Refinance and HELOC advice

4 Replies

My mortgage broker offered me to refinance my home loan to a better rate (0.1% better, which will save me about 20K in 30 yrs) without me paying any fee. He said he will make commission from his lender, not from me. It sounds too good to be true. Is it true or is he hiding something from me?? He refinanced my mortgage about 7 months ago, my previous business relationship was very good. Is it safe for me to refinance again or should I refuse his offer? BTW, FYI I'm planning to get HELOC from a different lender in 2-3 months. Any advice will be appreicated. thank you!

It sounds very fishy that your lender is wanting you to refi every 6 or so months... There may be no out of pocket expense for you but he may be taking all the refi fees and rolling them into your mortgage so you don't notice it.

Also, every time you refi it will reflect on your credit score and hurt you if you are going to a different lender for a HELOC soon.

Moral of the story: Don't refi again.

If they can make your loan balance stay the same with nothing out of pocket for you - why not refinance? Be super specific with the lender that you don't want to be anything out of pocket AND your loan balance to not increase - if he can make that happen, then go for it. Rates have gone down and might allow for this to occur if the lender fees and closing costs aren't too high.

Originally posted by @Su Lee :

My mortgage broker offered me to refinance my home loan to a better rate (0.1% better, which will save me about 20K in 30 yrs) without me paying any fee. He said he will make commission from his lender, not from me. It sounds too good to be true. Is it true or is he hiding something from me?? He refinanced my mortgage about 7 months ago, my previous business relationship was very good. Is it safe for me to refinance again or should I refuse his offer? BTW, FYI I'm planning to get HELOC from a different lender in 2-3 months. Any advice will be appreicated. thank you!

My main question here is - Why didn't you get a better rate 7 months ago? Rate haven't gone down since then. To me it sounds like your broker will be charging you fees....but rolling those fees into your loan....to get you a lower rate. As suggested above though, if it's a lower rate and your mortgage does not increase $1 - then go for it! But your loan will go up. Title, attorney, etc. all have to be paid again to do a refinance.

 

thx for all the replies! You all have very valid points. I will make sure he is not hiding any fees from me if I decide go with refinance. Thank you!

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here