Moving Forward with Refinancing As Rates Fall

I started watching rates closely in July when one of my co-workers started alerted me that he was refinancing. Our mortgage on our house (House #4 in our net worth reports - our primary residence) was initiated when we bought the house in December 2008. It was a 30yr fixed mortgage @ 4.875%.

Looking at the rough numbers things started looking attractive to me once our potential refi costs were < $1,500 and we could potentially shave .5% off our interest rate.

Refi Costs Est from GFE
Everbank Origination Charge $ 541.95
Appraisal $ 390.00
Credit Report $ 15.50
tax service fee $ 74.00
title insurance (my estimate) $ 800.00
flood certification $ 15.50
gov recording charges $ 84.00
Costs $ 1,920.95
*The biggest variable for us will be the title insurance - with $800 being a conservative estimate assuming we can get a title insurance reissue.

So we submitted our application with Everbank, but sat on it until rates fell to 4.375% with a .374% credit and was offered a closing credit for our appraisal. I locked in on a Friday, had appraisal done Sunday morning and appraisal report was received Monday morning - amazingly fast. Based on these credits my out of pocket costs (excluding escrow and interest) should be < $700.

How much we end of financing is still not finalized - but and apples to apples comparison on the same financing amount shows we'd save ~$70/mo in our monthly payment:

Current Monthly Payment w/ $241,600 note @ 4.875% $ 1,278.57
Possible New Payment w/ $241,600 @ 4.375% $ 1,206.27

Related in Real Estate:

No Closing Cost Loan Example (Nov 29, 2012) I've gotten multiple requests to clarify the recent no closing cost refinance loan I just completed. Its a bit of a vague term and could be done different ways, but the end result is that there are no out of...

3.5% 30 Year Fixed No Closing Cost Refinance (Nov 27, 2012) We finally closed this week on our 3.5% 30 year fixed refinance with no closing costs (no closing costs = a credit from lender/broker large enough to offset refinance costs). It took us over 2 months (67 days from initial...

Appraisal Appeal Unsuccessful (Nov 05, 2012) Not much of a surprise, the appraiser dug in and didn't budge after we submitted our appraisal appeal: Our more favorable comparables were based on county property records. Interestingly the appraiser indicated the MLS data is generally considered more accurate...

Comments (3)


That's awesome! I think I'll make a couple of phone calls Monday. Even if I could drop my rate 0.375% - 0.5%, it would be worth it if I can keep those closing costs minimal. I'm already at 4.5%...not sure if anything is out there in 4.0 - 4.125% range. I did have a friend get a 15 yr. refi at 3.875%, but I can't swing the 15 year payment right now. :(

I was looking at Everbank also. How did you get the 0.374% credit?

On Everbank if you watch rates daily, the amount of points (or credit) you pay or receive will change. If you pick a higher rate you'll likely see 0 points and some credit. I just waited until the credit was .374 (on the web site it will show up as a credit when you fill in your info) not as a %.

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A personal finance weblog of my journey to reach my goal of $2 million + the value of my primary residence.
Current Net Worth: $1,574,185

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