I'm looking for advice on basically whats the best way to go about doing this. I have had my house for about 6 years now and I have no idea how this stuff works. I'm not even sure on how to go about getting the refinancing process started. I was going to call my original loan officer and ask her, but she doesn't seem to work for my mortgage company anymore.
I get tons of offers in the mail, should I look into those, or web crawl and check those out? I'm kind of leary of giving out personal info to random strangers though.
I'm just looking to lower my intrest rate, thus lowering my monthly payment.
So whats your stories of home mortgaging refinancing like?
Any advice?
Other than PIHB? 

put it all into pork bellies and orange futures. 

Call someonoe, or two someones. Get your paperwork together. Get your ducks in a row.

Equity is good. I hope to get some after moving out of my house. I just gotta figure out what the "next" step is. 

ummm... probably a little late for refinancing unless you have a really crappy rate. A year or so ago would have been much better when you could have got something around 4.75%

A good rule of thumb is to only refi if you are able to drop a point or more. With rates only going up from here, and probably for the next 8 years or so, it *might* be ok to take less however.

Try lendingtree.com, if anything it will at least put you in touch with some discount brokers. Whatever you do though, don't let them talk you into a variable rate. 

what is your current rate?
your best bet is the same mortgage co. you currently use 

ummm... probably a little late for refinancing unless you have a really crappy rate.

 

ummm... probably a little late for refinancing unless you have a really crappy rate.

Oh, I do don't worry.

A good rule of thumb is to only refi if you are able to drop a point or more

How about 2 points then?
I'm at 8% 

Whatever you do though, don't let them talk you into a variable rate.

I'm looking at the 30 year fixed primarily.
May take a look at 15 year fixed. 

make sure to take some cash out for my consulting fee 

Should I try to get money out of it? 

do you need the $?

i burned through the $ i took out very quickly :-/ 

your best bet is the same mortgage co. you currently use

I just saw this.
I would pay more to get away from citibank.
Google citibank and read the horror stories. 

do you need the $?

Outside of my mortgage, I owe maybe $700 to creditors, so no I don't need it, but if I could get some for a small fee, why not? 

why not indeed.

/rubs hands together. 

http://www.ftc.gov/bcp/conline/pubs/homes/homequt.htm 

Ace Mortgage Funding.

Broker to find you the best deal. Keep in mind that you need to know what you want (or at the minimum that you want) before you go in. Some of the loan officers are really good, some make snake oil salesmen look like saints. 

My Mom recently refinanced. Her mortgage payment went up $10 a month but cut 10 years off. 

I'm at 8%

GAH! 

I'm just gonna sit back and read these answers.... 

I'm at 8%

Yikes..

I have a 4.3% 15 year fixed. And we got that about 3 years ago. We have been paying extra every month and will own our house outright in about 9 years. 

We have been paying extra every month and will own our house outright in about 9 years.

Smart man, listen to him.... 

How much equity do you have? 

How much equity do you have?

We bought the house 10 years ago, with a 30 year mortgate at around 7% or something. We paid $130,000 for the house. After about 7 years of making the normal payments, and still seeing we owed tons of money on it, we refinanced to the 15 year 4.3% we have now, plus we took out a few thousand to pay of cars, etc. We could sell the house now for about $370,000. We have about $220,000 in equity, I would guess. I'm telling you, just adding $200 a month extra towards the principle of the loan is making the mortgage dwindle very fast. We did the calculations and around Jan. of 2015 we will own it outright. 

We bought the house 10 years ago, with a 30 year mortgate at around 7% or something. We paid $130,000 for the house. After about 7 years of making the normal payments, and still seeing we owed tons of money on it,

This is where i'm at unfortunatley.
I think my principal is like $1.32 lower now than when I started paying on it.
My property value has gone up about 20k though, so my equity is about 25k i'd guess.
I'm just looking to lower my interest rate. I can afford to pay more, but its hard to pay extra when its all ready high.
Has anyone used a site like lending tree? 

Refinancing Tips

Go that way really fast - if something gets in your way, turn... 

