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O/T any steptalkers out there with financial knowledge? wanting to refinance our mortgage.

CaptainD's picture

so I've done a fair amount of internet searching. seems like the average rate we'd get is about 3.5%, which is better than the 6% we're at now. however, there are so many loans and companies to choose from, I am getting bogged down in the other details, such as closing costs/lender fees. so I have a couple questions. if anyone will take the time to answer them I would so appreciate it. my husband bought our house before he met me, so I really have no experience with this. however, it seems that he is content to leave this all up to me.

1.seems like some lender fees are outrageous while others are next to nothing. obviously I would want to go with the lower lender fees. is this cut and dry?

2. are closing costs going to be similar wherever I go? seems like these are mandatory fees and will be required no matter who I go with. is there a way to get a better closing cost or will it be the same across the board?

3. any other tips/advice such as good deals you've gotten, or a lender who is particularly good (i.e. cheap and reliable)

please help my inexperienced 28 year old self. I want to make a good decision.
some background info (in case it helps):

-we live in Washington state
-our long term goal is to buy land and build a house. we have excellent credit, and soon, no credit card debt. we recently came into some money that will erase our credit card debt (which wasn't much anyway)

Comments

Jsmom's picture

The fees may not justify your switching mortgages. You need to get a print out of all the fees. I am at 5.0 for my rental house and it is not worth it to me to re-finance. Closing costs can run as high as 2-3K. If you have no debt, it may be worth it. If you do, they will make you probably pay it off or take money from the equity to do so. That is a big mistake.

If you are finding ones with no fees, they are building it into the loan somehow. You need to find a reliable mortgage officer. We have one we have used for all of our houses and it has worked out great.

Add up the closing costs and figure the difference in your monthly payment, then figure out how long you will be in the house and see if it is worth it. And do not let anyone talk you into anything more than a Fixed rate mortgage. Do not do an ARM, that is how people have lost their homes and become upside down. I also, recommend no more than a 20 year loan if you can afford it.