Refinancing

[d2bets]

Anyone doing this lately? I just refi'd into a 15-year @ 3.375% with almost no cost. I almost can't believe it.

And people say this economy is bad....

[doublej95]

damn that's a sweet rate d2bets. Congrats.

[Brock Landers]

starting to think about doing it, credit isn't quite up to par yet

[Emily_Haines]

Just cash out your 401k and pay that sucker off

[secretstash]

U say u paid little cost when really this isn't true...there is plenty of ways for the lenders to hide fees.. I will explain one I know for sure happened in this particular loan because I know the current true rates and yield spread.

What happened is you paid ur closing costs in the rate. Right now the floor rate is 3.25 and even that pays 1.5% broker yield spread premium.. So u probably paid roughly2% ysp which would be like 4k on a 200k house loan.

Just some hidden info from a long time loan officer

In either case u did get a very nice rate and glad u were smart to lock it in for fifteen years. Enjoy


-stash

[d2bets]

Just cash out your 401k and pay that sucker off

Now that's some bad advice right there.

[d2bets]

U say u paid little cost when really this isn't true...there is plenty of ways for the lenders to hide fees.. I will explain one I know for sure happened in this particular loan because I know the current true rates and yield spread.

What happened is you paid ur closing costs in the rate. Right now the floor rate is 3.25 and even that pays 1.5% broker yield spread premium.. So u probably paid roughly2% ysp which would be like 4k on a 200k house loan.

Just some hidden info from a long time loan officer

In either case u did get a very nice rate and glad u were smart to lock it in for fifteen years. Enjoy


-stash

I'm sure the loan company's gotta be getting something out of it, so yeah. And there are like $500 or so in closing/app fees, etc. I was paying extra monthly anyway so I figure my monthly is barely going to change but I'm going to be lopping off around 4 years worth of payments at the end - like 70k worth of extra interest. If there are 4k of "hidden fees" in there, god bless, everybody's gotta get their cut. All I know is this is one way in which this economy is fabulous. Whoever imagined a 3.375% mortgage. I thought I did well 10 years ago when I bought @ 7.125%. This is my 3rd, and certainly final, refinance since then. And at this rate I doubt I'll ever prepay an extra cent. Figuring in the tax writeoff I figure I'm paying like 2.5%. My guess is inflation is coming and it won't be long before one can easily beat that in a savings account.

[tony_come]

Sound like a loan modification

[d2bets]

Sound like a loan modification

Nope, it's not. Loan modification is just an adjustment (usually short-term) to an existing loan. Refinancing pays off the existing loan by taking out a brand new loan, at better terms and rates.

[onlooker]

Who did your refinance?

[tony_come]

Would you like to share which lender you went through?

[d2bets]

Who did your refinance?

Sterling Home Mortgage

[onlooker]

What was your rate at before this refi?

[d2bets]

What was your rate at before this refi?

4.625% on a 30-year (after re-fi in 2/09; was paying extra monthly toward principal). My required P&I will go up around $300/mo and for that I'll knock like 12 years worth of interest off. The total interest reduction is massive. I was aiming to pay that 30 year off in about 20 or 21, but now I can knock another 3-4 years off for basically the same monthly payment.

[trytrytry]

interesting thread..