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RSSMoving 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 |
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 |
by 2million on
08/07/10
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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. :(
Posted by In Debt | August 7, 2010 10:13 PM
I was looking at Everbank also. How did you get the 0.374% credit?
Posted by Jason Walker | August 20, 2010 6:41 PM
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 %.
Posted by 2million | August 21, 2010 1:20 PM