Refinancing

[Patrick]

That's what we're going to do. Will be slightly more than 2 payments. No trouble with current payment and it gives us a little monthly buffer if necessary.

glad to hear you are not cashing out - a few too many doing that these days cause they have to.

some things to think about.

Lowering the rate - usually a good goal
changing the term - this is a tough one, they will make it what you want, 10-30 yrs. getting it close to where you were or next step shorter is always a bonus
pay down equity - put a little money in, or at least don't refinance the refinance expense (they'll offer to do that)

i was thinking about taking a stock gain, and pushing it into the mortgage, then having the mortgage recast -
they can use the new principal balance, existing rate, and recalculate the monthly payment - otherwise paying down
equity doesn't change the monthly commitment. if you have a good rate, a recast is a nice way to go with found money.
usually just a couple hundy. and no inspections, or verifications.

Good luck!! hopefully smooth sailing.

 

[JDurk]

glad to hear you are not cashing out - a few too many doing that these days cause they have to.

some things to think about.

Lowering the rate - usually a good goal
changing the term - this is a tough one, they will make it what you want, 10-30 yrs. getting it close to where you were or next step shorter is always a bonus
pay down equity - put a little money in, or at least don't refinance the refinance expense (they'll offer to do that)

i was thinking about taking a stock gain, and pushing it into the mortgage, then having the mortgage recast -
they can use the new principal balance, existing rate, and recalculate the monthly payment - otherwise paying down
equity doesn't change the monthly commitment. if you have a good rate, a recast is a nice way to go with found money.
usually just a couple hundy. and no inspections, or verifications.

Good luck!! hopefully smooth sailing.

We're good, D.I.N.K.s. Got a construction loan in '10 and did a major renovation of our house. The rate and payment wasn't bad, but 30yr fixed was betterer. However, every time we tried, the appraisal was too low when comparing to comps. Tried again in '18 with success, 4.75% 30yr. This time explored 30/20/15yr and got 2.75% 30yr. Because of Covid, no appraisal or inspections, just supplied our financial info. Will continue paying current monthly payment with "extra money" going to principal.

 

[Carson]

I think I saw a 2.00% the other day. That's gatta beea crock.

Current PBA rate through Wells Fargo is 1.55%. Must be living in residence, 30 year fixed only option, cannot roll in closing costs, and $30/month maintenance fee, but still ridiculously competitive.

 

[rlb]

Everything I'm seeing now is in the 2.625 or 2.75 range. Still have to reach out to a few more places, but in the end I'm planning to do the same payment/pay it off sooner plan. Just in time for daughter 1 to start college, then maybe a few weddings to pay for.....

I haven't decides on a 20 or 30, need to do the math and see what the difference is with the payment I'm planning. I like the idea of the extra wiggle room on the 30 in case one of us loses a job or something. Things are secure at the moment, but then again I thought life was going pretty damn smooth 1 year ago too...

 

[w_b]

Back in ‘13 we refi’d right after Sandy. Actually was in process before the storm, then they wanted us to get a post storm second appraisal on us. Said FU first one on us second one on you. They said OK and we locked in 2.625% for 15. Trying to pay it off early before I die.

 

[THATmanMANNY]

Or at least don't refinance the refinance expense (they'll offer to do that)

Ah crock of shit. They got me. Just made first payment on refi 2/1
But i took the "money back" from the refi and escrow of old mortgage and put it towards the principal asap.

First time with new lender, loandepot. Come to think of it this is our 3rd refi and hopefully last! Each time less term and lower rate. IMHO That is a must if you are considering a refi.

 

[gmb3]

I'm mid-refi as well with Chase. 2.75% 30 year fixed. Was at 3.875% and 5 years into the original 30. It's taking forever and no idea why it has to be so complicated if i'm not even changing lenders. This crap is like a foreign language to me but I went down more than 1% so that's good i guess. They did come by to do a quick appraisal and are telling me they will come to my house for closing if we ever get to that point.

 

[rlb]

I'm mid-refi as well with Chase. 2.75% 30 year fixed. Was at 3.875% and 5 years into the original 30. It's taking forever and no idea why it has to be so complicated if i'm not even changing lenders. This crap is like a foreign language to me but I went down more than 1% so that's good i guess. They did come by to do a quick appraisal and are telling me they will come to my house for closing if we ever get to that point.

My bank flat out told me 2 months with the volume they're seeing right now. Thankfully they will do it all virtually and may even waive the appraisal.

 

[Mahnken]

Our refi took almost exactly 2 months. Closed last week. The guy never came to appraise the house after my wife told him we both work in healthcare and come in contact with covid patients, lol. They approved the non-appraisel anyway. We were 5 years into a 30 year at 6.5%. Now it's a 15 year at 2.3%. Saving us >$250k. The amount of interest we've paid in the last 5 years alone is sickening.

 

[shrpshtr325]

we refinanced (closed in dec, week before xmas, they sent someone to us with the paperwork), we did the same term and a much lower cost, did the math on it, if we keep paying what we were paying originally we will only have the loan for like 18 months longer than if we had gone with a 15 year, and it offers us some flexibility in case something blows up in our face.

we saved enough to make the equivalent of 4 extra principle payments a year. saved a metric ton on interest, we were able to just keep it in the same bank, no cashout.

 

[ebarker9]

I'm in the midst of a refi as well, which will somewhat reduce monthly payments and cut the term by a couple of years. However, in the process they were like "you are aware that your property taxes are set to go up a lot, right?". No, I was not aware of this. The new mortgage documentation shows a 50% increase in property taxes even though there was the whole reassessment done a handful of years ago. Haven't received anything from the town indicating a change and, in fact, the last estimated 2021 thing I have from the town doesn't show a change.

Not sure what to make of that...more than wipes out any savings through the mortgage payments.

 

[shrpshtr325]

I'm in the midst of a refi as well, which will somewhat reduce monthly payments and cut the term by a couple of years. However, in the process they were like "you are aware that your property taxes are set to go up a lot, right?". No, I was not aware of this. The new mortgage documentation shows a 50% increase in property taxes even though there was the whole reassessment done a handful of years ago. Haven't received anything from the town indicating a change and, in fact, the last estimated 2021 thing I have from the town doesn't show a change.

Not sure what to make of that...more than wipes out any savings through the mortgage payments.

i mean, wipes out the benefit to your monthly budget (if they are correct), not the savings. If you didnt refinance youd be paying that much more when the taxes spike.

 

[ebarker9]

i mean, wipes out the benefit to your monthly budget (if they are correct), not the savings. If you didnt refinance youd be paying that much more when the taxes spike.

Yes, that's a more accurate way of saying it. Would be that much worse (if accurate) without the refi.

 

[Patrick]

Yes, that's a more accurate way of saying it. Would be that much worse (if accurate) without the refi.

it is also your money - so it is in your escrow account, if the taxes don't go up, you'll have a credit next loop,
lowering your payments.

 

[ebarker9]

it is also your money - so it is in your escrow account, if the taxes don't go up, you'll have a credit next loop,
lowering your payments.

Yup. It's more a "thrill of victory to agony of defeat" situation. In the course of an hour or two I went from a complete unmitigated win to a 50% tax hike out of nowhere. Still have to see how it plays out.

 

[RobW]

Give Corey from Greenway mortgage a call- he is my friend and will treat you like a client, not a number.