refinance mortgage loan???????????????

Deal Score0

Guys i just bought my first home, am an airforce veteran. got a mail saying im eligible for an interest cut down thru some VA authorized lender. My current rate is 5.0%, they are offering 3.75%. But im not planning to keep this home for more than 5 years. So shuld i worry about refinancing it paying all those costs?I already payed about $ 1500 on my points when i got this loan.Does it really worth the difference if i dont keep it for a long time?

  1. Reply
    January 24, 2011 at 10:54 pm

    I guarantee that is a scam! “Some VA authorized lender” could be anyone. All a mortgage broker needs is need is $ 100 to get VA authorized! 5% is the going rate today for a 30 year fixed, so you are set.

    Most likely, the fine print will disclose an APR over 5%. By law the APR must be on that ad. Either way, that ad is most likely a RESPA violation if you feel like reporting it.

    Furthermore, 30 year fixed rates have NEVER in history been below 4.5% with no points, so you will never need to worry about refinancing to save money, as the rule of thumb is you need to drop 1% to make up for the closing costs.

    The new lending laws have weeded out most of the crooks but some remain.

  2. Reply
    January 24, 2011 at 11:23 pm

    Hi Jose,

    What you need to do is look at the total closing costs and divide that # by your monthly savings to see if it’s worth it.
    Here is an example:

    If you have a loan amount of $ 200,000 at 5% your pi payment should be about $ 1106.93 per month.
    Now let’s say that the closing costs are $ 5,000 and they will be added to your loan.
    Now you have a loan of $ 205,000 at 3.75% for a 3 year ARM? with monthly payment of $ 954.13 which gives you a monthly savings of $ 152.80.
    Now take the closing costs of $ 5,000 and divide it by the monthly savings of $ 152.80 = 32.72 months. This means you will break even once you hit the 33rd month. Is that worth it you?

  3. Reply
    January 25, 2011 at 12:05 am has excellent information on how to apply for a refinance mortgage program, refinance rules and laws, and other helpful advice for anyone looking to refinance.

  4. Reply
    January 25, 2011 at 12:51 am

    I can also guarantee that its a scam. I dont recommend you to follow this and if you have already spend so much to get this credit score then why you want to take risk.

    Leave a reply

    Register New Account
    Reset Password