how much will it cost me to refinance?
Posted on February 11th, 2010 by admin
i have a mortgage with wells fargo. it’s on its 3rd year of a 5 year interest only mortgage (big mistake). my current rate right now is 5.625 i am thinking about refinancing with a traditional 30 year fixed mortgae and i want to stay with wells fargo. what fees associated with refinancing with the same bank? and how does the buying points realty work. i live in NY.
thanks in advance
there is 2 years left on your mortgage term, there is usually a penalty(a percentage of what you owe) that you will have to pay and it will be added to the new mortgage…find out the cost of doing it before you do it and see if it is to your advantage. get the bank to give you all the numbers..
try to set up a mortgage that you can pay weekly accelerated. even if your paycheck is every two weeks. you can put the money aside in the bank for the next payment. accelerated only adds 10 % on top of your payment, but in makes a big difference , going into a mortgage weekly reduces drastically the total amout of interest you will pay.. it is so the way to go…and adding the 10% is like an extra payment per year…….
February 12th, 2010 at 12:17 am
there is 2 years left on your mortgage term, there is usually a penalty(a percentage of what you owe) that you will have to pay and it will be added to the new mortgage…find out the cost of doing it before you do it and see if it is to your advantage. get the bank to give you all the numbers..
try to set up a mortgage that you can pay weekly accelerated. even if your paycheck is every two weeks. you can put the money aside in the bank for the next payment. accelerated only adds 10 % on top of your payment, but in makes a big difference , going into a mortgage weekly reduces drastically the total amout of interest you will pay.. it is so the way to go…and adding the 10% is like an extra payment per year…….
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February 12th, 2010 at 1:00 am
i want to know more about this site
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my email
February 12th, 2010 at 1:43 am
Right now I wouldnt do anything. You can pay extra to most mortgages. Write the mortgage company a check with a comment to apply to principle only. The I/O loans allows you the flexibilty to have the extra money yet you can always pay more. You rate isnt that bad. Just pay extra to the principle and it can act as a 30 year fixed. And save yourself 3-5 thousand dollars in fees. Heck take that 3-5 grand put it as a payment on your principle and you will save yourself alot of money in the long run.
You may have a prepayment penalty on top of it though I doubt it 3 years into an I/O loan.
So just pay on the principle and save yourself the fees.
Buying points usually work.
PS . I am a loan officer and would tell my clients the same thing.
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February 12th, 2010 at 2:05 am
your not going to get a better rate than the 5.6 you got now going 30 yr fixed. you have 2 years, whats the hurry?
if staying with wells is important to you call them next year and explain your deal and that you would like to stay and they can do a loan modification instead of a refi. modifications are becoming very common because the market is so competitive for good loans right now they will want to keep you. this also is the cheapest route. most likely you will just have to pay a processing fee of about $250-$300. that beats paying closing costs, title fees,origination cost, having a appraisal etc.
i just did that on a investment property and saved good money. all with one phone call. check it out.
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atty & investor
February 12th, 2010 at 2:30 am
Prepayment penalties that extend beyond three years are illegal in EVERY state, so the poster that said you will have to pay a penalty is wrong…just MAKE SURE that three years have passed from the time you closed to now.
Don’t get "stuck" on keeping with the same lender…there is no reason to do that…you need to search for the best deal.
In my business I do very, very little business with Wells Fargo, mainly because they are very short on product offerings, and clients don’t get many choices, so you need to shop around. If you belong to a credit union, you need to start there first, b/c they offer the best deals and can usually beat any bank’s rates and terms.
Keep in mind that 5.625 may not be what you get. When you refinance it is 100% unrelated to your CURRENT product, and you’ll have to meet the guidelines for the new product.
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