Which rate to pick for my refi?
OK I'm about to do a HARP refi and I'm not sure which rate to lock in. For a 3.99 rate after rebates and closing costs I would be adding about $1800 to my previous loan and the monthly payment would around $941.If go for the 4.1 rate after all fees and rebates I would be addin $800 to my loan and my monthly payment is $948. The current loan 30 year fixed and 3 years old. New loan will also be a 30 year fixed.Is there a formula to figure out which would be better for me in this situation? Or should I just go with the lower rate since it will just be added to the loan? by joeman_369_356 from Riverside, California. Jul 25th 2012
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Apples / Oranges.. Which do you like best.. Both offers are good and would be very, very little difference.. too little to be concerned... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
Look at the question this way. For an extra $7 per month in payment, you can save $1,000 in costs. This means that once you pay 143 months on the new loan, you will have paid and extra $1,001 in interest. So the answer lies in the following question. Do you think you will be in this home, in this loan for more than 12 years? If you do, take the lower rate and higher fees and you will save more in the long run. If you don't think so, or are not sure, then take the lower fees and the slightly higher payment/rate. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950
Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions
Depends on how long you plan on being in the property. However, i would work on dropping your DTI if you have equity. if you can accomplish that, you may be eligible for a much lower rate.
I'm not upside down on this loan..LTV is around 80%. My only issue it seems to be a high DTI (around 53%). I'm working with doing a manual underwrite with my current loan processor since it is more streamlined compared to regular desktop approval. I know I could do better with the numbers, but I might be able to qualify for any of these programs.
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
You don't have to be upside down to do a HARP refi. Your loan officer should be looking at both HARP and non-HARP options for you, but still with a DTI over 50%, you are being offered a good deal. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950
Robert Le (robert_le)
#623 ranked lender in California - 36 contributions
give me a call at 714-943-6499 or email me at robert.le@greenvillemortgage.netI can provide a refinance at 3.625% (apr 3.625%) with no cost no fee, if your fico is 700, loan amt $200k above
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