Saturday, October 31, 2009


Last year I bought this house with a 5/1 I/O ARM at 6.625%.  It was lame, but the best I could do at the time. I just refinanced it for 5.375% for 30 year fixed.  The total payment went up about $20/month, but this includes $300/month of principal pay down.  The refinance cost about $4500, so it will pay back in about 15 months, then I'm in the black. 

I used Zillow's marketplace to get loan quotes.  I just put in all the relevant data and got back quotes from about 15 brokers.  You could sort by "total cost" over 3 or 5 years, where total cost equals total fees for refinancing plus interest rates.  This will allow you to compare loans and determine what's cheapest depending on how long you're going to hold the house.  I am sold on this, rather than having a loan broker I use over and over again.

Powered by ScribeFire.

No comments: