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Thinking of doing a refi on your house, any lenders that i should inquire with?

mikeyz 1,530 666 February 29, 2016 at 09:47 AM
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Have had our house for 5 years now, its on a 30yr 4.75% rate FHA currently.

I paid down the loan to remove the PMI, so the loan now is more like a conventional currently.

We owe 260K on it, current market value is around 425K.

Not looking to pull out any cash, just want to lower our payments per month.

We plan to have the house for about 2 more years, we bought a piece of property and will be building a new home on it. So the refi has to cost less than what it will save me for these 2 years.

Are there some lenders that i should put in an app with that have low refi fees with a good interest rate?

I pinged quicken and they came back with a 3.875 rate for me at the moment, but fees are close to 6k.

Thanks for any insight!

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#2
Anecdote.... I used Amerisave back in Dec/Jan. About $1800 in true fees for the refi which included the $400 appraisal. Fees seemed to be constant regardless of the term/rate combo chosen, the only variable is prepaids. No cash out (actually called "limited" cash out as I did finance the fees and prepaids/escrows, so in essence I cashed out my (then) current escrow account and it was JUST about to pay property tax, so it was relatively high).

Went from 25 yrs left on a 30 @ 5.25% to 15 yrs 3.25%. That term/rate combo actually had negative points too (few hundred $$). Payment went up about 10% but for me that roughly coincided with paying off another loan, so my OOP monthly is about the same.

Since, they have sold the mortgage to PHH and then to Freddie although PHH is still the servicer.

Payback was immediate, essentially.

Process was easy, entirely online except for the appraisal and final closing which I did in my house. All paperwork and whatnot is exchanged through their site. They were very good with questions I had and easy to get ahold of.
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#3
i did a refi with quicken in september, 2 years post-purchase, to remove pmi. went from 4.375 to 4.05 on a 28yr and the only fee (other than pre-funding the escrow for the tax payment due in october) was a $75 origination fee. what is included in the 6k they quoted you?

we do have another mortgage with quicken (though this mortgage was with nationstar at the time), and i am a schwab bank customer, so that may have factored in.
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#4
Local credit union is usually a good start. You will want to calculate the break-even point for a refinance. 2 years is cutting it very close and honestly probably not worth the hassle.

You can run cost comparisons to determine how long it will take to recoup the refinance. I'd do that way before I do the approval process. Again, 2 years is REALLY pushing it -- I'd say you'd only gain a handful of months of the difference which won't amount to much for the effort.

Run your break-even scenarios and post them here to get better and more complete advice.
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#5
Penfed
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#6
Look at Sebonic Financial they appear to have lower fees. Are you thinking about a 5 or 7 adjustable rate? That would help drive down the rate to allow you to save money in a short time period. It might back fire if you have to stay in the house for an extended time period.
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#7
search this forum for "box home loans"
There fee is $199; there rates seem to match Sebonic (mostly) and you get a extra lender's credit if you go through the SD link.

I just finished my 3rd re-fi through them. Cost me $70 after all the discounts.

Good luck!
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#8
I'm looking to possibly refinance as well, going from a 30 year (5 years in) to a 15. Any suggestions?
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#9
Quote from flatlight View Post :
Penfed
Second that
Also, if you're not planning to love long at that house - think about ARM loans. No need to overpay for 30 year fixed. Penfed has great 5/5 ARM loan, somewhere in between ARM and fixed. Rate can reset, but only every 5 years.
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#10
Quote from Tatka75 View Post :
Second that
Also, if you're not planning to love long at that house - think about ARM loans. No need to overpay for 30 year fixed. Penfed has great 5/5 ARM loan, somewhere in between ARM and fixed. Rate can reset, but only every 5 years.

I'm a penfed customer in other areas (CC, banking, auto loan), but haven't heard great things about their CS. Not that it's bad, but that they are overworked, take a long time to get back to you, closings take awhile, etc.

When I refi'd I compared their rates and they might have been a tad lower, but Amerisave offered SO many options. I like the ability to see the give and take between term, rate, points and the payment. Honestly in looking for a term and rate, I was looking for a certain payment and to have near zero points. That just wound up being 3.25% @ 15 yrs.

