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OT: Mortgage Refinancing

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read option

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Nov 12, 2013
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Refinancing my 30 yr fixed rate at 4.75% which has 28 yrs remaining to another 30 yr fixed but now at 2.875%. Saving $500 per month on the payment which if I decide to contribute towards principle each month will pay this new loan off in 260 months instead of 360 months. Essentially I’d be cutting 76 months worth of payments off in comparison with my current loan.

I am thrilled! Any other happy, recent refinancing stories out here?
 
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ATIOH

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Sep 3, 2004
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read option said:
Refinancing my 30 yr fixed rate at 4.75% which has 28 yrs remaining to another 30 yr fixed but now at 2.875%. Saving $500 per month on the payment which if I decide to contribute towards principle each month will pay this new loan off in 260 months instead of 360 months. Essentially I’d be cutting 76 months worth of payments off in comparison with my current loan.

I am thrilled! Any other happy, recent refinancing stories out here?
Click to expand...

Run the numbers off a 15 year mortgage. It may make a lot more sense for you.
 
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anon_ivydyf0amkzay

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I thought about it...but at 3.75 and paying $500 per month extra towards principal, which essentially turned my 30 year loan into a 10 year loan. it did not seem worth it (for me anyways)

but great for you OP! Save that dough!!
 
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ArminRU

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Aug 5, 2008
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Dam the best I could get was 3.375. Might be because I’m in an apt or maybe I just locked in too early.
 
R

read option

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ArminRU said:
Dam the best I could get was 3.375. Might be because I’m in an apt or maybe I just locked in too early.
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You might be able to get that 2.875% if you are willing to buy the 0.5 point. Did you find out if you have that option? Worth it if refinancing, obviously more out of pocket for you if purchasing.
 
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ArminRU

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Aug 5, 2008
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read option said:
You might be able to get that 2.875% if you are willing to buy the 0.5 point. Did you find out if you have that option? Worth it if refinancing, obviously more out of pocket for you if purchasing.
Click to expand...

Good point, I’ll have to check.
 
NewJerseyHawk

NewJerseyHawk

Heisman
Jan 11, 2007
24,450
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read option said:
Refinancing my 30 yr fixed rate at 4.75% which has 28 yrs remaining to another 30 yr fixed but now at 2.875%. Saving $500 per month on the payment which if I decide to contribute towards principle each month will pay this new loan off in 260 months instead of 360 months. Essentially I’d be cutting 76 months worth of payments off in comparison with my current loan.

I am thrilled! Any other happy, recent refinancing stories out here?
Click to expand...

That is a pretty typical scenario, I can definitely help here, hit me up as many RU rivals people have over the [email protected] or call or text me at 732-742-4367.

Mortgage rates are strong now, get them while the market is there!!
 
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Shell21

Heisman
Mar 23, 2004
35,156
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I just redid mine too ! Went from 26 back up to 30 but went from 4.1 to 3.125 . Will use the extra 350 toward principle each month to knock it off quicker than I would have at my old rate . Thought about 15 too , but like some said before , wanted the flexibility and didn’t want to be more locked into a higher payment .
 
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NewJerseyHawk

NewJerseyHawk

Heisman
Jan 11, 2007
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Keep in mind, we can cover all 50 states for a mortgage, so if you're not in NJ, you are OK....PA, NY NC, FL, CA anywhere is fine...whether its a buyer or someone refinancing.
 
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dfr1966

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Feb 1, 2006
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Great thread, makes me wonder if there's anything out there for me to save some $$$.

My situation is that I have 6.5 years left on a 15 year mortgage at 3.5%. Remaining principal is about 84k. Im not interested in extending the length of the payout. Other than paying extra each month on my current mortgage to accelerate the payoff, does anyone have any ideas?
 
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RU-Kidding

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rcube1994 said:
I just got 2.5, no points on 15 year. Rates are bouncing around a bit, and some banks are not as competitive, seems like they have more demand than they can handle so be patient and shop around.
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it would help if everyone listed the APR that went along with the interest rates being quoted since the APR is a more definitive measure of the true cost of a mortgage because it includes the interest rate plus other costs such as broker fees, discount points and some closing costs, expressed as a percentage. Then you'll see if you got a good deal or not.
 
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patk89

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Jul 25, 2001
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I did a 10/1 ARM at 3.125% 7 years ago. Been paying it off at an accelerated rate. Cost to refi is close to $9K so I've been deferring since the savings on interest payments will take a while to make paying that $9K worthwhile. I'm taking a risk that rates move higher but not seeing that likely in the current environment. Longer term, rates will move higher.
 
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S_Janowski

Heisman
May 24, 2009
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Bought in August and got in @3.75 on a 30 year.

Thought that was great but last month refinanced down to a 15 year @2.75. Monthly payment went up about $300 and I’ll break even on the closing costs in about a year which were tacked onto the new loan.

Looks like rates have fallen even lower since last month.
 
