Refinancing Strategies

A current lender seldom will give you a good refi deal. You nearly always have to find someone else. A good place to start looking is the Bankrate web site.

-john-

Who is the loan with? GMAC tends to give existing customers a break when refinancing (on closing costs). I have not seen other banks offer this.

I would try a site like lendingtree or lowermybills.com and see what shakes out. You will usually be put into contact with multiple banks through one interface. I have used both without issue in the past.

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

First you said the mortgage rate has fallen significantly. Then you said the rates are not that (far) down. So which is it? I think the mortgage rate has indeed not fallen that far down. But still it should be lower than your current rate. Certainly check with several mortgage companies in your area and see what you are offered. Your current mortgage holder is indeed a good starting point.

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

I was about to suggest calling the current lender. John, you are right because most mortgages are sold, and that first guy has no interest in the note. I happened to have a mortgage (on a rental) that was still held by the bank. There were 25 years left on a 30 yr mortgage. One call, and a $595 appraisal, and processing fee, and for just about the same payment, it dropped to 15 years remaining. Lucky? Yup. But it was worth the phone call, even against the slim odds. Joe

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

No! Your current mortgage holder is the worst place to begin. You can save a lot by shopping around among other lenders. Here is an excellent web site that has a lot of useful information about mortgages, how to find the best rates, how to avoid tricks and scams, etc.:

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

Why is that, Don? If the current mortgage holder has any interest in not losing the loan, and will change the terms for little to no fee (as my prior anecdote suggests) why not pick up the phone? Joe

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

As I understand it, your present lender usually assumes that many people just want to get the new loan with a minimum of fuss and bother. These busy people will hesitate to shop elsewhere and will accept somewhat higher rates for the privilege of staying put with the current arrangement. Not only that, but also, if you have already obtained a few quotes from other lenders, you can take them to the present lender and ask, "Can you match this?" and very often they will match it. Undoubtedly there are exceptions. But for a more professional and knowledable discussion of these matters that I can supply, check out the web site link I put in the previous post:

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

Try Zillow.com for anonymous interest rate bids. After you receive several bids, you can contact the lender that has the best mix of interest rates and closing costs. I have tried the service in the geographic area that I am interested in and got several good bids.

Long term rates probably won't go any lower with inflation staying at current levels.

-- Ron

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.