with 8yrs left on a 15yr at 3.25%, I need to run some numbers and see if there's any benefit to a refi. I wouldn't want to extend past what we have left or max 10yr.

I've reached out to a couple refi outfits...

I don't want to go back to a full 30 years...but...

If in doing so, I'd cut my monthly payment WAY down (like 40+%), I could use some of that to pay for other expenses (kids are $$!!) as well as put some of the extra $$ back directly towards the principle every month. And a straight IRRRL no inspection, etc. Plus defer a couple payments...

I'll have to have consult with someone who knows it forward and backward and see what's best overall.

$.02 worth,
Boss

quote:

Originally posted by chongosuerte:

quote:

Originally posted by BB61:
I have 20 months left on my original 30 year loan that we refinanced to a 20 year on two no coast refinance loans lowering our rate each time. I'm not sure anyone would give us the time of day now with how little time we have left.

You’d probably spend more on closing costs than the interest you’ve got left.

^^^^^
True.

My lender is reaching out to me, they are offering some sort of low cost VA interest rate reduction refi. Going from 3.6% to 2.3% on a 30 year. Supposed to only cost me a couple of grand. I'm intrigued

I just emailed my current lender to see if they could offer some sort of matching deal...

It would be nice if they could just offer a closely competitive rate and do it all internally... simply/smoothly.

Seriously, for your current mortgage company, it should be little more than a few minutes on the computer if there's been no major life changes recently. Why the heck should that cost thousands of dollars in fees ? Rhetorical question (answer: $$)

$.02 worth,
Boss

quote:

Originally posted by mholmes:
I’m stuck in the middle, 13 years left on a 15 year loan at 3.125%. Current rates don’t justify us refinancing.

If you can get a lower interest rate without paying points, closing costs, etc. (and most programs offer that; most you pay is for the home appraisal) then it's economically justified.

quote:

Originally posted by sasquatch28:

Oh, I was not arguing the financial aspects. The psychological aspects of slogging through a 30 year note are tough for me. With a 15 or a 20, you feel like you are making progress.

Because you are making progress. Banks love you for your 30 year loans even when people have the intention to “manually” knock it down to 15.

This message has been edited. Last edited by: 1s1k,

I'll find out how low they will stay. I will be buying a home this summer. Likely going to use USAA for the loan. They've been pretty easy to deal with for my auto loan.

quote:

Originally posted by Edmond:
I'll find out how low they will stay. I will be buying a home this summer. Likely going to use USAA for the loan. They've been pretty easy to deal with for my auto loan.

Edmond, best of luck with the home purchase. I just moved into my new home on Black Friday. I used Veteran's United and the process was smooth as can be and my broker was very good to work with. It may at least be worth your time to check them out as well.

quote:

Originally posted by Boss1:
I just emailed my current lender to see if they could offer some sort of matching deal...

It would be nice if they could just offer a closely competitive rate and do it all internally... simply/smoothly.

Seriously, for your current mortgage company, it should be little more than a few minutes on the computer if there's been no major life changes recently. Why the heck should that cost thousands of dollars in fees ? Rhetorical question (answer: $$)

$.02 worth,
Boss

Because the money's got to get made somewhere. What's the incentive for your current lender to agree to lower your interest rates for free when you're contracted at a certain rate for a fixed period of time? Remember that the way mortgages work is that the interest is paid in much higher quantity up front, too, so if you're X years in and refinance, a lot of the juice has already been squeezed so retaining the original note is probably worth less, too, than selling you a new one.

quote:

Originally posted by DaBigBR:

quote:

Originally posted by Boss1:
I just emailed my current lender to see if they could offer some sort of matching deal...

It would be nice if they could just offer a closely competitive rate and do it all internally... simply/smoothly.

Seriously, for your current mortgage company, it should be little more than a few minutes on the computer if there's been no major life changes recently. Why the heck should that cost thousands of dollars in fees ? Rhetorical question (answer: $$)

$.02 worth,
Boss

Because the money's got to get made somewhere. What's the incentive for your current lender to agree to lower your interest rates for free when you're contracted at a certain rate for a fixed period of time? Remember that the way mortgages work is that the interest is paid in much higher quantity up front, too, so if you're X years in and refinance, a lot of the juice has already been squeezed so retaining the original note is probably worth less, too, than selling you a new one.

The incentive is they lose the interest payments when you switch to a new lender. Years ago, I was just looking through mortgage rates online. I may have entered my name and contact info.

Son of a gun, my mortgage holder which was a major bank called me up and asked if I would like to get a lower mortgage rate at no cost. I don't think it was coincidence. I figure they pay the website to get names of prospects and current customers.

I went for it.

quote:

Originally posted by remsig:
Edmond, best of luck with the home purchase. I just moved into my new home on Black Friday. I used Veteran's United and the process was smooth as can be and my broker was very good to work with. It may at least be worth your time to check them out as well.

remsig,

I have not heard of them but I am looking through their website now. I'm definitely open to options, the more the better.

