Mortgage refinancing advice

[lock n' load]

I am currently looking at refinancing my mortgage to get a better interest rate. I was also looking at borrowing against the equity of my home so that I can do some repairs. So far I've only contacted my old mortgage company whom I financed through when I first bought my house. The quote I got is a really good interest rate that is 1.75 points lower than what my current interest rate is. I've never done this type of thing before so it's new territory for me. Anyone on here have experience doing either/both? Thanks in advance for the assistance.

[GlockSpock]

I refinanced using better.com. 2.75%. Would highly recommend as an option for anyone technically savvy. 

[Raoul]

Might be handy to use bankrate.com just to get a good idea of the rate spread.

[Erik88]

47 minutes ago, GlockSpock said:

I refinanced using better.com. 2.75%. Would highly recommend as an option for anyone technically savvy. 

How many years?

I'm seeing 2.75% for 30 years. Lower if you can do 15-20 years.

[lock n' load]

Most likely 30 years but if they have a 20 year term that might be a possibility. I dunno how many places that offer that one. I've only heard from others about the 20 year one

Edited February 13, 2021 by lock n' load

[lock n' load]

The only offer I got at the moment is 2.79% which is pretty good.

[toby1304]

2.625 for 25 years with Legacy Home Loans out of Murfreesboro. Finalized on Tuesday.

[A.J. Holst]

Work in the industry, best credit union rates currently 15 years, 2.375

Higher loan to values can increase your base rate.

[Swamp ash]

50 minutes ago, A.J. Holst said:

Work in the industry, best credit union rates currently 15 years, 2.375

Higher loan to values can increase your base rate.

That's about the rate/term we just got. Essentially, we knocked 5 years off the loan for ~ the same monthly payment.

[runco]

Look at total cost to refinance, your incumbent lender should be more competitive vs. introducing a new financial institution as to the cost to refinance goes, and all should be very close i.e. first or second decimal on the actual rate.   This is what I recall when I last did this 10+ years ago, and am one of those over thinkers.   You owe it to yourself to do a thorough due diligence, its only your hard earned money in jeopardy.

[ReeferMac]

I recently "re-did" things as well. I found it very useful to sit down with a mortgage broker to discuss everything. She really helped explain some things and helped with the amortization. In the end we went with a modified mortgage from our existing lender, but having the expert advice working in my corner made me comfortable with the process.

[Darrell]

It's too bad that investment rates don't approach the loan interest rates. 

[Ronald_55]

I tried to redo ours, but seeing we only have 7 years left and the lowest term is 15 it is not appetizing. Especially when I see that we only save about 1200 if I keep paying the same payment due to the $3000 in losing costs. We do pay it off a few months earlier, but that is not enough to go through all the hassle like when we refinanced about 8 years ago. Estimator almost screwed us back then pulling some crazy low "equivalents" that were not even near us. Plus right now my house's curb appeal is pretty low with the yard torn up trying to improve the grass coverage in some shady areas. 

[peejman]

13 hours ago, lock n' load said:

I am currently looking at refinancing my mortgage to get a better interest rate. I was also looking at borrowing against the equity of my home so that I can do some repairs. So far I've only contacted my old mortgage company whom I financed through when I first bought my house. The quote I got is a really good interest rate that is 1.75 points lower than what my current interest rate is. I've never done this type of thing before so it's new territory for me. Anyone on here have experience doing either/both? Thanks in advance for the assistance.

Do the math and make sure it makes sense. There's plenty of online loan calculators available to help.  Consider the investment value of the cash you have to put down 30 years from now. 

It depends a lot on how far into your loan you are, and is the idea of starting over with 30 years to go ok?  How old will you be when the loan is done?

Make sure the terms of the new loan are to your liking. Bankers can try to slip something past you thats to their benefit. 

[superduty]

Keep in mind that cash-out refi's are usually a bit more expensive than a conventional refi.  Even if mortgage rates are smokin' right now, you wont get quite that super low rate on a cash-out.  Likely still better than what you are paying now though. 

[patrick0685]

shop around...my buddy does loan and is very good. Will work his ass off for you. 

[A.J. Holst]

Par has increased .125 in the last 2 days, treasuries getting some play right now.

And yes, while the base rate may be 2.5, depending on the product, term and LTV, you may have a rate adjustment depending on risk