Refinance before 6 months of payment history
I recently purchased out home back in July, and since mortgage rates being at an all time low is constantly being slammed at me from everywhere and everyone, I called a loan guy and he said I can do a refinance without 6 months payment history. Now I have an original loan of $639,200 at a rate of 4.875% with $632,434 still owed right now and the new loan he's offering is $625,500 at 4.5%. I understand I have to pay the loan down to the conforming limit of 625k, and I have the $7.5k to pay down the loan to the limit. Now if my math is right, I'll be saving 2.5k a year, which is a better return from the 7.5k I'd have parked in my checking account, but I like the comfort of cash on hand. Is this as good as its gonna get? Your input is greatly appreciated. by jeff.t_444_796 from Mill Valley, California. Oct 14th 2011
Ted Erickson (tederickson)
#326 ranked lender in California - 6 contributions
It depends what your current MI rate is? .55 .9 or 1.15 ? I would do it at 4.25%. Call me at 415.962-1516.Ted
Kamyar Rezaie (KamyarKRezaie)
#334 ranked lender in California - 6 contributions
Your long term savings are going to be big. I would recommend the refinance. It also depends on how long you plan on staying in the house...KevinTel 818.703.9337 X 201
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
It's possible rates will improve, however they could get worse... if you can save over $200 per month now, you should take it.. but I will say, 4.5% sounds high for where rates are now... I would shop.. WilliamAcres.com
Rudi Hofmann (CaPortfolioLoans)
#281 ranked lender in California - 380 contributions
My calculation is this will save you $122.00 a month based on $632,434. If that is correct, It would take 61 months to break even. For whatever reason you may not be living there in 5 years. I suggest you stay with what you have, unless you are certain that you won't move regardless of better employment opportunities, loss of income, illness, divorce, getting married, etc. .... Happy funding, RudiHappy funding, Rudi
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