Refinance?

I'm thinking I should do something.  I refinanced in January 2009 into a 30-year @ 4.625%.  My P&I is around $1,040/mo.  I've been paying an extra $275/mo for awhile ($1,315 total) because I wanted to pay it off in around 20-21 years.  My balance is now just under 190k.  I could afford to pay more and pay it off in 15.  Should I be looking into refinancing now into a 15-year mortgage.  It seems like 15 years are way lower and if I'm going to be paying extra shouldn't I just bump it to a 15-year.   I have top-notch credit rating, no issues there.  I'm in Cook County, Illinois if that matters.  What could I actually get right now for a 15 year mortgage now?  Any suggestions on who to contact?

Well look up a mortgage BROKER...not a bank, not a lender, go with a broker who has access to all the goodies out there.

Just talked to a broker.  Looks like I can probably get 3.375% with minimal costs.  How the heck can I pass on this?  If my numbers are right I can knock off like almost 4 years worth at the end for like $30/mo more than what I was doing.  3.375% mortgage???  Never thought such a thing was possible.  I thought 7.125% was good when I bought 10 years ago.

And people say this is a bad economy!?

depeche,

If you get a float down, do you pay more fees or something?  I will mention float down when he calls me back today.  Thanks!

Done, locking in today.  I got 3.375% with about $600 total cost.  45-day float-down for 1/4 point or more drop.  He said they can't float for just 1/8.  I highly doubt rates are gonna fall 3.125%, but it'd be nice.

Thanks for the advice, wall.  

Now I can pay in 15 years what I was going to pay in 19 years for about a buck extra a day.  I'm knocking off like $75k in payments in those last 4 years.  Haha wow.  Kinda excited now! 

depeche,

I thought earlier in the year when I got my 15 year at 3.75, it was great........ Good for you, and I'm by no means bitching, because I took 7 years off my mortgage for about 60 bucks a month more....

Never thought such a thing was possible.  I thought 7.125% was good when I bought 10 years ago.

I highly doubt rates are gonna fall 3.125%, but it'd be nice.


maybe it's time to rethink things

you did well here depeche, now when rates fall lower, you can re-fi into a 30 year @ 2.5%

FWIW, i don't understand the pay it down early concept
depreciating "asset" and falling rates, unless you can't put borrowed (tax preferential) money to work in your favor at a higher rate,,,,,,,

leverage to the hilt, it's free money

i'm waiting another couple months, i think with a brutal EOY we will see rates nudge down further, AND gov will get itchy to do something and me thinks that all spells lower rates

Good work, Depeche.

I refinanced from a 7.25% for 30 years to 4.75 for 15 years one year ago. 

Wall or others--how soon can I go for another refinance or is it worth it?

 

 

 

 

the unwritten rule is - if you can get rate 1% lower then what you have it is worth it to RIFI.

I was in a mortgage 15years @ 4.25% that i got 6 months ago.  Rates dropped big time.  locked in @ 3.25% this week.

Easy way to understand--if you have the funds it is obvious to take the 15 year mortgage and save all the money in interest that would go to the bank in a 30 year mortgage. 

also if the rate is very low (3%-4%) it is more intelligent to pay off your credit cards/student loans that have higher interest rates first.

Who knows if you will ever be able to borrow money at a 3% rate.  remember  depeche quote "I thought 7.125% was good when I bought 10 years ago."

Thanks for the advice. I am on this today.

 

actually it's more like a 30% drop

and yes, you go now Uber. Price out a 15 yr and a 30 yr (and a 20yr if they offer) and compare what it would cost you to borrow the money (for basically free) and choose to pay the extra against the principal on the 30 yr vs the 15yr.  I would borrow infinite money @ 3%. You don't belong in this game if you cannot beat out 3%

No reason to be paying down principal on a declining asset, especially when the cost to borrow is 3 friggin %

the unwritten rule is - if you can get rate 1% lower then what you have it is worth it to RIFI.

not sure about this.

if you go from 8% down to 7%, you are shaving off 12.5$%

from 3% down to 2% is 33% cheaper etc.,,,,,,

I bought with 7.125% money in 07
refi'd with 5% money in 09 and might wait a little bit to see if i can snag something in the 3's,,,,,,

i wasn't trying to be a dick, i think people sometimes confuse the two concepts

You have a 5% and still didn't refi??? what are you waiting for?  Jump on it

Seems like I jumped a bit too early.  TNX made fresh lows today, back up a bit now.  Gotta keep an eye out for this and call my guy if it falls further to see if I can float down to 3.125. 

depeche,

Thanks.  I'm going to keep a watch on TNX and maybe call if and when it falls below 20 again.  Each 1/8 is worth like $11/mo so it's hardly worth getting crazy over.  But if I can knock $22/mo for 15 years it's certainly not bad (almost 4k over 15 years).

depeche,