Refinancing House. Anyone use StreamlineRefinance.net

[Codypatt1]

Anyone used these guys? Im currently at 5.5% and wanting to reduce my interest rate much lower. Loan is currently with Wells Fargo

[cosmiccowboy]

It all comes down to the interest rate and the origination fee. Most all loans are resold to Fannie or Freddie so rates will be pretty comparable wherever you go but it's the fees that can catch you.

What are they offering?

[Charles]

Check with Wells Fargo if you haven't already. They have a "Streamline" program that could possibly save a significant amount in fee's.

[cosmiccowboy]

Check with Wells Fargo if you haven't already. They have a "Streamline" program that could possibly save a significant amount in fee's.

I tried to do that with Chase when I refi'd but ended up finding a better deal with a local bank.

[Charles]

I tried to do that with Chase when I refi'd but ended up finding a better deal with a local bank.

It certainty is worth the effort to shop around and compare.

[Codypatt1]

Streamlined refinance is offering a "7 one arm" loan that is fixed rate for 7 years then afterwards it's adjustable. During the 7 years you are paying a 30yr payment and the rate is based on a 10 yr note.

If it helps any I don't plan on staying in this house longer than 4-5 years so it may not even be worth it. Just hate paying the high rate right now!

Wells Fargo will hit me with a large closing cost that I would have to stay in the house for over 5 yrs to recoup the money

[cosmiccowboy]

IMHO if you are planning to move within 5 years you probably aren't gonna save much moving down from 5.5. What you may save in monthly payments you will lose in equity buildup...when they reset for 30 year amortization all you pretty much will be paying is interest for the next 5 years. Hopefully one of the pros on here will chime in soon but I'm not sure it will really save you anything. If there is ANY chance you will stay past 5 years I personally wouldn't do an ARM.

[Codypatt1]

I Asked the rep from wells Fargo and there maybe an Option for the streamline through them. I'll get more info from her tomorrow.

Bottom line is I want to lower rate by atleast 2 PTS and not have to pay a lot of closing costs.

[Codypatt1]

I really appreciate the info from y'all! Gotta love the green screen.

[Puggy625]

I Asked the rep from wells Fargo and there maybe an Option for the streamline through them. I'll get more info from her tomorrow.

Bottom line is I want to lower rate by atleast 2 PTS and not have to pay a lot of closing costs.

I've had my note with WF since I bought my house 7 years ago. I was also at 5.5 so I called them about a month ago. I am in the process of refinancing with them right now using the Streamline Refi. 30 yr note, no credit check, just job and income verification, no money out of pocket (except for a $13.15 fed fee of some sort) and nothing rolled back into the loan. They have me locked in at 3.8 as of right now. Saving me about $250/month. I only plan to stay in this house maybe another 4-5 years as well. Takes about 2 months for all the paperwork to go through. I'm going to set up a biweekly payment schedule and within 2 years I'll be back down to about a 22 year note (where I'm at right now). Do it, quit wasting money.

[wru]

i have a loan broker i work with and just did a refi - 15 yrs at 3.0, 30 yrs going for 3.5. even if you're staying in the house for 5 yrs, you'll generally repay the closing costs in 10 months or so, and after that you are saving quite a bit of money. PM me if you're interested, and i'll get you the info for him. he works out of plano.

[grutch]

this is the best forum ever! creative financing to help pay for a deer lease right there

[Throwin Darts]

IMHO if you are planning to move within 5 years you probably aren't gonna save much moving down from 5.5. What you may save in monthly payments you will lose in equity buildup...when they reset for 30 year amortization all you pretty much will be paying is interest for the next 5 years. Hopefully one of the pros on here will chime in soon but I'm not sure it will really save you anything. If there is ANY chance you will stay past 5 years I personally wouldn't do an ARM.

I don't look at it quite like this. The money you are saving has to go somewhere. Keep your payment the same and you are building equity faster than before before more funds are going towards principal. Or take the extra savings and do an auto draft into a savings or mutual fund account. That's equity too, just held outside of the housing asset. Assuming a 25% income tax bracket and an itemized tax return, a 3.5% mortgage is only costing you 2.625%. If someone is not maxing their retirement account contribution, I'd do that all day long with the S&P sitting at a 2% dividend yield over trying to pay down that mortgage.

I just ran the math on a $200k note that is five years old at 5.5% assuming a refi to a 3.5% 30 year note. After five years, here is what I came up with:

current note: owe $169,497, cumulative interest from now until the end of year five $49,354
refinanced note: owe $179,394, cumulative interest from now until the end of year five $33,280

Refi wins in this scenerio.

[Codypatt1]

I've had my note with WF since I bought my house 7 years ago. I was also at 5.5 so I called them about a month ago. I am in the process of refinancing with them right now using the Streamline Refi. 30 yr note, no credit check, just job and income verification, no money out of pocket (except for a $13.15 fed fee of some sort) and nothing rolled back into the loan. They have me locked in at 3.8 as of right now. Saving me about $250/month. I only plan to stay in this house maybe another 4-5 years as well. Takes about 2 months for all the paperwork to go through. I'm going to set up a biweekly payment schedule and within 2 years I'll be back down to about a 22 year note (where I'm at right now). Do it, quit wasting money.

What is the reason you didn't go to a 15 yr note? Just curious

[Puggy625]

What is the reason you didn't go to a 15 yr note? Just curious

I'm mainly reducing my outflow of money. I would have like to go with a 15 yr but the payment wouldn't have saved me anything as far as monthly outflow. Going with a 30 year note, making an extra payment a year for the first 3-4 years basically drops it down to a 15 year note anyway. I hope that makes sense.