Refi stress

Discussion in 'The Watercooler' started by gcvmom, Jul 19, 2010.

  1. gcvmom

    gcvmom Here we go again!

    I decided to go for it this weekend and applied for a refi loan online. We stand to drop our current rate by a minium of 1.75 percentage points, possibly more, AND shorten the loan life by about 7 years, while saving over $100K in interest. There's no prepayment penalty either. So overall, it seems like a big win. The hard part now is figuring out which points/fee option to take... the more we pay out in that area, the more interest we save in the long run, but the less we'll have in our savings, too.

    So I'm stressing a teeny bit today, waiting for husband to take a look at the info I sent him and give me his 2 cents on my proposal... and of course he's in a meeting right now. :(
  2. Mattsmom277

    Mattsmom277 Active Member

    I hope it all works out.

    I think in these times I'd ensure I had enough left each pay towards savings. Because most of these great interest refinancing things means never missing or you automatically (or quickly anyhow) end up with a sky high rate that is never manageable. Savings for me would be key. Sounds like its going to lower your payments and awesome that you can pay mortgage of earlier. I'd be happy at both those points and wouldn't push my luck too much, not to the point of affecting legitimate savings that one day might just be much needed.
  3. gcvmom

    gcvmom Here we go again!

    It's a fixed rate loan, and although it bumps our payment up about $90 a month, we will save a boatload over the life of the loan and pay it off a lot earlier. And at our current rate, even if I added the extra $90 to the principle now, we still would not come out as good as we do by refinancing at this lower rate (which now looks to be about 2% less than what we pay now). The up front fees/points won't deplete our savings, thankfully, so I think this is going to be a good thing in the long run. :)
  4. susiestar

    susiestar Roll With It

    I hope it works out for you. We applied for a loan modification under the gov't plan and our bank is giving us a lot of conflicting messages. one letter said we were not eligible because we were in foreclosure. Years ago they tried to foreclose on a bunch of people, including us, by playing accounting games to make it look like we were not making the payments. We got that straightened out and we have a letter to prove it, dated a month before we applied for the modification. Then they said we were not eligible because we were having 'no trouble' making our current payments, which we ARE having trouble making, so we were not eligible. Then the same week they sent a letter saying we were not eligible because we were late making a payment, which we were not. We send cashier's checks because they kept trying to get our bank to say we had insufficient funds when there was plenty of $$ in there. They would actually call the bank and ask the bank to tell them that we had no money!! we know the people at our bank very well and they called us because they kept getting these weird calls. They didn't know if it really was the bank or some identity thief or a kid playing a practical joke or what. They even filed a complaint against the other bank when it was verified that it was the bank that has our mortgage.

    then we got a letter on Sat saying that they want us to resubmit the paperwork for the modification because we are still eligible but the need the same info a third time!

    l hope yours go through smoothly. It sounds like an excellent plan as long as the extra each month can be covered with-o much problem.