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Let's talk refinacing...

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Let's talk refinacing...

Old 01-15-09, 01:16 PM
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Let's talk refinacing...

I (like everyone else) am looking into refinancing the mortgage on my house. I've bought a couple of houses but have never refinanced so I'm new to this. Anything I need to watch out for or is it similar to getting a mortgage?

My current 30 fixed loan is at 5.625% so any new rate I get won't be a lot better but even a 5% loan would save me a few hundred in monthly payments. The problem is I don't know how long I'm staying in my house but chances are it won't be more than a couple of years. If that is the case, I don't want anything with huge upfront fees (closing costs, points, etc). Does that sound right? Anything else I should know?
Old 01-15-09, 01:20 PM
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Re: Let's talk refinacing...

You'll have some closing costs: title charges etc but these should be minimal. I worked up something for a friend where their rate was under 5% and they would get back the costs within the year.
Old 01-15-09, 01:22 PM
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Re: Let's talk refinacing...

That sounds pretty good. Title/tax stuff that is specific to GA is pretty low, hopefully that'll help.

Did that rate require any buy down?
Old 01-15-09, 01:28 PM
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Re: Let's talk refinacing...

It'll vary from case to case (especially with all the adjustments nowadays) but you should be able to get 4.875% at broker-par. That basically means that any costs charged by the broker are their revenue This is assuming a decent loan-to-value ration, great credit, etc. So you'd be looking at maybe 1-2%, depending on the place doing business. Or less if you run across someone desperate.

If you're moving within the year, I wouldn't do anything. But if it's 2+ years in the horizon, now's a good time.

PM me if you have any specific questions.
Old 01-15-09, 01:32 PM
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Re: Let's talk refinacing...

Thanks for the info. I might have more questions as I get deeper in this.

So far all I know is that your business is shady. I can't just get a flat cost anywhere. Everyone has hidden fees and costs and the rates change every two seconds and are all dependent on a infinite number of variables
Old 01-15-09, 01:35 PM
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Re: Let's talk refinacing...

I just want to chime in and say we just refinanced.. We got a 15 year fixed @ 3.875%*.. Our previous was a 30 year fixed @ 5.875%. We had 22 years left on it.. Our payment is almost identical and we instantly shaved off 7 years.. Major pumped!!!

*I work at a bank and get a .5% discount on rates.
Old 01-15-09, 01:37 PM
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Re: Let's talk refinacing...

Originally Posted by Venusian View Post
Thanks for the info. I might have more questions as I get deeper in this.

So far all I know is that your business is shady. I can't just get a flat cost anywhere. Everyone has hidden fees and costs and the rates change every two seconds and are all dependent on a infinite number of variables
That's all true. If you PM me some basics I can at least give you a range you should be shooting for.
Old 01-15-09, 02:05 PM
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Re: Let's talk refinacing...

I am currently at 6.25/30 and am waiting for the 30 to go below 5 to refi. We both have good credit.

Chase is who I have my mortgage with ATM but they are so shady about giving rates over the phone without filling out an ap. So I think we will be moving away from Chase. I would also think we would get a better deal from someone trying to win our business than someone who already has it. Is this correct?
Old 01-15-09, 02:11 PM
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Re: Let's talk refinacing...

I have a 30 year fixed at 6.88%. I've been speaking with a broker who can get me a 20 year fixed at 4.67%. My monthly payments would be about the same (a little less) than they are now. I'm just wondering if I should wait to see if the rates go down even further.
Old 01-15-09, 02:14 PM
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Re: Let's talk refinacing...

Originally Posted by SoSpacey View Post
I am currently at 6.25/30 and am waiting for the 30 to go below 5 to refi. We both have good credit.
http://finance.yahoo.com/real-estate...nder-5-Percent

30-Year Mortgage Under 5 Percent
Old 01-15-09, 03:13 PM
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Re: Let's talk refinacing...

Originally Posted by Bandoman View Post
I have a 30 year fixed at 6.88%. I've been speaking with a broker who can get me a 20 year fixed at 4.67%. My monthly payments would be about the same (a little less) than they are now. I'm just wondering if I should wait to see if the rates go down even further.
I wouldn't, it may go down a wee bit further but I doubt it'll go much. It has way more room, historically speaking, to go up than down.
Old 01-15-09, 03:15 PM
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Re: Let's talk refinacing...

Originally Posted by The Bus View Post
That's all true. If you PM me some basics I can at least give you a range you should be shooting for.
Just out of curiosity, for the future, what states can you do business in?
Old 01-15-09, 03:19 PM
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Re: Let's talk refinacing...

