We are considering refinancing our home. We currently have a 30-year fixed, and are looking to keep the same terms, a 30-year fixed. We have a legitimate offer from our own current mortgage holder. I'm just wondering if the rate couldn't be just a little better. If you have a 15-year or 30-year fixed mortgage, I would appreciate hearing from you what your rate is so we have something to compare to. Thanks very much.
Thank you to those of you who actually answered my request. The majority of responders had a great deal of advice to offer, and I appreciate the thought, but we've covered those basis. Thanks again to those who provided the info I was hoping to receive.
Community America Credit Union last week had their 30-year fixed mortgages at 5.125%. You can also set it up to pay biweekly instead of monthly for the same rate but pay it off in less time.
Most lending institutions now have their mortgage rates online, but they can change daily. You can often eliminate the points associated with refinancing by taking an ever-so-slightly higher rate, too. When my husband and I refinanced a rental, we rolled the costs into the mortgage, but you must have enough equity in the property for lenders to allow that. And I would definitely try to go to a 15 or 20 year mortgage, if you can afford it. The amount of interest you pay over the life of the mortgage decreases dramatically.
We refinanced at the beginning of the year and got a 30 year fixed for 5.125%.
It will be a little lower, but you will still probably have a larger payment because of the reduced years. I bit-the-bullet shortly after buying our house and reduced our mortgage by 10 years, but our payment went up about $100.
The important thing to consider in all of this are the closing fees associated with the refi. You really need to look at that. Also, call around to different lending institutions to see if you can find a better deal. My own mortgage lender was far more expensive than my credit union (for example). I recently checked on refinancing again, and my credit union bluntly told me it wasn't worth it because of the fees....my mortgage lender didn't tell me that. Makes you wonder! Again, beware of the closing fees. That's where they get you!!
Not sure how much information you want. At the moment there isn't a huge difference between the 15 and 30 year rates. This is due to the fact that they are being kept artificially low. We have a huge amount of inflation sitting in front of us. My advice is figure out what you want to do and quick. As it is most economic indicators are showing we are near or at bottom. I have little faith that Bernanke will react quick enough to stay off inflation. Once that writing is on the walls you will see a huge difference in 15 and 30 years. There will be no way you will get rates as low as they have now. Sorry if this is too much information. I am a number cruncher.
Four years ago is when i got a 5.5% fixed rate for 30 years. Two years ago we got a 2nd on our house with a 6% fixed rate. I recommend calling local banks to see who can offer you the lowest rate.
All the rest had great advise - remember that you need to lower your rate by 2% to offset the closing costs and such. So a lot would depend on what your current rate is.
The rate of interest is NOT the only issue to consider. Are you consolidating and what are you expecting to do with any savings or lump sum you might garner from this transaction? 15 year sounds good, let me process your paperwork and you will have a comperable rate to look uver with your mortgage company. We do Home Refinance and other financial services-Call C. at ###-###-####
You'll just have to shop around. Call a few banks or mortgage brokers. Tell them what your current bank is offering and ask if they can beat it. It all depends on the specific terms of your loan. You can also get an idea what's out there at Bankrate.com: http://www.bankrate.com/?ec_id=br_gg_hv_brm_official_goog...
IMPORTANT: Please beware of Melissa B's offer. Taurian Worldwide does not have a good reputation:
http://memphis.bbb.org/article/consumer-alert-taurian-wor...
http://www.memphisflyer.com/memphis/take-the-money-and-ru...
We are about to have a 20 year fixed morgtage at 4.5% It's not through yet though. They are being really slow. My husband is paying off our 2nd mortgage and I believe making sure there will be 10% equity in the house when he's done.
Suzi
We tried to refi with our current lender, and after 6 months of waiting, we just got so fed up we bailed. We went with a broker who got a better rate and got the loan closed in 3 weeks. We're now saving about 500 a month. Rates about 5.2, but definitely make sure your lender can close quickly. Every month you wait is costing you savings.
Hi K., my husband and I recently found out about a great program that will allow us to get a 15-year, 0% interest, fixed rate loan. It's called a mortgage restructure program and anyone that already has a mortgage is eligible, even if they are behind on payments. There's also no negative implications on your credit. It allows one to reduce their mortgage by 30-50%. So, for example if you currenly owe 100k, if you go through the program and your reduction is approved at 30%, you'd then owe 70K. Divide that 70K by 180 months (15y) = $388 (your new payment amount). It's awesome! There is a cost involved, but to us it is worth it. We own several houses (we're investors) and we are putting all of our houses through the program because it will create so much more cash flow each month and we'll own the houses free & clear in only 15 years. We've been so pleased with the program that I just recently became an independent rep for the company. Feel free to check out the website for more info. http://www.twifinancial.com
Feel free to contact me as well with any questions. Have a great day!
I'd just like to add that the 15 year loan will be a lower rate, it will also mean that you pay thousands less in the long run because you are only paying for 15 years. Good luck in figuring everything out, it will be worth it in the long run.
Eight and 1/2 years ago we signed a 15 year fixed at 5.4% I think. I know there are some rates a little lower now, but for our circumstances we don't want to 'start over" since we're more then half through.
Good Luck,
Lori K
Rates vary considerably as to WHEN a mortgage was procured. Your best bet is to shop a couple of different mtg companies/banks and see what their current rates are for the type of loan you want. PS it doesn't knock you're credit score to shop around as long as it's done within 2 weeks, you can run credit with as many banks as you'd like as long as it's all for the same type of loan., ie a mortgage or a car loan.
We refinanced maybe 5 1/2 years ago at 5.25%. I frequently check to see if our bank offers lower rates. Although it did dip lower at certain times, it wasn't worth it to us because we were to the point where we were paying primarily principal. As someone said whether or not it is worth it to refinance depends upon points, fees, and how many years you have left to pay.
The other thing I found out is that if you get quotes from some of these online lending companies and they are making inquiries into your credit history it lowers your credit rating. Things might have changed on this but it is something to check into if you are concerned about credit history. I found their rates to be significantly higher than our local bank.
You might check out local Credit Unions. We bank at both a credit union and a bank. The Credit Union rates are generally lower than our banks. Our Credit Union generally has some of the best rates in our community. I just checked, they are currently at 4.875 for 30 years (4.982 APR) and 4.375 for 15 year loans (4.52% APR). I am sure every Credit Union rates are different.
