04:46AM | 09/15/02
Member Since: 06/14/01
57 lifetime posts
I’ve owned my first home now for 3yrs. At the time of purchase I received an interest rate of 6.875%. Should I consider refinancing now? If so, how do I go about it and can I go with another lender?


03:13PM | 09/15/02
Member Since: 06/03/01
327 lifetime posts
You have a pretty good rate now. Would it make enough difference in your payments to pay back the costs involved? Also, better check with your current lender as they may have a prepayment penalty that would really cost the bucks. If you do go ahead, check with several lenders and get written estimates of closing costs. There can be literally hundreds of dollars difference between lenders.

Randy Colin

06:19PM | 09/15/02
Member Since: 04/14/01
43 lifetime posts
tate16t,LDoyle is right adout his answers.What I can add is that 6.8 is O.K. but you can do much better.I am refinancing right now at a rate of 6.37.Well I just checked and the rate has fallen to 6.18.So now I have to decide whether to hold at this rate or buy down to the new rate.So, you see you should check several banks to get the best deal.


04:07AM | 09/17/02
Member Since: 03/13/00
1678 lifetime posts
Dropping your rate by 1/2 percent may not be beneficial. Closing costs could eat up the reduction in interest cost for many years to come -- probably longer than you'll keep the house, if you're the "average" homeowner.
Get all the details and compare carefully before making a decision.


07:03AM | 10/14/02
Member Since: 10/13/02
2 lifetime posts
Hi Tate:

FYI - I am in the RE profession, so we get this ? a lot. As stated by the lending professionals we deal closely with - it is generally not beneficial until the rate drops two (or more) points below what you are currently financed out - to average the difference of costs of 're-fi' into the equation - and to make it worthwhile for you. FYI - as an aside - we are in a similar situation - lived here 3 years, financed @ 6.725 - You don't have a bad rate, and it'll be hard to refinance low enough to make it worth your while. Maybe you wish to consider prepayments on your principal - which will significantly decrease the amount of interest paid on your loan. You can do a search for a mortgage amoritization calculator, (there are many available online) - and this will allow you to see your interest savings in details, varied by the xtra principal you choose to pay.

Hope this helps!


06:37PM | 01/04/03
Member Since: 01/03/03
97 lifetime posts
The basic guidline to refinance or not is will you recover your closing costs in one years time and if the new rate is between 3/4 and 1% lower than the old one. If you are going to be saving a good amount of money a month apply a bit extra to the principal. that will bring the time of your mortgage down. 1 extra payment per year can shave about 6 years off of a 30 year mortgage. I am a realtor in michigan and I have found a good local mortgage broker is the best way to go about getting a refi or any loan for that matter, they are usualy a bit more straight forward than a bank and much easier to deal with, if you were in michigan I could hook you up with a good bunch of people, if not then find someone you trust (family, friends) and ask them who they go through and if they are happy with them. good luck in your search


Post a reply as Anonymous

Photo must be in JPG, GIF or PNG format and less than 5MB.


type the code from the image


Post_new_button or Login_button

Oversize windows let the outside in, even in a cozy cottage bathroom like this one. A roller screen and wraparound shower ... Built on a rocky island in the Drina River, near the town of Bajina Basta, Serbia, this wooden house was cobbled together ... Large steel-framed windows flood the interior of this remodeled Michigan barn with daylight. The owners hired Northworks A... Edging formed with upside-down wine bottles is a refreshing change. Cleverly and artistically involving recycled materials... A Washington State couple called on BC&J Architects to transform their 400-square-foot boathouse into a hub for family bea... Similar to the elevated utensil concept, hanging your pots and pans from a ceiling-mounted rack keeps them nearby and easy... Few projects are more fun than upcycling a vintage piece in a surprising way. Outfitted with a sink and a delicately tiled... The thyme growing between these stepping stones adds a heady fragrance to strolls along this lush, low-maintenance garden ... Decoupage is an easy way to add any paper design to your switch plate, whether it is wallpaper, scrapbook paper, book page... Twine lanterns add pops of crafty—but sophisticated—flair to any outdoor setting. Wrap glue-soaked twine around a balloon ... When securely fastened to a tree or the ceiling of a porch, a pallet and some cushioning make the ideal place to lounge. V... Reluctant to throw away any of those unidentified keys in your junk drawer? Hang them from a few chains attached to a simp... A stripped-down model, sans screened porch, starts out at $79,000. Add the porch, a heated floor for the bath, and all the... Salvaged boards in varying widths and colors make up the dramatic accent wall in this attic space. The high-gloss white of... This garden shed has been decked out to the nines. Designer Orla Kiely created the intimate home for a flower trade show, ...
Newsletter_icon Google_plus Facebook Twitter Pinterest Youtube Rss_icon