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Should I back out of mortgage refinance?

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  • RyanBuckly
    replied
    Have the same problem. I wanted to refinance my mortgage loan, but wasn't sure if 2.95% is a good option. What did you finally decide? I kinda hope that because of the pandemic the government will do something about it. You know, some protecting laws for mortgage prisoners or the reduction of the interest rate. I know it's a bit naive, but a lot of people had lost their jobs and it will be hard for them to pay the bills. I even found and contacted mortgage brokers from the https://www.Essexmoneyman.com to get a professional opinion. They promised me to refinance the loan and reduce it to 2.65. Hope they'll help.
    Last edited by RyanBuckly; 01-30-2021, 03:48 AM.

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  • surfius
    replied
    I'd be very interested to hear what your counselor had to say about that. I see a lot of people are asking this question now because people need to save as much as possible. I myself have found myself in that dilemma. In order to solve this problem, I needed to consult with Mortgage Advisor Cambridge. It really helped me figure out what had accumulated over several years of mortgage payments. I took out my mortgage at 2.8% and have been paying it for over two years. So far, I'm getting by and it doesn't seem difficult to me. I'm sure it's a credit to a good lawyer.
    Last edited by surfius; 01-26-2021, 10:32 AM.

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  • CameronAlsop
    replied
    In my opinion, borrowing from a loved one is a very inconvenient thing. I understand that these are native people, but when you take a large amount, of course, you will not be told anything by native people, but perhaps in their hearts, they will treat you differently. In order not to spoil the relationship with relatives, I advise you to contact Mortgage Advice Nottingham . 3 years ago, I wanted to buy our family a house, because my wife was due to give birth soon, but I did not have enough money. I didn't want to take out a loan because I knew many scammers could forge documents, but I had no choice. I came across this company, studying it, I decided to still apply there. As a result, I was helped to choose a house and do everything efficiently. Now the three of us live in a cozy house in love and peace.
    Last edited by CameronAlsop; 02-01-2021, 06:22 AM.

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  • parafly
    replied
    I would back out of it assuming you have good credit. Those closing costs for a 2.99% 30 year fixed loan are outrageous. You can find much better out there.

    Just a quick look on bankrate.com, you can get a 2.875% 30 year fixed loan for a refinance with zero points and zero upfront costs today.

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  • LivingAlmostLarge
    replied
    My first condo we had a HELOC 1st loan mortgage. The more we borrowed the more we paid, but we had it like a checking account and paid less interest by putting every dollar to do. Now i'm getting a bit old and don't want to bother tracking heloc rates and trying to maximize every dollar. I too almost refi in August but then Chase said "oh we'll give you 2.875% for your mortgage please don't leave us." I was like oh okay since it was a free "refi" from 7/1 arm to 30 year fixed no extra amortization. It was .125% less than my 7/1 for free so why not?

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  • disneysteve
    replied
    Originally posted by Snicks View Post
    I must be in the minority. I don't like to borrow against my paid off home.
    We opened a HELOC a few years ago because I needed 15K spur of the moment for an insurance policy premium (one shot deal). Once we paid that off, I kept the line open. Last year, they tried to charge me a $65 annual fee. I called and said to either waive the fee or close the account. They waived it. This year, same thing. I called again and told them to close the account. I don't want to have to do that every year.

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  • Snicks
    replied
    I must be in the minority. I don't like to borrow against my paid off home.

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  • myrdale
    replied
    I am afraid we may be answering the questions you didn't ask.

    When I first read your post my eyes glazed over trying to go though the legal stuff you included. Reading back though it now, this is what I gather:

    There are two types of loans, "Home Equity Loans" and "Non-Home Equity Loans".
    Home Equity Loans give you a certain level of protection, primarily the lender has to have a court order to foreclose.
    Non-Home Equity Loans do not have this protection, the lender can foreclose without a court order.
    Non-Home Equity Loans let the lender come after you.
    Non-Home Equity Loans may have other shenanigans.
    Non-Home Equity Loans may be cheaper.

    Honestly it just sounds like they are asking you to sign off on a disclosure so they can show you were aware of you're options.

    In addition to refinancing your home, are you asking for an additional loan? Is this about covering the outrageous $8k closing cost?

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  • Snicks
    replied
    Originally posted by amarowsky View Post
    pay that sucker off w/ every dollar you have. Then take a HELOC on that bad boy. So when paid off (or if you have good equity after payments) you'll be able to summon up to 80% value of your house at a simple 2.5-3.5% rate at the stroke of a pen/check or debit card.

    Hard to put a value on that low interest (albeit variable to prime rate) for that high of a line of credit. mine serve as a back-up-emergency fund (or a properly coiled spring of cash that costs nothing to maintain, for when opportunity comes knocking at my door)
    Pay it off to take out a loan against it? Why?

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  • amarowsky
    replied
    pay that sucker off w/ every dollar you have. Then take a HELOC on that bad boy. So when paid off (or if you have good equity after payments) you'll be able to summon up to 80% value of your house at a simple 2.5-3.5% rate at the stroke of a pen/check or debit card.

    Hard to put a value on that low interest (albeit variable to prime rate) for that high of a line of credit. mine serve as a back-up-emergency fund (or a properly coiled spring of cash that costs nothing to maintain, for when opportunity comes knocking at my door)

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  • bjl584
    replied
    8K in closing seems high
    I'd shop around then maybe do some calculations on how much paying extra would save you.
    It might not be worth it to refi.
    Or at least, it might be worth it to see what other lenders have to offer

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  • disneysteve
    replied
    Originally posted by Snicks View Post
    I personally didn't buy into the refinancing. I know people who were doing that many times. Instead make extra payments on your mortgage and just pay it off early. You will save far more than refinancing.
    Paying extra is fine, but paying extra will save you far more at a lower interest rate as even more of your payment goes to principal.

    We refinanced a couple of times. It saved us thousands of dollars. We never would have paid off the loan as soon as we did if not for that.

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  • myrdale
    replied
    Originally posted by Snicks View Post
    I personally didn't buy into the refinancing. I know people who were doing that many times. Instead make extra payments on your mortgage and just pay it off early. You will save far more than refinancing.
    I think it just depends on personal strategy, but that is assuming there is thought put into it.

    For my mortgage, I financed $101,000 at 6% for 30 years.

    Five years later, I refinanced the remaining $52,000 at 4% for 30 years. I don't remember how much the refi cost, but I don't believe it was a significant amount.

    Four years later, it was paid off.

    My plan was to keep my monthly payment as low as possible (hence sticking with the 30 year model), while making extra payments.

    Where my payment was $650, and I'd usually to a little more than double at $1,500 per month, suddenly I was paying quadruple the payment when it was reduced to $400 at the same $1,500.

    In general, don't refinance for less than 1% change in interest rate.

    Don't refinance for more than what the mortgage is for. You want to pay off credit cards? DON'T do it with you're mortgage. You want a new kitchen? DON'T do it with your mortgage. The only possible exception I would consider would be something like needing a new roof or some serious plumbing or electrical issues. Even then I'd not like it.


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  • Snicks
    replied
    I personally didn't buy into the refinancing. I know people who were doing that many times. Instead make extra payments on your mortgage and just pay it off early. You will save far more than refinancing.

    Leave a comment:


  • amarowsky
    replied
    old "rule of thumb" I used to hear was : Do NOT refi unless you are getting >2% reduction benefit. (8k closing costs seems like treason, although I only skimmed). I'd say skip the refi.... (be careful in Texas too. Very little regulation, so make sure they're not screwing you. The law is on the side of those w/ money there, so be careful!)

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