My husband called to see what deals we could get to refinance our mortgage since he now works for the bank we have our current mortgage with, which we got while I was an employee there. After talking to the woman we decided to go for it.
Our current mortgage is a VA loan with an interest rate of 5.75%. The principal and interest is $707.06 a month. Plus we have our homeowner's insurance and property taxes escrowed for a total payment of $893.32 a month.
The new loan will also be a VA loan, but since we already have one with the bank we can get a streamline VA loan. This means no appraisal, no money down, minimal paperwork, etc. The funding fee is waived because I have at least 10% disability from the military.
Our interest rate was locked in at 4.375% fixed (4.369% APR) with a $134.75 credit. The principal and interest payment will be around $538.24 a month.
We're extending it back to a 30 year loan, but with the lower payments we can pay it off quicker than our current mortgage once all the other debts are paid off.
We will have to pay our escrows all over again because they cannot transfer them from the old mortgage to the new mortgage. They want to roll it into the loan amount, but I think I want to just pay it out of pocket and have the lower loan amount. The current escrows will be credited towards the loan to pay it down further.
The closing will be around September.