Refi ?

[SuzySunshine]

Yes, we've only been in our house six months and are already trying to refinance it. We had some issues with our original mortgage and got stuck with a 5yr baloon payment. We want to lock it into a 15-yr.

So here is the question, I have already started the process with our small, local, bank. They have given me a rate and a closing estimate we're just waiting on appraisal. Originally they told us if we didn't move forward we would only have to pay for the appraisal. 3.375 is their approved rate, originally they said it could be as low as 3.

Today I contacted our mortgage holder to get a payoff amount and she replies that they could do a 15-yr refinance at 3.25. So my question is can I run both of these all the way to the end and see who REALLY comes up with the better deal. I'm a little gun shy because our last one got so screwed up and at the end we really didn't have a choice but to go with the balloon payment...

I know we'd probably have to pay for the appraisal (~$150) for whichever one we don't go with.

Experience/thoughts?

[Pollyanna]

Hmm, the rates are nearly identical I'm not sure it would even be worth dealing with two banks (shoot me now). I would be more apt to stick with the local folks because you can actually go to their office to ask what's going on with your loan. Your appraisal costs are dirt cheep, we've never paid less than $400 for an appraisal.

[MDPhDWife]

I agree with Tara. It also doesn't hurt to ask the local bank if they'll match your existing banks rate. Worst thing they can say is no.

[spotty_dog]

Good faith estimates are binding so you shouldn't have to go through the whole process to learn the "real" rate.

You should also be able to get a third-party appraiser that both banks approve of if you really want to go that far? So that's just one appraisal cost (and I think ours was $300, so agree with Tara that yours is cheap).

But I loved having a local person to talk to with my mortgage and refi. She was service-oriented because she wants me to refer other locals, she knew our tax structure and everything so her GFE was right on target, I was just really pleased.

[alison]

I would want a locked in rate with a local bank. I'd see what the local bank comes back with. The appraisal fee seems like a steal!

[Deebs]

I'm not sure you have to get a new appraisal if the last one was within a year (in IL you don't).

[SuzySunshine]

We actually want a new appraisal because we've done quite a bit of work and we need it to go up about $40K to get why we want on the refi.

[Phoebe]

The mortgage broker should be able to lock in your rate.

[SuzySunshine]

Well problem solved the bank that currently holds the mortgage said they couldn't match the other bank.

[houseelf]

FWIW, Union Savings Bank in Ohio offers 2.75 on a 15 year right now and charges only $199 to close. It's killing me not to take that but I don't want the 15 year clock to start over.

[spotty_dog]

FWIW, Union Savings Bank in Ohio offers 2.75 on a 15 year right now and charges only $199 to close. It's killing me not to take that but I don't want the 15 year clock to start over.

...You know you could just keep your payments at the same level and be done with the mortgage even faster.

[alison]

I would totally do that, K! I know it's a ton of paperwork, but if you have the energy for it, do it!

[SuzySunshine]

The appraisal is Thursday, what kind I shape does the house have to be in? Does it have to be show ready or just clean.

[spotty_dog]

The appraisal is Thursday, what kind I shape does the house have to be in? Does it have to be show ready or just clean.

I think just clean. Impeccably staged might subconsciously nudge them to adjust it by a few dollars here and there, but in the end the appraisal process is pretty formulaic and relies a lot more on unalterable factors like square footage and amenities, and on construction quality/finishes. They need to have concrete stuff that they can compare fairly to the comparable sales, not the kinds of intangibles that sway homebuyers. One note though, it didn't occur to me until too late that they'd be taking reference photographs, so now the kids' toys in the yard and the rumpled hastily-made beds are preserved for posterity in the appraisal forms, LOL.

[Deebs]

I agree - clean so nothing is distracting, but no need to e staged.