Should I refinance?

[Toddsterpatriot]

April. But I get letters all the time of companies wanting to refi my loan. I think he can beat 2.5% by shopping around. Of course that's assuming good credit.

.

He can beat it by paying points.

 

[flacaltenn]

We will retire here most likely...
I've paid 4 years on my 30 year note at 4.5.

Well then, you're not even to the point where a substantial part of your monthlies is going to principle.. You COULD consider re-financing. But dont shop for the absolute LOWEST interest rate and keep it FIXED..

Look at a statement and see what part of the monthly payment is going to interest and what part is principle.

And if anyone asks for more than about $4K in "fees" -- keep shopping.

 

[Care4all]

Fees are broken down as:
Points 2000
Origination fee 1200
Services (title. Etc) 1100
Prepaid (insurance and taxes) 4700
Does this sound reasonable?

Why do you have points, AND an origination fee? I thought they were the same???

Maybe they are not?

Origination fee runs 0.5% to 1.0%, on $100k loan at most should be $1000, NOT $1200....that's also high....20% higher than the high, norm.

Honestly, I'd skip that lender...they are just a rip off, all the way around.... You can do much better.

 

[Care4all]

Maybe, because it was during the housing boom, 2004.... But we had an original loan of 165,000, we had paid it down to $155,000, I borrowed $155,000 to pay off my old loan....not a penny more...

The home value had gone from $165k to $300 value in the 6yrs we had the loan, $350,000 value by 2006, when we decided to sell it....we took that profit and ran to the boon docks in rural Maine, and bought a smaller cottage with the profit..... WaLa, no more mortgage....but the hubby did have to drive about 30 miles to the small city to get a job, so 60 miles a day driving to work!

During the time the refinancing/lender companies were fighting to get any mortgage....

And I paid nothing, to anyone, for the loan.... No reappraisal, no points, no other fees, and only borrowed what we owed on the mortgage.... I did not shop around....well, I might have picked a lender off lending tree.com, called a couple and went with the first one....easy peasy, during that time

AND at the time, neither of us, had a job....I had become a homemaker, and the hubby had lost his job, and had not started the new one he was going to, and they still gave us a loan.... With no fees to get it!

Things could be different now, but it still seems high...what's being offered to you....

 

[SmokeALib]

Thanks everyone for responding. Thanks to you all, I decided to find another lender. I am working with a local bank rather than the national well known lender I had been working with. I'm glad I did. They offered me 2.1 and zero points. Only 2k in fees. I'm running with that.

 

[Fort Fun Indiana]

Thanks everyone for responding. Thanks to you all, I decided to find another lender. I am working with a local bank rather than the national well known lender I had been working with. I'm glad I did. They offered me 2.1 and zero points. Only 2k in fees. I'm running with that.

Well done, sir.