Is it more work to refinance with another mortgage company than refinancing with your current lender?
Three months ago my wife and I bought our first house at a 5.5% rate. The mortgage broker who was a family friend moved on to another company. My boss’s husband owns a separate company and can do us a refi at 5.125% which would save us pretty good money. It seems complicated though like our original closing! Would I save time or money by trying to refi through Bank of America (our current lender)? Any suggestions are helpful, thanks!
The work involved with your old lender or new lender is about the same, unless you are doing a FHA streamline refi, when it would probably be easier to stick with your current lender. If you have an FHA loan and 20% equity do a conventional refi.
How long are you planning to stay in this property? If you are going to stay in it more than 5 years it would probably be a good move, but anything much less than that you it will probably cost you more than it will save unless with the new refi you will be getting rid of PMI/MMI. If that is the case it would be a smart thing to do for sure. What you might consider is doing a 15 year refi. The current conventional interest rates, with 20% equity is about 4.5% with 0 points. That was the quote I got late last week, and that was for a non-owner occupied property through the Mortgage Minute Guy.
FHA, Freddie-Mac, or Fannie-Mae loans do not have any pre-payment penalties. Judy doesn’t have a clue. $10,000 in refi closing costs? Maybe if your are borrowing $750,000.
Consider getting a quote from a couple of lenders like Ditech and Quicken Loans. Their rates and costs are very competitive.
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