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|
|Credit Report||$ 15.50|
|tax service fee||$ 74.00|
|title insurance (my estimate)||$ 800.00|
|flood certification||$ 15.50|
|gov recording charges||$ 84.00|
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|
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