If you've ever considered a mortgage refi ... - F-Body Road Racing and Autocross Forums

... now is probably the best time to do so. Thought I would share ...

I close on a refi Monday at a 3% rate (IMG:http://www.frrax.com/rrforum/style_emoticons/default/blink.gif)

I have enough equity, that I'm cashing out enough to be debt free on everything except my mortgage, obviously.
Increasing the term by 7 years and the monthly payment is going down $100/month.

My home appraised for a LOT more than I first thought it would ... a LOT.

During my appraisal, I learned quite a bit ...

A kitchen remodel/update will get you about 120% of the money you spend.
New paint and tile in a bathroom is not considered an "update" ... bupkis.
A new 16 SEER HVAC ... bupkis.

A 1200 sq/ft shop will modify the appraisal $25K ... according to the appraiser, it would take $60K to replace it.
I need to chat with my insurance agent ...

I shopped around for a lender. I contacted several brokers and wound up with 4 GFEs.
When I chose my broker and started the process, I learned that my Credit Score took a hit ... a pretty substantial hit ... due to numerous pulls of my credit score from all those lenders. Really?
This came back to bite me in the end. Lots more more paperwork, documentation and a couple grand in by-down points.

But, the lender allowed me to negotiate and purchase many of the required processes, like a survey. I was able to save a couple hundred by negotiating outside the title company process. And the same holds true for a title company. I was able to negotiate a reduce fee structure by allowing me to freelance much of the documentation. I've been working nights the last few weeks, so I can pull records and do much of the leg work. Again saved several hundred bucks all used for the buy down points to get me at 3%.

The survey was interesting. My shop is built 6" into an easement. (IMG:http://www.frrax.com/rrforum/style_emoticons/default/dry.gif)
Neighbors to the south have their fence running almost a foot into my property. (IMG:http://www.frrax.com/rrforum/style_emoticons/default/dry.gif) (IMG:http://www.frrax.com/rrforum/style_emoticons/default/dry.gif)
I have 5% more land than what was on my original survey. (IMG:http://www.frrax.com/rrforum/style_emoticons/default/cool2.gif)

It's taken several weeks longer than normal because of the route I chose.
But I learned a lot about the process, the post bail-out red tape, where to spend money, how to work the system ...

Any way, just thought I'd share ...

mitchntx View Member Profile	Oct 20 2011, 11:25 AM Post #1
Nothing says 'I love you.' like a box of Hydroshoks Group: Moderators Posts: 5,284 Joined: 23-December 03 From: Granbury, TX Member No.: 4	... now is probably the best time to do so. Thought I would share ... I close on a refi Monday at a 3% rate (IMG:http://www.frrax.com/rrforum/style_emoticons/default/blink.gif) I have enough equity, that I'm cashing out enough to be debt free on everything except my mortgage, obviously. Increasing the term by 7 years and the monthly payment is going down $100/month. My home appraised for a LOT more than I first thought it would ... a LOT. During my appraisal, I learned quite a bit ... A kitchen remodel/update will get you about 120% of the money you spend. New paint and tile in a bathroom is not considered an "update" ... bupkis. A new 16 SEER HVAC ... bupkis. A 1200 sq/ft shop will modify the appraisal $25K ... according to the appraiser, it would take $60K to replace it. I need to chat with my insurance agent ... I shopped around for a lender. I contacted several brokers and wound up with 4 GFEs. When I chose my broker and started the process, I learned that my Credit Score took a hit ... a pretty substantial hit ... due to numerous pulls of my credit score from all those lenders. Really? This came back to bite me in the end. Lots more more paperwork, documentation and a couple grand in by-down points. But, the lender allowed me to negotiate and purchase many of the required processes, like a survey. I was able to save a couple hundred by negotiating outside the title company process. And the same holds true for a title company. I was able to negotiate a reduce fee structure by allowing me to freelance much of the documentation. I've been working nights the last few weeks, so I can pull records and do much of the leg work. Again saved several hundred bucks all used for the buy down points to get me at 3%. The survey was interesting. My shop is built 6" into an easement. (IMG:http://www.frrax.com/rrforum/style_emoticons/default/dry.gif) Neighbors to the south have their fence running almost a foot into my property. (IMG:http://www.frrax.com/rrforum/style_emoticons/default/dry.gif) (IMG:http://www.frrax.com/rrforum/style_emoticons/default/dry.gif) I have 5% more land than what was on my original survey. (IMG:http://www.frrax.com/rrforum/style_emoticons/default/cool2.gif) It's taken several weeks longer than normal because of the route I chose. But I learned a lot about the process, the post bail-out red tape, where to spend money, how to work the system ... Any way, just thought I'd share ...

BryanL View Member Profile	Oct 20 2011, 05:18 PM Post #2
Member Group: Advanced Members Posts: 217 Joined: 6-March 07 Member No.: 1,710	Nice work Mitch. Yes if you have more than 1-2 hard credit inquiries your credit will take a hit. When shopping different lenders request a GFE based on a certain credit score. You can get your own free anyway. Then when you pick who you want to use they will check your credit. Let me know when you have to register with the ATF for weapons of mass destruction. Dave-I have several options that will get you a better rate than BofA. Also, they can close on the loan within a month whereaa the big banks will take you months and be a pita. Also, I recommend anyone that does a refi to go with a 15 year. Have to be careful about using it as a piggy bank because of the low interest rate, too. A house isn't an investment-its just a place you live. Though the only debt you want to have is in a house if that makes any sense.