My mortgage company contacted me an offered me the option to refi under the VA streamline program. I just refinanced under the same program 7 months ago with them for a lower rate of %4.750, reducing my mortgage payments $ 224. I was very pleased with them in July 2011 and am enjoying the lower payments. Yes, that refi reset my loan payments after 2 years of living in the newly purchased home in 2009. My concern is I have not paid that much towards principle since the last refi, so doing it again now would reset the clock a second time adding roughly $ 5k in fees on top of my loan balance. Just looking for some professional advice on this, thanks.
To the first poster. My original APR was %5.2 and dropped to %4.7 which was the VA rate at the time of this streamline program. I have a VA loan and my FICO is a 740, no large debts at that time but a new car in April 2011 and a deferred student loan for $ 8k. So my credit was a non factor. However with the laon balnace being close to max, my debt to income ratios has to be high at this point. The program required a 620 credit score to apply. Now being offered another refi with the option to drop my payments $ 172, which would decrease my mortgage to roughly $ 1436 from $ 1606. I am facing rates as low as %2.3 now. The loan funding fee is waived due to me being a disabled vet. The total closing costs on that refi 7 months ago was roughly $ 5k. I just need to know if this is really worth it. I am leaning towards passing, but a lower monthly payment is really tempting.
Thank you for the insight and advice on this matter. I totally understand and will weigh my options of the closing costs vs the recoup value. At this point I trust my mortgage broker, because he has helped me in the past with honesty and excellence. However, I think I will sit tight and hold what I have with the current payments.
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