As far as ARMs go you are right.... but don't forget that the assumption you CAN sell before a reset is not sound. This is what caught so many people in the last recession - they refi'd using an ARM (essentially teaser rate), assumed they'd be able to refi/flip/sell before the reset, then got caught with their pants down when they couldn't sell, and values went down and couldn't refi either.
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#11
Quote from Jabbit View Post :
I'm looking to possibly refinance as well, going from a 30 year (5 years in) to a 15. Any suggestions?
What are your rates (current and prospective?) Roughly how long do you envision staying in the house for? Assuming you're currently in a conventional, are you still paying PMI? You'll also need a rough estimate on closing costs from the lender(s) you're targeting to properly run the numbers.
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#12
Quote from Dr. J View Post :
I'm a penfed customer in other areas (CC, banking, auto loan), but haven't heard great things about their CS. Not that it's bad, but that they are overworked, take a long time to get back to you, closings take awhile, etc.

When I refi'd I compared their rates and they might have been a tad lower, but Amerisave offered SO many options. I like the ability to see the give and take between term, rate, points and the payment. Honestly in looking for a term and rate, I was looking for a certain payment and to have near zero points. That just wound up being 3.25% @ 15 yrs.

As far as ARMs go you are right.... but don't forget that the assumption you CAN sell before a reset is not sound. This is what caught so many people in the last recession - they refi'd using an ARM (essentially teaser rate), assumed they'd be able to refi/flip/sell before the reset, then got caught with their pants down when they couldn't sell, and values went down and couldn't refi either.
Agreed. After recently watching The Big Short, it's easy see how people got seduced by ARMs, and it was interesting to learn just how much of an effect they specifically had on tipping off those guys to the recession itself.
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#13
Quote from Dr. J View Post :
I'm a penfed customer in other areas (CC, banking, auto loan), but haven't heard great things about their CS. Not that it's bad, but that they are overworked, take a long time to get back to you, closings take awhile, etc.

When I refi'd I compared their rates and they might have been a tad lower, but Amerisave offered SO many options. I like the ability to see the give and take between term, rate, points and the payment. Honestly in looking for a term and rate, I was looking for a certain payment and to have near zero points. That just wound up being 3.25% @ 15 yrs.

As far as ARMs go you are right.... but don't forget that the assumption you CAN sell before a reset is not sound. This is what caught so many people in the last recession - they refi'd using an ARM (essentially teaser rate), assumed they'd be able to refi/flip/sell before the reset, then got caught with their pants down when they couldn't sell, and values went down and couldn't refi either.
You're right, PenFed CS is not the best. However, we're talking about refi, not original purchase, so some delays won't cost you tons of money

As for ARM - I specifically mentioned 5/5 loans, not the ones that might reset every year.
And I did my math: my loan at the time was @4.75% (as for OP), rate for 5/5 was 2.75%, reset is capped for up to 2% at the time. Even if rate will jump dramatically to the max, monthly still be lower than my current at the time due to principal reduction). I would be better off with ARM for next 10 years. Also, I did the math, looking at my future potential cash flow - that loan fits just right again, as in 10 years I'm expecting decrease in expenses.

To sum up - I'm not a fan of ARMs in general, but I got hooked by 5/5 concept. It might be right solution for OP too. I'm actually watching rates now - maybe I'd refi again soon just to reset the clock.

PS checked again - current penfed rate for 5/5 is 2.75%, no origination fees. So, closing costs would be quite low (appraisal+title insurance+prepaids). With OP's plan to sell in 2 years - it's no brainer if you ask me.
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Last edited by Tatka75 March 3, 2016 at 11:05 AM
#14
If you're going with a online base vendor then just shop around. Besides others mentioned take a look at Aim Loan and Provident Funding. Zillow Marketplace is also a good place to check as well. I never found Penfed to have that great pricing for fixed rate loans.

I plan to refi really soon (just undecided if I want to go 30yr or 15yr) and will be looking into Aim Loan, Provident Funding, Sebonic Financial. I didn't realize Box Home Loans still have discounts through SD, so I may look into that too.
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#15
Quote from godfather927 View Post :
What are your rates (current and prospective?) Roughly how long do you envision staying in the house for? Assuming you're currently in a conventional, are you still paying PMI? You'll also need a rough estimate on closing costs from the lender(s) you're targeting to properly run the numbers.
Currently at 4.375% on a 30 year FHA, still paying PMI. 4 years 8 months into the mortgage. Staying here forever.
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