| Author | Message | ||
| BobD (Bobd)
Member Username: Bobd Post Number: 990 Registered: 3-2001 |
Sean, no matter what company you use, just remember money is the great tiebreaker. Compare closing costs with each company you interview... but the bottom line is the interest rate. A mere 1/4 point on a $200K / 30 year mortgage increases your payment by $32 per month... or $384/yr.... or $1920 in 5 years.... or $11,520 over 30 years! That's some pretty good brewski money.  Here's a mortgage calculator FYI.... good luck!!! http://www.bloomberg.com/money/loan/mtge_calc.html | ||
| Jim Schad (Jim_schad)
Member Username: Jim_schad Post Number: 718 Registered: 7-2002 |
Sean, I gave him your name so he would at least know who you were if you call. If not then just mention me and ferrarichat and he will figure it out | ||
| Sean Ruckel (Sruckel)
Junior Member Username: Sruckel Post Number: 161 Registered: 10-2001 |
Thanks to everyone for the information. I've taken some notes and have a couple of places to call. Jim, I'll give Dave a call on Friday when I get back from Atlanta. Hopefully, I'll have an update after the weekend. | ||
| Jim Schad (Jim_schad)
Member Username: Jim_schad Post Number: 715 Registered: 7-2002 |
Sean, Here is a response from my friend Dave Smith. I copied him on your post. it depends on how much he owes...he hasn't paid any interest off anyway so he wouldn't really be losing any money long term. The average rate right now has been 5.91 for the past 2-3 weeks (in the newspaper)...there isn't a 5.5% out there right now. You know that all they do on those deals is jack up the rate so they can pay their costs...except they usually don't pay their escrows or pre paid items. | ||
| Chris D (Prohydro)
New member Username: Prohydro Post Number: 43 Registered: 11-2001 |
Anybody have a good contact for the Northwest? My wife and I are going to refinance, and want to start shopping around. Thanks! | ||
| Jim Schad (Jim_schad)
Member Username: Jim_schad Post Number: 713 Registered: 7-2002 |
Jonathan, His contact info is at the bottom of my post. He is a great guy. Met him one day when it was raining and he was trying to get his jeep top on so I helped him. Lived below my girlfriend in her apt. He and I lived together for a couple years too back in 94. | ||
| j scott leonard (Jscott)
Member Username: Jscott Post Number: 299 Registered: 1-2002 |
If anyone is purchasing a home, email me and I will check out the best Realtors in your area. We have national and international contacts. Yes, we do get a fee from the local broker for this. You will just know that you have the most qualified person working for you. This is, of course, if you don't know any real estate professionals in your area. I am available to give you counsel. | ||
| Jonathan Peck (Jonathanp)
New member Username: Jonathanp Post Number: 41 Registered: 7-2002 |
Jim, Email me your guy's contact info. I am getting ready to buy a house and need someone that can be trusted. [email protected] | ||
| Jim Schad (Jim_schad)
Member Username: Jim_schad Post Number: 711 Registered: 7-2002 |
Sean you are in Dallas right? A great friend of mine for almost 10 years is a broker here. He did my original note a year ago at 7 3/8 for 30 yrs. Just did a refi 2 weeks ago at 5 3/8 for 20 years. Pmt is the same, but I dropped 10 years. I totally trust this guy and would never recommend somebody I didn't. He is a very cool guy, not a slick broker type. He will work with you and he will get it done at a rate you like or he will flat out tell you he can't do it. Also, as J. Scott said there is no "free" loan. Mine was "free", but I rolled all closing costs in the note based on appraisal value and any equity. I had zero equity since I just bought, but the appraisal covered it so my note is about $4k higher than before, but 10 years shorter so I build equity faster. Anyway, here is his info if you care. He did a couple of guys at my office too who were very educated and could not find what they wanted til they talked to him. Dave Smith cell: 214-202-2685 email: [email protected] web page: http://www.benchmark-mortgage.net/ | ||
