3.125% 15 yr refi approved for family

3.125% 15 yr refi approved for family3.125% 15 yr refi approved for family
AnitaFedorova asked 5 years ago

Was just able to get my aunt and uncle set up for refinancing. Their existing mortage and 2nd were both above 8%.  With the help of myfico I was able to boost their -08 scores almost 100 points each! We chose a credit union for the lower rates.  Funny thing is, I had my aunt apply for 5 or 6 new credit cards over the last 6 months….they were not planning to do this until I did some snooping and my jaw dropped at the high rate.


They are basically able to save about 400 bucks per month, get 10-15 grand for some repairs, plus get their property taxes and insurance built in to the payment. Old aunty was a little hesitant at first because that is how she has got so many card bonuses!  Good thing is the escrow feature can be taken off at any time fairly easily. No penalty for early repayment though, so considering on paying what they were used to and maybe even more is a no brainer.


The loan officer was totally fine with all the new credit cards cards and a total of 9 inquiries in the last 6 months. My uncle had 0 inquiries, no new accounts.  They used the fico 04 score.  They took the middle score from each person and averaged it. It ended up being 740. Utilization between the two of them is 15%.


Anyone here have advice on a place to do research on what gets the best rate of return as far as home improvements go?  Like new roof, garage, new windows, central air, etc?


Looks like each one of the three bureaus per person had a hard inquiry. That is a total of 6 inquiries, but well worth it. They did confirm twice that up to 30 days after closing, you can open line of credit, joint, and separate credit cards for no added dings. That was pretty cool


The only up front cost is their home inspection which ranges between 300-500.  They use a group of inspectors that all charge different amounts, but you cannot select who does the inspection it is done by a lottery system (weird right?)


Is there anything else that should be dealt with, discussed, etc other than celebrating the savings?If there was a 10 percent chance they would want to move or relocate in 6-12 months its still a good idea to go through with this right?


Total closing costs are around 2 grand.  Now I am hearing that a person can avoid these by not doing a 15 year refi, and instead just do a new short term home equity loan?


I appreciate any replies or info here. They are family and have done quite a bit for a lot of people. Now its time they get some help!

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