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Re-finance offer from penny Mac - Should I?
Posted on 7/2/14 at 12:15 pm
Posted on 7/2/14 at 12:15 pm
I got a refinance offer in the mail from pennymac (who is the lender that holds my mortgage now) to refinance from 4.875 to 4.35. I bought the house last august and was wondering:
1. Why is pennymac offering this out if the blue?
2. Does this make financial sense? We would be saving close to $100/month
We plan on staying in the house for the foreseeable future (10+ years)
1. Why is pennymac offering this out if the blue?
2. Does this make financial sense? We would be saving close to $100/month
We plan on staying in the house for the foreseeable future (10+ years)
2
Posted on 7/2/14 at 12:17 pm to DzNtz
what are the closing costs? that will tell you if it is worth it once you see the cost per month against the savings per month
Posted on 7/2/14 at 12:19 pm to DzNtz
quote:
1. Why is pennymac offering this out if the blue?
They make money originating the loan.
quote:
2. Does this make financial sense? We would be saving close to $100/month
Depends on closing cost like poster above stated.
Posted on 7/2/14 at 12:25 pm to Mr.Perfect
The letter says $0 cost but the fine print says "No or low out-of-pocket costs refinances are available to qualified borrowers. Does not apply to taxes, insurance, and prepaid interest. Does not include rate buy down rates."
I think that says that pennymac is not charging anything but there may be some tax and insurance closing costs?
Any way, any insight is greatly appreciated.
I think that says that pennymac is not charging anything but there may be some tax and insurance closing costs?
Any way, any insight is greatly appreciated.
Posted on 7/2/14 at 12:55 pm to DzNtz
quote:
I think that says that pennymac is not charging anything but there may be some tax and insurance closing costs?
Well, I would think the insurance, taxes and prepaid interest would just be for prefunding the escrow and the initial interest. And you would be paying these funds regardless to the current escrow account (minus perpaid interest since you are already in a mortgage).
I don't know man, If the closing costs are minimal I would certainly consider taking the savings.
Look into it... i would
I am curious if a qualifier borrower is one with good credit or if this is a low income situation.
ETA: current rates look to be about 4.2%, so I would not think you are going to have any rate buy down cost either
This post was edited on 7/2/14 at 12:58 pm
Posted on 7/2/14 at 1:56 pm to DzNtz
there would have to be 0 closing cost for this to benifit you. is you loan currently FHA?
Posted on 7/2/14 at 2:18 pm to hawkeye007
Conventional. 30 year
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