Refinance nobrainer?

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Topic Author
Paradise
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Joined: Mon Dec 18, 2017 6:15 am

Refinance nobrainer?

Post by Paradise » Fri Jan 03, 2020 4:02 am

I'm currently at a 4.125% APR 30 Fixed and I'm seeing a no cost/points 3.625% 30/Fixed from homefinity (I'm sure more others like this). Is this a no brainer to refinance? Any other considerations? First time refinancing.

mortfree
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Re: Refinance nobrainer?

Post by mortfree » Fri Jan 03, 2020 4:06 am

How long have you had the current mortgage?

Are you ok resetting the clock back to 30 years?

Topic Author
Paradise
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Re: Refinance nobrainer?

Post by Paradise » Fri Jan 03, 2020 4:08 am

mortfree wrote:
Fri Jan 03, 2020 4:06 am
How long have you had the current mortgage?

Are you ok resetting the clock back to 30 years?
3 years. I don't care, really. Not planning on living here for 30 years. Actual timeframe most likely 5 years or less.

WindyT
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Re: Refinance nobrainer?

Post by WindyT » Fri Jan 03, 2020 10:00 am

Paradise wrote:
Fri Jan 03, 2020 4:02 am
I'm currently at a 4.125% APR 30 Fixed and I'm seeing a no cost/points 3.625% 30/Fixed from homefinity (I'm sure more others like this). Is this a no brainer to refinance? Any other considerations? First time refinancing.
Assuming it’s really no cost, then yes. Even if rates drop further you can always refinance again.

We refinanced to a 4.0% 30 year in April with Better Mortgage with total costs of a couple hundred dollars. We just finished our second refinancing with Better, 3.625% 30 year. Lender credits ended up being more than $1000 more than total costs. Seemed like a no brainer to us - moving down to 3.5% would’ve cost us a few thousand so we were okay with sticking with 3.625% and being paid to drop our rate 0.375 percentage points.

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Stinky
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Re: Refinance nobrainer?

Post by Stinky » Fri Jan 03, 2020 11:22 am

Paradise wrote:
Fri Jan 03, 2020 4:02 am
I'm currently at a 4.125% APR 30 Fixed and I'm seeing a no cost/points 3.625% 30/Fixed from homefinity (I'm sure more others like this). Is this a no brainer to refinance? Any other considerations? First time refinancing.
If it’s really no cost, then it is a no-brainer. You’ll save $500 per $100k financed per year in interest expense.
It's a GREAT day to be alive - Travis Tritt

HomeStretch
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Re: Refinance nobrainer?

Post by HomeStretch » Fri Jan 03, 2020 11:45 am

Agree it’s a no-brainer. But consider paying additional principal each month so you are paying the refi loan over the 27 years (remaining term on current loan). No matter how long you intend to stay in the house, don’t go backwards on becoming debt free.

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Paradise
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Re: Refinance nobrainer?

Post by Paradise » Sat Jan 04, 2020 9:35 am

Thanks for the confirmation. I just wasn't sure if there were other considerations that I should watch out for. I'll obviously make sure that the closing costs are 0 or low enough that it's not killing the profits.

Going to check better, aim and costco as I've read here that those are pretty good.

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Stinky
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Re: Refinance nobrainer?

Post by Stinky » Sat Jan 04, 2020 9:40 am

Paradise wrote:
Sat Jan 04, 2020 9:35 am
Thanks for the confirmation. I just wasn't sure if there were other considerations that I should watch out for. I'll obviously make sure that the closing costs are 0 or low enough that it's not killing the profits.

Going to check better, aim and costco as I've read here that those are pretty good.
Thanks for your response.

Let us know what you decide to do and how it all turns out.
It's a GREAT day to be alive - Travis Tritt

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Sandi_k
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Re: Refinance nobrainer?

Post by Sandi_k » Sat Jan 04, 2020 12:00 pm

No way would I reset to 30 years, and high interest payments.

Ask about a 20 year term - shorten the term,drop the interest rate, increase the principal repayment with each check. I suspect that your payment would be pretty close to your current 30 year payment that comes with a higher interest rate...

Topic Author
Paradise
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Re: Refinance nobrainer?

Post by Paradise » Sat Jan 04, 2020 2:04 pm

Even with these low rates, the closing costs really kill the deal.

It's basically a 4% 30 year fixed from aimloan for $0 closing once you factor in the hidden fees (that I had not known about). Similar with better.

"We just finished our second refinancing with Better, 3.625% 30 year. Lender credits ended up being more than $1000 more than total costs."

How are people finding deals like this?

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