Whether you have to put money in to get a good rate depends on several factors – but the biggest factor is the size of your loan.
I have several coworkers who were getting quotes for refi’s from Sheldon and others mortgage brokers a few months ago. 3 of the guys had similar credit, but one had a small balance, one had a medium balance, and one had a higher balance. It was going to cost the small balance guy money – the guy with the bigger balance got cash back (not cash out, but a credit)… the guy in the middle was a break even proposition. (2 of these guys went with Sheldon by the way.)
A 4th guy’s home didn’t appraise to give him 80% (despite having put more than 20% down when he purchased) – so he went FHA and didn’t go through Sheldon.
I talked to Sheldon in this time frame… my balance is pretty low. It would cost money (appraisal, credit check, etc.) and I didn’t qualify for any credits back… the payment savings weren’t large enough to justify.
Another reason not to refi – if you’re significantly into your mortgage – you might not want to reset the clock. Not everyone is disciplined enough to make extra payments to pay it off in the same time frame. I can see why someone with 10 years left on the mortgage, and in their 50’s would NOT want to refi into a 30 year mortgage. Who wants to have a mortgage payment in retirement?
