Refi - Did we make a big mistake??

[jo_tmi2]

Hi,

After reading the messages on this board, I am beginning to think we may have made a big error starting the refinance process on our home.  The biggest issue I think is that we elected to refi with out current lender.  They really don't have a big incentive to get this done, as we will be cutting our interest rate in half, from 6.50 to 3.25.  We have 13 years left on our 20 year mortgage.  We would be refinancing into a 15 year fixed at 3.25% .  Our monthly payment will drop a little over $400 per month.  Over the life of the loan we will save approximately $23,000 in interest.

We plan to make bi-weekly payments and would have the new mortgage paid off in about 13 years, so we wouldn't be paying longer than our original loan. 

My concerns are:  How much of a hit are we going to take on our credit scores by refinancing?  We range from 742 lowest to 787 highest (real FICO scores per lender and myfico ).  The only inquiries we have are the one the mortgage company made in January when we started this process .  How much of a hit will we take on our taxes by having about 1/2 as much annual interest to deduct?  Should we have chosen a different lender rather than our existing lender?  We thought the process would be quicker and easier with our current lender but that hasn't been the case.

It seems like it is taking a LONG time for the process.  We are in underwriting now.  I am considering calling them to say 'forget it'.

What do you all think?  

Thanks! 

[Booner72]

400 less a month in the same amount of time to pay it off?  I'd do it.

[Anonymous]

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@Booner72 wrote:

400 less a month in the same amount of time to pay it off?  I'd do it.

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+1... That should offset the hit you take on interest deductions.

[boomhower]

What's the point of a high credit score if you don't use it to save you money?  Who cares if you score goes down a bit(which it will)  Your saving a substantial amount of money and your score will improve over time.  If your not happy with the current lender go somewhere else.  Let your LO know to get the UW motivated or you will be taking your business elsewhere.  It shouldn't take more than a week tops in UW.

[FrugalRican]

If it's a refi, and it's saving you thousands of dollars, that's WHAT you wanted a good credit score for in the first place.

[jo_tmi2]

Thanks everyone. We have decided to continue on with the refi and try to prod the morrgage company a little to get them to hurry up. And we are considering exploring other lenders if they don't finalize by Monday.

[jo_tmi2]

Well, still no answer from our Lender, other than the processor emailing to say she forgot to do her part and 'its been crazy' there.  Any suggestions how to nicely prod them to getting it done?  It concerns me because now our rate lock is up.