Is there much difference in savings between a 4.5125% and 4.25% mortgage?

Asked by Charlie, Lititz, PA Fri Aug 13, 2010

I haven't signed the papers that were drawn up at my bank yet for my refinance, because they were drawn up for 4.5125% and now that same bank is down to 4.25%. I e-mailed my loan officer asked if there was any way we could have it for the lower since this refi is a one time deal and it wouldn't make sense to sign for 4.5125 when it's at 4.25. He won't reply back. Is it worth the hassle of begging him to lower it or starting all over at another bank, or are the savings between the two rates not enough to go through all that?

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5
Deborah Madey, Agent, Brick, NJ
Sun Aug 15, 2010
The following link provides several mortgage calculators that are helpful when evaluating your options as a buyer.
http://www.mtgprofessor.com/calculators.htm
1 vote
Charlie, Home Buyer, Lititz, PA
Sat Aug 14, 2010
I took all of your great advice and asked my current mortgage holder if I could have the refi for the lower 4.25% and the answer was yes. Thank you all for your help. Your input and willingness to help is greatly appreciated.

Charlie
Lititz, PA
0 votes
Melinda Trent, , Lancaster County, PA
Fri Aug 13, 2010
My question would be is the 4.5125% the interest rate or the APR? The APR demonstrates the cost of the loan over the full term factoring your upfront costs but is not your daily interest rate. If you haven't already obligated yourself I would be happy to review the Good Faith Estimate that you received from your lender and provide a comparison for you with today's rates. All that comparison will cost you is a few minutes of your time.

Melinda Trent
Certified Mortgage Planning Specialist
Mortgage Network Inc

mtrent@mortgagenetwork.com
0 votes
Terrence Cha…, Home Owner, Allentown, PA
Fri Aug 13, 2010
You must also realize that you would save money on the interest paid over the life of the loan. You would pay $82,673.40 in interest for the loan which has the higher 4.5125% and you would pay $77,098.27 in interest for the lower 4.25% rate. That's a savings of $5,575.13 over the life of the loan by getting the lower rate.

Terrence Charest
0 votes
Rob Gerhart…, , Lansdale, PA
Fri Aug 13, 2010
$100,000 over 30 years at 4.5125% = $507.43
$100,000 over 30 years at 4.25% = $491.94

That's a savings of $15.49 per $100,000 financed per month.

If it were me, I'd definitely try to get the lower rate.
Web Reference:  http://www.robgerhart.com
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