smithkt Posted August 21, 2007 Share Posted August 21, 2007 Here's the deal. I am currently sitting on a 30 year fixed rate mortgage at 6.375%. I've been setup to make bi-weekly payments rather than monthly payments so the mortgage would have been payed off in 23 years. Everything was fine until the divorce popped up. So we've agreed that I will keep the house, but I'm going to have to refinance to get the wife's name off the loan and the deed as well. I've started shopping around for a decent deal, but it's tough to find a no points loan at the same rate. Some of the offers I've seen offer the option to buy down the interest rate. I'm wondering if any of the pros here have any thoughts on whether this would be worthwhile. I plan to keep the house until I'm dead, so it's definitely a long term investment (at least I hope so). So, the questions are: Do you guys think I can find a better or equal rate to what I have now? If not, is it worthwhile to consider buying down the rate? If I were to buy down the rate, I'd have to roll it back into the loan as I don't have that kind of cash. Does this defeat the purpose or does it simply mean it takes longer to break even? I'm sure there's a way to calculate this but frankly I don't have the patience. I'd appreciate any feedback. Quote Link to comment Share on other sites More sharing options...
boat_hacked Posted August 22, 2007 Share Posted August 22, 2007 My sister was in your position a few years back. One of them wanted to keep the house but not refi. This is what they did. Quitclaim deed. Once again don't know if it's something feasible for you or what you're looking for, but a possibility if your state allows these. Quote Link to comment Share on other sites More sharing options...
smithkt Posted August 22, 2007 Author Share Posted August 22, 2007 My sister was in your position a few years back. One of them wanted to keep the house but not refi. This is what they did. Quitclaim deed. Once again don't know if it's something feasible for you or what you're looking for, but a possibility if your state allows these. Yes, that works for the deed, but I don't think that removes her from the mortgage as well. As far as I understand it, I'd still have to refi to remove her from the loan obligation. The quitclaim deed just gives up the claim to the property ownership. There actually are a few different deed things with varying legal implications. I'm really focused on the mortgage right now, but I still appreciate the input. Quote Link to comment Share on other sites More sharing options...
rhippens Posted August 22, 2007 Share Posted August 22, 2007 Yes, that works for the deed, but I don't think that removes her from the mortgage as well. As far as I understand it, I'd still have to refi to remove her from the loan obligation. The quitclaim deed just gives up the claim to the property ownership. There actually are a few different deed things with varying legal implications. I'm really focused on the mortgage right now, but I still appreciate the input. correct on the QD. all the quitclaim does is say she is giving up any rights she may have to the property, and i think you're correct in thinking that will not satisfy the mortgage company to remove her, although you may want to check with them if they'd remove her after seeing a copy. concerning the point on the rates, hopefully alexgaddis will drop by. when we were making a move, he was very helpful answering a few questions for us. i always heard is was not worth it to pay the point, but let one of the people in that industry answer that. good luck. Quote Link to comment Share on other sites More sharing options...
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