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Refinancing a house....

Discussion in 'Members' Lounge' started by Airjockie, Dec 15, 2005.

  1. Airjockie

    Airjockie Watanabe Whore!!!

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    I'm in the house over a year, I bought the house with a large downpayment due to my credit not being the best...and over the last year...all bills were payed or even payed more than needed to try to get the credit ratings up...

    Right now it's a loan for for the house for $165Ks at 7.4%...and I have a bill of $944 a month for the mortgage payment...and I try to pay $1K or more each month to try to make an extra payment on that bill....

    I need to refinance to bring the intrest rate down...and I'm currently at an adjustable rate...and I would like to try to get into a fixed rate...I think...

    When I bought the house, I had to get a lawyer and do a closing thing.,...would I have to do that again to get just a refinance? Would there be a huge closing cost on the refinance, and can that cost be added to the loan?....


    is there any real secrets I should know to get the intrest down more than the bank will offer?
     
  2. B16RacerN2NR

    B16RacerN2NR Working Hard VIP

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    what I learned is that the EXTRA money you put on a payment should go to the principal of the loan. you said you pay $944 a month but you try to send in 1k, you should tell them that you want the other $54 you sent to go to the principal. That way, your monthly payments go down slightly each time you pay extra, there fore the interest you'd be paying in the end won't be so much.

    For Example: you pay the extra $54 dollars a month and it goes to the principle. now your monthly payment went down from $944 to $943.57 (<--just an example) you keep doing that over the years and you start to pay less monthly and the final balance on your loan becomes less there fore that 7.4% isn't as big a chunk on the final balance.

    Hope you understood me [​IMG]
     
  3. pissedoffsol

    pissedoffsol RETIRED

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    you will have to re-close so to speak... the whole deal all over again.

    if you don't have 20% equity yet, you'll get the pmi still.... unless your DP was big enough to avoid it.

    7.4 isn't that bad... rates are on the way up daily.
    i closed at 6.5%

    http://today.reuters.com/investing/finance...Y-MORTGAGES.XML

    6.3 is national average right now.

    since that inlcudes kuntucky and most of the red states, if you can still get 6.5%, i'd be suprised.

    i just ran a quick re-finace calculator based on area for 165k... and this is what you're looking at:



    so low 6's is about where it's at.

    but this changes daily, if not hourly...



    and i don't know how your payment is lower than mine... well, i guess the larger DP helped... and i think i remember the figure. but with my DP, that puts us at about the same finacing figure....
    but i'm paying 1135 a month at a lower percentage....
    strange...
     
  4. TurboMirage

    TurboMirage YEEAAAHHH VIP

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    +1 for one of the biggest quotes evAr.
     
  5. Jeef

    Jeef NO MA'AM Moderator VIP

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    I would definetly do it to get the fixed rate. I don't think we will ever see the low rates we had again. I wouldn't want to risk this, but thats my opinion.
    I'll ask my boss about the refin as he did it two years ago and saved a but load of $$$.
     
  6. Airjockie

    Airjockie Watanabe Whore!!!

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    I bought the house for $164Ks...put $30Ks DP...and the extra money I pay each month goes toward the principle....

    I wish I could get in the 5% area..... :cry2:

    and even after I do refinance...I'll still dump $1K a month or more to the house....I want to pay it off early.

    but also...I'm wondering if pulling out a home equity loan is worth it?...I could use a new car..... :)
     
  7. tab

    tab Super Moderator

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    Ask about "buying down points". Basically, you might be able to spend a few bucks now and save in the long run. I'm surprised you had 30k and nobody mentioned it to you. You give them cash, and your interest rate goes down. You have to figure in how much it will save you compared to the cost. If you are making larger payments already, then that's the best way to get the cost down.
    There is a loan origination fee involved that suxors. Also, if you are only going to be in the house for less than 10 years or so, then forget it. Getting a low percentage helps a lot more in the long run than in the first five to ten years.


    <<<<Not an expert, but I've heard about the buying points thing.
     