Not a fan of PenFed as they make it a pain to pay extra.

quote:

Originally posted by Rey HRH:

quote:

Originally posted by DaBigBR:

quote:

Originally posted by Boss1:
I just emailed my current lender to see if they could offer some sort of matching deal...

It would be nice if they could just offer a closely competitive rate and do it all internally... simply/smoothly.

Seriously, for your current mortgage company, it should be little more than a few minutes on the computer if there's been no major life changes recently. Why the heck should that cost thousands of dollars in fees ? Rhetorical question (answer: $$)

$.02 worth,
Boss

Because the money's got to get made somewhere. What's the incentive for your current lender to agree to lower your interest rates for free when you're contracted at a certain rate for a fixed period of time? Remember that the way mortgages work is that the interest is paid in much higher quantity up front, too, so if you're X years in and refinance, a lot of the juice has already been squeezed so retaining the original note is probably worth less, too, than selling you a new one.

The incentive is they lose the interest payments when you switch to a new lender.

...

Ding ding ding.

At least get competitive. If another mortgage company is going to beat your interest rate by a couple points, you need to up your game...and it shouldn't take too much for you update a few computer entries on that fancy software and get a few forms signed by by a current client...

$.02 worth,
Boss

quote:

Originally posted by Rey HRH:

The incentive is they lose the interest payments when you switch to a new lender. Years ago, I was just looking through mortgage rates online. I may have entered my name and contact info.

I get that in theory, but since you're paying substantially more in interest than principal the earlier you are in the loan, the potential incentive to want to keep you really exists less the more time goes on. Then, as long as they can compete on rates (and most banks seem to), they can start the whole process over again (with the interest front-loaded) selling you a new loan. And don't forget that a lot of loans end up being sold by the bank anyway. My last two refinances were sold before payments started.

I'm 9 years into a 30 year at 3.8%

so it may be a close call if it's worth it or not

I don't see how it wouldn't be. If you're not doing cash out, you should be able to get close to 2.62%. Even if you only got 2.75, that's a big chunk of interest you won't be paying.

We just locked at 2.5% with -.75 pt. Dropping from 3.5. Will save us $500 a month.

quote:

Originally posted by Edmond: remsig,

I have not heard of them but I am looking through their website now. I'm definitely open to options, the more the better.

Not a fan of PenFed as they make it a pain to pay extra.

Edmond, If you are interested, I could email you the brokers name/email address that I used from Veteran's United.

Also, I have 2 USAA Visa cards. The interest rates are good, but that's where my love stops with them. I've had my card hacked 2x in the last 18 months and it was a HORRIBLE experience getting them to help me.

I've also priced them for car and house insurance, and they weren't even in the ballpark of what I was paying/going to pay. They say they are for veterans but I would beg to differ with my experience with their "customer service."

quote:

Originally posted by Lord Vaalic:
I'm 9 years into a 30 year at 3.8%

so it may be a close call if it's worth it or not

I’m saving $170,000 in interest. I’d definitely check into it.

Hell, you could probably refi at 15 years at 2% or better and keep something close to your current payment.

quote:

Originally posted by DaBigBR:

quote:

Originally posted by Rey HRH:

The incentive is they lose the interest payments when you switch to a new lender. Years ago, I was just looking through mortgage rates online. I may have entered my name and contact info.

I get that in theory, but since you're paying substantially more in interest than principal the earlier you are in the loan, the potential incentive to want to keep you really exists less the more time goes on. Then, as long as they can compete on rates (and most banks seem to), they can start the whole process over again (with the interest front-loaded) selling you a new loan. And don't forget that a lot of loans end up being sold by the bank anyway. My last two refinances were sold before payments started.

The interest payments paid in the past does not enter into the calculation. What matters is the return the bank is getting.

For example (and I'm making the numbers big to make the point obvious), if years ago your original loan was for $1.5 million at 5% and what's left is $500,000 and the going rate is 3%.

The bank knows your payment history and your likelihood to default is low. It makes its money by lending out money on the margin difference between what it gets for mortgage interest and what it pays for its money.

It's a slam dunk decision to offer you 3% on the remaining $500,000 than it is to go out and find a $500,000 loan to fund.

It's similar if your loan is now $300,000 or $100,000. In those cases, the bank will tempt you to get money out even to increase their interest receipts.

That your last two refinances were sold before payments started is an indication that you paid a higher rate than the going rate big banks are offering. That's what the finance companies do. They make the money by selling your loan to big banks who can tie up their money for the term of the loan. They made their money by whatever points or origination fees you paid plus the difference between what the interest rate they charged you and what the bank would otherwise get. When they sell the loan, that frees up their capital to go and fund another loan. Rinse and repeat.

It's not theory. It's just math.