I can't believe we're refinancing...again

[mlkgls]

wildrice, I found myself in a similar debate with myself this week. The 15 year rates were almost too good to pass up and I can afford it, but do I want to commit myself as a single income? I’m seriously risk averse; in the end I chose to settle on a 20 year for peace of mind. I can pay a 20yr like a 15, but can’t pay a 15 like a 20 if for some reason money is ever tighter than it is now.

Further muddying the waters...My current mortgage company ended up calling me today out of the blue offering to refinance, but they weren’t able to beat the Costco lender rate.

[Accountingcat]

Thank you for posting this thread. I just refi’d last fall and just signed closing docs last night with LenderFi! It was my first time using Lenderfi and it was amazing. The whole process was completed in 10 days, cost was $400, and was painless.

[jlt19]

wildrice I’m trying to decide on a similar situation. To be fair, I can’t refinance just yet since we have to wait until our “old” house closes b/c of DTI. And really there’s no guarantee rates will be better than what we have by then.

We just closed on a 30 year at 2.625%. Usually I’d say that’s so low, don’t pay it off early! But, we’re 39 & 43, so...

With the profits of our house, could refi into a 20 or 15 yr and keep the 10% down, or bump it up to 20% (which would take the full profit and not “net” us anything monthly).

We could pay off an additional 12% on our new mortgage (depleting profit) and get rid of PMI (which would give us an additional $500/mo).

Or we could use the profit for new things for the house and either pocket that extra $500 or pay more in principal.

I mean, I know what we should do. But I also know what I want to do (buy all the things). Luckily DH will be getting his raise before we even owe our first mortgage payment here, so we’ll have an idea of what that will do for us, though I feel like we should up his 401k...

Ugh, so many options. Good “problems” to have I suppose, just a lot to decide.

[Accountingcat]

jlt19, any chance your mortgage is with LenderFi? I just learned they have "rate insurance" during my refi. Here's what it says: "If our rates, for the no cost option, drops by as little as .25 percent from your current rate and you have made 6 on-time payments, we will rewrite your loan at no additional cost for life. (This excludes prepaid interest)"

[jlt19]

Aug 8, 2021 9:52:18 GMT -5 Accountingcat said:

jlt19, any chance your mortgage is with LenderFi? I just learned they have "rate insurance" during my refi. Here's what it says: "If our rates, for the no cost option, drops by as little as .25 percent from your current rate and you have made 6 on-time payments, we will rewrite your loan at no additional cost for life. (This excludes prepaid interest)"

No, but I’ll use that as leverage in trying to get my current one to refi cheaply! Thanks!

[carrotsmakemefat]

Jul 22, 2021 11:34:14 GMT -5 Susie said:

It's only been 2 months since we purchased at 2.75% for 30 years, so I know I should just sit on my hands on this one.  But a small part of me is tempted to look.  

We bought with 5% down, because we didn't sell our old house until a month later.  Now that we have, I have an extra six figures sitting in our checking account.  The plan was to pay back what we "borrowed" from our e-fund to do the floors before move-in (done), and put the rest into our new mortgage, hit 78% LTV, recast, and drop PMI.

But now I'm sitting here like... even with $86/month in PMI... does it make sense to put all that cash into a mortgage at 2.75%?

I know it's the roof over our heads and all, I just keep thinking of what better things I could do with the money.  And that's where refi'ing comes in; we had that low appraisal which means we had to put more like 8% down relative to purchase price in order to have 5% relative to appraised value.  If we refi'ed, we'd get an appraisal do-over, and we'd also only need 80% LTV, not 78%.  We'd end up needing less cash to drop PMI than if we stay the course.

But then I come back to, refinancing like 2 months in is absurd, and how many of these gains would be wiped out by closing costs on a new loan.  So we probably won't.

Dumb question. Can I refinance having just bought the house in June ? We did 10% down because of our COL and did a 30 yr at 2.9

[simpsongal]

carrotsmakemefat, you can ask a broker/lender but I *think* you have to wait 6 months. We refinanced right after we bought to drop our PMI, and we had to wait. That was a long time ago though.

[jlt19]

carrotsmakemefat, I think every company is different and it also depends on the type of loan. I am pretty sure when I looked into this that FHA required 6 months, but there was no such rule for conventional-just up to the lender.

[lessel]

Echoing the thanks again for post! We closed a week and a half ago on a 15y at 1.99.