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Started By
Message
No cost refi offer
Posted on 5/2/21 at 10:26 am
Posted on 5/2/21 at 10:26 am
I recently received a no closing cost refi offer from Chase for 3.25. Current rate is 4.125 w loan balance of about $85k. Current 30 yr loan is about is about 6 yrs old.
Any cons on this offer?
Any cons on this offer?
7
Posted on 5/2/21 at 10:33 am to Laryngitis
quote:
Any cons on this offer?
You bought an appraisal if it comes back too low.
quote:- John Shibley
it is the biggest no brainer in the history of mortgages
Do it. But dont pay the minimum payment. Make sure you do not leave the mortgage open longer than 24 years.
Posted on 5/2/21 at 10:34 am to Laryngitis
There is no such thing as a no cost loan
They are giving you a higher rate then what you qualify for
They are giving you a higher rate then what you qualify for
Posted on 5/2/21 at 10:36 am to SDVTiger
Nothing is free. Get 3 quotes or at least 2. Tell them you don’t want to pay anything if that’s what you want.
Posted on 5/2/21 at 10:37 am to meansonny
House is worth about $225k. I always pay extra toward the principal. Just cautious when I get an offer like this.
Posted on 5/2/21 at 10:39 am to SDVTiger
quote:
There is no such thing as a no cost loan
If it costs him nothing, then how is it not a no cost loan?
quote:
They are giving you a higher rate then what you qualify for
Yeah. And they are taking that premium for the higher rate and paying all of his upfront costs.
For his loan size, i would recommend $0 costs versus a lower rate and $3k+ being stripped from his equity.
His 1 requirement is to not pay the loan back over 30 years. Amortize 24 years or less.
Posted on 5/2/21 at 10:40 am to meansonny
quote:
If it costs him nothing, then how is it not a no cost loan?
How is it not costing him anything
Posted on 5/2/21 at 10:42 am to Laryngitis
quote:
House is worth about $225k. I always pay extra toward the principal. Just cautious when I get an offer like this
You should be fine so long as the appraisal comes back over $125k (below that, it could affect the pricing on the rate:discount).
There is never any harm in shopping the rate. But at your loan amount, it sounds like a good deal to me (you already arent getting the best pricing because of the size of your loan).
Posted on 5/2/21 at 10:43 am to SDVTiger
Offer says no cost -- zero -- due to being a long term customer and excellent credit. I'll dig deeper for more info but that is what the offer states.
Posted on 5/2/21 at 10:44 am to SDVTiger
quote:
quote:
If it costs him nothing, then how is it not a no cost loan?
How is it not costing him anything
Youve never taken out a HELOC?
Or car loan?
Or no annual fee credit card?
How much up front costs are associated with those?
Explain the costs and i will correct you.
Posted on 5/2/21 at 10:45 am to Laryngitis
quote:
Offer says no cost -- zero -- due to being a long term customer and excellent credit. I'll dig deeper for more info but that is what the offer states.
Is it your current mortgage company?
Posted on 5/2/21 at 10:48 am to meansonny
What are you talking about
If his rate is a .5 higher then what he qualifies for then it costs an extra 7920 in payments over 30yrs
Could be but look to see if the offer is in a form of a credit towards the costs. If it then it just means they gave you a higher rate
You might as well get a very low 2% 15yr
If his rate is a .5 higher then what he qualifies for then it costs an extra 7920 in payments over 30yrs
quote:
Offer says no cost -- zero -- due to being a long term customer and excellent credit. I'll dig deeper for more info but that is what the offer states.
Could be but look to see if the offer is in a form of a credit towards the costs. If it then it just means they gave you a higher rate
You might as well get a very low 2% 15yr
This post was edited on 5/2/21 at 10:51 am
Posted on 5/2/21 at 10:48 am to meansonny
No currently w/ Wells Fargo but bank w/ Chase
Posted on 5/2/21 at 10:52 am to SDVTiger
quote:
What are you talking about
If his rate is a .5 higher then what he qualifies for then it costs an extra 7920 in payments over 30yrs
Opportunity cost?
Like selling at the peak and buying his next house at the bottom?
Picking the right lottery numbers?
The only guarantee he gets in this scenario is that he gets a better loan for no cost. If he has to relocate, it doesnt cost. If he has to refinance again for caah out, it doesnt cost.
It is the freedom of a mistake free scenario.
He gets a lower rate than he currently has with no upfront fees. Win/win/win
Posted on 5/2/21 at 10:54 am to meansonny
You literally make no sense and no one should listen to anything you say 
Posted on 5/2/21 at 10:55 am to Laryngitis
quote:
No currently w/ Wells Fargo but bank w/ Chase
From a physical cost of origination, your current mortgage company could refinance without a closing attorney (they already have the security deed).
It is possible that they could do the refinance at a lower rate because they dont need as much of a rebate to cover origination. But that assumes they share a similar pricing model (some lenders rates are not favorable to the market under $150k or $100k).
Posted on 5/2/21 at 10:58 am to Laryngitis
Just started the process of something similar. My “no cost” offer was 3.25.
Offer with paying for all costs and buying points was 2.6. For reference this was a cash out rate and it would have been about .25 lower as straight refinance.
I haven’t made a decision yet on mine but there is a cost to the no cost rate as others said. I’ll probably pick something in the middle. Not buying points and paying closing.
Offer with paying for all costs and buying points was 2.6. For reference this was a cash out rate and it would have been about .25 lower as straight refinance.
I haven’t made a decision yet on mine but there is a cost to the no cost rate as others said. I’ll probably pick something in the middle. Not buying points and paying closing.
Posted on 5/2/21 at 10:59 am to SDVTiger
quote:
You literally make no sense and no one should listen to anything you say
If you cant comprehend a difference between costs and interest rates, it is not shocking that this information doesnt make sense. At least you can admit it.
quote:
The only guarantee he gets in this scenario is that he gets a better loan for no cost. If he has to relocate, it doesnt cost. If he has to refinance again for cash out, it doesnt cost.
It is the freedom of a mistake free scenario.
If you want to correct the above statement, go ahead. Im willing to listen and learn.
Posted on 5/2/21 at 11:02 am to meansonny
quote:
If you cant comprehend a difference between costs and interest rates, it is not shocking that this information doesnt make sense. At least you can admit it.
You doubled down on stupid
It's ok you can admit you dont have any idea what you are spewing
Posted on 5/2/21 at 11:33 am to SDVTiger
quote:
quote:
The only guarantee he gets in this scenario is that he gets a better loan for no cost. If he has to relocate, it doesnt cost. If he has to refinance again for cash out, it doesnt cost. If rates improve and he can no cost refinance down to 2.99% next year, this refinance didnt cost.
It is the freedom of a mistake free scenario.
If you want to correct the above statement, go ahead. Im willing to listen and learn.
Crickets.
Congrats on contributing 5 posts to a thread with no tangible contributions. Do you wanna go for 6 posts?
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