Mortgage Refinance Completed!

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HELLO 3.25%!

Remember when I told everyone why we weren’t refinancing our mortgage? And then I ate my words by posting about our upcoming mortgage refinance? Well, good news, ladies and gents! Our mortgage refinance has finally closed, and there were NO ISSUES! Yes, really, it was as smooth as the other side of the pillow (wait, what’s the saying again?). Either way, it was awesome, and now we’re saving $200 a month!

Here’s the breakdown:

October 5th: Contacted the mortgage broker who I was referred to and discussed our options. We decided to go with the FHA Streamline refinance because our house value would not qualify us for the other two options. Had to send in some info:

1.  Last 2 years W2s

2.  Most recent 30 day pay stubs

3.  Most recent 2 months’ bank statements. Source all non-payroll deposits over the amount of $300

4.  Copy of driver’s license for both Michelle and I

5.  Copy of your existing 1st Mortgage Note

October 9th: Locked the rate at 3.25%. BOOM! Thanks Fed. 🙂

October 10th: Sign and return rate lock disclosure. Something about locking our rate. I dunno, I’ll sign anything. Either way, it was OFFICIAL BUSINESS!

October 11th: Remember when I told you about having to source all non-payroll deposits over $300 (If you don’t remember, just rewind this blog post by about 88 words.)? Well, I had a sizeable deposit from my car accident, so I had to scan and send in the check stub.

October 17th: Forgot to dot some “T’s” and cross some “I’s” (or cross my eyes while Teeing my dots? Man, this is confusing). So I re-finished signing docs and sent those in. I also needed to provide my home insurance rep’s contact info. Funny thing about that, I had no idea who it was. So my broker called the latest number I had and got passed to the current person to gather info.

October 31st: Well, this one was fun because I was on a plane to Florida. I had to download and email another bank statement. Luckily, the crappy hotel we stayed in had WiFi, so I was able to get this completed.

November 13th: Printed, signed and returned the loan “re-disclosures”. I guess the numbers changed slightly and needed to re-sign my life away. Done and done.

November 19th: Got a call from Escrow to setup signing appointment. Set it up for the next morning.

November 20th. Signing day. I met Michelle and our little one down at the fancy office for the title company. Everyone just smelled rich. We signed about 4,873 documents while our little one crawled around and around the table. Hey, at least he was self-entertained. We finished and walked out like we owned the joint.

November 27th: The deal funded and our refinance was complete. So we pretty much owned that refinance LIKE A BOSS!

Easy, Peasy

This was the easiest refinance I’ve read or heard about anywhere! We did most everything over email, finished everything in about 50 days, and never even met our broker in person. I really enjoyed the interactions with everyone involved, and now we are ROLLIN’ IN THE DOUGH! We’ve got less than a 3-year break-even date (haven’t gotten our old escrow refund, so not sure of the EXACT break-even date) and once MIP is totally gone, we’ll be saving $525 a month over our first mortgage! It a pretty sick upgrade and I couldn’t be more pleased with the outcome.

Comments: Have you refinanced lately? What rate did you lock in? How was the process? Has anyone been rejected for a Refinance?

Jacob Wade

Jacob Wade

Jacob Wade has been a nationally-recognized personal finance expert for the past decade. He has written professionally for The Balance, The Spruce, LendingTree, Investing Answers, and other widely-followed sites. 
He’s also been a featured expert on CBS News, MSN Money, Forbes, Nasdaq, Yahoo! Finance, Go Banking Rates, and AOL Finance.

In 2018, Jacob quit his job and his family decided to sell everything (including their home) to take off on an adventure. They traveled the country in an RV for nearly 3 years, visiting over 38 states, 20+ national parks and eventually settling in the sunshine state!

55 thoughts on “Mortgage Refinance Completed!”

  1. Awesome! Great deal on the rate. We refinanced way too early so we’ve been told we’re really not candidates to do it now. We’ve tried a couple of lenders but no deal, oh well, we still got a pretty good cut when we did our refi.

