Refinancing

[cdcengineer]

Has anyone refinanced lately to take advantage of the low rates? We did a HARP no cost refi at WF bank last year and I'm considering doing another refi. You can only refi at no cost once per HARP (which allows no income verification, limited paperwork, no appraisal, etc.). Since I will have to pay this time around I am considering going with amn internet cut rate company like lending tree or national mortgage alliance. I really like WF, but money is money.

Anyone have any opinions here?

 

[engineergurl]

WF= Wells Fargo or what? define your acronyms man!!!

 

[Dexman PE PMP]

I'm currently with WF (Wells Fargo), but refinancing within the next week. Dropping to 3.75% with no closing costs by going with a local bank &trust

 

[Master slacker]

I refi'd earlier this year to a 15-year, 3.875% rate. I really didn't expect rates to get any lower, but they have. I'm fine with our current rate so we'll be sticking with it. We did ours through our existing bank (USAA) so that everything is in one location. Previous mortgage was with Chase. YMMV

 

[YMZ PE]

We refi'd to a 30 year fixed at 3.875% earlier this year. If you're going through an internet company, might I suggest trying Infiniti Home Loans, aka IHL Direct? We had an awesome experience with them. The lender they use is a real stickler with documentation, but that's part of why they're able to offer such low rates. Our loan was turned over almost immediately to WF after closing.

 

[Supe]

As a bit of a follow-up, is there really zero cost to the homeowner associated with some of these refi's? A big part of the reason why I didn't refi (granted, it'd only be for less than 1%) was on the premise that I haven't been here, and may not be here long enough, to justify a second set of closing costs, etc.

 

[Dexman PE PMP]

I had to pay $400 up front to cover the appraisal, but it will be refunded to me upon closing. My rate could be lower if I paid closing costs, but it wasnt worth it. (something like $5k to drop 0.125%)

 

[snickerd3]

It was about $900 for us to refinance a couple years ago.

 

[Master slacker]

I forgot how much we had to pay to have the refinance done, but the difference in principal paid each month over our last loan has already paid for it.

 

[cdcengineer]

As a bit of a follow-up, is there really zero cost to the homeowner associated with some of these refi's? A big part of the reason why I didn't refi (granted, it'd only be for less than 1%) was on the premise that I haven't been here, and may not be here long enough, to justify a second set of closing costs, etc.

With Wells Fargo (Yes EngineerGurl it's WF), we were able to do a 3-step 30 year fixed refi last year at 3.875 at absolutely zero costs. No hidden fees rolled into the loan or anything. I can now get 2.75 for 15 years, but have to pay between $2400 - $3400 depending on lender. This cost includes a 1% origination fee.

 

[pbrme]

We just refinanced. Previously at WF with a 4.875% 30yr conv. signed on March 2010. We found a new rate through a local bank lender for 3.375% 30yr conv. We didn't opt to go to a 20yr becuase the drop in payments were more appealing. Plus I'm 33 and my wife is 29, so we have time. We're paying 1% origination, and all closing costs. The lender ran me some numbers for 3.5% and them paying .62% closing costs, but it wasn't saving me enough IMO. I didn't bother to check the higher rates, since the overall goal was to get the best rate available on a 30yr.

It appraised last week for more than we expected, and by bringing in another 2k, we were able to eliminate PMI. We'll be signing final papers this week or next. Considering out of pocket expenses to close, Payback/savings ratio is around 22 months. So the benefit is there as long as we'll be sticking around another 2yrs, which we will be. *Bonus* we're using the first time home buyer credit we got in 2010. Free and clear after 3yrs, which is close enough now to use, so it's really not costing us anything with enough left over for 1/2 of our next big vacation.

I don't really have a good opinion about using online or the lender services you've outlined. I would get some strong reviews before signing my life away with any lender. This is another reason I switched from WF. My account manager actually left WF and I tracked him down at this new place, really liked his service.

 

[knight1fox3]

IMO it's always good to go with a vendor that is local to your area where if you ever had a problem or needed some answers, you could talk to them in person about it. As opposed to some 800 number and being put on hold for the "next available representative".

