Explain to me the what the benefits are to REFI - I am just not getting it.

[Anonymous]

Anonymous wrote:Your husband is a moron.

This is the bigger issue, and I am not really sure how OP should address it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Your husband is a moron.

This is the bigger issue, and I am not really sure how OP should address it.

+1.

I imagine the amount of money they are probably pissing away with these kinds of mistakes and I cringe.

[Anonymous]

We did a refi with Quicken loans -- online except for the actual signing of documents (the person came to our house for that, super convenient). Cheap, fees very upfront. We did a 20 yr from 22 yrs -- lowering our rate from 4.375 to 3.365%. We will save something like $30K in interest with essentially the same payment.

6%= gack. Shudder.

[Anonymous]

Well, thank you everyone. We just filled it out for a 15 year and are locked in at 2.375%. The payment will stay the exact same but we will knock out the principle. Thank you for the help and explanations.

[Anonymous]

Great rate! Congrats!! Sorry we were a bit harsh, but it seemed to have ended up in your favor.

[Anonymous]

It is DCUM. Your good advice will always come with a side of snark.

[Anonymous]

Anonymous wrote:Well, thank you everyone. We just filled it out for a 15 year and are locked in at 2.375%. The payment will stay the exact same but we will knock out the principle. Thank you for the help and explanations.

Well done you!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP HERE - it was a 30 year mortgage to start and we are 8 years into it. So quite a bit of time left on it.

We had exact same numbers as you and did a 15 year refi at 3.25. Our payment went up $100, but we shaved 7 years off. Just crunch the numbers to see what is best.

Who did you use? We are currently with Navy Federal so no PMI involved, but I don't think that they will give the best deal on a REFI.

There's never no PMI involved if you didn't put down 20 percent.

The way Navy Federal works is that it builds the PMI into the rate. That's why your rate is so high at 6 percent, because your PMI is including in the rate (i.e. you pay a higher interest rate and the lender pays the PMI).

A lot depends on how long you plan on staying there as well as what your house will appraise for. If you do not have 20 percent equity in your house, then you will not be able to refi without paying PMI or building it into the rate (which means you aren't going to get as low a rate as everyone here is saying).

The first thing you should do is find out (look up some comps) what other houses are selling for in your neighborhood. You really need to know if you have 20 percent equity.

[Anonymous]

Anonymous wrote:Well, thank you everyone. We just filled it out for a 15 year and are locked in at 2.375%. The payment will stay the exact same but we will knock out the principle. Thank you for the help and explanations.

What lender did you use?

[Anonymous]

I have to agree that OP's husband has no idea what he's talking about.

[Anonymous]

Refi to 15 year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP HERE - it was a 30 year mortgage to start and we are 8 years into it. So quite a bit of time left on it.

We had exact same numbers as you and did a 15 year refi at 3.25. Our payment went up $100, but we shaved 7 years off. Just crunch the numbers to see what is best.

Who did you use? We are currently with Navy Federal so no PMI involved, but I don't think that they will give the best deal on a REFI.

There's never no PMI involved if you didn't put down 20 percent.

The way Navy Federal works is that it builds the PMI into the rate. That's why your rate is so high at 6 percent, because your PMI is including in the rate (i.e. you pay a higher interest rate and the lender pays the PMI).

A lot depends on how long you plan on staying there as well as what your house will appraise for. If you do not have 20 percent equity in your house, then you will not be able to refi without paying PMI or building it into the rate (which means you aren't going to get as low a rate as everyone here is saying).

The first thing you should do is find out (look up some comps) what other houses are selling for in your neighborhood. You really need to know if you have 20 percent equity.

Or a VA loan...

[Anonymous]

Is it me or is the OP's rate absurdly low? 2.375%!!! That's way below the current rates.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP HERE - it was a 30 year mortgage to start and we are 8 years into it. So quite a bit of time left on it.

We had exact same numbers as you and did a 15 year refi at 3.25. Our payment went up $100, but we shaved 7 years off. Just crunch the numbers to see what is best.

Who did you use? We are currently with Navy Federal so no PMI involved, but I don't think that they will give the best deal on a REFI.

There's never no PMI involved if you didn't put down 20 percent.

The way Navy Federal works is that it builds the PMI into the rate. That's why your rate is so high at 6 percent, because your PMI is including in the rate (i.e. you pay a higher interest rate and the lender pays the PMI).

A lot depends on how long you plan on staying there as well as what your house will appraise for. If you do not have 20 percent equity in your house, then you will not be able to refi without paying PMI or building it into the rate (which means you aren't going to get as low a rate as everyone here is saying).

The first thing you should do is find out (look up some comps) what other houses are selling for in your neighborhood. You really need to know if you have 20 percent equity.

Or a VA loan...

Yeah, but I don't think that's what OP did. Navy Federal advertizes a 100 percent ltv loan with no PMI. And when I called about it, they explained it's a slightly higher interest rate. They pay the PMI out of the higher interest rate. At least that's how it was explained to me, because I saw the advertisements about no PMI, and I was curious.

[Anonymous]

Anonymous wrote:Is it me or is the OP's rate absurdly low? 2.375%!!! That's way below the current rates.

Frankly, the whole thing sounds weird.