My current bank will let me refi w/ no appraisal fee or closing costs for 10yr at 2.89% or 20yr @ 3.34%. The 20yr option is the longest term for this type of loan. Are there better deals out there and, if so, where? Our credit score is in the low 800s....

I recently refinanced for 30 years for 2.625. I don't know if that deal is still out there but it was in October.

With what company and what were the costs involved?

We used a regional bank local to this area. Closing costs were around $2000. It took around $200 off our monthly payment. The first rate was 3.5.

I refinanced in the fall for 2.25% and kept my term. Since I had paid 6 years already, it's a 24 year loan. Between that and my 50% property tax break for being a vet, is dropped my payment over $500 a month.

Get the longest fixed rate loan you can get.. at the lowest possible rate of course.

Then never ever ever pay it of... just keep paying absolute minimum.


When the bank won't let us extend the loan any longer, we will pay it of in one payment.

Seriously? You must be at the very least a govt employee, or a recipient of the taxpayers burden. PAY IT DOWN EARLY! Screw the tax deductible interest "benefit". Any savings on your tax liability, although you probably don't pay taxes, is more than offset by having an asset that is paid for, and having more disposable income not going into a mortgage every month.

Nebraska

If you are in the East side, I work with Mike Campbell at American National Bank. He works out of Papillion and Bellevue. Just did a refi on my home a few months ago. VA loan at 2.5% for 30yrs. Could have gotten lower if I didn't lock it in, but after the election turmoil, thought I'd play it safe.

I'd find a new bank. I'm refi'ing now for 2.78 at 20yrs.

^^^^^^^

Free & Clear is Dear.


LOL.

Wife and I closed just before Christmas at 2.5% for 20 year term through Guaranteed Rate, who she works for. They had an employee deal where we paid no origination fee and didn't have to do an appraisal.

Makes more sense at these rates not to pay the house off, instead take any extra money and invest it where your money will actually grow.

Decided to look at a re-fi recently........FICO score of 800

Contacted same/current lender...was 3.25%

I paid the $500 appraisal up front...closing $1800 ish

Now...soon to close by end of month at 2.25% for 15

Just make my old payment and be paid off in 10 yrs

Just don't be in a hurry.....seems its been 6 weeks already....

Lock your low rate in soon---before joe does something else stupid

BS, best thing you'll ever do is to get your house paid for free and clear. Being in debt sucks.

We signed a 30yr back on 2018 at 4.25..

Refi'ing now at 2.5 on a 20yr. 2000 to close no appraisal

Making the same payment but getting it over with alot earlier. I've set a goal to not work past 60.. means I have 18yrs to pay off a 20yr loan...

pay off debt that is costing 2.5% or invest money and make 15%-20%. I'm not a math wiz, but I think I see the better route.

Your vision may differ.

My vision involves many investment vehicles tanking as soon as the fed turns off the printers.

Good luck.

Fair point, but if you fall on hard times, or lose your investments and/or your health, and are unable to earn a living, how would you make that note every month? Peace of mind for me to have the roof over my head paid for. Especially now with Einstein and Cameltoe in the White House. I wouldn't bet on that 15-20% return for long.........

Old rule of thumb was that you need to save at least 1% and plan on staying where you are for 10 years. If you meet those criteria then it may be worth doing, but you may be ahead to take the $2500 in refi fees and put it on the principal of your current loan. Make up an amortization spread sheet on excel and see how much difference it makes.

It's a valid point. But there is something to be said for not having a mortgage payment to worry about if you lose your job & can't find another. Which is a possibility if the D's manage to screw up the economy. I refi'd in 2015 to a 15yr and am planning on having it paid off in 2023. When people get older & unemployed, sometimes no one wants to hire them. Last thing I need is to lose my house because I can't pay my mortgage.

Paid the house off in December...oh, what a feeling. I never used my VA benefits for buying a house and have had thoughts of refinancing the whole thing through VA, and investing the money, but I just won't take the risk. I can see scenarios that would force me to work until I'm 80 years old if I did that. Not a chance!