      • Are you looking at the break-even point in terms of cash outlay only? Because it’s also important to look at the difference you’ll have in equity with the refi. Your dollar is likely going farther, building more equity faster.

        • Very true. I was just looking at the savings vs. how much my mortgage increased with fees and such. So, saving $200 a month and mortgage increased like $4k or so. When I wrote this article, it look like an increase of close to $7k, hance the 3-year break-even. But I didn’t account to more going toward principal, so that’ll speed up break-even even more. With a $4k increase, at $200 savings it’s less than a 2-year break even, without even counting the extra principal 🙂

          • With our refi, we immediately went to paying more toward principal than interest. With our 30-year, that would have happened at like year 12 or 15 or something. We’ll have several thousand more in equity in just a year’s time, even though our monthly outlay increased, we are saving a ton in interest and building that equity faster.

          • You can use an amortization worksheet to see how much equity you’d have without a refinance in say, 24m, and how much you’ll have in 24m with the refi

  2. Congrats. I wish it were that easy for us:( we contacted some people are we are not in a good enough position to do this 🙁

  3. Welcome to the 3.25% club… all the cool kids are in it! =) Are you in a 15 or did you stick with a 30?

    Either way, I am amazed at how smooth yours went after the trainwreck that ours ended up becoming. We barely made it closed in the 90-day window, and even after it closed, still dealt with issues and problems for another few weeks with the bank. An absolute nightmare that ate 4 months of my life.

    • W00t! We are rocking a 30-year, wish we could have gone 15. I need ot get my income up, but hoping to pay it off in 15.

      Sorry to hear about your ReFi, but hey, at elast it’s done now, right? Do you still have nightmares about it?

  4. It’s crazy to think how long it takes from start to finish. We’re currently going through the same process and I’m eager to see how quickly it will go through. Congrats on saving $200/month!! That’s A LOT.

  5. Well that’s pretty freaking awesome man! Yeah, I hate walking into mortgage places, they all seem to drive expensive SUVs and just act and seem more rich than they should be. I feel like they have dollar signs in their eyes and we’re all the targets!

  6. We’re in the middle of an FHA Streamline refi right now. We’ll barely meet the 5% reduction requirement, but any money saved is good for me! So far it’s been smooth, just kinda slow with the holidays.

  7. I know nothing of the refiancing world, so when I first read through this I thought, man what a pain in the butt, but then you said it was pretty easy. That makes me wonder what a bad experience looks like.

  8. Great deal mate, congratulations. When we bought our house we thought we were getting a great rate only to realize it was going down down down. It’s still great but not as good as some. We’ve never refinanced before. Cheers Mr.CBB

    • THanks Sam. FHA is basically for those without the required 20% down payment. We put a small amount down and the only way to get in was using FHA. I would have liked to to conventional with more down, but it wasn’t in the cards at the time 🙂

    • Thanks for encouraging me to keep looking around, it’s awesome how much we’re going to save in the long run! I’m super excited for the mortgage insurance to go away and let the REAL SAVINGS begin 🙂

  9. Excellent job. This is one of those things that does take a little time and effort, but is well worth it with the savings and you will receive in the long run. I’m really surprised that more people don’t make the effort. I think for a lot of people, it just looks like such a huge task when viewed with the day-to-day things that need to get done that people just put it off until it never gets done. Congratulations on having the discipline and energy to see it through. Your wallet will definitely be happy in three years.

    • Thanks Jeffrey. Yea, it was a bit annoying, but we knew the long-term ROI, and were eager to do whatever it took! We heard some horror stories, so ours was prety smooth considering the alternative.

  10. We refinanced in September (just one year after purchase). Went from a 30-year at 4.5% to a 15 year at 2.875%. WHAT! Amazing. Also, our closing costs were only like $250 or so. How about that?

    • Sure thing. It’s a great breakdown of the benefits of a 15-year mortgage. What a difference it makes, huh? Makes me want to kill my student loans that much more to start throwing some extra payments toward the mortgage! Thanks for the info 🙂


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