| j scott leonard (Jscott)
Member Username: Jscott Post Number: 298 Registered: 1-2002 |
Sean- One of my companies is a mortgage company. We do not lend outside of California though. So,I would suggest that you contact a reputable mortgage broker/banker who will run scenarios for you. It is an easy thing to do and you can make a well informed decision. There are several things to consider including the after tax real cost of money. You don't have to figure it out all alone, good mortgage people will be a great resource. I know that our loan officers are a wealth of help to the borrower. If the people are not willing to run you companison scenarios, don't work with them. Note: usually "free" financing is not free! The broker is including the costs into your new balance. Check it out, a federal truth in lending statement is a requirement. Have them also give you a H.U.D.1 statement as well. You will see all the costs, fees, loan balance ect... There us a lot to consider, take your time and look closely! | ||
| BobD (Bobd)
Member Username: Bobd Post Number: 988 Registered: 3-2001 |
Sean, I think you need to shop around for a lower rate... I believe you should be able to get 5.5 to 5.75% for a 30. We refinanced 7 mos ago and got 5.25 for 15 yrs... my brother did it 2 mos later and got 5.0%.... neither with any points! For the local Dallas crew, call Guardian Mortgage in Richardson.... they are always 1/4 point lower than the rest. | ||
| Sean Ruckel (Sruckel)
Junior Member Username: Sruckel Post Number: 159 Registered: 10-2001 |
Good info so far. Let me add a little more background... I currently pay on the interest every two weeks instead of monthly, to reduce overall interest amount. I also about double the principal payment, since it is so low at the moment. I plan on keeping the property long term - I figure I could always rent it out for the cost of the mortgage+HOA if I move on to another place and let it pay for itself. I guess my next step will be to try and negotiate with my current lender to lower the rate and tell them I am shopping around. I may also consider the 15 year route, since I have seen some rates below 5% for those. I'm just a little nervous about closing costs at another lender and how long it would take to recover those costs. | ||
| bruce wellington (Bws88tr)
Intermediate Member Username: Bws88tr Post Number: 1734 Registered: 4-2002 |
SEAN MY RULE OF THUMG IS TO GET AT LEAST 1 1/2 % LESS THAN THE PREVIOUS MORTGAGE RATE YOU HAVE...THEN YOU CAN GO FOR A 30 YR FIXED AND PAY AN ADDITIONAL PRINCIPLE EACH 2 WEEKS OR MONTH, OR CLOSE IT WITH A 15 YR FIXED AND GET RID OF IT IN 15 YRS.... MY 2 CENTS... BRUCE | ||
| TomD (Tifosi)
Advanced Member Username: Tifosi Post Number: 2546 Registered: 9-2001 |
yes, one thing that is never pointed out is by refinancing you are now back at 30 years- that said usually one year in is not a bad time. Understand there is never "free" refinancing - get an itemized list of costs and compare your old and new payments and "sunk" costs if you will and see how long it takes to recover. usually you like to see you rate drop by over a point. Another item of note that unless you are going to stay in the same place more than 10 years then you might want to look at refinancing with an ARM - obviously risks but also lower rate | ||
| Tyler (Bahiaau)
Member Username: Bahiaau Post Number: 484 Registered: 12-2001 |
Sean I'd try shopping around a little. I'd also try damn hard to get into a 15 year loan.. | ||
| Sean Ruckel (Sruckel)
Junior Member Username: Sruckel Post Number: 158 Registered: 10-2001 |
I bought a condo a year ago and got a rate of 7% (good at the time) over 30 years. I got a call from my mortgage company offering free refinancing at 6.25% (no closing costs), but over 30 years again. I have seen the average rate is now around 5.5%. So, is it worth my while to add another year to my mortgage for the 6.25%, or do I shop around to get an even lower rate? Where would I turn to start shopping around anyway? Do I basically lose all the interest payments I've made so far? Any help would be appreciated. Thanks! |