I just locked in our refi an hour ago...while I'm relieved to be almost done with the process, I hope we got a good deal.  331,000 30 year VA Streamline refi going from 6.5% to 5.0% for 1/2 of a discount point w/ no origination and us paying the closing (Wells Fargo btw).  I wanted a little lower or the same rate with no points but didn't want to be greedy...we missed out in December b/c we were too busy doing other things and may have gotten too greedy, we didn't want that to happen again so the fiancee and I agreed that if it reached 5.0 w/ .5 points again we would lock.  What do the pros think?

This will save us about 310 a month and w/ paying closing costs and the 1/2 point (4700) would be paid for by itself in 15 months...

Every state is a little different but you're on the bottom of what's available now in rate. Anything 5% with up to 2% on the front depending on loan sizes is accurate.  Since the lender has to pay some VA non-allowed fee's ($600-$1,200) your loan is solid. State rates vary but you're good. Solid bottom end. Does the cost include the VA funding fee? Seems low.

you got a good deal. I would have done it for a little less, but I work for a wholesale lender (there's retail and wholesale, brokers get wholesale pricing and sell it to you retail). So, considering everything, you got a pretty good deal and don't need to worry.

I'll have to check the GFE again but I think that has the funding fee financed.  We are going to pay it out of pocket though so that would up the total closing by another 1600 or so....good point, somthing I wasn't thinking about!

 

 

5% on a VA loan with a 1/2 pt discount is a solid deal right now.

Ryan -- Looks like a great deal and you shouldn't worry about scraping the bottom of the "gut flop rate bowl".  Just be sure to take your GFE with you at closing so you can compare charges.  What your quoting is available today (very skinny deal for lender) and by the way the VA IRRRL funding fee is only 0.50.  I'm not sure why you wish to pay out of pocket as the VA guidelines allow up to 1pt origination and 2pts discount plus VA funding fee to be included - unless your working without an appraisal.

You will have a 3 day right of recession in case they don't deliver what they promised.  If need be you can access another lender to grant the same deal - rates pending.

Thank you for your service to our country.  You answered your own question when you said that you will save $310/mo and have a break even point of only 15 months.  Congratulations!

Our closing costs were definatley a little low on that estimate due to escrow and interest...they will total about 7,700 with the VA funding fee.  We plan to pay about 5k out of pocket and roll the rest in.  The break even is even much shorter than I thought though since our skipped payment covers almost half of the out of pocket expenses! 

After looking at more posts I think we got a good deal and am happy to nearing the end of this refi!  Getting a mortgage and doing the refi in the same year has been enough for me....but at least we know that we'll never have to refi this house again short of some rediculously low rates that will probably never happen!

 

Ryan

Ryan Cunnane:

but at least we know that we'll never have to refi this house again short of some rediculously low rates that will probably never happen!

I rremember saying the same thing to customers who were getting rates 5.75-6%.  You just never know...