.25% for 15 years, closing cost is $3100
New monthly payment is about $1950 (insurance and tax included)

I can save $250 a month to refinance my house.
If I plan to keep my house for 1 year, then the closing cost for refinance will pay off.

And, I plan to stay at my house for at least 2 years.

Did I miss anything?

Should I refinance my house?

Thanks.

Tightwad
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Joined: Mon Nov 01, 2010 5:15 pm
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Re: Should I refinance my house

Postby Tightwad » Tue Nov 20, 2012 7:49 am

jennypretty wrote:Hello,

I just called a loan officer and asked him for a GFE for refinancing my house.
Here is the current situation:

My house mortgage total: $230,000
I have paid it for 2 years at 4.5% for 15 years
Monthly payment: $2290 (insurance and tax included)

He offers me 3.25% for 15 years, closing cost is $3100
New monthly payment is about $1950 (insurance and tax included)

I can save $250 a month to refinance my house.
If I plan to keep my house for 1 year, then the closing cost for refinance will pay off.

And, I plan to stay at my house for at least 2 years.

Did I miss anything?

Should I refinance my house?

Thanks.

I'm not a mathematical genius but by my count you'll save $340/mo if you refi unless the closing costs are rolled into the loan payment somehow to come up with a $250 a month savings.

TCstr8
Posts: 289
Joined: Sat Jun 06, 2009 11:49 pm
Location: Cincinnati, OH
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Re: Should I refinance my house

Postby TCstr8 » Tue Nov 20, 2012 7:52 am

Jenny,

I believe that it is probably in your best interest. A couple of things though:

1. I would never, ever send a borrower a good faith estimate until I had reviewed their credit, and at a minimum their income documents. In 2010 the regulators changed the Good Faith Estimate, and now it is basically a contract. If I provide that to you before knowing what I need to know, I can be held to the fees/rate on that Good Faith Estimate. So not sure if they sent you one, or if they just drew up a Fee Breakdown for you.

2. Rates vary from state to state, so what I am able to offer my clients in Ohio may be different than what a loan officer is able to get in your state. In Ohio, I'm quoting 2.875% on a 15 year fixed with closing costs of $2100 + appraisal. So there may be a better option out there for you.

If I can be of any assistance, feel free to email me at tc DOT strait @ gmail DOT com
T.C. Strait
Ohio Loan Officer / Manager @ Mortgage Broker
NMLS ID 164070
<a href="http://www.ohiomortgagesolutions.com">Ohio Mortgage Solutions</a>
<a href="http://www.ohiofha.com">Ohio FHA Mortgage</a>

fiddlefaddle
Posts: 257
Joined: Fri Jul 29, 2011 8:38 am
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Re: Should I refinance my house

Postby fiddlefaddle » Tue Nov 20, 2012 7:56 am

I'm sure there are regional differences, but that rate sounds a little high. We closed our refinance yesterday with a 3.125% rate for a 30 year loan. Maybe shop around a little bit to see if you can get anything lower?
Fiddlefaddle's experiments in time management:
<a href=http://www.productivityguineapig.com/>Productivity Guinea Pig</a>

jennypretty
Posts: 2
Joined: Tue Nov 20, 2012 7:21 am
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Re: Should I refinance my house

Postby jennypretty » Tue Nov 20, 2012 8:03 am

That's right. He gave me a summary of rate, monthly payment, costs, etc.

I will refinance my house at 3.25%. This rate is what I dreamed of so I am happy.

Thanks.


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