We just bought our home in June. I talked to my lender and asked about refinancing since I heard rates are low. He told me it was possible even without 6 months of payment history.Here are the specs:Original loan$639,200 @ 4.875% =$3,382.70Balance for next month is $636,832New loan$625,500 @ 4.5%= $3,169.32 We need to pay the loan down from $636K to $625K to qualify to conforming loan limits.My lender said he would take care of all costs, so we don't need to bother with that (which sounds a bit fishy, so I would like a second opinion); maybe the rate is a bit higher than market average which might suggest that is used to cover the closing costs?I have the $11K and my reasoning is I can get a better return on the $2,556 saved per year than I can on leaving the $11K in the bank, even at the 4% return I have in my rewards checking account. (I like the safety of cash though which is deterring me from moving forward)Any thoughts or opinions would be greatly appreciated by dolphi_748_199 from Miami, Florida. Oct 6th 2011
It does sound like he is giving you a higher rate and coving your closing costs. Your credit score will also affect the interest rate that you receive. I would ask him for a couple more options.
That is a great option for you to save money and not have closing costs. I would not hesitate to do that. It sounds like he is shooting things straight.
Good Afternoon, It seems that the rates he is quoting is high due to what rates are currently. However, I am not sure what your credit looks like. I would urge you to get a Good Faith Estimate from several different lenders to see who offers you the best rate and closing cost. Anytime someone says they will cover your closing cost it usually means the interest rates is higher. I would be more then happy to assist you any way I can so please don't hesitate to contact me.
I think that's a fair deal.. anytime you can refinance with a no cost loan, the lender is raising the rate to cover the costs... but for you the borrower, your monthly savings is 100% interest savings.. WilliamAcres.com
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