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should i refi my 30 year, 5.8% to a 20 year 4.625%-- fee is only 455. we are 5 years into our 30 yr

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November 08 - Pittsburgh
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Profile picture for Georgia Loans
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Excellent
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November 09
Profile picture for pghjill
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The rate is locked ... I am calling them back now to get it rolling -- your input was so helpful and I am so thankful!   J
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November 09
Profile picture for AB5551212
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Hi Nic... I have no idea who Ed Hardy is???
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November 09
Profile picture for Georgia Loans
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pghjill, have you LOCKED THIS OFFER YET?
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November 09
Profile picture for ColoradoLender
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Very appropriate pic Jim.  Do you happen to be wearing an Ed Hardy shirt in the picture?  DB
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November 09
Profile picture for AB5551212
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Hi, and good question!!!
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November 09
Profile picture for Georgia Loans
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Call them right now and lock that deal, dont hesitate.
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November 09
Profile picture for BayviewMortgage
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If it is citi and you aren't insured by fannie as it is. Take the deal. If you don't take the deal. The loan will be sent to Bayview Financial loan Inc. for servicing. I get all the call from the clients that have been sent over there because the borrowers can reach me but not the big company that is servicing their loans.
Once the loan is insured by Fannie Mae your loan will be in a safe place. You can then do what ever you want. as it stands , no one can help you unless you have alot of equity in your home.
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November 09
Profile picture for Gregorio Denny
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pghjill, 

Take the deal, the other advice you are receiving is ludicrous. A 15 year is not on the table so telling you to explore that option is silly. Dropping your rate that much will indeed keep your payment about the same, cut 5 years off and you can still pay extra to principal if you so choose. 

Close it before they change their mind and never listen to a RE agent when it comes to financing!
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November 09
This is a great deal!...Go for it!
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November 09
Profile picture for pghjill
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Thanks for the input!    Our current lender is offering the deal (Citi), they say they want to move us off their books and onto Fannie Mae and have a lender credit to use.    Our only fee is $455 up front, no other costs rolled into loan other than 1/2 month of interest until the close.  If we go to a 20 year, we save 5 years and no change in monthly payment.   If we go to 15, we pay an additional $100 a month.    It seems like a no-brainer, but I am wanting to be sure it makes sense?    Thanks!!

Balance is 107,000 on mortgage, worth 160,000
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November 09
Profile picture for LoanModSpecialist
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they have to be rolling fees into your loan and you are just not aware of the fees.  most people refi if they can save a point, but run the number and see.  if you can handle a 20 year then why not a 15 year and it all depends on your loan size.  or just make extra payments and don't refi

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November 09
Profile picture for wrightlynne
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At the moment, your interest rate is tax deductible.  The lower your rate the less you have on your write off, you and your accountant know how that may benefit you.  Since your going down almost one full point in interest, and decreasing your term your payment will be higher.  I would say, keep your loan and make a bigger payment to your priciple, any reason why your not doing that?  That cuts years off your note as well so reduces your interest. This way if there was a job loss you could pay the lower payment, or put extra in as you like on your current loan...Start with the $455 fee as extra, do the difference in the two loans and your going to be happy. 19 Years experience in Lending and Real Estate.  Lynne Wright Home Real Estate Colorado
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November 09
Profile picture for lifebeyondEarth
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Yes, it makes lot of sense to go for the deal.

1. You will save on interest
2. Low closing cost --- make sure you have in writting that the only cost to or funds needed at closing is 455. Cause otherwise you loose if you are paying title and other costs-- and make sure you aren't paying for appraisal.

-- I can be more helpful if you can post loan amount that will show wether it works in favor or not.

I'm a consumer like you, can you post your lender/broker info please.
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November 09
Profile picture for BayviewMortgage
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Yes, pay for the brokers or lenders fees for 20 years. That sounds really smart.
Wait til after January 1st 2010 and any overages will have to be refunded to you directly, the borrower. So all the we fix rate type of companies that put back end money on their loans will have to start charging their fees up front. After January 1st, 2010,  the borrower will finally get the lowest possible rate.
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November 08
Profile picture for Gregorio Denny
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Ignore both previous answers. If you are dropping your rate from 5.8% to 4.625%, cutting 5 years off your mortgage, you can afford the payment and it will only cost $455 ... it's a no brainer. 

Take it, don't look back, close!
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November 08
Profile picture for Bert Billings

Yes.  But it would be an even better deal to go to a 15 year mortgage.  It is priced much lower due to supply and demand.  Very few people and investors want a 20 year produce so it is priced too high.

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November 08
Profile picture for BayviewMortgage
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why don't you do a 15 year at 4.25% and pay more towards your closing costs. Why pay for the broker or Bank for 20 years?
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November 08
 

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