House Refinancing - Any experiences?
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From: Nashville
Don't be a hater......... try to enjoy life...
I don't even write mortgages..... i just like to annoy people who like to argue on the internet...... [searches for that picture of the kid from the special olympics.] I somehow hit the mother load between last night and this morning. 
Originally Posted by joeking1978,Mar 3 2005, 01:01 PM
I pitty you...
Originally Posted by joeking1978,Mar 3 2005, 01:01 PM
and anyone you've done a loan for that needed something more....
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From: OH
Originally Posted by Scot,Mar 3 2005, 08:33 AM
O ya.....Joe.......... your mortgage writing skilz must be great if you have to try and hawk some video that you made from S2k days all over the internet.
) When he was writing loans he was a very ambitious LO...doing extra marketing on his own and knowing as much as possible about the vast # of products in order to TRUELY advise his clients instead of being a simple order taker.....we've discussed #'s before and trust me, the does ok Regardless, as we all agreed on earlier, you should always treat each client as individual scenerio and make sure to TAKE THE TIME to educate them on the different products....people are often scared of what they don't understand.-tim
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From: Irvine, SoCal
Originally Posted by Scot,Mar 2 2005, 05:42 PM
finally....someone who can agree with me....... had you paid the $2k of closing costs each time you would be way worse off than if you had never refinanced.
What I did was make a simple compare of several loan options for the same 30 years loan amount of $450K.
No point but with normal cost added to loan balance: Y%, monthly payment: $Z
No cost: X%, monthly payment: $W (which is slightly higher than $Z)
Go to mortgage calculator site, enter these:
loan: $450K, interest X%, 30 years loan to get the balances at the end of each year and the monthly payment, $W
loan: $453.5K, interest Y%, 30 years loan, but with monthly payment $W above, to get the balances at the end of each year.
Comparing the two loan balances, you will see that no cost loan is better for the first 5-7 years, and this is the time frame majority homeowners will change houses.
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From: Irvine, SoCal
Originally Posted by dbjb,Mar 2 2005, 07:13 PM
actually, you did pay but did not notice the deferred premiun given to the Loan Officer by the bank/lender.
On a Jumbo loan (assume $330k) in the past year 5.25% was available on a 30yr fixed loan. The .25% difference may have been worth anywhere from $1650 to $3300 dollars to the LO. However, the .25% difference in your rate will cost you substantially more than $3300.
On a Jumbo loan (assume $330k) in the past year 5.25% was available on a 30yr fixed loan. The .25% difference may have been worth anywhere from $1650 to $3300 dollars to the LO. However, the .25% difference in your rate will cost you substantially more than $3300.
I do remember that the different in interest rates of my loan amount of $450K 30 years fixed was only 0.125% (1/8%), it was only $36 in monthly payment difference for $450K 30 years loan. It would take me 8 years to re-coup the loan cost, I would come out behind if I moved within 5 years with no point loan.
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From: OH
Originally Posted by TR-S2K,Mar 3 2005, 03:43 PM
30 years fixed
I would come out behind if I moved within 5 years with no point loan.
I would come out behind if I moved within 5 years with no point loan.
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From: Livonia
Originally Posted by efthimios,Mar 3 2005, 04:26 PM
this is exactly why not to go with a 30yr fixed...do a 7yr arm...because within 7 yrs (most likely 5) you will refi or move, either economically or personal driven
People do not realize that a 30 year fixed is like a luxury car- you pay for what you get. To have the "luxury" of knowing that your rate will NEVER change for the duration of your loan (being 30 years)... you "pay" an additional premium in that rate.
So often I'll ask someone why they bought an S2000 vs. Porche Boxter? 99.99999% of the time their answer will be costs (getting bang for the buck)...
so in comparrison... Only 5% will complete a 30 year term without refinancing or moving. 75% will refinance or move within 3 years...
On average, a 30yr fixed costs between 1% to 2% MORE then a 3 year ARM... Over 3 years (75%)- the average home owner will have wasted $11,999.88 dollars!
So essentially- if you paid for that 30yr, because you "thought" it was the "low-risk" choice... then you just pissed away a Supercharger, coil-overs, exhaust, carbon-fiber everything, and some new wheels!! ...aka- $12 GRAND!
...so the next time you blow by a Boxter in your economic S2000... think of this analogy!
btw- Tim...