We talked with a financial adviser not too long ago and they indicated that if the mortgage rates were 0.75% (or more) lower than your current rate it was worth it to refinance. We were only 2 years into our 30-yr so we also opted to refinance this year going from 5.05% down to 3.60% as I didn't think the rates would go much below that. But alas they did. Last I checked I think they were hovering around 3.40%. Oh well, it still saved us quite a bit going to the lower rate. I think when all said and done the final cost and closing figures came to just around $1200.

 

[engineergurl]

I refuse to refinance until we are refunded our mortgage payments that were made and lost... this was back when Taylor Bean and Whittiker lost their VA backing and all the VA loans got taken over by other places.... 4 months of mortgage payments lost, we have paid out of pocket to catch up because we got sick of getting notices, but someone owes us several thousand dollars and I'm nervous about going with a new place until I get that money back and the fight is over...

 

[envirotex]

...4 months of mortgage payments lost, we have paid out of pocket to catch up...

Ouch. That's a big hit. Hope that gets resolved soon.

 

[cdcengineer]

I refuse to refinance until we are refunded our mortgage payments that were made and lost... this was back when Taylor Bean and Whittiker lost their VA backing and all the VA loans got taken over by other places.... 4 months of mortgage payments lost, we have paid out of pocket to catch up because we got sick of getting notices, but someone owes us several thousand dollars and I'm nervous about going with a new place until I get that money back and the fight is over...

Holy Crap! That sucks. Fight fight fight until they post that money to your account or return it to you EG.

 

[engineergurl]

We were not the only ones impacted by this... there were a lot of military members who had allotments set up to pay their mortgages... we recieved 5 days notice to send our payment else where, and an allotment takes at least 30 days to change. Then the new mortgage company provided the wrong information to us regarding where to send the new payments... (apparently, it was a temporary thing they did because the take over happened so quickly, none of us had account numbers or anything)... well regardless, of course the money was sent but they never applied it to our account...

They can't really argue with our proof of payment though... several months of military leave and earnings statments showing where the money was deducted from pay and sent to them. Once we got things situated, I didn't want to send them any of the back money, but eventually when they started sending people to our house and putting notices on our door and it just became annoying and embarassing.

JAG is involved and I don't have much to do with the process, but it would be nice to get our money back. I know one of the class action lawsuits got settled... but haven't gotten any word on our situation...

 

[pbrme]

^ That's eff'd. Sorry to hear... hope it gets fixed.

 

[Boomer01 PE]

We just closed our refi last week. Went from a 30 year at 5% to a 20 year at 3.5% and am still saving $50/month. The closing costs were rolled into the loan so I wasn't out any money. I was with Citi, but refinanced with s local credit union. I've heard that they are offering the best rates because the big banks are so flooded with refis that they don't care if they lose some because of slightly higher interest rates.

 

[Rockettt]

refinanced my 15 yr to a 10 year last june. I think I got 3.25% or something. but thats down from a 5.75% from '08. conventional refinance which cost me $3k out of pocket which was small to the long run savings. Basically my payments stayed the same and shaved couple years off.

now if i could find a new Duramax at 0% id be doing good.

 

[knight1fox3]

IMO it's always good to go with a vendor that is local to your area where if you ever had a problem or needed some answers, you could talk to them in person about it. As opposed to some 800 number and being put on hold for the "next available representative".

We talked with a financial adviser not too long ago and they indicated that if the mortgage rates were 0.75% (or more) lower than your current rate it was worth it to refinance. We were only 2 years into our 30-yr so we also opted to refinance this year going from 5.05% down to 3.60% as I didn't think the rates would go much below that. But alas they did. Last I checked I think they were hovering around 3.40%. Oh well, it still saved us quite a bit going to the lower rate. I think when all said and done the final cost and closing figures came to just around $1200.

I just checked the rates again and they are down to 3.20%. <_< If they go below 3%, I might have to consider another refi. LOL