Thread: Looking to refinance my home

Not sure exactly, but points do mean money up front. I'm sure with good credit, you could find a better rate and possibly re-finance for fewer years!

Originally Posted by Doublebase

I currently have a 6.875% rate on my loan. Its 1 loan. Is it possible to refinance without paying any points? Is a point = to a percentage? Like if Ditech.com says that they charge 2.375 points is that 2.3% of what my loan amount is?

Some places offer no points mortgages. Paying points up front usually results in a lower mortgage rate. But be careful. Look at the APR (annual percentage rate) which takes into account the amount of the points that you pay up-front.

To answer your other question, yes you will have to pay 2.375% of the loan amount (the amount that you finance) at the closing. Points are tax deductable, but there are rules about that also.

I signed up with Getsmart.com. Now they send my application to loan companies who then contact by phone or e-mail. I will let you know what they offer.

Points? whats this points thing you guys have there?

Originally Posted by BulkMeUp

Points? whats this points thing you guys have there?

Points are basically a percentage they charge you to give you the loan. i.e you have a 200,000$ loan and they charge you 2 points to refinance. Thats 2,000$ added to your loan.

Originally Posted by Doublebase

Points are basically a percentage they charge you to give you the loan. i.e you have a 200,000$ loan and they charge you 2 points to refinance. Thats 2,000$ added to your loan.

That would be $4000

Originally Posted by largepkg

That would be $4000

Originally Posted by Doublebase

I currently have a 6.875% rate on my loan. Its 1 loan. Is it possible to refinance without paying any points? Is a point = to a percentage? Like if Ditech.com says that they charge 2.375 points is that 2.3% of what my loan amount is? I'm looking to do this in the cheapest way. Obviously. Any help would be appreciated. Thanks.

have u asked your current lender about streamlining your loan? That might be the cheapest and easiest way.

Originally Posted by Prince

have u asked your current lender about streamlining your loan? That might be the cheapest and easiest way.

Not sure what that is? Is like refinancing to a lower rate with my current lender?

Originally Posted by Doublebase

Not sure what that is? Is like refinancing to a lower rate with my current lender?

yes

however, the company is unlikely to modify your current mortgage if you are not behind. never hurts to ask.

points and origination fees are prepaid interest, in exchange for a lower interest rate. you often have to stay in the house 7 years to break even, so they are not worth it. ask the mortgage co/bank for a "par quote". zero/zero.

rates are 5% for a 30 year now so EVERYbody needs to jump on this! I would call/browse your local credit unions first. they often have better rates than national megabanks. oh...customer friendly too!! a CU in my town has a "special" on short term (10 years and less) refis, 4.55% w/ $600 closing costs. WOW. I jumped at it.

Took me close to 3 months to refie. Finally got the rate I wanted. 4.875 30 yrs fixed. I'm saving 600$ a month. I did have to pay my loan down to make it 80%LTV though. Cost me about 20K. Nobody was offering mortgage insurance so I had no choice. Better this way because now I don't have to pay PMI and I also got out of my escrows.

It takes a while to get through this process. I needed to keep my HELOC so that is one of the reasons it took so long. If you are looking into refinancing make sure you have everything in order so you can get it done as fast and efficiently as possible. These banks want to see everything.

Originally Posted by Doublebase

Took me close to 3 months to refie. Finally got the rate I wanted. 4.875 30 yrs fixed. I'm saving 600$ a month. I did have to pay my loan down to make it 80%LTV though. Cost me about 20K. Nobody was offering mortgage insurance so I had no choice. Better this way because now I don't have to pay PMI and I also got out of my escrows.

It takes a while to get through this process. I needed to keep my HELOC so that is one of the reasons it took so long. If you are looking into refinancing make sure you have everything in order so you can get it done as fast and efficiently as possible. These banks want to see everything.

Yeah I had to go and clear up all the clerical errors and other BS companies do to your Credit Report, like when I Consolidated all of my School Loans One Agency put down that I paid it off and my Balance was 0 but it was 180 Days Over Due, it took 2 weeks just to have them fix that. Once the little issues like that were cleared up my Credit Score Shot up and we got our loan which took 6 grueling days of meeting with our officer and looking over Bible sized stacks of Paperwork and sign or initialing them, then you have to wait a week after that and then over the weekend after that for the Money to show in your Account..... Now my GF wants to do it again except for More Money and Buy 2 Condo's as Rental Properties,

Originally Posted by maniclion

Yeah I had to go and clear up all the clerical errors and other BS companies do to your Credit Report, like when I Consolidated all of my School Loans One Agency put down that I paid it off and my Balance was 0 but it was 180 Days Over Due, it took 2 weeks just to have them fix that. Once the little issues like that were cleared up my Credit Score Shot up and we got our loan which took 6 grueling days of meeting with our officer and looking over Bible sized stacks of Paperwork and sign or initialing them, then you have to wait a week after that and then over the weekend after that for the Money to show in your Account..... Now my GF wants to do it again except for More Money and Buy 2 Condo's as Rental Properties,

Thought your mortgage was paid off?

Originally Posted by Doublebase

Thought your mortgage was paid off?

Our home is paid off, so we got an Equity Loan for $250k, and still have $700k available, or $685... whatever this economy has done to the value, luckily we live by Waikiki so prices stay relatively stable and high.....

Originally Posted by maniclion

Our home is paid off, so we got an Equity Loan for $250k, and still have $700k available, or $685... whatever this economy has done to the value, luckily we live by Waikiki so prices stay relatively stable and high.....

I was wondering how you paid for those beamers.

Hey DoubleBase, after refin. your house how % did they charge you to do that? Also did you refi. your house just to lower your APR? (i'm a realtor)

the loan modification, you have to show that you are in a hardship and cannot afford the payments. ive helped about 5 people with the process so far (with success )

Originally Posted by Doublebase

I was wondering how you paid for those beamers.

I explained it in a thread somewhere, I had talked her into getting the Equity Loan so we could buy our Solar Energy system which has already been saving us half of our Loan Payments per month, I sweetened the deal by showing her we could also get new BMW's and get at least 20 grand in trade-in from our older cars, plus we went on vacation staying at nice hotels in SF and Palm Springs. We got 10k back on our Solar purchase via Tax Rebate so that will pay itself off in 3 years, so that $50,000 of the 250k paid in 3 years.

Originally Posted by Uba

Hey DoubleBase, after refin. your house how % did they charge you to do that? Also did you refi. your house just to lower your APR? (i'm a realtor)

I paid zero points. Cost me about 1600$ in fees to refie. Not including what I had to pay down in order to be 80%LTV. I went from 6.875% to 4.87%.
My mortgage broker is a friend of mine so I got a good deal on fees.

Originally Posted by maniclion

I explained it in a thread somewhere, I had talked her into getting the Equity Loan so we could buy our Solar Energy system which has already been saving us half of our Loan Payments per month, I sweetened the deal by showing her we could also get new BMW's and get at least 20 grand in trade-in from our older cars, plus we went on vacation staying at nice hotels in SF and Palm Springs. We got 10k back on our Solar purchase via Tax Rebate so that will pay itself off in 3 years, so that $50,000 of the 250k paid in 3 years.

How much did the whole system cost?