ChiKid24 wrote: ↑Mon Jul 13, 2020 10:39 am
itsallaboutme wrote: ↑Mon Jul 13, 2020 9:05 am
I had a bankruptcy years ago which will be off of my credit next year mid March. My credit score is 735 right now do you think it's best to wait or try to get a refinance at one of these low rates? Not sure where the rates are heading up or down.
BOTH. Refinance now to take advantage of low rates, but lock in something that is no/low cost. That way you aren't out anything significant out of pocket and have no sunk cost to refinance again down the road. Every lender will offer no cost options. It just means your rate will be slightly higher.
Example, Better had offered me 2.875% with a $1,500 credit to closing costs. But my closing costs were $2,500 so I would have been out $1,000. So I asked them to price me at 3%. When they priced it, that higher interest rate increased the lender credit to about $5,000 with no change to the closing costs. So I was able to go from 3.5% down to 3.0% and get paid $2,500 to do it.
I closed last week and rates were lower, so I'm now in the process of refinancing with Lenderfi at 2.75% with a credit to cover all closing costs. It takes some work and effort, but if you are willing to research and have lenders compete, you can save yourself 5-6 figures over the life of your loan.
Thank you. Here is what I am being offered so far.
2.75% 299K same rate for 30 25 and 20 years rolling in 10k to the loan break even after 28.5 payments. I owe right now 286k in current loan and have FHA which is $188 a month extra in payments and 59,408k FHA left of total payments so,
30 year I save $350 a month from current loan. saving 11,703k plus the 59,408k FHA total life of loan
25 years I save $192 a month from current loan. saving 37,318k plus 59,408k FHA total life of loan
20 years pay $50 more a month. saving 62,048k plus 59,408k FHA total life of loan
There are other options one is 3.25% 295k loan still rolls over 6100k still saving months for 30 and 25 years but not that much most is about $289 for the 30 years. $136 for 25 years
Also 3.5% still rolls in 3900k
No rolling in but interest is 4.1%
It is only me on the loan my wife's credit is 695-700 so we tried with just my scores.
I am saving no matter what if I get out of the FHA loan should I jump on this? Better than my current lenders offer I would have loved to go with LEnderFI but from the forum I see LoanDepot is next best.