" I recently refinanced my home (I plan on staying in it for a very long time). I went from a 8.5% 30 yr. to a 4.5% 15 yr. I took some cash out for much needed home repairs. The only thing is I had a big closing cost. I do think I got a great deal. I only want someone else to tell me I did. I live in San Diego where property is a precious commadity. It is also a fixed rate.
2006-07-11 02:48:26 · 3 answers · asked by paula r 1 in Business & Finance ➔ Renting & Real Estate
I am a mortgage broker and can tell you, that if you refinanced within the last year you got a really good deal. The closing costs where probably high to make up for the work the loan officer had to do as well as the fact that with an int.rate that low the officer probably didn't get paid by the lender so they charged it up front.
There is also the possibility that he ha to buy down the rate which means you had to pay a percentage up front to lower the rate, usually 1-2%. Not many L.O.'s do this but it is a good idea if you are going to stay there for a long time...
I think the L.O. did you a Very, good service...
2006-07-11 02:58:13 · answer #1 · answered by Anonymous · 0⤊ 0⤋
im a broker as well, and yes you did get a good deal, like the other
guy said, you paid high costs because they had to buy down your
rate. ask yourself this? do you write the points out every month
in your check book, or your mortgage payment? these points
are also tax deductable
good for you and enjoy the house
2006-07-11 05:16:16 · answer #2 · answered by Jenster*is*flipping*you*off 6 · 0⤊ 0⤋
You bought down your rate to 4.5% if you just did it recently. There is no way you could have gotten 4.5% at par rate. Were you aware you were buying down your interest rate? If your broker did not tell you that and you thought you were getting a par rate then I would have to say you got hosed.
http://www.lendermark.com
2006-07-11 05:42:48 · answer #3 · answered by lendermark1 2 · 0⤊ 0⤋