I was on this site recently and say someone post great information about AIG auto insurance. I checked it out, and saved about $200 every 6 months! We are one of those people that thought an adjustable rate mortgage a few years back was a deal. Now w/ my interest rate at 8%, we are kicking ourselves. Just wondering if anyone has done refinancing themselves & who they went with? I hear about no closing cost deals, but very skeptical. Im thinking that mean a higher interest rate?? We want to refinance into a fixed rate. Any info from you all will be greatly appreciated. Im set to have this baby in APril, we were doing great & im able to stay home. But this mortgage is really starting to hurt us
It may or may not mean a higher interest rate, just depends on the offer. I would start with inquiring about a refin through your current company. They are pretty generous with offers in order to keep your business.
I would then move on to your bank, as they have deals on closing costs for account holders, sometimes. There is no reason why you can't do a pre-approval through both just to get numbers in writing to compare.
And then there is Lending Tree. They will come back with several offers from lenders, but I think they share your info, so be aware you may start getting more junk mail. Probably worth it if they can save you a bunch of $$ though
As a Realtor, I see lost of refi disasters. There's a right reason to refi, and a wrong reason to refi, despite what the lenders tell you.
The right reason: interest rates are lower than your current and you could significantly reduce your monthly payment.
The wrong reason: cashing out your equity (or worse, cashing out your equity and then some) for a vacation, home improvements that do not affect the value of the home--pools (unless it's an inground and even then...., decks, a room addition that looks like Larry the Cable Guy built it; paying off credit cards.
The litmus test I tell people is that the cost of refinancing should be less than what you will save in monthly payments over a 3-5 year time frame. For example, if your closing costs were $2000, and refinancing reduced your mortage payment by $50/month, you'd save $600/year, and it would take you about 3.5 years to save in mortgage payment what you spent in closing costs. You also need to refrain from selling until you recup that difference, unless you don't care about the loss. For some people, they don't.
Whatever you do, do not refinance an amount greater than the value of your home. Beware the appraisal by the lender too. Many times they will inflate the "value" of your home in hopes of enticing you to borrow more money. Only refinance the amount of your current loan's principle. There's nothing worse than telling a client that there home isn't worth what they owe on it.