Refi proposal

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Topic Author
sqw12
Posts: 30
Joined: Tue Jan 12, 2021 10:19 am

Refi proposal

Post by sqw12 »

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!
Golf maniac
Posts: 1359
Joined: Wed Dec 27, 2017 1:02 pm
Location: Florida

Re: Refi proposal

Post by Golf maniac »

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.
Living Free
Posts: 822
Joined: Thu Jul 19, 2018 7:31 pm

Re: Refi proposal

Post by Living Free »

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…
presto987
Posts: 487
Joined: Sun Aug 30, 2020 10:58 pm

Re: Refi proposal

Post by presto987 »

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.
Topic Author
sqw12
Posts: 30
Joined: Tue Jan 12, 2021 10:19 am

Re: Refi proposal

Post by sqw12 »

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!
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