cM3go

Currently I'm on a 30yr fixed.
Rate: 4%
Remaining Term: 21 years 7 months
Payment: $1700ish (principle + interest + escrow)

Offer from Chase
20yr Fixed
Rate: 3.875%
Payment: $1750-$1800ish (principle + interest + escrow)
Closing Costs: $2100 but I can get a credit of $1300, so Net $800 closing cost.

Bonus: If I autopay my payments from checking, I get 1% cash back annually (can apply to principle or back into checking) for the life of the loan.

The numbers will vary slightly based on actual credit pull and home appraisal.

doopstr

Did you try the mortgage calc spreadsheet that I pointed you to the last time you asked about this? That should give you enough info to decide if it's worth it.

cM3go

I forgot about that! Good call.

LaCostaRacer

If you expect to stay in the house a long time, then it might be worth it.

I always used a 1/4 point drop as a minimum to do a refi that includes costs. The only difference you're getting is a slight drop in interest, but you need to change terms to get it. You can do a similar thing now by jacking your payments $50-$100 more and always have the option to go back to your regular payment now. That doesn't cost anything but the slight change in interest and gives you maximum flexibility in the future.

I would also dump the Escrow account if you have the means and equity- those things are almost always losers.

Ramrod

Hey CM3! Hope all is good! I just refinanced with Chase not too long ago and it was ok at best with my experience. They sent me some info and I took the bait. My rate almost a year ago ended up at 4.25 on a 25 year fixed. With all the other competition out there, when you go into their office, treat it like a car salesman experience. Demand that you spend nothing out of pocket.

They almost got me for $2200 when they said it would only be $800. When the final papers came in and I saw the numbers, I flipped my lid and had already paid the couple hundred up front for them to start the process, which I was also kinda skeptical about, but I did it anyway.

It might have been around $400 up front if I remember correctly. I ended up not wanting to just throw the initial cost away and paid the $2200 to refinance but went down fighting like a rabid dog with their customer service department and they refunded me the difference because the agent who I dealt with had told me that the out of pocket cost was only going to be about $800 give or take a few hundred.

And that 1% cash back!!! Sign up for it right away! Chances are Chase will sell your loan within a year or so to another lender, which has already happened to me. BONUS! I received a check from Chase for $4,200 because of that 1% cash back program. Whoever buys out your loan from Chase, they also make them buy the rest of that program for the life of the loan.

I called Chase and asked them why the check was deposited into my account thinking it was an escrow account and they explained that the 1% cash back program is tied to your loan so whoever buys it, buys that out also.

Good luck and hope all goes well!

nfnsquared

How so?

NBP04TL4ME

I would agree. If OP can throw an extra $50-100 a month at his mortgage payment and still maintain flexibility of not having to do, it's the best of both worlds. Admittedly, I don't understand how the 1% cash back works, so this may help as well.

This I don't follow.

#1 STUNNA

I just got an offer in the mail to refinance my car payment through OpenRoad Lending. They I'm pre-qualified for 2.99% and that there's "no hidden fees or cost to apply. Currently my payment is through Honda and it's about 5.09%. I've checked with a CPA I know and he says to go for it. Should I? Is the better lending company that you'd recommend?

NBP04TL4ME

What is the downside?

#1 STUNNA

IDK, that's why I'm asking you. I should've mentioned that I know very little about finance, so this just sounded too good to be true at first glance. And I got the offer in the mail, so it's kinda junk mail to me, which makes me more suspicious.

#1 STUNNA

Is there another lending company you'd recommend than openroad lending? Are they shady? Nerd Wallet says they're 3 out of 5 OK but they don't have anyone as a 5

doopstr

I suggest you get a loan amortization spreadsheet. You can find them for excel and probably google docs etc.

Put your current loan in there and it will show you how much more interest you owe. Then put the new loan in there and see how much interest you will pay on that. Loan with the lowest interest due wins.

If you are more than halfway through your current loan you will probably find it's not worth it.

#1 STUNNA

I've only had the car a year so I'm not near the halfway point

nist7

@#1 STUNNA : Cold mailing ads like that do call for a higher than normal level of scrutiny. They're dying to get any customer they can and willing to send mass cold mails....do your due dilligence.

In terms of "lending company" what you basically want is to shop around different banks...either national or local or even better local credit unions...as they are usually a favorite and can give you good car refinancing rates. So look at what local banks you have and call them up. Also do lot more reading/research on this "Open Road" company, google terms like "Open road worth it" "open road scam" "open road too good to be true" and other phrases to see what comes up.

I would tread carefully as the feds have been raising the prime rates and the era of super low interest rates are lower, so in general interest rates for loans of all kinds are going to be a bit higher than before....

NBP04TL4ME

+1 for local credit unions. Have used them in the past and usually beat the banks. I just looked at the CU I have used in the past and you can get 3.24% for 60 months

As mentioned look at / compare interest rates and sanity check for any new or unusual "fees" associated with a new loan.

#1 STUNNA

I called them and they offered me 4.99%