Refinancing a home stuff...

[lobra97]

So i logged onto the Wells fargo website to make my payment online and i usually pay $640.10 plus $60 to the principal for $700 payment every month. I got a letter saying my payment would be lower a few weeks ago and well, its $587 per mth now which is sweet, means $112 to the principal a month right? so i got curious and called WF about possibly refinancing at 15yrs vs 27 more i owe. Lady basically said i would save around $60k in the long run, have a lower apr (4% currently), and payment would stay about $700-ish like i am paying right now, and no credit check. The only thing the lady said is that i would need 2 payments in advance to get it rolling, so like $1400 which i can pay to get the 15 year note going. i bought the house 3 years ago after my divorce and barely qualified for a loan with the VA at 621...you need a 620. sounds too good to be true and i'm trying to avoid any potential problems later on but paying the house off by the time my lil guy is in college would be awesome. i plan to shop around with the refinancing but it seems pretty sweet. this would be my first so i am not really sure what kind of deals there are out there. I may try USAA as well to see what they offer since my credit is way better than it was 3 years ago. WF has been good to us so far which is why i'm considering staying with them.

Any advice i should should about this stuff? I owe $81k and some change left on the note btw.

 

[soccerman002]

When my parents built their first home, they refinanced from a 30 to a 15 and their payment went up maybe $150/month b/c of the lower interest rate.

If you can swing it, it's a virtual no brainer.

 

[lobra97]

hmm just called they misquoted me it will be around $800 now...and only 3.6%
and $2600 closing cost.....

 

[BlueSnake01]

I wish my mortgage payment was that low, hell I wished my old apartment was like that as well. Thanks a lot Obama!

 

[lobra97]

Your place is prolly twice the size of mine though.

 

[BlueSnake01]

Its ok size but not worth what im paying, damn SoCal mark up! Lot size is about 7k sq ft and home is about 1,600 sq ft. I would still take a swing, 12 less years, much better in the long run.

 

[rotor_powerd]

Make sure it's really worth doing. I looked into refinancing ours to a 15 a couple months ago. Our 30 is already at 3.25% so it turned out to not make any sense to go to a 15 after refi fees were added, I come out ahead to just make the 15 year payment towards my current loan. An added benefit is that I can always fall back to the 30 year payment if I ever need to.

 

[black92]

Make sure it's really worth doing. I looked into refinancing ours to a 15 a couple months ago. Our 30 is already at 3.25% so it turned out to not make any sense to go to a 15 after refi fees were added, I come out ahead to just make the 15 year payment towards my current loan. An added benefit is that I can always fall back to the 30 year payment if I ever need to.

This is how I treated any loans I had.

OP - You can treat your current loan as it's a 15 year loan and if for some reason money gets tight, you can pay the minimum loan price. The hardest part is actually doing it and from the sounds of it, you won't have any trouble.

 

[lobra97]

Thanks peeps, yeah i called my bank too and they said best they could do is 3.75 said its not really worth it just to treat it like a 15 as yall said. Paid the $700 today, ill just stay with that payment. Its like $700 a year doing the $60 extra so an extra mortgage payment