I have a mortgage that is about a year old and a rate of 6.625%.
I'm getting all sorts of folks contacting me offering a streamline loan, but I'm not educated enough to make a good decision. A lot of the offers seem predatory, so I'm reluctant to look into any that seem too good to be true.
Any tips on how to be an educated shopper for this? Any tips on where I should keep an eye out for offers? What is an average amount to pay in fees? Tips on how to compare apples to apples? Thoughts on timing?
I think I understand the process on general, I just don't know about how to shop around intelligently.
Posted by Civil-Technician-952
4 Comments
Following as I’m in the same boat. Not sure how reliable your local Veteran’s United location is, but that’s my plan for when I refinance since they were very helpful during the buying process.
https://www.consumerfinance.gov/ask-cfpb/what-exactly-happens-when-a-mortgage-lender-checks-my-credit-en-2005/
Pick 5-10 lenders and blitz them for same day quotes so you’re comparing apples to apples with Loan Estimates.
With IRRRLs you can roll in your VA funding fee if non-exempt. With a rating 10% or higher the funding fee is waived.
You are also allowed to roll in your escrow/title fees which can vary depending on who you use.
You may also roll in your new taxes and insurance reserves as you’ll be getting a refund on your old escrow reserve account. Every county has a different amount required to be held in reserves depending on the month the loan closes.
The best way to see fees is to get Loan Estimates.
The biggest value is cutting the amount of residual interest the banks earn on the life of the loan while also saving monthly.
Those mailers you’re getting come from shit companies. Do you like the loan officer who helped you with your purchase (assuming it’s not a call center)? Why not get a quote from them, to start? I think it’s too soon to refinance. Without paying points, the absolute best you’ll likely be able to do is 6.125%, which is the bare minimum drop required by the VA for you to be allowed to refi. You’ll pay some fees, and in a few months, rates will likely be another .25 lower. Unless your loan amount is above like $500k, a half point rate drop isn’t much, considering you’ll have some closing costs. Once you close on the refi, you won’t be able to refi again for 210 days after your first payment date. Basically, you’ll be locked out of refinancing for a solid 7 months. I’d recommend waiting a few more months to get that rate decrease up to at least 0.75 or 1% before you refinance. Those companies sending the mailers are baiting you with the promise of low rates, but they aren’t to be trusted. They’ll happily load up on your fees the max 36 month recoup limit set by the VA, and then ask you to refinance again in 7 months and stack more fees in.
Agree with loan slinger. Wait a few months… you’re at the beginning of the rate decrease.