then why in the world would anyone take a 30yr mtg...and your not refi'ing for nothing...your paying with the rate

 

back to this, how familiar are you with the current market....the most powerful tool right now is the Pay Opt Arm/ 12mo MTA? nothing to do with stretching someone out....I just like to put my clients money back where it belongs, in their hands....but I also don't typically deal with mobile homes in the middle of the woods...my clients are a little more financial savy and like to be in control of their cash flow

 

Dave - I had my PMI taken off with just a phone call. My principal was around the 80% mark, and the value had gone up as well. The bank did some work on their end (I never saw an appraiser, although they may have had one do some investigation of the area and property), and I got a letter about 2 months later removing PMI from my obligations.

As for refinancing, I went from a 10/1 ARM for 30 years (originally at 6%), to a 15 fixed at 5.125 two summers ago. I prepay principal anyways, so the new payment, which was about $100 higher/month was still less than what I was sending to the bank. If I continue on this course, I will have the house paid off in a total of 13+ years (6 years on the original loan, and just over 7 on the refinanced loan.)

 

^ that's a great situation..congrats...that's awesome how the terminated your pmi so easily

 

but the rate difference is nearly negligible!

It works with 15 year mortgages too......

$200k @ 4.75% @ 15 Years = 1,556
$200k @ 5.00% @ 15 years = 1,582

Difference of....drum roll...... 26.00 per month.

So the closing costs on refinancing a $200k mortgage is at least $2000...... so... once again........ it would take 77 months of paying the extra $26.00 per month to have spent $2000 which would match the $2000 of closing costs.........so....... once again....... if they were to move for any reason or refinance for any reason before that 77th month, they would have been smarter to do it my way.........

 

there is no point in either of us going back and forth because we are both correct, depending on the situation. This all proves one thing: It's better to work with a person then an online engine as they will have advice and options for you

 

$200k @ 5%fixed over 180months ---> $84685 in Interest

$202k @ 4.75%fixed over 180months ---> $80819 in interest


The total cost of money is usually lower with the lower rate and the closing costs.

 

I agree with Efthimios...deal with a person/broker.

 

HE LIVES!! D- I am having a HUGE party downtown this Saturday at Mercury...private party in the vip upstairs for my b-day...about 60-80 people...if you can make it just use my name to get in l=be good to see you

 

to continue the saga.......... not that many people actually keep their loans for the full term due to moving, jobs, etc......... so posting the full interest is moot.

I agree that talking to a real person is the best thing too.