Originally Posted by LurkerDan View Post
Just out of curiosity, for the future, what states can you do business in?
I can actually do business in each state but I've got an existing network of contacts for MD, DE, NJ, VA and PA, which makes it slightly easier.
Old 01-15-09, 03:28 PM
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Re: Let's talk refinacing...

I'm also at 5.625. I refinanced to that from 6.5 on Sept 30. I told my mortgage guy that I'll refinance again when it hits 4.75. He said that it will probably get there in several weeks.
Old 01-15-09, 03:32 PM
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Re: Let's talk refinacing...

bought house at 6.0 in july. did refi last month to 5.5. in 4 more months, if they are sub-5.0, we'll do the process again. i'm stoked, b/c this will be a house we will live in for at least 10 years, so this is huuuuge.
Old 01-15-09, 11:30 PM
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Re: Let's talk refinacing...

Originally Posted by Venusian View Post
Jumbos are still up near 7%. All the good deals are for the smaller loans.
Old 01-16-09, 07:56 AM
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Re: Let's talk refinacing...

I PMed you Bus.

Looks like IndyMac had good rates for a day in December. This is what I see on FW:
30Yr fixed rate 12/17, same for conforming and conforming jumbo.
4.75% no point -1% rebate toward closing (closing cost ~3500)
4.625% no point -.378 rebate
4.5% with .328% point buydown


Too bad those are gone
Old 01-16-09, 08:20 AM
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Re: Let's talk refinacing...

Shoot for 4.625%
I got 2 offers of 4.625 and 4.75%

The problem is I bought the house 2 years ago and the 20% I put down has vanished in terms of equity, so Im probably looking at paying PMI. I only owe $128K but its at 6.125%. My mortage would go from $800 a month to $660 but refi fees were in the $3K range which seems very high especially since one of them was with the bank I am already with.
Old 01-16-09, 08:29 AM
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Re: Let's talk refinacing...

If you have a Wells Fargo mortgage already, you should contact them to find out about their no-cost 3 step refinance. They charge a slightly higher rate (I think its .125 or .25) but the refinancing is truly no cost. You can keep doing this as the rates get lower and lower, however right now there is something like a two month delay in closing.
Old 01-16-09, 08:40 AM
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Re: Let's talk refinacing...

Originally Posted by The Bus View Post
I can actually do business in each state but I've got an existing network of contacts for MD, DE, NJ, VA and PA, which makes it slightly easier.
Bus I sent you a PM...
Old 01-16-09, 08:52 AM
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Re: Let's talk refinacing...

we just refinanced our 30yr down to a 15 yr @ 5.15 and only payments went up less than 200/mo.. sure, there were some fees to refinance, but the diff in int rate will cover that quick enough.. and going down to 15 is nice to see how the principle actually moves down
Old 01-16-09, 10:27 AM
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Re: Let's talk refinacing...

My mortgage broker is checking things out for me. I bought my house with a 30 year, 6% in March 2008. I bought mine for less than it was worth, so I have some equity in it right now.

Of course living here in Texas, homes are cheap.

Will be interesting to see how much lower my monthly payment of $772 (for everything) will go....
Old 01-16-09, 10:32 AM
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Re: Let's talk refinacing...

Set to close on my refi at 4.875 in 10 days. I locked with one guy at 5.5 when rates first dipped, but when they continued to go down he pretty much wouldn't do anything for me, so I bailed and went with another broker.

Can't wait to be done with this (although I'm not psyched about going back to escrowing ).
Old 01-16-09, 10:34 AM
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Re: Let's talk refinacing...

Originally Posted by mickey65 View Post
My mortgage broker is checking things out for me. I bought my house with a 30 year, 6% in March 2008. I bought mine for less than it was worth, so I have some equity in it right now.

Of course living here in Texas, homes are cheap.

Will be interesting to see how much lower my monthly payment of $772 (for everything) will go....
I'd be flabbergasted if it dropped more than $75.
Old 01-16-09, 11:57 AM
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Re: Let's talk refinacing...

Great topic! This is something I really need to do too.

I'm a total newb about the process, I assume the first and most logical step is to call my bank who owns the current mortgage - however am I tied to this? How does it work if you mortgage is owned by Citibank for example and you can get great loan from somewhere else. Do you actually have to pay the other bank, or does the bank handle all that stuff for you.

Also, I believe I heard you have to get a new appraisal and stuff before you can refi, is that correct?

If somebody could lay out the steps in a list I would appreciate it.

Also is all costs out of pocket, or can you have it rolled into the load and is there a +/- about the two?

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