Money

refinance new home loan

Twitter vhYL64
Jan 10

I took new loan (7/1 ARM) to buy house 7 months back, now I’m getting offer from same lender that I can refinance to reduce small interest (0.375) and at zero closing.

I am suspecting May be there is a catch, is it good idea to refinance to save small interest? and are there any advantages with first home loan.

Update: existing and new loan are same terms 30 yr 7/1 ARM and interest reduces from 3.75 to 3.375.

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  • Symantec drthvader
    I do have the same case. I am getting 3.75 % for 30 year fixed. My current rate is 4.25 with 7/1 arm.
    Jan 107
    • Google EVsM02
      Where are you getting 3.75% for 30 fixed ?
      Jan 10
    • Google Callmyname
      Which lender??
      Jan 10
    • Amazon / Engnew_things
      Holy shit that's incredible in 2019. Which lender?
      Jan 10
    • Symantec drthvader
      It is pnc bank
      Jan 10
    • Symantec drthvader
      Jan 10
    • Symantec drthvader
      Is there any catch in this deal?
      Jan 10
    • Quicken Loans Kbzh37
      The catch is it’s jumbo lol
      Jan 31
  • Facebook public2
    0 closing means you are paying a lot, it's like when Verizon gives you a "free" phone
    Jan 106
    • Twitter vhYL64
      OP
      can you elaborate?
      Jan 10
    • Facebook public2
      Lender's get paid to sell loans; they wouldn't sell you a loan out of the goodness of their heart. The fee is baked in somewhere so make sure the total loan is actually a reduction for you. I'd be surprised if it were given rates are rising but could be!
      Jan 10
    • Twitter vhYL64
      OP
      got it, I have similar apprehensions
      Jan 10
    • Facebook public2
      It may work in your favor but given the time value of money it rarely favors someone to pay the fee over a long run as opposed to today.
      Jan 10
    • Oracle arfhbigvk
      Check the APR; if it’s lower than current, go for it
      Jan 10
    • Quicken Loans Kbzh37
      I’d assume they rolled your costs into the loan. And I wouldn’t worry about the APR here whatsoever. If you bought the home at 3.75%, the APR for the rate of 3.375% on a refi will without a doubt be lower, unless they’re charging you jnsane points, which would pretty scammy bc they probably could have done that same rate for no points 7 mo ago
      Jan 31
  • Uber movingfw
    Re-finance also means that you have lost the interest that you have already paid. is it even worth considering?
    Jan 101
    • Twitter vhYL64
      OP
      I assume you meant reset of the tenure. Yes, you will pay more months of mortgage, but I guess savings will be more than additional payouts and also I expect to prepay when savings increase, so tenure is not that relevant.
      Jan 10
  • New DuQvV7x
    This question is incomplete.

    What rate do you have on 7/1 ARM. And what rate are you being offered for the refi. Is it also 7/1?

    Also, you will have some recording costs that may add up to several hundred dollars (check your local government) that is not often covered by that $0 closing.
    Jan 101
    • Google oppgcp
      Also don’t look at just the interest rate. What’s your APR ?
      Jan 10
  • Uber movingfw
    do you mind disclosing the lender name?
    Jan 100
  • Intel / Mktgnononsense
    Zero due at closing usually just means that the costs are rolled into the loan, not that there are no costs.

    Depending on loan amount and costs, it may be worthwhile or it may not. Have them provide you with an estimate of the costs.
    Jan 100
  • Facebook / Eng
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    FacebookEng

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    I heard you maybe able to get 3.25%
    Jan 100

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