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From: Zionsville
Originally Posted by joeking1978,Mar 3 2005, 01:12 PM
Thunderchicken-
if you don't mind... could you answer a couple questions?
(I apologize if I overlooked some in the beginning)
[list]#1: Is this a rate and term refinance? (meaning no cash out for debt consolidation)
#2: What was the term and rate of your previous loan? (15yr fixed? 30yr fixed?) etc...
#3: What was your payment (not including Escrow if you have one)?
#4: How long have you been in the house? When did you last refinance?
#5: What has the home appraised for? what do you owe?
#6: How long do you plan on being in the home?
#7: Do you have children? What are their ages?
#8: How old are you?
#9: Are you married?
#10: Are you planning on retirement soon?
#11: What are your monthly payment totals on your outside debt? (cars, credit cards, etc)
#12: What is your goal? paying off the home ASAP? minimalizing monthly debt? freeing up disposable income? creating equitiable assets?
#13: Why do you want to refinance now?
#14: What type of career do you have? Are you salaried? Commissioned? Self-employed? etc?
#15: Do you have investment properties?
Start with those... if you can answer some with more then one question... please feel free...
I am very curious... because a 15yr fixed is a VERY special population loan... meaning that it is NOT for everyone... and it is typically only utilized in a couple very specific situations.
I also hope that you are not buying a 15yr fixed simply to lower a rate on a 30yr, in exchange for more equity going towards your home and a couple $$$ extra month in costs... Unless you have legitimate cause...
let me know... I'd like to delve into this more then what I have...
thanks!
(also- I will give 100% non-biased advice- I have no personal benifit from helping this other then making sure (where other's haven't) that you are 100% educated in your options and positive that this is the route you choose)
if you don't mind... could you answer a couple questions?
(I apologize if I overlooked some in the beginning)
[list]#1: Is this a rate and term refinance? (meaning no cash out for debt consolidation)
#2: What was the term and rate of your previous loan? (15yr fixed? 30yr fixed?) etc...
#3: What was your payment (not including Escrow if you have one)?
#4: How long have you been in the house? When did you last refinance?
#5: What has the home appraised for? what do you owe?
#6: How long do you plan on being in the home?
#7: Do you have children? What are their ages?
#8: How old are you?
#9: Are you married?
#10: Are you planning on retirement soon?
#11: What are your monthly payment totals on your outside debt? (cars, credit cards, etc)
#12: What is your goal? paying off the home ASAP? minimalizing monthly debt? freeing up disposable income? creating equitiable assets?
#13: Why do you want to refinance now?
#14: What type of career do you have? Are you salaried? Commissioned? Self-employed? etc?
#15: Do you have investment properties?
Start with those... if you can answer some with more then one question... please feel free...
I am very curious... because a 15yr fixed is a VERY special population loan... meaning that it is NOT for everyone... and it is typically only utilized in a couple very specific situations.
I also hope that you are not buying a 15yr fixed simply to lower a rate on a 30yr, in exchange for more equity going towards your home and a couple $$$ extra month in costs... Unless you have legitimate cause...
let me know... I'd like to delve into this more then what I have...
thanks!
(also- I will give 100% non-biased advice- I have no personal benifit from helping this other then making sure (where other's haven't) that you are 100% educated in your options and positive that this is the route you choose)
Very well (I think i was hoping someone on this board could get me a deal)
#1 - Yes, Currently I have no real debt, all my high interest debts are paid off. Wife has a lease on an Accord and I have no interest on my other vehicle
#2 - Fixed 30 year at 6%. The builder hooked us up with a lender (the only thing that they did right)
#3 - About $1,200/mo. We had to pay back taxes since the house was a model home. We didn't have the money, so they bumped our payments upto $1500/mo.
#4 - Since May 2003, I've never refinanced
#5 - We owe $161, the house was appraised for around $175
#6 - Can anyone honestly answer that question? We really have no intention on moving unless I win the lottery
#7 - No kids, just a dog
#8 - 27
#9 - Yep
#10 - Good one
#11 - Maybe $900
#12 - Being 100% out of debt, getting this paid off ASAP.
#13 - $1500/mo isn't a big deal right now. I figure if I kept doing this after my payment goes back down in June, I can get it paid off must faster and be out of a $1200 payment in a little over a decade.
#14 - Computer Consultant, I pull in about $80k/yr, wife makes $30k/yr, but she's not steadily employed.