Refi calculator and what option would you pick?

[fryjack2]

I want to plug some numbers in to see if refinancing is worth it.  I googled and I'm getting different numbers with different calculators.  What calculator have you used?  

Also, which option would you pick.   We have just under 7 figures, and 29 years left on our mortgage.  Rate is 3.75%.  Credit scores are excellent. We will be in this house potentially another 15 years. We can afford the payment for any of the options.


Option 1-- Stay with current loan (29 years left at 3.75%)

Option 2--Refi to a new 30 year with NO closing costs at 3.375%

Option 3- Refi to a 20 year NO closing costs at 3.25%

Option 4--Refi to a 20 year with $4400 in closing costs ( all closing costs covered except that amount) at 3.125%

[Cappy]

I like this calculator: www.nerdwallet.com/mortgages/refinance-calculator/calculate-refinance-savings

I'd do option 3 if you can swing it in terms of payments AND have income stability confidence through Covid.

[Susie]

Well option 4 seems crazy -- option 3 is the same term with better rate and better closing costs -- so we can rule option 4 out right now.

I think it's likely that you'll come out ahead on option 2 vs. option 1, but you'd need to run the numbers.

As far as option 3 vs. option 1/2, it depends on your other goals. The monthly payment will be higher, what would you do with the difference if you DON'T go for the shorter term? If you would invest it, pay off higher interest rate debt, etc., maybe you're better off sticking with option 1/2. If it's just extra money that has no dedicated purpose and you're maxing out retirement/etc., then sure, option 3 will save you mortgage interest in the long run.

[fryjack2]

Cappy and Susie face palm. I mixed the rates up. It's 3.125% with closing costs. 3.25 without for the 20 year option.

I edited the options. 

[Accountingcat]

Is your credit good? Personally I'd keep looking for a better rate or go with #3. Bankrate is saying 3.1% (30 yr jumbo) and 2.7% (15 yr jumbo) on average. I just got 2.875% (20yr) but I think my equity pushed me into the non-jumbo level now. I'd also call a few lenders. I happened to call a bank listed on bankrate and after talking to them, they could get me a lower rate than what was posted online.

edit: I'm seeing lower rates with Interfirst and Homefinity (no points). I'm refinancing with Homefinity and have zero complaints so far.

[fryjack2]

Aug 6, 2020 10:45:49 GMT -5 Accountingcat said:

Is your credit good? Personally I'd keep looking for a better rate or go with #3. Bankrate is saying 3.1% (30 yr jumbo) and 2.7% (15 yr jumbo) on average. I just got 2.875% (20yr) but I think my equity pushed me into the non-jumbo level now. I'd also call a few lenders. I happened to call a bank listed on bankrate and after talking to them, they could get me a lower rate than what was posted online.

Yes.  We both have excellent credit. I'm on the phone with our current mortgage company to see if they will lower our rate without changing to a new 30 year.

[Accountingcat]

Aug 6, 2020 10:50:45 GMT -5 fryjack2 said:

Aug 6, 2020 10:45:49 GMT -5 Accountingcat said:

Is your credit good? Personally I'd keep looking for a better rate or go with #3. Bankrate is saying 3.1% (30 yr jumbo) and 2.7% (15 yr jumbo) on average. I just got 2.875% (20yr) but I think my equity pushed me into the non-jumbo level now. I'd also call a few lenders. I happened to call a bank listed on bankrate and after talking to them, they could get me a lower rate than what was posted online.

Yes.  We both have excellent credit. I'm on the phone with our current mortgage company to see if they will lower our rate without changing to a new 30 year.

I edited as you were quoting so I'm also reposting, I'm seeing lower rates with Interfirst and Homefinity (no points). I'm refinancing with Homefinity and have zero complaints so far.

[agnes]

I think you can getter better rate by shopping around.

So last year we refied out of an FHA with 27 years remaining to a conventional mortgage and removed our MIP, but our rate stayed the same. A friend was refi-ing through Comstock (I think?) at 2.64 for 15 years with 3k closing, so we contacted our broker to see if she could do better for us. We just signed docs yesterday to refi from 4.125 to 2.625 for 20 years with 3k closing costs, and will only pay like $100 more a month which is still less than our original mortgage. It will save us over 100k in interest. We plan on paying more when we can also so we can potentially pay off in 17 years.

I like this calculator www.bankrate.com/calculators/mortgages/mortgage-refinance-break-even-calculator.aspx