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Searching for Best Rates for Refinance

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Anonymous
Not applicable

Searching for Best Rates for Refinance

Hello to all,

 

I currently have a conventional 30 year mortgage opened in 2002 at 6.625% interest and I would like to refinance.  I currently owe approximately 140,000 on my property, which is worth 225,000.   I have started the initial online research with outlets such as  Accunet and Amerisave to get an idea of available rates.

 

 My Equifax FICO score is 688, Experian FICO score is 687, and TransUnion FICO score is 676. 

 

I have found 30 year rates ranging from 3.5% with substantial costs ($6000.00) to 4.75% with seemingly negative costs. 

 

I have a couple of questions:

 

1.  What is meant when total closing costs are listed, for example, as "-567".  Would that mean that I would be credited 567.00 and there are indeed no closing costs?

 

2.  Does anyone have any suggestions for where to search for rates given my credit score?

 

 

Thank you all very much for a very informative and valuable forum.  I very much appreciate any and all suggestions.

 

Jimmy

 

 

 

 

Message 1 of 8
7 REPLIES 7
Lel
Moderator Emeritus

Re: Searching for Best Rates for Refinance


@Anonymous wrote:

Hello to all,

 

I currently have a conventional 30 year mortgage opened in 2002 at 6.625% interest and I would like to refinance.  I currently owe approximately 140,000 on my property, which is worth 225,000.   I have started the initial online research with outlets such as  Accunet and Amerisave to get an idea of available rates.

 

 My Equifax FICO score is 688, Experian FICO score is 687, and TransUnion FICO score is 676. 

 

I have found 30 year rates ranging from 3.5% with substantial costs ($6000.00) to 4.75% with seemingly negative costs. 

 

I have a couple of questions:

 

1.  What is meant when total closing costs are listed, for example, as "-567".  Would that mean that I would be credited 567.00 and there are indeed no closing costs?

 

2.  Does anyone have any suggestions for where to search for rates given my credit score?

 

 

Thank you all very much for a very informative and valuable forum.  I very much appreciate any and all suggestions.

 

Jimmy

 

 

 

 


I can't answer your question about the closing costs, but if you're serious about refinancing - and I think with your current LTV ratio and interest rate, it would be a very, very smart thing to do - you should either go to a few local banks and credit unions to inquire, or find an independent loan officer who can check rates with multiple lenders.  Remember, mortgage inquiries within a 14 to 45 period are scored as a single inquiry, so rate shopping doesn't have a significant effect on scores.

 

By the way, I suspect that the credit scores that you posted might not be actual FICO scores, unless you obtained them directly from a mortgage lender.  Experian scores are available for purchase by consumers, and the Experian scores that you get from a credit monitoring service are not FICO scores.  If you got your Transunion and Equifax scores from the same site, then they're probably not FICO scores either.  Where did you get your scores?

Message 2 of 8
Anonymous
Not applicable

Re: Searching for Best Rates for Refinance

Hi,

 

I obtained my Equifax Fico score from MyFico.com (paid for the score and credit report),  and the Experian score came from Capitol 1 when I applied for a credit card, and the Transunion score came from Chase when applying for a credit card.

 

Thank you so much for your help.  It is most appreciated.

 

Jimmy

Message 3 of 8
Lel
Moderator Emeritus

Re: Searching for Best Rates for Refinance

Got it.  Keep in mind that FICO scores are dynamic, so if those scores from CapOne and Chase are old, they might not reflect your true scores.

 

And if they are recent scores from recent applications, stop applying for new credit! Smiley Happy  Lenders don't like to see a lot of new accounts or applications in the months leading up to a new mortgage application.

Message 4 of 8
Anonymous
Not applicable

Re: Searching for Best Rates for Refinance

Hi Lel,

 

Thanks very much for your reply.  The 2 credit card applications were both within the last 2 weeks.  I was declined for the Chase but approved for the Capitol One.  Just a little backround:

 

 I began a DMP with a CCCS in June 0f 2008, when I fell upon difficult times and became 60 days late on most of my credit card payments.  I just recently paid off all of the CC debt (I was on a 5 year DMP, but paid all in full in 3.5 years)  I was advised  by my credit couselor to apply for and obtain a major credit card to rebuild my credit.  I knew that my mortgage rate was significantly higher than the going rate, but I did not feel that refinancing was a possiblity until I had completed the Debt Management Program, so, I am hoping that this is the right time to refinance for a better rate.

 

Thank you very much for your help.

 

Jimmy

Message 5 of 8
namvet
Established Contributor

Re: Searching for Best Rates for Refinance

If it were me, i would contact a mortgage broker in your area.  In a single phone call you can get a professional to take a look at your situation and point you in the right direction plus do the mortgage shopping for you.  This should all be done without charge. As pointed out above, stop any and all credit activity until you get your mortgage transaction closed and funded!

Message 6 of 8
Anonymous
Not applicable

Re: Searching for Best Rates for Refinance

How come the morgage brokers do all this for you for free?  Is it because they hope you go with them?  We are looking to refinance as well so OP if you find some great rates let us know!  Thanks!

Message 7 of 8
DallasLoanGuy
Super Contributor

Re: Searching for Best Rates for Refinance


@Anonymous wrote:

Hello to all,

 

I currently have a conventional 30 year mortgage opened in 2002 at 6.625% interest and I would like to refinance.  I currently owe approximately 140,000 on my property, which is worth 225,000.   I have started the initial online research with outlets such as  Accunet and Amerisave to get an idea of available rates.

 

 My Equifax FICO score is 688, Experian FICO score is 687, and TransUnion FICO score is 676. 

 

I have found 30 year rates ranging from 3.5% with substantial costs ($6000.00) to 4.75% with seemingly negative costs. 

 

I have a couple of questions:

 

1.  What is meant when total closing costs are listed, for example, as "-567".  Would that mean that I would be credited 567.00 and there are indeed no closing costs?

 

2.  Does anyone have any suggestions for where to search for rates given my credit score?

 

 

Thank you all very much for a very informative and valuable forum.  I very much appreciate any and all suggestions.

 

Jimmy

 

 

 

 


total costs listed as a negative means that you get a credit... can be credit towards pre-pays. this would be on the higher rate/low fee deal.

 

look at wells fargos site. they publish mortgage rates. you should be able to get tht or better.

 

rates and fees go hand in hand. how the loan officer presents the deal to you is just pricing strategy,

 

if you plan on staying a long time.... higher fees and lower rate will win over time.

 

 

Retired Lender
Message 8 of 8
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