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HLS.
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January 18, 2008 at 1:43 PM #138513January 18, 2008 at 1:51 PM #138220
CBad
ParticipantNO 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 #138431ParticipantNO 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 #138457ParticipantNO 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 #138479ParticipantNO 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 #138528ParticipantNO 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 #138249Anonymous
GuestCBad,
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 #138463GuestCBad,
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 #138487GuestCBad,
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 #138510GuestCBad,
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 #138558GuestCBad,
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 #138280Raybyrnes
ParticipantWhy 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 #138490ParticipantWhy 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 #138516ParticipantWhy 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 #138540ParticipantWhy 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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