Curious to get this group's thoughts on a refi opportunity a mortgage banker recently emailed. I assume that most ppl will tell me to refinance asap, but perhaps there are better deals to be had?
Home FMV: $1.1m
Current Mortgage: 30-year fixed 3.6% w 29 years remaining and principal balance of $690k
Refi Opportunity: 2.95% 30-year fixed, saving $320 per month w upfront cost of $1,450
Credit score: 800 w stable income / headroom to cover mortgage comfortably
I recover the $1,450 in ~5 months. My quick research on mortgage rates suggests that 2.99% is reasonable. Thanks for any feedback!
Refi proposal
-
- Posts: 1359
- Joined: Wed Dec 27, 2017 1:02 pm
- Location: Florida
Re: Refi proposal
Is the mortgage banker someone you know or is this someone randomly contacting you? A random contact I would ignore due to potential ID theft. If I know the broker it sounds like a no brainer to move forward. Always do your due diligence and check rates for your specific circumstances through online, local banks, national lenders, and at least one broker. By putting in the work you can find out if the rate and closing costs are a good deal.
-
- Posts: 822
- Joined: Thu Jul 19, 2018 7:31 pm
Re: Refi proposal
You should check the refinance mega thread. Rates are pretty good right now so I’d definitely make sure an offer is competitive before proceeding. Get at least 3 quotes for the rate. Was the mortgage banker from your current lender? Ive heard they do that when they know your current rate is not competitive to try to keep you from leaving. So definitely shop around…
Re: Refi proposal
You should be able to do significantly better than this offer. I echo the previous recommendation to check the refi mega thread.
Is your loan balance a super-conforming or jumbo? That will affect which lenders you should target.
Better Mortgage is currently offering a bonus for Amex cardholders ($2k credit for conforming and $6k for jumbo). That is on top of whatever price matches, etc. you get from them.
Is your loan balance a super-conforming or jumbo? That will affect which lenders you should target.
Better Mortgage is currently offering a bonus for Amex cardholders ($2k credit for conforming and $6k for jumbo). That is on top of whatever price matches, etc. you get from them.
Re: Refi proposal
Thanks everyone! I was contacted by the mortgage banker that setup the mortgage on my initial purchase. The loan is conforming in Seattle. I'll definitely shop around to get a lower rate. Appreciate the tips!