I’m not very well versed in finance and buying our first home was very intimidating to me. Despite that we managed to obtain an offer for IRRRL today. Would anyone be able to take a quick look and give your opinion on whether we are given a decent deal?
4.875% fixed, will save us $400 a month
Closing cost: 1% origination fee, 0.5% VA funding fee, $1k in a bunch of lenders fees and taxes
Did some math and we will recoup the closing cost above in 14.5 months.
Posted by qwaddles
3 Comments
You didn’t give your current APR. Given this is a military finance sub, I’m assuming you’re in the military. When did you buy this home? How much longer until you likely PCS next?
14 months isn’t bad, but if you shop around, you could find a no cost VAIRRL that effectively only costs the 0.5% funding fee for a VAIRRL. Look for lender credits.
I think you can easily get something that you can recoup in 6-8 months.
Are you paying down the rate/Any points?
I’m a seperated vet and I literally got this exact same offer from my mortgage company today. So you sound like your getting whats available out there!
In my case, they’re offering to waive all origination fees, though they can’t put that on the disclosure or some weirdness until after we sign. (Probably because my loan is a little lower than yours 6.65%, so they trying hard to sweeten the deal). Maybe you could get another offer from a lender willing to waive the origination fee?
I may turn mine down until the disclosure form shows the actual deal offered. They said its non-binding to lock the rate in, but financial paperwork 20 pages long makes me super skittish to sign. Also considering USAA, more expensive but not a janky mortgage outfit I’ve never heard of (terrible reviews). See if I bundle some stuff and get a rate reduction.