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[icon] Mortgage rate redux - Patti
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Subject:Mortgage rate redux
Time:04:21 pm
I just chatted with my bank. It looks like I can refinance to a 30-year fixed with one point at 5 3/8 with one point, or 5 3/4 with 0 points. The current loan is at 6 3/8, so that's a pretty good savings. I'm in pretty good shape since I'm borrowing less than 60% of the value of the property.
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whipartist
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Time:2008-03-21 12:45 am (UTC)
No payment penalty and the refi should be reasonably cheap.
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whipartist
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Time:2008-03-21 01:45 am (UTC)
Yep, it's totally worth it. However, if I do it I'm going to pay the point and be done with it. The break-even point on that is like 3.5 years, so I'm pretty much locking myself into sticking with the new loan.
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songmonk
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Time:2008-03-21 05:50 am (UTC)
Can you give a ballpark figure for "reasonably cheap"? I've never refied, so I don't know.


Edited at 2008-03-21 05:50 am (UTC)
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whipartist
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Time:2008-03-21 05:53 am (UTC)
I will when I find out. They want a new appraisal because the market is so wonky, but I expect it to be less than a grand to close.
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whipartist
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Time:2008-03-21 06:01 pm (UTC)
$350 lock fee, title insurance probably less than $1500. They're paying for the appraisal. There are probably some miscellaneous fees, but it shouldn't be much more than that.

Rates are up slightly today, but I locked @ 5 5/8 with 3/4 point.
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songmonk
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Time:2008-03-21 06:05 pm (UTC)
Thanks.

I hadn't heard of a "lock fee". But really it doesn't matter, I guess. It's just how much is the total cost to refi, and how much are you going to save.

(Or would you lose the lock fee if you for some reason chose not to refi?)
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whipartist
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Time:2008-03-21 06:07 pm (UTC)
Yep, it's nonrefundable. I'm not sure if it's just a fee or if it's basically some sort of downpayment, but I don't really care. If I maintain the same loan balance my payments drop by $200/month.
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[icon] Mortgage rate redux - Patti
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