Reply to Does it make sense for me to refinance?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OP again.  Can someone talk to me about how the lender credit works?  I just checked this morning and the lender credit is now $7.2K!  I mean, obviously it can be used to cover the funding fee and closing costs.  How much of the escrow (taxes and insurance) can it fund?  Can it fund the escrow for the whole year?  If so, we'd walk away with at least $1,000 profit from this and a lower rate.[/quote]
yes, most of the times you can fund escrow, pay insuranca/HOA fees etc. However, if your lenders credit is more than that - I would check if you can lower your rate slightly for smaller lenders credit, so you can utilize all of it. [/quote]

Right, yeah 3.25% is the lowest rate Amerisave is offering.  I had the same concern about forfeiting some of the lender credit.  However, if I can fund the escrow account for the full year property taxes, insurance and the VA funding fee should use up the entire amount.  That was my question though was how much of the escrow I can fund at once.  Can I fund the whole year or only that portion of the year that has passed?

HOA fees aren't escrowed under my mortgage so I couldn't use it to pay those.[/quote]
HOA is not escrowed, but it should be paid for 6(? don't remember exactly) months as part of closing, we prepaid whole year in order to use credit[/quote]

OP here.  We paid a month or two when we bought the house so I assumed it would be the same.  The credit is now $7K and the closing costs (including the VA funding fee) would be like $4.5K so that only leaves $2.5K left over so we could close early in the month and use up the whole credit.

DW had a good point that we're basically throwing away the first year of interest payments if we refinance.  Part of me thinks it would be great to knock .5% off the rate and then part of me thinks she has a good point and we're just extending the loan.[/quote]

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