Well you still did, im interested to see how long this stays this way. I may consider a 2nd home somewhere with these amazing rates!I thought I did good with my 15yr at 2.5% with 1800 in costs a few weeks back
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- Thread starter SoapyCy
- Start date
I locked in juuuuust before they dropped again so I'm 15 yr at 2.625%I thought I did good with my 15yr at 2.5% with 1800 in costs a few weeks back
How many years are you current into your 30 year? As someone else said you should be able to do much better than 2.8 right now on a 15 year. I'm fortunate that my wife knows the loan process inside and out from having been an underwriter to now auditing the underwriting process in her occupation so I have leaned on her when I shopped around for rates. You need a decent drop in interest rate to make a refi save you money because you still will have some closing costs involved. Also if you consider buying down the points you have to do the math on if what you pay upfront to buy down the rate if you actually are going to come out ahead on interest saved over the long haul.
For knocking off 0.2% or less in rate and some years off your loan term probably not worth doing a refi as you would be better off just paying down on the principal and paying it off sooner. If you can find a rate closer to 2% it may make sense to do a refi. There are so many factors to consider as how many years are you into on your 30 year term, how much balance is left, what kind of monthly payment can you afford, etc. For us is was a no brainer going from a 30 year loan currently at 4.375% almost 7 years into it to a 15 year at 2.25% we are reducing our term by 8 years and rate by 2.125% while staying almost exactly at and possibly slightly less of a monthly payment.
We're just over a year into our 15 year mortgage at 3% from last summer, which we thought was a great deal then. It looks like the 15 year rate is about 2.375% (through GICU), but refinance to a 30 year at a slightly lower rate (2.875%) than our current 15-year mortgage would be mostly for the flexibility to save on our monthly payments as eventually go from two incomes to one. Ideally, even with a 30 year mortgage, we would pay extra to pay down the principal and try to keep our monthly payments similar to stay on a 15 year schedule, but if things are tight or if there's a major repair coming up, it wouldn't hurt to be able to save more.
These are uncertain times considering Covid, the political environment, etc. I would refi and invest the difference, even if conservatively. Better to have savings versus equity that might be hard to tap.
I'm not sure if this is frowned upon so please don't respond if it is, but people who have refinanced, can you name who you went through. I'm looking at refinancing, but honestly I'm not sure of what lenders are accepting a refinance. Currently my mortgage is through Wells Fargo.
Midwest Heritage Bank at 2.25% for 15 years, no points, $2,000 in closing fees.
It always slows down with the winter weather so I think most will be either taking applications or soon restarting the process.
Land Home Financial Services 15yr 2.5% approx $1800 in closing. Can provide broker info through PM if desired.
Guaranteed to come out ahead if you stay in the home long enough. I have a google spreadsheet that can tell you when the break even point is, and how much you will save over the life of the loan.
Refi-analysis - public
docs.google.com
This is an awesome tool! Thanks
Vision Bank, 30 yr @ 2.62%, 0 pts/0 orig just under $1400 closing costs.
I am a Mortgage Loan Originator at Northwest Bank, in West Des Moines. 2019 Iowa State grad.
Would be happy to answer some questions through PM!
Would be happy to answer some questions through PM!
Really? What do you think are normal closing costs? We did our refi with $700 in closing costs
Idk, but do these numbers include the escrow amount?
My closing costs were 2,800 but included 1,000 in escrow, plus an unexpected $250 assessment after the derecho. Dumb
Winner and our original loan is through them. Love them.
Escrow I would consider a pre pay and not a closing cost.
Also, if you have no closing cost or really low closing cost the lender probably paid those for you and bumped up the interest rate by .125 or .250 to cover it.