jasen Posted December 5, 2007 Report Share Posted December 5, 2007 We're doing some minor refinishing work inside, in preparation to have an appraisal. My credit is clean, hers is getting there. The house is likely worth at least $70k more than our current mortgage, judging by neighbors home sales.I just got a promotion at my job making more money, so this should look good as well. Our purpose is to a) lower our interest (from 6.75), and take out a bit of equity to be used to pay off some credit cards and re-shingle the roof.We have a couple friends who do home financing that we'll be going through.I've never done a refi before... will this be the same process as getting the mortgage? Is there anything else I'll want to have done specifically before we go to our financing friends to start the dealing? Link to comment Share on other sites More sharing options...
jq26 Posted December 5, 2007 Report Share Posted December 5, 2007 It is easier than getting an initial mortgage and less expensive. Lots of the transfer fees don't apply (RE taxes, title insurance, etc.), and there shouldn't be any points paid. Link to comment Share on other sites More sharing options...
firstsource Posted December 7, 2007 Report Share Posted December 7, 2007 I would suggest that you look into a 2nd mortgage instead of refinancing the 1st. there are still a lot of costs you are going to incur on your first. While there is no such thing as a no-cost loan, most lenders have a loan that has no closing costs that you are paying-if you accept a 3 year prepayment penalty.Charles Link to comment Share on other sites More sharing options...
sammy Posted January 11, 2008 Report Share Posted January 11, 2008 I would suggest that you look into a 2nd mortgage instead of refinancing the 1st. there are still a lot of costs you are going to incur on your first. While there is no such thing as a no-cost loan, most lenders have a loan that has no closing costs that you are paying-if you accept a 3 year prepayment penalty.CharlesCharles, I have the same situation like him except I have 2 loans (one with 6% and the 2nd with 8.5%). I did an appraisal last April for Refi purpose with FirstOmni but I refused to close with them since they were trying to charge me undisclosed APR and Fees that I found in the HUD-1. Anyway, they released the appraisal on my name. Can I reuse it? What better rate I can expect? (I am in Texas, around 40K equity, want to do 15Yrs. fixed). Thanks again. Link to comment Share on other sites More sharing options...
firstsource Posted January 11, 2008 Report Share Posted January 11, 2008 Your new lender would not be able to use the appraisal because it would be out of date by now. Some lenders will use the same appraiser however, and the appraiser may charge you a bit less as a lot of the work has already been done.I don't quote rates on the board as even though on the surface 2 people's situation may look the same, many times there are things about the file that are different enough to make a difference. My assumption is however, that your rate would be the same or less than last year. This would be a good time to refinance as rates have taken a dip but will be going back up. (Not logical, but if the Fed lowers their key rates-that will make the stock market go up-bonds will go down and interest rates on mortgages will go up)If you want cash out, there are limits in Texas. Max loan amount is limited to 80% of the value of your home, but rate and term (which you want) does not have those limits. Charles Link to comment Share on other sites More sharing options...
Recommended Posts