Harp Refinance to lower APR. Anyone done it?

Dufferman

So, we have been in our house for about 6 years now and qualify for a Harp refinance. My credit score is better now then it was when we bought, currently around 785 on Transunion and Equifax according to CreditKarma.

My current mortgage company is Wells Fargo and they were offering to drop my 5.5% rate to around 4.3 or so, can't remember exactly. This would be going from a 30yr to 15yr fixed and would only raise my payment by about $50 a month including about $3,000 in closing cost.

The Wells Fargo rep was pushing me pretty hard to apply right now, right now, right now. Made me curious what my other options were, and if she didn't want me to look into it.

I would only be financing about $60,000 left on the current loan. Anyone have some knowledge with this stuff and know what %APR I should expect with an apparent excellent credit score?

The other mortgage rates I'm seeing on bankrate.com are about 3.4-3.6%APR.

ZWExton

I get offers to refinance that include them giving me money, not spending $3,000. Spending 3k to refinance 60k seems a little tough to me, but everyone's situation is unique.

Find a loan calculator that can determine how much you're paying for the life of your current loan based on your payments compared to how much you'd pay for the life of the new loan based on your payments.

If you're only saving yourself a couple thousand dollars, not worth it if it costs 3k, y'know?

Dufferman

ZWExton

Oh I feel ya. I think the savings would come on switching from 30yr to 15yr and cutting about 8 years or so off my mortgage. Plus dropping my intrest rate about 1.5%. The monthly payment was only about $50 more with the 15yr, and normally APR is less with 15yr over 30yr. If I used the calculator correctly I would be paying about $122,000 on my current balance of ~$60,000 with my 5.5%apr with 24 or so years remaining. At 15yr and rate around 4% that final loan cost would only be about $80,000. If that is the actual case the $3,000 in closing cost is nothing.

Rates have been going up since the election, so if I decide to do something I should do it soon.

ZWExton

What if you voluntarily started making the larger 15yr payment with your existing mortgage? You can still pay it off earlier and dramatically reduce your interest, and avoid the refi closing fee. Worth a look.

Or you could tell the lady "it sounds great, but it's hard to accept a $3,000 fee to refinance," and see if the fee can be reduced. Or, shop the refi with other loan companies.

When I got my mortgage, I ended up going through Everbank who charged me less than 0 for the loan. They paid for the inspection/appraisal, no loan closing costs, I think I even got some kind of rebate for using them. Bank of America wanted about $5,200. Lolololol

Release

I would shop with an experienced broker. Broker can access to most all of the available program.

Not all brokers are equal, some are just a little bit more informed and smarter.

we know the mortgage rate would have gone up 6 months ago. The estimate was predicted at bout half a point maximum before the end of the year which is getting close. No one knows what will happen in the next 4 years.....
If anything, I would definitely get out of ARM. If anyone is in any type of the ARM program, should consider paying the fee and higher rate to hold on to something certain, because when rates started going up then not only the payment will be higher, there will be issue of "qualify for the new rate ", they might not be able to hold on to a mortgage even if they could still manage the payment.