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MrsScrew_rivals32693

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Sep 27, 2006
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ArminRU said:
Dam the best I could get was 3.375. Might be because I’m in an apt or maybe I just locked in too early.
Click to expand...

we're in a condo apartment and @RUScrew85 was able to get us 2.875. we were locked in a bit higher at first but when the lock was running out he told them unless they met the other rates he was seeing we were walking. Magically they met the lower rate.
 
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Saint Puppy

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Sep 4, 2013
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rcube1994 said:
I just got 2.5, no points on 15 year. Rates are bouncing around a bit, and some banks are not as competitive, seems like they have more demand than they can handle so be patient and shop around.
Click to expand...

who was this through? By the way there is a great deal by better.com through AMEX - they will match your rate, credit $1000 off closing costs, credit $2500 to your AMEX card and waive the appraisa fee.

https://www.americanexpress.com/us/campaigns/loans/better/

Found the deal on bogleheads forum (Vanguard forums) and lots are doing it and getting money back when all is said and done after closing costs.
 
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gmay8

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Nov 29, 2005
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We bought a home in April 2016 and I was thrilled to lock into a 30 year at 3.375% back then. I've since paid off about 20% of the loan, and am in the process of refinancing now for 3%, no fees at all, based on the new lower loan number. I'm dropping my monthly payments by about $600 per month.

I'm very happy with that, will put half the savings back into the mortgage principal and the other half into a mutual fund.
 
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BigWill

Heisman
Jul 25, 2001
53,464
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Check your Federal Credit Unions as well.

I have Navy Federal Credit because of John.

Grads of USNA have 2 CU's to choose and the 2 fight for the grads business. Offer 30,000 to 35,000 loans with under 1 % interest rates, with payroll deductions. Choose Subs as Service Selection and you can receive another 30-35K bonus (yes, NOT a loan.) from USN because of the difficulty of getting your MS in Nuke Science in 18 months. This ends my recruiting note for anyone thinking of a Service Academy. (by the way the 2,500 for 'stuff' at Induction Day that you need is payroll deduced from your "pay" while at Annapolis.)

I set up a high credit line. They have 'specials' from time to time, not only for mortgage rates/car loans, but NO COST Balance transfers with low or NO interest rates for set times. (the one I used is till 6-2021).

So I paid off ALL debt and swapped it to NFCU at ZERO % rate.
 
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read option

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RU-Kidding said:
it would help if everyone listed the APR that went along with the interest rates being quoted since the APR is a more definitive measure of the true cost of a mortgage because it includes the interest rate plus other costs such as broker fees, discount points and some closing costs, expressed as a percentage. Then you'll see if you got a good deal or not.
Click to expand...

Good point. 2.951% APR (.076) more than the interest rate itself.
 
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NewJerseyHawk

NewJerseyHawk

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BellyFullOfWhiteDogCrap said:
We refinanced twice. From a 30 to a 20, then from a 20 to a 10. Took us 17 years to pay off the house and it feels damn good not having a mortgage payment.
Click to expand...

Rates are aggressive now and working on a couple of 15 year fixed rates as the day and night moves on. Always great to reconnect with the RU community here...!!
 
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Postman_1

Postman_1

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Mar 12, 2017
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I just did the whole refi think in late Feb or early March. I had about 24 years remaining on a 30 year at 4.25%. I went to a 15 year @ 3.125%. My closing cost was around 1k I think. My monthly payment went up about $50 but I do pay extra towards my principal every month so it was a no brainer for me.
 
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BigWill

Heisman
Jul 25, 2001
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There is a body of thought that works IF inflation hits again and has you paying off a 30 year loan with dollars that are worth less in 2050 than now.

Also shopping for rates if you carry student debt or a large CC balance is a good way to spend a couple of hours. Being a great customer of a CC company should allow them to lower your interest rates. If they don't, without a doubt shop around for the better deal. Also no fee cards are out there. Why spend 100's + for 'points' CC's if you don't plan on using them or use credit cards so little that you can't get a $ 50 gas coupon card even ?

Refinancing works if; It really depends on how long you want to remain in the current home and job/retirement timing/planning.

Do you HAVE the mental toughness to invest/save with the difference in your monthly payments.

Changes in the tax codes and no inflation, at this time, means that reducing debt and length of debt is good long term thinking as of now.

Have no fear, NJ politicians AND national ones as well will attempt to find more ways to tax someone with 'something' to give to someone with 'nothing' except a Vote to keep them in power.

Buying some land/acreage in a no tax type State is not a bad idea. As long as it's close to a road/power and potable water. Very small carrying costs as you work and then you can build as you prepare to retire. Sell and get the hell out....
 
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NewJerseyHawk

NewJerseyHawk

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Jan 11, 2007
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RUfanSinceAnderson said:
15 year at 2.5% with Chase
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2.5% on a rate and term refinance is pretty standard everywhere.

The refinance where you are consolidating a 1st mortgage and Home Equity line of credit is considered a "cash out" refinance and has a slightly higher rate if all of the other scenarios are the same (type of property, credit scores and how much equity is left in property once the refinance is finalized.
 
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