Rates are pretty low right now and some of the scuttle butt says that October may be the end of the low rate run because after October the Federal Reserve Bank plans to stop purchasing US Treasuries. I have no idea if this has merit or if it is just bank propaganda to drive up demand.

We are at 5.35% on a 15 year fixed right now. In the past when I have run the numbers it did not make much sense to refinance, but I'm taking another run at it with today's rates and given our situation.

Our current mortgage holder offers the following:
No charge for origination point
No appraisal fee (if one is needed)
4.625% 15 year, no points
4.25% 15 year, 1 point

What is the deal with appraisals on refinances? I've done this once or twice in the past and can't recall needing to have any inspections done? Of course that was staying with the same lender so maybe that had something to do with it.
Is there some sort of decision criteria they use for deciding who needs an inspection and who does not?

Also, we are long time Wells Fargo customers (checking, savings, bill pay) and are considering moving our mortgage to them when/if we decide to go ahead with the refinance. Is it a complex matter if we want to refinance the loan with Wells Fargo instead of where it is currently at?

Thanks

I'm no expert in this situation, but I would bet that if you change lenders there will be an appraisal. The lender has to be sure that they are not giving you more than the house is worth. That is unless you have owned this house for a long time before the bubble in prices. What percentage of your current lender's mortgages do they service vs. sell off? How about Wells Fargo? The magic number my lender has told me repeatedly is it's only really worth the refi if you can get a 1% or more reduction in the rate. If you are saying there isn't going to be a loan origination fee, it might not be a bad idea as that is the biggest chunk of money that is usually attached to a refi. That's just my opinion and is worth exactly 149 times what you paid for it.

Bill

Your current lender may be offering you a streamline refi where they can use the existing appraisal. How long have you paid on your 15 yr mortgage? How long you plan on keeping the house? Are you taking cash out for home improvement or debt consolidation? Or are you doing a rate and term refi? There is a website you can go to called mortgage professor .com. There are calculators there where you can compare your current mortgage to a new one.

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I drank what? - Socrates

We are 7 years into the existing 15 year note. Want to do a rate refi. Just want to lower the monthly payment, no cash out. No debt other than the mortgage, and have a good to excellent credit score. We have other property that we are developing to live in someday but I suspect we will be staying in this house for at least another 5-7 years and then maybe turn it into a rental.

The mortgage guy I talked with at my existing lender (BOA) could not give me an answer as to whether there would be an inspection. He said he does not make that decision and that somebody else in the organization does a 'desktop appraisal' and decides whether an inspection is needed. Not sure what a desktop appraisal is. The amount we are refinancing is 76% less then the current market value of the home, using a conservative number for the market value. If that makes any difference.

I don't think you would benefit from refinancing because you have paid your current loan down to 8 yrs. Conventional loans come in terms of 10, 15, 20 Etc so you would be adding at least 2 years to your current payoff schedule. Even streamline refi's have closing costs. Calculate how much you have left to pay by multiplying your remaining months by your principal and interest payment. Then calculate the new principal and interest payment by 120 months for a 10 yr term. You will likely see that while you would have a lower payment on the new loan, the total amount you would pay out would be less by keeping the loan you have. 5.375% is a great rate on your current mortgage. And yes I do this for a living for a rather large bank based out of NY.

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I drank what? - Socrates

The appraisal is a joke in your situation.Talk to some other banks or better yet talk to a bunch.right now you're a good bet for them,and bet me they if you don't think they don't need good solid loans.You're in the drivres seat,make them work for you.
D.G.

If I was that far into a 15 year note, I wouldn't touch it unless I had reason to think the current payment was going to become a burden to meet. There are better investment strategies, but the one thing better than a lower mortgage payment, is no mortgage payment!

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"Give me Liberty..."

I'm no expert but I just refinanced a couple months ago and can tell you my experience. Wells Fargo had the best deal so I went with them. The appraisal was a drive by for practically nothing and everybody, appraiser, WF and title company, gave discounts. They were tickled to get the business and bent over backwards to make it a pleasant experience.

As far as the numbers go, I did it because it made sense for me but I think everybody has to decide that for themselves based on their situation.

Bob