Should I refinance my home from 6.5% to 5%?

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I have a VA loan and almost made 12 payments. I’m being offered a lower interest but at the cost of two points. The total closing costs will be $ 8,815 including the two points, the 1% origination fee, prepaid escrow, etc. All this CAN be rolled over into my mortgage. Should I refinance? If so should I make a down payment for the closing costs? Or let it be rolled into the mortgage? Please help me!
I have practically no equity at all in the home. I’m looking to do a VA Streamline Refinance if anyone knows about that…
Does anyone know a good place for refinancing va loans?

  1. Reply
    February 16, 2011 at 11:06 pm

    i wouldnt

  2. Reply
    John M
    February 16, 2011 at 11:15 pm

    2 points is too expensive. I’d wait until that comes down a lot. The person selling this is front loading it a lot. In Wisconsin, it is very common to get loans with no points and a fixed origination fee where the total cost to close a loan is under $ 1,000. Today’s rate at the UW Credit union for a 30 year fixed rate mortgage (20% down) is 5.0%

  3. Reply
    February 16, 2011 at 11:54 pm

    It is possible to get a 4.5% loan with no points!
    6.5% is an excellent rate !! 4.5% is crazy !!!
    Escrow, is already in place . Use the same
    one and save title fees.
    Look up my contact info and I will do the loan
    for you.
    OAC still applies

  4. Reply
    February 17, 2011 at 12:30 am

    This makes NO sense whatsoever. While mortgage rates have dropped considerably, you can do far better than 5% with two points upfront. Shop around.

  5. Reply
    February 17, 2011 at 1:18 am

    How much would the new payment save you each month? How long would it take to save the amount of money it cost you to close on this loan? If it will save you $ 8815 in one year then it would be a good thing to do (I would still check around and see if you could do even better).

    If it will take you ten years to save the $ 8815 then I think it is a bad thing to do. Somewhere around a two or three year payback I think is my tipping point.

  6. Reply
    February 17, 2011 at 1:51 am

    That closing cost is outrageous and it should never be more than 2,000. at most. Call all the mortgage Companies and ask for their costs and all costs are not yours to pay. You have to be smart and NOT let them get rich off you. TYou oule pay your Mortgage ofr a while with that much money and they are wanting to finance that cost too, I know!!!!! Run, fast. You have to get at least a 4 point decrease and know without a single doubt that you will live in that house for another five years at least. If your interest rate were a lot more than that maybe…. Go to and have a few of them call you. they will compete for the business. I know that it is a terrible outrageous price that these people are asking. don’t do it. Please.
    a huge mistake. Never finance the costs of closing unless the interest rate is at least 4 below what you pay now. Never finance insurance and taxes, that is free money to them. You have to be responsible and pay for it yourself even if it’s on a monthly rate. It will cost you thousands over the years. Good luck. E-mail me if you want. Miss Mary

  7. Reply
    Doctor Deth
    February 17, 2011 at 2:17 am

    How much equity do you have in the house?
    $ 8815 rolled into a new mortgage will wipe out a lot of the equity, plus you house might be worth 10-20% less than it was when you bought it with the way house prices have dropped.
    You might not have enough equity to get approved for refi

  8. Reply
    February 17, 2011 at 2:58 am

    No, No, No, No, Why would you want to start paying all interest in the first years of the loan again. It is only a 4.875% loan for the first year IF YOU PAY IT OFF. The truth is its a 95% or more loan. Lenders never want you to know this. You are just now starting to pay down the principle, don’t start all over. NEVER EVER LISTEN TO LENDERS, ALL THEY WANT IS YOUR MONEY!

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