It will cost $3,777 for a $235k to $250k property, $217,928 balance. I can pay a point to get it to 2.5% so that would cost $6,000 or $2,200 more. Currently have a 3.625% rate.
Alternatively I could receive a 1% lender credit at 3% and pay the $1,500 closing costs out of pocket. I’ve stopped other lenders and they were at 2.875% for $2,200 in closing costs
Crazy low rates. Better get them now before inflation bites.
If I remember correctly, the CH rule was you should be able to pay for all costs within 40 months of the refi.
Yes, this is within 36 months but can pay a point to do so.
The amount you’d be paying for the point needs to be factored in.
Thanks so much!
So I am struggling to figure this out.
Current payment is $1,006.39 for 352 months on $217,928. Closing costs with no discount points or lender credits = $3,777.
I see that I break even by Dec 2023 on the amortization table if I go with the no point option. To payoff in 25 years, I would have a $1,022.86 monthly payment. With my current loan, I’d have to pay $1,105.66.
With my current loan, I reach 80% LTV (under $200k loan balance) by 12/1/2024 with my $1006.39 payment. With the 1 point option, it takes till 7/1/2024. With the no point, it takes till 6/1/2024, 5/1/2024 If I pay the $1,022.86 instead of $1,006.39