The New, and (Almost) Free, Way to Refinance

I refinanced away from Chase. Chase has been sending "special" refinance offers trying to get us to stay, but after talking with them, their rates were above the averages (good place to see average rates is CNN Money website) and they were charging all kinds of fees.

The credit union we went with had a flat rate, no nonsense fee ($1195). Only extras we had to shell out for were recording fees and the variable amount that always comes in to play when you are closing out your old loan (interest due) and how you handle your first payment on your new loan.

I recommend paying the costs at closing, instead of wrapping them into the refinance. It saves on interest charges. To avoid the "creep" effect (end date of loan is in the future), make your first few payments at the same amount you were paying on the previous loan (or higher) to whittle that principal down (and adjust that end date sooner). Plenty of amortization calculators out there to play with to help you with that.

rick of WI 11:02AM July 06, 2010