How can I take advantage of low mortgage rates?

[Michael01]

You can go for the refinance then it will help u to make the payments.

[Godwynn]

You can contact literally any banker or MLO in the United States and they will jump at this opportunity. They're paid on commission and are starving for business. Call them up, all of them, and say this is my current balance, this is my rate, what can you do for me? Let them work for you.

If you have great credit you can get a lower rate. Since your balance is small you can probably bypass the MLO at some banks and contact a banker directly.

If you have some outstanding CC debt out there, you can even look into a HELOC. The bank I work at is offering ~4% on those.

There are many different ways you can work this to your advantage.

[DaveInPgh]

I have a follow up question. Will each bank I get a GFE from do an inquiry on my credit? And will that have any impact on my credit rating?

Thanks again for all the input & suggestions.

[Godwynn]

I have a follow up question. Will each bank I get a GFE from do an inquiry on my credit? And will that have any impact on my credit rating?

Thanks again for all the input & suggestions.

I only know banking laws as they apply to the state of Illinois. Here, we have to get verbal consent from the customer before running credit and applying. You can inquire about rates and have them run some numbers without applying and checking your credit.

[DaveInPgh]

I just did an online chat with a Citibank mortgage consultant. First the woman told me there was no such thing as a no cost loan. After I further explained what I was looking for, she told me that they do not have any no cost options at this time.

Will try some other companies next week when I have more time to make the calls. Just saw that Citi has an online chat option when I was looking at my account and figured I would go ahead and ask.

[BMEPhDinCO]

You asked about credit report info - PenFed did pull mine (hard pull) and they will esp. if you aren't a member. But they gave me the score and it wasn't a big hit to mine since I was way above 750. Do be aware they are VERY conservative compared to others, since they don't want to get into trouble. They were really nice to me though and waived the fee for the credit report when I didn't qualify (income - they want to see a long past and future). The good news though, is that once PenFed pulls, you can use that for the membership, a CC, loan, etc with them for the first month or two with no more pulls.

I would also look into other credit unions, big banks usually have less incentive to give you a no cost loan...

[DaveInPgh]

You asked about credit report info - PenFed did pull mine (hard pull) and they will esp. if you aren't a member. But they gave me the score and it wasn't a big hit to mine since I was way above 750. Do be aware they are VERY conservative compared to others, since they don't want to get into trouble. They were really nice to me though and waived the fee for the credit report when I didn't qualify (income - they want to see a long past and future). The good news though, is that once PenFed pulls, you can use that for the membership, a CC, loan, etc with them for the first month or two with no more pulls.

I would also look into other credit unions, big banks usually have less incentive to give you a no cost loan...

So you didn't join PenFed before applying? I figured I would have to join just to apply.

I am still on the fence about the idea. Some have suggested the $2000 over 5 years isn't worth the hassle. It certainly isn't a huge amount of savings!

However I do like knowing I have a lower rate & payment locked in for the next 5 years just in case something bad does happen. We could easily afford the lower payment if we were to lose one of our incomes.

I think I am going to make my decision over the holiday weekend.

[DaveInPgh]

Some banks offer mortgages for the same amount of time you have left on your loan. If you originally took out a 15 year loan in 2003, then you could get a 7 year loan now.

We are in the process of doing that however we still have 140 months left on our loan. We will refinance (at 3.375%) and continue to make the same payments we are making now, which was $40 over the payment and now will be about $145 over the new payment.

I am projecting that we will have our house paid off by the end of 2016 at the latest.

That is awesome.

Didn't get a chance to discuss this idea further with my wife this past weekend. Hopefully we will get this started this weekend.

[DaveInPgh]

I put a lot of thought into this since last week, and I decided not to do the refinance at this time. I believe the net savings of $2,070.66 is worthwhile, but I tend to do more financial maneuvering than my wife is comfortable with. Since we have a 0% no fee cash advance we are trying to pay off, I think the refinance would just add unnecessary stress.

I am already knocking off another $1,714.22 in interest following my current mortgage plan. An additional $2k would be nice, but it could also make it more difficult to get spouse approval of future maneuvering. Of course if rates go lower, I might have to revisit this idea.

Thanks to everyone for the input

[prsims]

I have a follow up question. Will each bank I get a GFE from do an inquiry on my credit? And will that have any impact on my credit rating?

Thanks again for all the input & suggestions.

Yes if you have too many credit checks at one time, it will affect your credit rating.