Comments on: How to Compare Mortgage Refinance Offers

By: Mike

Mike — Wed, 03 Jun 2009 16:18:26 +0000

Which one? I live in NJ

By: sk

sk — Tue, 02 Jun 2009 14:40:34 +0000

Jim, how is you refinance shopping going? Did you find any good deal?

By: TJ Shah

TJ Shah — Mon, 01 Jun 2009 16:14:00 +0000

I got it from greater NJ mortgage. I live in NJ.

By: SK

SK — Thu, 28 May 2009 19:14:08 +0000

Christina,
When did you lock and which lender if I may ask. I am not geting this rate now.

By: Christina

Christina — Thu, 28 May 2009 13:03:28 +0000

We are refinancing right now into a 4.6125 30 year loan with about $3,800 in fees. 4.25% would be great but I don’t know if you can get that rate yet.

By: Jim

Jim — Thu, 28 May 2009 04:01:45 +0000

I pulled it from a list on Bankrate and I live in the state of Maryland.

By: Ed

Ed — Thu, 28 May 2009 03:40:09 +0000

Where did you get that rate 4.625 with no points? i have a similar situation but getting that rate would require 1 discount point

By: paystolivegreen

paystolivegreen — Thu, 28 May 2009 01:57:26 +0000

I really want to refinance, but the rates just jumped dramatically over the last week or so. I just hope they go back down again so I can take the plunge.

By: thomas

thomas — Wed, 27 May 2009 21:48:27 +0000

I’ve only looked into refinancing once. I’m not even a year in and unfortunately was hit with lowered home value. It’s not as bad as others, but the dip is enough.

What I couldn’t figure out, was that my quote I would have a)lost all my equity b/c the refinance amount would have been the full value b)would have paid $x dollars and my break even point was 5 years.

Something didn’t sound right about the whole thing, but I reviewed and discussed and that was just the way it was. the difference in what my current loan balance and new balance totally wiped out any reduced costs from the lower rate.

By: Jim

Jim — Wed, 27 May 2009 18:54:20 +0000

That’s why I like the 30 year, it’s more interest if you pay on schedule but nothing says you have to (prepayment penalties are illegal in Maryland). Flexibility is always valuable.

By: Dan Danford

Dan Danford — Wed, 27 May 2009 18:25:21 +0000

I tell people in my practice that flexiblity is one key to success. One more option for you with the 30 year term: if you can invest the extra money to earn a higher rate. Leverage can be good, too!

By: Chuck

Chuck — Wed, 27 May 2009 18:18:56 +0000

I went with the 30 year, because the freedom to make the smaller payments was worth the 0.375% to me. But I do plan to pay it down quicker. If I change my mind, or cash flow gets tight, and want to go back to 30 year payments, I can do that. Freedom is great.

By: Jim

Jim — Wed, 27 May 2009 18:09:28 +0000

If you were to take a 30 year mortgage and make larger payments, equal to a 15-year mortgage's payments, then you come out the same as a 15-year mortgage if the interest rate were the same. I did an analysis in my article on a 15 vs 30 year mortgage myth. This is why 15 year mortgage interest rates are lower, if they weren't then everyone would do a 30 year mortgage.

By: Brian

Brian — Wed, 27 May 2009 17:48:03 +0000

What if you refied into the new 30-year but kept paying the “extra” 600/month that you would save? What would be the savings then?

By: SK

SK — Wed, 27 May 2009 17:06:43 +0000

This post is a real help. I am in the market for refinancing as well. My 5 year ARM is going to adjust next year January, so , I am trying to be proactive and refinance now when the rates are low. My current lender BOA is offering me the Making Home Affordable plan which has a little lesser rate than the regular rate for refinancing and according to him the whole refinance process will be short. I have noticed that BOA’s rate is higher than most of the lenders. I am also considering PNC bank and SECU (MD State Employees Credit Union)in my shopping list. Their interest rates are very low compared to anyone else. I will follow up this discussion thread very closely.
Thanks.