Hootie? Where are you located? 

Ohio 

If you dont understand what is going on people will take your money.
Call a popular place to refinance and ask lots of questions. 

Ohio

PM sent hootie. 

I understand what I want and what i'm willing to do, i'm just unsure of how to get the process started. 

I just finished the lending tree thing. However I think I may of messed up, because now I am being spammed by mortgage offers.
/Eagerly awaits the viagra emails. 

Under no circumstances refi with anything but a fixed rate mortgage.

Adjustable rate and interest-only loans are for suckers. My wife forecloses on 'em dozens of times a day. 

Under no circumstances refi with anything but a fixed rate mortgage.

I'm only looking at 20 or 15 year fixed.

interest-only loans

Whats that? 

Adjustable rate and interest-only loans are for suckers. My wife forecloses on 'em dozens of times a day.

And they are fixen to skyrocket anytime. 

The one lady who just called sounded hot. 

Whats that?

Interest-only loans are loans where you avoid paying the principal for a given amount of time. A common one I saw was a 3-year interest-only loan. Your payments are lower for that amount of time, but you don't pay off any principal. On top of that, your payments rise by a certain amount each year (again, common ones I saw were 7.5% increase in payments), and even worse, you go from paying interest-only to paying full interest and principal. To make things even worse, these are variable rate loans. It's not uncommon to go from paying something like $1,200 a month interest-only to paying $2,400 or more when the interest-only period runs out. Not many people are prepared for that and that's the reason for the foreclosures.

This loan is great for investors that buy investment properties to sell them at most, a couple years down the road. They avoid the extra principal payment and essentially are able to keep the property at the lowest possible cost per month. 

Yeah, i'm sticking with my fixed one.
Thanks. 

Use a broker.

Ask TONS of questions.

If you want a fixed rate, do not allow yourself to be sold on anything but that. There's nothing wrong with adjustable rates...in certain scenarios. If you plan to stay in your home indefinitely, fixed is perfect for you. Again, if you want fixed, accept nothing but fixed.

You should know that brokers and bankers get paid on the back end for almost every loan they close. The closing of some types of loans will make them more money than the closing of other types. Beware of anyone who tries to scare you into taking an adjustable rate by showing you payment differences between fixed and adjustable type scenarios. In all likelihood, they want to sell you on the adjustable rate because it pays them more on the back end.

Since you're only wanting a fixed rate, you probably intend to live in the house long-term. A prepayment penalty (usually 1-3 years) may make sense for you, since loans with a penalty usually carry lower rates. If you plan on moving soon, or plan on refinancing within 3 years, a penalty obviously won't make sense.

You should also know that every single penny a broker/banker charges you is almost always negotiable. Additionally, a broker/banker often has the power to negotiate other types of fees that you may think are excessive (escrow fees, title fees, appraisal fees, etc.). If you think you're being charged too much, say so. If any fees seem like "junk" fees, question them. Negotiate, negotiate, negotiate.

Take control of the broker or loan officer who's helping you. Don't let them sell you on what THEY want you to have...tell them what YOU want to have, and settle for nothing less. Don't forget that you're the customer...you control them. What's important is not what they want to do for you, but what YOU want them to do for you.

The world of home loans is more convoluted and confusing than it's ever been. Walking into a bank, or a broker's office isn't as cut and dry as it once was. There's a limitless number of options out there...fixed rates, short term fixed rates (3, 5, 7, 10 years) that adjust after the initial period, monthly adjustable rates with multiple payment options, short term fixed rates with multiple payment options, balloon loans, fixed interest only loans, short term fixed interest only loans, 40 year loans, 30 year loans amortized over 40, 45, and even 50 years...the list goes on.

Given that, you should make sure you educate yourself a bit before walking into any office...especially since you seem to not know where to start. Educating yourself will help you avoid being screwed into a loan you don't want or don't need (a situation I see with this office's clients all too often).

