FunkDaddy J

(I searched a ways back and didn't exactly find my answer, but I'm sure this has been covered. I'll try anyway...)

I'm looking to refinance my home loan. I already have a pretty low loan at 6%, but I'm seeing lenders here and there offering as much as a full point less than that. Some, at the same time, are offering much higher. What's the best way to find the best deal? Prowl the Internet? Hire someone to search for me?

Considering that I plan to be in this home forever, what are my options? How would points affect the search?

My goal is to refinance and take cash out to finish the basement. (Our loan amount is about half of a home worth half a mil, FWIW.)

The Bus

Here's the absolute truth when it comes to mortgages: the more "normal" your situation, the less of a difference there is between banks and lenders. For what equates to be a straightforward "refinance and get some cash out" type of loan, I don't think you will encounter too many problems as long as everything is OK with your house, credit, and income/employment.

Honestly, unless you're going to go into a 15-year loan or something, I don't see the point of refinancing since you're unlikely to get a lower fixed rate without paying a lot of points.

Basically, don't expect to get a 5% 30-year fixed mortgage. No such thing (currently) exists.

The mortgage market has been extremely volatile recently, both in rates and in what banks can and can't do. Keep this in mind while you're looking around.

Jacoby Ellsbury

bankrate.com click the rates

kvrdave

compareinterestrates.com

Keep in mind that some rates that look great are done with companies that suck, and if you don't know what you are doing, you will get frustrated. A good local mortgage broker is worh a lot.

The Bus

A lot of those "rate shop" places will have someone advertise, say, 5.5% 30-year fixed with no points just to get people in the door. Bankrate (and others like it) charge and arm and a leg for you to appear on their website. Places like LowerMyBills just sell your name to whoever wants to pay for it. It's all a scam and it doesn't help you shop any better than picking up the phone or calling around.

I'm guessing you weren't happy with the person that helped you last time?

greg9x

I used LendingTree.com a few years ago for a straight refi.... worked for me, Wachovia made an offer for fixed 30 year with no points and reasonable closing costs. went from ~7% to 5.18%...they definatly were better than anyone else at the time after figuring all the costs. Tried to give local company I had original mortgage through first shot, think he thought I was BS'ing him when told him terms I was getting from Wachovia and flat out told me if I could get that then I better go for it... I did. .5% and ~$3000 closing cost better than what they offered.

kvrdave

They were fine, but I know my way around these things. I could tell that if I were a first time home buyer, or someone who wasn't familiar with the industry, it would have been a huge pain in the ass. I figured the rate was worth the bullshit.

sinned

I'm currently being offered a zero closing with a 5.125 rate by a developer on an inventory home. Still debating on whether I will accept it. Told him I'll let him know later this afternoon....

zuffy

HSBC has a program for first time home buyer called the CommunityWork that is 50 base point off the 30 year conforming loan. HSBC confirmed I am still eligible for their CommunityWork rate to refi my house. Current rate is 5.5% which is 75 base point less than my mortgage rate and I am going to lock it in.