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Author: foo1bar Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127815  
Subject: Re: should we refinance? Date: 8/27/2001 3:42 AM
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I've heard that the Feds just lowered the interest rates. I was wondering if this would be a good time to refinance our mortage?

First off, these things aren't directly connected...
What the fed does is only SHORT term interest rates.
Long term rates may (and often will) move differently.

I've been watching 30-year fixed at a few lenders and they didn't move when the latest FOMC lower-ing announcement was made.


We currently have a 30 yr. conventional mortgage at 7.875% with 24 years and 9 months.

Would we come out better, considering all the costs that is involved in refinancing.


Would you come out better?
Run the numbers, ask some lenders and find out.

I've been looking at refinancing as well, and I have a similar 7.875% loan, with 28.5 years left on a 30-year conforming.

I've been looking at
http://mortgage.etrade.com
www.ditech.com
www.lendingtree.com
www.countrywide.com
www.indymacmortgage.com (nice list of their competing lenders' rates on their site)
www.bankrate.com (reference list to others I'm considering contacting)


(unlikely to use lendingtree.com - only 1 pathetic offer so far and on application they want a closing date 90 days away?!?)

I've been mostly satisfied with ditech, as they were my lender for purchase ~1.5 years ago.

But now the rates are low enough that it looks like I can get $275k @ 6.875% with $2909 closing. In 10 months that loans up-front costs are recouped by the lower interest payments for MY situation. Yours will likely be different - do some research and use Excel (or Lotus 123 ;) to figure out what the best option for YOU is.

As for the others - I don't have any experience with them yet...
So we'll see. :)
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