Refinancing

[frenchy69]

Hi

I would like to refinance my current house,I purchased my house back in 2017, for 300k

 

I did  80 and 20 to avoid a PMI,

 

My 1st mortgage was 4% and 2nd (  20 % )was 6,5% .

 

I could refinance for 15 yrs @ 2.75 % rate, or 3.375% for 20yrs.

 

Which is the best route ? I know 15Yrs will save  me tones of interest.

 

The difference in a payment is about $269  more .

 

Should I go with a 20yrs and pay $200 more toward my principal ? or pay $269 go with 15 Yrs.

 

My goal is to own my house in 10 yrs ,pay extra  toward my principals .

 

Also the closing cost in 15Yrs is only $500 the 20 yrs is $1500 .

 

Are these fees negotiable ?

 

Any  suggestions  ?

 

 

Edited June 2, 2020 by frenchy69

[frenchy69]

I have a rental property ,which I  purchased back in 2006 my daughter is currently  renting it .

 

I am with OCWEN  which I hate ,I know its the worst bank  . 

 

my interest rate is 5.25%  with them .

I am currently paying $1296 a month.I have been paying $100 every month toward my principals .

 

I could refinance it at 3.375% right now with federal credit union.

 

Should I refinance it for 15 yrs ,but my closing cost is going to be  about $2000 .

My loan officer said I could roll that as long as the LTV is about 75%.

 

I believe my house is worth about 170k I owe 122k.

 

How do I determine the LTV on the house ?

 

I think its good idea since I am saving in interest .

 

Thanks for your help  and suggestions .

 

 

Edited June 2, 2020 by frenchy69

[cv91915]

LTV is loan amount divided by (appraised) value.

 

122,000 / 170,000 = 71.7%

 

How many years do you have left on your current mortgage?

[cv91915]

Duplicate thread.

[frenchy69]

I purchased this property in october of 2006 still have 16 yrs.

Thank you for a quick reply.

 

I think it would be a great idea to re-finance,I did some math my mortgage will be around $1100.

aim paying $1325 I pay $100 toward my principals .total of $1425 

 

 

[frenchy69]

just checked I have 183 payments remaining my interest  right now is  5..5% that's too high.

I am with mortgage question ,They purchased it from Ocwen .

If I refinance my interest would be 3.375% 

 

I currently owe   :$121,762.64

Mortgage Amount:

$1,253.27

Additional Principal:

$100.00

Total Payment:

$1,353.27

[cv91915]

Here's an easy self-service tool to calculate how much total interest you will incur with various options:

 

https://www.calculatestuff.com/financial/loan-amortization-calculator

 

In order to compare total loan costs for each option, just add the upfront fees to the total interest for each one.

 

13 hours ago, frenchy69 said:

Also the closing cost in 15Yrs is only $500 the 20 yrs is $1500 .

Loan costs and interest rates work in tandem, you can't compare them out of context.  You have to compare total costs as described immediately above.

[cv91915]

3 hours ago, frenchy69 said:

I purchased this property in october of 2006 still have 16 yrs.

Thank you for a quick reply.

 

I think it would be a great idea to re-finance,I did some math my mortgage will be around $1100.

aim paying $1325 I pay $100 toward my principals .total of $1425 

 

 

You can't determine your savings by just adding up payments, since part of each payment goes to interest and the rest goes to principal (the principal portion is yours to keep in the form of equity in the home).

 

[frenchy69]

I am about to close , I am deciding between 15 yrs or 20 yrs ,
15 yrs is 2.75%
20 is 3.375%

Payment difference is about $279
What do you guys think ?
I was thinking if I pay that extra
$ 200 toward my principal.

I don’t know ,
I would like an opinion on this .

Thank you .


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[cv91915]

38 minutes ago, frenchy69 said:

I am about to close , I am deciding between 15 yrs or 20 yrs ,
15 yrs is 2.75%
20 is 3.375%

Payment difference is about $279
What do you guys think ?
I was thinking if I pay that extra
$ 200 toward my principal.

I don’t know ,
I would like an opinion on this .

Thank you .


Sent from my iPhone using Tapatalk

 

Easy, do the 15 (shorter term AND lower rate).

[CTSoxFan]

2 hours ago, cv91915 said:

 

Easy, do the 15 (shorter term AND lower rate).

Agree 100%.  

[frenchy69]

Thank you for all your help .

Iam going with a 15yrs 2.75% .
That’s no brainer .My goal is to pay my house in about 7yrs .

Refinancing my other house as well .
That property is considered as investment ,therefore the rate is 3.375% at 15 yrs.
Iam fine with that compares to 5.5 ,
I am happy .
Thanks guys for all your responses .


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[centex]

On 6/11/2020 at 9:20 AM, cv91915 said:

 

Easy, do the 15 (shorter term AND lower rate).

And then STILL throw extra towards it each month, specifying that it is to go towards principal.

[frenchy69]

That’s what I have been doing since I’ve purchased my homes .
I put 2
$200 on one mortgage.
$325 on the other .

Like I said my goal is to pay both mortgages in 7 yrs .
Thanks for all your inputs .
This is a great site .. better than David Ramsey lol


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[frenchy69]

Hello again
Well yesterday was the day of my closing .
I went in ,to my surprise they tried to collect $3600.
I explained to my loan officer if there is any closing cost .
I would like to roll them into my loan .
Is this normal fees I should be paying ?
They said I need to pay my escrow up front .
My escrow has already been paid in June of this year .
If it was distributed why should I pay it again ?

I never refinanced before ,can someone explain all this fees upfront ? What I should be paying ?

I called my officer which is he’s very nice he will try to roll them into my loan but he has to reschedule my closing day again .
Also he did ask me how much I can come up with ?
Are this fees their profit ?
I have almost $80,000 positive equity in my house
I went to refinance for shorter term and of course A lower % rate .
Thank you


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[Glacier]

When I refinanced, the lender that I used, required me to fund my escrow (No option to roll into the loan, and I would not have done that anyway), with a balance approximate to what the balance of the escrow was with my original lender.  Once the original lender received full payment of the mortgage, the original lender sent me a check for the escrow balance I had with them.  The balance of the escrow was not transferable between lenders. 

[cv91915]

You should have received a Closing Disclosure three days before your closing date.  Did you review yours in advance?
 

https://www.consumerfinance.gov/owning-a-home/closing-disclosure/   (Since your transaction is a refi, there won't be separate columns for borrower and seller on page 2.)
 

Prepaid items are normal on a refinance.  
 

Even if escrow wasn't required (is it required or did you tell them you want it?) there would still be prepaid interest due at closing to cover the time between that day and your first payment.

 

Prepaids ensure that there are sufficient funds in your escrow account when future tax and insurance is due.  It's your money (not profit to the originator) and it's used to pay bills that you are responsible for.

 

You will receive a refund of the unused escrow balance for your current mortgage.

 

I'd be happy to look at your Closing Disclosure if you want to post it -- or PM me.  Either way, please redact personal info.

[frenchy69]

I just re-financed today at 2.75% for 15 years,  

I believe this is the best decision Ive ever made in my life.

Cutting half of your mortgage in half is the best investment decision in your life.

 

Now I can't wait to pay my house off.

 

Thanks for all your help