Mortgage Brahs PLEASE HELP (reps)

[redwine91]

Ok.

I had a 3% locked in earlier this year but the lender sucked and I walked.

I bought my house in March of 2018 for $160k. I owe $152k currently. ****ty FHA loan at 5.625%.

My current pre-qual refi options:

30yr 2.25% 3.069% APR cost $2716 in points
30yr 2.50% 3.237% APR cost $1128 in points
30yr 2.625% 3.331% APR cost $426 in points
30yr 2.75% 3.459% APR cost $168 in points

OR

15yr 2.25% 3.348% APR cost $4007 in points
15yr 2.75% 3.580% APR cost $1252 in points
15yr 3.00% 3.820% APR cost $1119 in points



Are all of these figures basically relative to the point where you should simply stick to the best rate you can afford?

What makes the most financial sense? I want to pay off the house and save money doing it. Obviously any of these are a no brainer compared to my current loan - but which?

Is the 30yr saving me more by paying less in points up front and just making additional payments towards principle?

Ex. The 2.5% 3.237 APR 30 year says I will save $84,715.09 over life of loan, save $1036.07 monthly and I could pay it off in 12 years if I applied my extra savings.

The 2.25% 3.348% APR 15 year says I will save $115,283.23 over life of loan, save $657 monthly and I could pay it off in 9 years if I applied my extra savings.


I just don't know what to fukkin do. Help misc. Will rep

[IronProdigy]

I'm actually shocked your 15 year rates are higher than 30. That doesn't make sense. The 30 year is your better bet because of time value of money

[redwine91]

I'm actually shocked your 15 year rates are higher than 30. That doesn't make sense. The 30 year is your better bet because of time value of money

Doesn't make sense to me either but that's what I'm seeing.

Edit: I ****ed up the numbers on 30 year. Corrected

[RobParks2M]

Go 30 yr 2.5% imo. Can pay extra, but if shtf you can pay the your normal 30 yr monthly

[redwine91]

Go 30 yr 2.5% imo. Can pay extra, but if shtf you can pay the your normal 30 yr monthly

On spread

[redwine91]

Another question for misc

If a lender is suggesting I take a lender credit ($2400) is this only a wise decision if I don't have the cash to buy down a rate or pay closing outright?

He says I should roll my escrow in ($5500) as I'll get refunded my original escrow balance after the loan closes. But that rolled in $5500 will inflate my loan balance and I'll be paying interest on it for at least another 10 years. Whereas if I pay it up front, my loan balance remains lower and it's a one time payment. Makes sense to me. Thoughts?

I want to keep my refi balance as close to my current balance as possible ($152000). Is this not the smartest, most cost effective strategy IF YOU HAVE THE MONEY TO MAKE IT WORK?? Whenever I present that idea, agents skirt around it and say your money is better off being invested rather than tied up in the added equity you gain by paying off closing fees up front. I get the argument, but my peace of mind comes more from keeping my loan balance lower and avoiding extra interest dollars across the life of the loan.

I want it paid down fast and aggressively but with the most cost saving baked in. Any opinions?

Thanks a bunch. More reps

[BroncManiac]

If you’re planning to stay long term, you should get the lowest rate possible. At 3.06 APR, you’ll pay about $80k in interest over the life of the loan. At 3.459, it’s $92k. For other situations, you have consider how long you’ll stay in the home to figure out if it’s worth paying for more points.

[RobParks2M]

On spread

I hadn't noticed your edit. I'd go 2.6252. I'd pay less for points especially since you are paying fast and it'll probably only take you 15-20 years. Cuts a lot of interest just doing that alone.