Mortgage refi

[MrsDarcy]

Hi all,

Anyone have any advice/good lenders for a mortgage refi? We bought in 2018 and would like to take advantage of the low rates. It would be awesome to not have to pay a lot of out of pocket costs. I feel like I remember people mentioning no-cost refis.

Thanks!

[dr.girlfriend]

I've refi'd twice...from 6-something to 4.875 to 2.75 (15-year). The first two times I was able to use Bankrate and then got Wells Fargo to match the lowest rate. I like WF because they service their own mortgage (it's a PAIN when your mortgage gets sold around) and their fees were very up-front and low. The last time they couldn't match the rate and I went with someone else. IDK for sure but I think in many cases when they say there's no cost to refi they actually just roll the costs into the mortgage, so that you're paying interest on it.

[k3am]

We had a broker, a credit union, and two banks quote us. PNC and BofA gave us the most competitive rates and BofA had the least amount of fees.

[dr.girlfriend]

I should add that when you get down to seriously considering a lender, they give you a GFE -- a "good faith estimate." That makes it very easy to compare rates and fees.

Now I am recalling that I think some people do a "loan modification" -- that's something with your current lender that gives you a better rate without potentially having to refi? But IDK anything more about it. I think there was a thread earlier about it though.

[MrsDarcy]

Thanks ladies, I just got a call back from Chase. Seems like great fees and a good rate at 3.625%. Thinking about just doing it so it’s over with!

[MrsDarcy]

Feb 2, 2020 11:54:29 GMT -5 dr.girlfriend said:

I should add that when you get down to seriously considering a lender, they give you a GFE -- a "good faith estimate." That makes it very easy to compare rates and fees.

Now I am recalling that I think some people do a "loan modification" -- that's something with your current lender that gives you a better rate without potentially having to refi? But IDK anything more about it. I think there was a thread earlier about it though.

Ah, that’s it. Idk if our current lender offers this. It’s a small credit union with a crappy website. Guess it doesn’t hurt to ask.

[kershnic]

We’re in the process of doing it. (We also bought in 2018). Our local credit union had their rates on their website. I approached our mortgage guy and asked him to run numbers for me on the 20 yr rate I had seen. He gave me those numbers, and also the numbers on the same credit union’s 30 yr no closing costs mortgage. The closing costs are not just rolled into the mortgage - they are paid for by the bank. For us the only condition is that we cannot pay off the mortgage in full (ie refinance) within 3 years, or else we have to pay back closing costs. Even with a lower rate it was going to take me 8 years to recoup the difference once the closing costs were taken into account.

[Susie]

We bought in 2008 and used a mortgage broker, and ended up with HSBC (6.125% for 30 years).  We refi'ed in 2010 when rates dropped, used the same broker, and ended dup with BOA (4.375% for 30 years).  Then we refi'ed again in 2019 through our credit union (3.25% for 20 years).  This most recent time, I just checked rates at all the local banks and credit unions in our area, bankrate, and a number of national lenders.  It turned out that our best deal was at our home credit union.

[azalea]

We're in the process of refinancing right now. We bought in 2018 too. Going from 4.0% on a 15-year-fixed to 3.0% on a 15-year-fixed. Closing costs are ~$2,500. If we did a "no closing costs" options, the rate would have gone up and it was not worth it. As it is, with $2,500 in closing costs, we'll recoup the fees of the refi within 10 months.

This is a great calculator for comparing numbers: www.calculatestuff.com/financial/refinance-calculator

I can recommend a mortgage broker for folks that are in New England (and a few other states along the east coast). I've worked with them 5(!) times now, lol. 2 home purchases and 3 refinances over the past decade. Just send me a PM.

[RockNVoll]

azalea, I'd love your mortgage broker's info. I check every so often to see if another refi is worth it and I need a new broker or two.

[fryjack2]

azalea I'd love the info as well. We refi'd last year to 3.75%, 30 year and we paid closing costs. We have excellent credit but that was the best we could do. I think because we have a 7 figure loan. We shopped around and our broker ultimately matched what a bank offered. I think we recoup the closing costs in 2.5 years. We will be in this house at least 15 more so it was worth it.

I wonder if doing a 20 year loan would be better. Hmmm.I should look.

[MrsDarcy]

If anyone would like a resolution, I locked in at 3.5% for 30 year mortgage. It was with a regional bank in the southeast, but if anybody wants the name I’d be happy to share, the loan officer is fantastic. Thanks for your help!