My mortgage company contacted me out of the blue, saying they will do a streamlined refi for me. Dropping from my current rate of 3.375 to 2.875 (2.924 APR). They will "cover" closing costs, and the only fee I would pay is a "loan origination fee" for approximately $1000. The remaining term of the loan would remain the same, 26 years 9 months.

My questions are:
1. Is this legit or a scam? The numbers seem to make sense to me, but I'm definitely not very fluent in any of this.
2. How long would I need to stay in this house to recoup my $1k? What would be a good calculator to plug this info into?

ETA: Tried to upload pics of the documents but don't have enough service where I'm at. $162k left on mortgage. The loan officer claims that I will save $16k on interest for the entirety of the loan, and about $80/month on my note.

This post was edited on 9/17/20 at 6:27 pm

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Posted by ellesssuuu

Baton Rouge

Member since Mar 2016

3167 posts

Posted on 9/17/20 at 7:43 pm to indytiger

its not a scam. the rate is higher to cover most of the closing costs. the normal rate not covering costs is around 2.25-2.375% on VA streamlines

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Posted by FLObserver

Jacksonville

Member since Nov 2005

15809 posts

Posted on 9/18/20 at 6:16 am to indytiger

not a scam i just did this . got 30 year fixed at 2.25% went from 4.1% rate to 2.25% .That's really not that big of a drop in the rate you should be able to get it lower than 2.8.I'm Getting over 300 a month back now. Has to be worth it to refi.

This post was edited on 9/18/20 at 6:18 am

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Posted by indytiger

baton rouge/indy

Member since Oct 2004

10215 posts

Posted on 9/18/20 at 10:30 am to FLObserver

What bank did you get your rate from? How much were closing costs?

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Posted by rockyvol

Gonzales

Member since Mar 2014

4 posts

Posted on 9/18/20 at 1:14 pm to indytiger

A VA Streamline or Interest Rate Reduction Loan (IRRL) is not a scam. It would take diving into your specific numbers to determine if a)lowering your rate only .5 and b)paying a fee (or points) would beneficial to you. You have to look at short term and long term savings vs. how long you are planning on staying in the home, etc. Definitely look at more than just rate if you are considering this.

I am happy to sort out the math if you would like. 225-931-1304 Traci

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Posted by indytiger

baton rouge/indy

Member since Oct 2004

10215 posts

Posted on 9/18/20 at 4:49 pm to rockyvol

Thanks for the responses, especially ellesuuu and Rocky. Just seeing yalls offers to call now, I’ll hit you up at a more decent hour. The people on this board are the best. Also, I took a screenshot, so if you’d like to delete your numbers feel free.

This post was edited on 9/18/20 at 4:51 pm

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