Refinancing
- Thread starter dawgball
- Start date
WEIRD! I had plans to update this thread today.
Once the rates dropped again, the guy said the 5% was available on a straight 30 yr fixed. We just switched all of it on Monday and approved yesterday awaiting appraisal.
With this change, I was able to wrap all of our credit card debt (fecking idiot - and had some surprise medical bills) into the mortgage; skip February's payment; no points paid; collect approximately $500 at closing; and reduce our monthly payment by approximately $200 down to $1475ish.
I think you can actually get lower than 5% with yesterday's changes, but the paperwork is already done and we are happy with the outcome.
I believe 4.875% is available at some shops and if you consider paying a point or so, you can get it even lower. Sometimes paying points makes a whole lot of sense if you know you are going to be there a long time.
paying points never makes sense because you are only pre-paying interest. there's no difference if you stay there until it's paid for but if you sell, you lost.
I guess you should ask yourself how much interest your paying to invest money in the market :shrug:
Unless some how your making a higher % than your credit card rate.
- Feb 12, 2000
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Correct this if I am mistaken.
If you pay, let's say $2000 in up-front points, and it lowers your bill by $200. Doesn't it make sense?
Please advise....
:0corn
- Feb 12, 2000
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Correct. But that takes a little work to manage that I'm not willing to put in. I think some on here have been successful with credit card arbitrage. I think marine was one of them.
if you want a lower pmt but you paid for it upfront :shrug:
why pay the bank upfront for the same interest? that's exactly what you're doing.
maybe the only thing i retained from my RE course i took about a year ago. he pounded that into our heads.
it's a big :nono:
- Feb 12, 2000
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But if, over time, you save more through that lower monthly payment, doesn't it make sense?
Maybe there's a secret behind it that I don't understand.
you're not saving money. i don't know how to explain it except you paid it upfront. pay more DP to lower your pmt.
- Feb 12, 2000
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If you pay $2,000 up-front and save $200 each month. Aren't you in the black on that money you spent after 10 months (not counting any interest lost)?
So once you save the 11th $200, isn't it worth it?
I feel like I'm being dense here for some reason.
Jack,
My pencil eraser size brain is not following your thinking. If Dawgs is gonna stay in his house at least 7-10 years or more it would seem to make sense. That savings in his payment will add up over time. :shrug:
My pencil eraser size brain is not following your thinking. If Dawgs is gonna stay in his house at least 7-10 years or more it would seem to make sense. That savings in his payment will add up over time. :shrug:
- Feb 12, 2000
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Well to start with a person is out 2000 bucks for 10 months it takes to make it up. That's if you get a $200 lower payment. I was always told buying a house but down least amount you can. Taxes come into play here. I'm out of the landlord business since a few years back. But when I was buying income property. I held on to my cash as best possiable. You don't want to use your cash up. Then have something come up and you have to get a short turn loan that will be much higher
interest. And not tax deductable.
interest. And not tax deductable.
30 year fixed 5% here locally. :00hour
took about all day, but I finally got 5% locked in. :00hour
took about all day, but I finally got 5% locked in. :00hour
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I just refinanced for 15 years, bi-weekly(knocks it down to 13.2 years). Got 4.87% and paid 1/2 a point. The appraisal came back way lower than I thought it would, the value dropped about 20% just like the rest of the country.:scared
Congrats on the refinacing--you gents been doing a lot of things right in your life to negotiate those rates- considering the scutiny on loans currently.
:toast:
:toast:
Just jumping in here -
Been looking at solid rates myself - was looking at 4.75% +0 on 15 year fixed for a while
And as far as paying points, I disagree with the notion that it always hurts you - right now there is a growing spread b/t rates you can get with no discount points and rates you can get paying 1% - I've seen loan scenarios recently where borrowers can get 4.75% +1 on a 30 year fixed but would have to pay up to 5.5% with no points
Jack, not sure who was teaching your RE class but if you're going to be in a house for a long period of time and can save $200 a month for paying $$ up front, at the end of the day you are much better off paying that point!!
GL to all and if anyone would like me to check rates for them search the web for Gulf Coast Bank in Louisiana and look under Mortgage Lenders - my name is Scott L...... and you should be able to access my contact info - I am licensed to sell mortgages in all of the Continental US
Thanks - LA Burns
Been looking at solid rates myself - was looking at 4.75% +0 on 15 year fixed for a while
And as far as paying points, I disagree with the notion that it always hurts you - right now there is a growing spread b/t rates you can get with no discount points and rates you can get paying 1% - I've seen loan scenarios recently where borrowers can get 4.75% +1 on a 30 year fixed but would have to pay up to 5.5% with no points
Jack, not sure who was teaching your RE class but if you're going to be in a house for a long period of time and can save $200 a month for paying $$ up front, at the end of the day you are much better off paying that point!!
GL to all and if anyone would like me to check rates for them search the web for Gulf Coast Bank in Louisiana and look under Mortgage Lenders - my name is Scott L...... and you should be able to access my contact info - I am licensed to sell mortgages in all of the Continental US
Thanks - LA Burns