  8. djextremity

    djextremity Senior Member

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    2nd mortgage > PMI

    looks like you're pretty close to 20% equity already. if you have a good loan officer/mortgage broker i bet he can find you a loan at 82% or whatever you still owe w/ no PMI. i've even seen loans at like 90% w/ 10% down and no PMI. even if you have to get a second to cover the PMI, at least the interest is tax-deductible. home appreciation is on the decline so it's not a good idea to take the PMI if you don't have to. and don't feel shoehorned by your loan officer, shop around a little independently.
     
  9. Airjockie

    Airjockie Watanabe Whore!!!

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    I didn't need and don't have the PMI...not with that much down.
     
  10. djextremity

    djextremity Senior Member

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    good. =]

    sorry, i thought you had by brian's post. i hope you can find a no/lo fee/closing cost loan w/ a decent interest rate. how long do you think you'll be there? out here in cali there's a company that offers a negatively adjusting rate for 4 yrs followed by 26 fixed at 5% (5.7 apr). you amortize negatively for a little while but if you're making additional payments that's okay. plus we may not see 5% for the next 30 years anyway. but i dunno if they'd have anything like that in ct.
     
  11. Airjockie

    Airjockie Watanabe Whore!!!

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    How long I'm in the house depends on how far I can make it something that I like to live in...so far the garage is mostly done, and then it's on to the house rebuild....I would say I might prolly try to put at least 5 years into it...but the 30 minute commute is not what I expected...so moving closer to work may be in the distant future....or if I can get re-located with the company....If they offer me a job as a feild tech rep in Japan...then I'll sell the house ASAP...even if it's tommorrow...
     
  12. ScrapinSi

    ScrapinSi Senior Member

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    Damn! Glad I closed when I did! 6% fixed!! :doalittledance:

    Clayton... If you want, I can recommend a guy to talk to for a refi... He's a car nut... Drive's a silly Corrado... Want his info?
     
  13. Airjockie

    Airjockie Watanabe Whore!!!

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  14. ScrapinSi

    ScrapinSi Senior Member

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    Email ABRIERE@ADVISOR1.NET. Tell him you know Noah (ScrapinSi) from netuners.com and he'll know who i am... Really cool guy.

    EDIT: He's in Ellington I think.
     
  15. reckedracing

    reckedracing TTIWWOP VIP

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  16. Airjockie

    Airjockie Watanabe Whore!!!

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    well, I called the bank that has my mortgage today...and things look good...

    My credit did pop up a little...so now I'm in the mid 600's, and he said he can try to get me 6.25-6.50% fixed rate....all he needs is a few pappers faxed to him...and get the house re-appraised...and 10 days later I'll be set. Then I started crunching numbers on my own with some mortgage caculator...and I'm going to try to get more money payed towards the house if I have it..

    as an example...if I can come up with an extra $1000 a month...then my house will be paid for by 2013...and the total intrest that I payed will be only in the 30Ks area...while what I have now....at 7.4%...I don't even want to say....but at 6.00 or 6.25%...its still not too bad...

    so that makes me want to do more in an effort to pay it off ASAP...pay more now and be done with it in 7 years...or pay the minimum for 30 years....and waste all that money into intrest.

    damn.....I think I got a tad bit smarter in the last few days. :)
     
  17. ScrapinSi

    ScrapinSi Senior Member

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    must be nice to have an extra $1k to throw at your mortgage... :cry2:

    But then again, no car payments... No Credit cards... You can do that... Fucker.
     
  18. TurboMirage

    TurboMirage YEEAAAHHH VIP

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  19. Airjockie

    Airjockie Watanabe Whore!!!

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    I don't exactly have that $1000 to throw at it...but what I can throw at it I will. And once I get the sandblaster set up, then I'll offer to blast things at a price cheaper than the other places charge...and if I can do a swap a month for someone...then that's also a possibility to get more money to the mortgage.

    even if I have to get a job under the table or something...I would still love to try to get something put down on the mortgage.
     
  20. ScrapinSi

    ScrapinSi Senior Member

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    Try having a kid, car payment, & a credit card... LOL...

    I've got lots of stuff i wanna do around the house... But my next goal... paying off the last credit card...
     
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