Mortgage refi

[eremite06]

Anyone refi recently? What co. did you use, local or nat'l?

[mitchbr47]

Anyone refi recently? What co. did you use, local or nat'l?

Yes. We did last month through Citizens First Wholesale in TV. The process took about 30 days. The rate dropped from 6.5% to 4.5%.That is a huge savings of $109K over the life of the mortgage. I think rates have dropped a bit more since then.
The reason we used them was discounts and great service as we had the original mortgage with them. We did everything via overnight mail and did the notary at our local credit union.

[under55]

We also had ours with Citizens Mortgage and were in the process of checking on a re-fi. But then I remember hearing about a practice everyone uses in Austrailia. Now this only works if your going to pay everything off in a few years. But what we did was to go to Citizens bank and get a Home Equity line of Credit. Instead of us paying the $3000 in closing we would have had at the Mortagage company Citizens bank is paid all the closing costs. They have 2 different ways you can go prime or prime plus 1. We did prime %3.25 right now.

[eremite06]

We also had ours with Citizens Mortgage and were in the process of checking on a re-fi. But then I remember hearing about a practice everyone uses in Austrailia. Now this only works if your going to pay everything off in a few years. But what we did was to go to Citizens bank and get a Home Equity line of Credit. Instead of us paying the $3000 in closing we would have had at the Mortagage company Citizens bank is paid all the closing costs. They have 2 different ways you can go prime or prime plus 1. We did prime %3.25 right now.

I don't quite follow. You took out a 2nd mtg and used the proceeds to pay the closing costs? Now you have 2 mortgages and two rates? Please clarify, don't get this Australian method.

I would like to go with Citizens since they're local and familiar with the market here in the Villages.

[under55]

No took out a home equity at citizens bank and they paid off the mortgage at citizens mortgage. Was no cost to me they paid the $3000 in closing costs.
You keep dumping all your monthly income into the home equity and pay your monthly bills everything left over pays down the loan. Then any additional yearly lump sum payments you have from IRA's 401 you dump into the home equity and pay down the home equity loan.

[Ohiogirl]

this assumes you have enough equity (i.e., a low enough mortgage so that the home equity loan, which used to be up to 80% of the appraised value of the home). Wouldn't work if you already have an 80% loan.

A good move though, IF you have enough equity or enough extra cash to add in.

[under55]

Yes you are right we had about %75 free and clear equity. We have been in our home for 2 years now though and the apprasial came back $40,000 more than what we paid The Villages.