Is it a good idea to refinance my home? I have a 4.375 and I just read that FHA has just dropped to 3.75.

Asked by Jg, Dallas, TX Thu May 31, 2012

I have been in my house a little under a year. Just wondering if that made sense in the long run. I'm pretty sure that interest rates won't stay low forever. I look to one day rent in about 6 or 7yrs.

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8
Don Groff, Agent, Austin, TX
Fri Jun 1, 2012
Hi JG,

I am a Reattor and licensed Mortgage Broker. Currently my FHA streamline refinance rates at 3.75% would pay you a rebate of over 3% points. Most other lenders offer this same rate but you do not get such a large credit. So in other words your closing costs would be a negative number or a credit. All costs paid at 3.75% or you can go to 3.5% with a smaller credit.

Example on $150,000 refinance

My total lender fees total $665 plus your title fees that are the same with everybody. At 3.75% you would get a lender credit of $4,590. That would cover your lender and title fees and part or all of your required escrows. So you could essentially not have to bring one penny to closing.

If you would like a GFE please give me a call or email me directly. I wholesale lend through the big lenders like Wells Fargo but they cannot offer the same rebates as I can on the retail level.

As an added bonus my clients receive a one time free float down on all loans. Should rates drop after you lock we can float you down at no cost to you. Most lenders do not allow this after you lock or they charge a fee. With my Tier 1 broker status my clients do not pay anything to float down to a lower interest rate.

If you have any questions on this please give me a call.

Best of luck to you.

_______________________________________
Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
listings@dongroff.com | http://www.AustinListed.com
0 votes
, ,
Thu May 31, 2012
Don't listen to 'rule of thumb' people.

Listen to a trusted lender.



Tom Burris
Mortgage Banker
DallasLoanGuy.com
(214) 763-4629 cell/text/nights/weekends(Really!!)
tomburris@dallasloanguy.com
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
0 votes
Anne Bokalo, Agent, CANTON, TX
Thu May 31, 2012
Rule of thumb has been 2% to consider refinancing. So check around for other rates.
0 votes
Lisa Montes, Agent, Carrollton, TX
Thu May 31, 2012
Contact your lender for the best answer. It is always a good idea to try! If you need a lender I am happy to recommend a great company!

Lisa Montes-"Your Home Retriever"
http://www.yourhomeretriever.com
817-201-7388
yourhomeretriever@gmail.com
0 votes
Mary Okeefe, , Dallas County, TX
Thu May 31, 2012
There are many factors involved in the refinancing. The best thing to do is to talk with a loan officer and have them to a comparison to see what the overall cost of refinancing will be for you and the savings that you may get by refinancing or staying with the present rate. If you need a loan officer to do that for you I will be happy to give you names.

Please call upon me for all your real estate needs.

Regards,
Mary OKeefe
Coldwell Banker Residential Brokerage
214 882 0082
0 votes
, ,
Thu May 31, 2012
Maybe
FHA case numbers ordered after June 11th can do a streamline refinance and will get a .01% up front MIP and .55% annual MIP. Not HIGHER as noted in a previous answer.

A loan officer would have to run an analysis on your loan.

While I usually do not encourage folks to refi if they cannot save 1% or more.... It WILL pay for itself over time. So it is worth a look and doesn't cost you anything.

Contact a loan officer that knows about the lower MIP function.


Tom Burris
Mortgage Banker
DallasLoanGuy.com
(214) 763-4629 cell/text/nights/weekends(Really!!)
tomburris@dallasloanguy.com
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
0 votes
Dixon Wong, Agent, Dallas, TX
Thu May 31, 2012
You have to ask yourself how long you will be staying in the home.

Talk to a loan offier and figure out how much you can save each month. Use the financing cost divided it by the money save and see how long it takes to recover the cost of refinancing.

As long as you live there longer to recover the financing cost. Then you are on the positive.

Dixon
http://www.findyourtexashome.com
0 votes
Fred Glick, Agent, Mountain View, CA
Thu May 31, 2012
Not really because the MIP is much higher now.

Even with the rates lower, you may be paying the same.
0 votes
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