My current mortgage is 30 year fixed. I pay $908/yr (+$400 taxes). I've had the mortgage for 19 months, and my payments are $133 principal and $775 interest. Now I can get a 20 year FRM for $957 with an initial payment of $316 principal and $641 interest. So basically, for $50/mo I can cut more than 8 years off my mortgage. I'm waiting until a couple days after the next fed meeting to see if the rates drop even more. After that I'm off to my Federal Credit union to refinance. In all I'm looking to save about $130/mo (money I lose through interest). So there are so upsides to this economy.
Heck yes, I'm refinancing
January 24th, 2008 at 07:16 pm
January 24th, 2008 at 08:06 pm 1201205194
January 24th, 2008 at 09:12 pm 1201209146
I'm watching and waiting too. We are at 5.875% now and it looks like we may be able to get under 5% the way things are going.
January 25th, 2008 at 01:10 am 1201223453
January 25th, 2008 at 02:51 am 1201229480
January 25th, 2008 at 07:03 pm 1201287793
disneysteve - thanks for the info. However I concede if I go with a commercial lender I save about .25 to .5 percent compared to my credit union. But I want to hit the sweet spot for rates at my credit union. If you say the low will hit between 4.5 and 5 percent, my credit union's low will be between 4.75 and 5.5 percent, most likely. My current interest rate is 6.75%
January 25th, 2008 at 11:51 pm 1201305087
January 25th, 2008 at 11:52 pm 1201305164
January 26th, 2008 at 12:38 am 1201307895
I agree with you there. That isn't what I had in mind. Last time we refinanced, we were 3 years into our 30-year and went to a 25-year, eliminating 2 years. Now we are 5 years into the 25-year and are looking to refi to a 15-year, eliminating another 5 years. It would take us less than 2 years to recover the cost of refinancing, not 3-4 years.
January 26th, 2008 at 07:53 pm 1201377198
New Fannie Mae guidelines require that we price a loan based on loan size (loans under $75,000 have a higher rate), we price basedon your credit score (loans with a score of 620 or less have a 1 point adjustment to pricing) and the Loan to Value (if you are borrowing more than 70% of your value and you are taking cash out there is another adjustment to the pricing). So you can see the rates advertised but not everyone is going to get the same thing.
January 27th, 2008 at 12:30 am 1201393845
January 27th, 2008 at 11:21 am 1201432874