I have a 30 year fixed at 5.75 with a loan balance enough to buy a house in OR (I live in LA, CA). My loan broker has told me recently to refi at 5.65. 0 fee, 0 points.
Sounds very tempting. Are there any gotchas that I should be on the look out for?
Get it in writing with a good faith estimate of costs.
The downside is your are extending your mortgage another 30 years besdies what you have already paid in.
.10% won’t make much of a difference in your payment. I would probably just stick with what I had to avoid the hassles of refinancing.
That’s a great rate for today’s pricing! No points/fees whatsoever?! Right on! You’ve got a great broker, congratulations. However, there’s absolutely no tangible benefit to you doing this loan to reduce your rate by .10%. The only way this would make sense is if you were to consolidate a credit card with a much higher interest rate into this new loan. Or, and this really makes more sense, go for a 15 year fixed. If you can afford it, today’s pricing is 5.25% with no costs/fees! The latter, obviously, is the best option considering you will save a substanial amount of interest over the life of the loan. Happy shopping!
The gotcha is closing costs. All mortgages have closing costs & you will pay them one way or another. As Tim said, get a good faith & go over it carefully. He is also correct that .10 will make very little difference in your payment, certainly not enough to offset the costs of a new loan. Stick with what you have.
i could quote people 5.625 with 0 costs or 0 points all day long, I almost guarandamntee you this loan wouldn’t get done at that rate with no fee’s………..