I've worked as a processor for brokers for 4+ years now, and all too many times, I've seen borrowers get screwed by dirty, dishonest loan officers. The mortgage business is a dirty, dirty, dirty business. Don't allow yourself to be taken advantage of, and good luck. :-) 

A common one I saw was a 3-year interest-only loan. Your payments are lower for that amount of time, but you don't pay off any principal. On top of that, your payments rise by a certain amount each year (again, common ones I saw were 7.5% increase in payments)

What you're describing sounds more like a "pay option" arm. That type of loan gives you 3 or 4 payment options. One option is usually calculated as a 30 year fixed loan, at a rate equal to a certain index plus a margin, the 2nd option is based on the same rate as the 1st, but allows you to pay only interest (no principal), the 3rd option (not all banks offer) is a 15 year fixed loan at the same rate as in options one and 2, the 4th option is a "minimum" payment, usually based on a very low rate (usually between 1% and 3%, but can be as low as 0.5%), which results in you making a payment that is actually less than your interest only payment, resulting in your loan balance rising. The "minimum" payment usually amount rises 7.5% per year, while your "real" rate adjusts every time the index its tied to adjusts (upward or downward).

An interest only loan is a loan that carries a fixed rate (fixed for 2, 3, 5, 7, 10, or 30 years), but offers you the option to not pay down your principal balance. By not paying down your principal balance, you save money every month. Of course, your balance won't change from month to month. 

Whats that?

Interest-only loans are loans where you avoid paying the principal for a given amount of time. A common one I saw was a 3-year interest-only loan. Your payments are lower for that amount of time, but you don't pay off any principal. On top of that, your payments rise by a certain amount each year (again, common ones I saw were 7.5% increase in payments), and even worse, you go from paying interest-only to paying full interest and principal. To make things even worse, these are variable rate loans. It's not uncommon to go from paying something like $1,200 a month interest-only to paying $2,400 or more when the interest-only period runs out. Not many people are prepared for that and that's the reason for the foreclosures.

This loan is great for investors that buy investment properties to sell them at most, a couple years down the road. They avoid the extra principal payment and essentially are able to keep the property at the lowest possible cost per month.

the minimum payment on your credit card. 

Given that, you should make sure you educate yourself a bit before walking into any office...especially since you seem to not know where to start. Educating yourself will help you avoid being screwed into a loan you don't want or don't need (a situation I see with this office's clients all too often).

I've worked as a processor for brokers for 4+ years now, and all too many times, I've seen borrowers get screwed by dirty, dishonest loan officers. The mortgage business is a dirty, dirty, dirty business. Don't allow yourself to be taken advantage of, and good luck. :-)

Thats all very good info thanks. 

Sweet.
I just found out my house was worth alot more than I thought.
I suddenly have almost 40k in equity.
One of the broker peoples sent me a link showing what neighboring houses sold for. 

Cool, huh? My house doubled after 4 years. Now with the total rebuild and upgrades from our insurance company (we had a fire), and the house will be worth triple original cost in another year or so.

Equity is the SHIT. 

Cool, huh? My house doubled after 4 years. Now with the total rebuild and upgrades from our insurance company (we had a fire), and the house will be worth triple original cost in another year or so.

I don't exactly live up in the hills, so for my housw to be worth more than I owe is great news.
/might have to burn it down though.... 

/might have to burn it down though....

Although it's been a benificial experience for us as individuals and as a family in many ways, I really really really don't recommend it. 

Yup. 

If you have the ability, try to get refinanced through a credit union. They have much lower rates for members, and are more willing to look at ALL the options instead of rushing you off to something you don't need.

Lendingtree is crap. Citibank is meh.

USAA is the shiznit. I kept myself from starving when the dot-bomb hit by refinancing. Not just once, either.

Currently, I'm in an ARM - only because I know I will NOT be living in this area long. Searching through the sexual predators website is bad for your sleeping habits if you live in my area. :( 

Currently, I'm in an ARM

Oh yeah? Well I'm in a LEG. Two of them. And you've never been to Ecuador.

Oh wait. This isn't the one-upper thread? Crap.

(Seriously, though, refinance ASAP. Rates are decent right now and the sooner you do, the more you'll save.)