Nebraska,

Rates headed up last week. As a point of reference, the Average rate on a 30 year fixed last week was 2.98%, so over 3% on a 20 year is nothing special.

Probably missed the low point in rates, but they are still good. Rates are heading up. The 10 year treasury has gone up about 50 bps in the last 4-5 months.

My advice is to go to a local mortgage broker, they can shop the spectrum of mortgage lenders. The worst is probably your local bank.

I paid off my mortgage 20+ years ago. If you don't owe anyone any money, then you can't go broke.

I have been in banking/mortgage for 40+ years and I am not seeking your business.

Just my two cents.

I'd take that advice to the bank.

Brief review of amortization tables and the amount of interest paid on 30 year notes, should open eyes. Buy less house than you think you can afford and pay it off as fast as you can. Then invest your old mortgage payment into whatever the hell you want. Houses, stocks, mutual funds, custom rifles, nice cars, vacations, hunting trips, kid's college expenses. It gets easy fast with no mortgage.

Also check with AAA.
When I refinanced they actually had the best rate at the time around here.
If you're not a member I think you can still use them as they are just acting as a mortgage broker.

Nebraska: My place has been paid off for a long time and my only experience recently has been with VarmintSon #2 refinancing his 30 year mortgage down to a 15 year mortgage just last month out in the seattle area.
He cut more than a decade off of his mortgage and the lower rate came up with just a modest increase in monthly payment.
His credit score and the housing market in his area got him out of the refinance and reappraisal costs both!
We got a printout of the differences in his pay back amounts (the interest) and it was astounding how much less he will pay with the 15 year mortgage.
Anyway my opinion is now is the time to refinance and in my experiences go for the ten year term (or shortest term possible) if at all possible.
Best of luck to you.
Hold into the wind
VarmintGuy

Sounds like Democrat advice, except the part about ever paying it off. Some actually like the freedom of being debt free. Furthermore, most vastly overestimate the actual tax benefits of carrying a mortgage, way overrated. And suspect you might fall into this camp. Plus, one must assume the equity market (which is overpriced at present) will continue to outperform . . . might not be sound advice. More realistically one should compare safe investments to your mortgage rate, CD’s, money market, etc. If you do this you will pay off your mortgage.

My local bank just gave me 2.1 on a 15 year refi, no appraisal.

I'm no expert on mortgages, but I think I played my cards right.

Built this house about 25 years ago and got a 30 year mortgage. The problem with all of the 30 year deals I had was that most 30 year mortgages are front loaded with interest. Meaning that for the first 10 years, you are paying little to no principle and almost all interest. It makes it slower to gain equity. A couple of years later, after I got back on my feet financially, we wanted to finish our basement and the rates came down. So we refied to another 30 year and got some cash out to finish the basement and lowered our payment. 5 or 6 years later we refied to a 15 year mortgage. The 15 year loan was set up differently. Each payment would pay almost all principle with a little interest tacked on top. We were gaining a tremendous amount of equity. 5 years after that our financial situation had improved to the point that it was safe to pay it off. We talked to our accountant and financial advisor and both guys recommended paying it off ASAP. The benefit of interest write off on taxes wasn't worth more than what we could make through investments. My financial guy didn't like the fact that we pulled a large chunk of change out to do that, but the money returned to the accounts in short order.

It's nice not to have to pay a mortgage. The last thing you need when you're retired is to have a mortgage handing over your head.

We refinanced to a 2.47% 30 year loan in December.

We could have paid it of today if we wanted.. we have the money.
Instead we are paying less and less each year, thanks to inflation. While the markets have returned 10-15% for years.

And instead of having nothing saved up, we are investing 60% of our after tax salary each month.

We did the math, each and every way we could... we will be much better of NOT paying down our mortgage.
At these low rates, its not even an option.


Though.. I confess it feels better having no mortgage.



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