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Viewing 15 posts - 31 through 45 (of 61 total)
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  • January 18, 2008 at 1:43 PM #138205
    sdrealtor
    Participant

    If 15 year fixed rates go down to 4.5% (and I think they will) I wouldnt be surprised to see a huge refi market as the smart money that bought pre-bubble takes advantage of the opportunity to pay off their homes several years quicker.

    January 18, 2008 at 1:51 PM #138431
    CBad
    Participant

    NO cost re-fi? Is there really such a thing? Aren’t you always paying something? If there truly is a no-cost one, please share your info.

    Also, doesn’t it really depend on how much you owe? .25% on 50K is a whole lot different than on 500K. If your loan is a relatively low amount it would take more percentage difference to make up for the cost of the re-fi (which I’ve always thought was around 3K in total costs), especially if you took the money you would have spent to re-fi and applied it to the principal of the loan instead.

    January 18, 2008 at 1:51 PM #138528
    CBad
    Participant

    NO cost re-fi? Is there really such a thing? Aren’t you always paying something? If there truly is a no-cost one, please share your info.

    Also, doesn’t it really depend on how much you owe? .25% on 50K is a whole lot different than on 500K. If your loan is a relatively low amount it would take more percentage difference to make up for the cost of the re-fi (which I’ve always thought was around 3K in total costs), especially if you took the money you would have spent to re-fi and applied it to the principal of the loan instead.

    January 18, 2008 at 1:51 PM #138457
    CBad
    Participant

    NO cost re-fi? Is there really such a thing? Aren’t you always paying something? If there truly is a no-cost one, please share your info.

    Also, doesn’t it really depend on how much you owe? .25% on 50K is a whole lot different than on 500K. If your loan is a relatively low amount it would take more percentage difference to make up for the cost of the re-fi (which I’ve always thought was around 3K in total costs), especially if you took the money you would have spent to re-fi and applied it to the principal of the loan instead.

    January 18, 2008 at 1:51 PM #138220
    CBad
    Participant

    NO cost re-fi? Is there really such a thing? Aren’t you always paying something? If there truly is a no-cost one, please share your info.

    Also, doesn’t it really depend on how much you owe? .25% on 50K is a whole lot different than on 500K. If your loan is a relatively low amount it would take more percentage difference to make up for the cost of the re-fi (which I’ve always thought was around 3K in total costs), especially if you took the money you would have spent to re-fi and applied it to the principal of the loan instead.

    January 18, 2008 at 1:51 PM #138479
    CBad
    Participant

    NO cost re-fi? Is there really such a thing? Aren’t you always paying something? If there truly is a no-cost one, please share your info.

    Also, doesn’t it really depend on how much you owe? .25% on 50K is a whole lot different than on 500K. If your loan is a relatively low amount it would take more percentage difference to make up for the cost of the re-fi (which I’ve always thought was around 3K in total costs), especially if you took the money you would have spent to re-fi and applied it to the principal of the loan instead.

    January 18, 2008 at 2:44 PM #138249
    Anonymous
    Guest

    CBad,

    A no-cost refi is not really no-cost. It does not cost you any cash to set it up but you pay for it through an interest rate premium.

    Because you accept a higher-than-market interest rate (as it is still lower than your current rate), the bank essentially is paying you negative discount points, which offset the broker’s commission and all the closing fees (including escrow, notary, bank fees, …).

    Rene

    January 18, 2008 at 2:44 PM #138463
    Anonymous
    Guest

    CBad,

    A no-cost refi is not really no-cost. It does not cost you any cash to set it up but you pay for it through an interest rate premium.

    Because you accept a higher-than-market interest rate (as it is still lower than your current rate), the bank essentially is paying you negative discount points, which offset the broker’s commission and all the closing fees (including escrow, notary, bank fees, …).

    Rene

    January 18, 2008 at 2:44 PM #138487
    Anonymous
    Guest

    CBad,

    A no-cost refi is not really no-cost. It does not cost you any cash to set it up but you pay for it through an interest rate premium.

    Because you accept a higher-than-market interest rate (as it is still lower than your current rate), the bank essentially is paying you negative discount points, which offset the broker’s commission and all the closing fees (including escrow, notary, bank fees, …).

    Rene

    January 18, 2008 at 2:44 PM #138558
    Anonymous
    Guest

    CBad,

    A no-cost refi is not really no-cost. It does not cost you any cash to set it up but you pay for it through an interest rate premium.

    Because you accept a higher-than-market interest rate (as it is still lower than your current rate), the bank essentially is paying you negative discount points, which offset the broker’s commission and all the closing fees (including escrow, notary, bank fees, …).

    Rene

    January 18, 2008 at 2:44 PM #138510
    Anonymous
    Guest

    CBad,

    A no-cost refi is not really no-cost. It does not cost you any cash to set it up but you pay for it through an interest rate premium.

    Because you accept a higher-than-market interest rate (as it is still lower than your current rate), the bank essentially is paying you negative discount points, which offset the broker’s commission and all the closing fees (including escrow, notary, bank fees, …).

    Rene

    January 18, 2008 at 3:43 PM #138540
    Raybyrnes
    Participant

    Why would the balance of the loan have any impact on why your would refinance.

    1% rate reduction on a 6% loans is a 16.67% discount.

    .25 reduction on a 6% loan is a 4.2% reduction on an ongoing basis.

    I take the gimme’s Whenever there is an opportunity to lower you expense, lower it.

    January 18, 2008 at 3:43 PM #138516
    Raybyrnes
    Participant

    Why would the balance of the loan have any impact on why your would refinance.

    1% rate reduction on a 6% loans is a 16.67% discount.

    .25 reduction on a 6% loan is a 4.2% reduction on an ongoing basis.

    I take the gimme’s Whenever there is an opportunity to lower you expense, lower it.

    January 18, 2008 at 3:43 PM #138587
    Raybyrnes
    Participant

    Why would the balance of the loan have any impact on why your would refinance.

    1% rate reduction on a 6% loans is a 16.67% discount.

    .25 reduction on a 6% loan is a 4.2% reduction on an ongoing basis.

    I take the gimme’s Whenever there is an opportunity to lower you expense, lower it.

    January 18, 2008 at 3:43 PM #138490
    Raybyrnes
    Participant

    Why would the balance of the loan have any impact on why your would refinance.

    1% rate reduction on a 6% loans is a 16.67% discount.

    .25 reduction on a 6% loan is a 4.2% reduction on an ongoing basis.

    I take the gimme’s Whenever there is an opportunity to lower you expense, lower it.

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