Old way vs new way with cash out refi numbers

I used to just take whatever my local credit union offered on a cash out refi without shopping around. Got a 7.2% rate on a $150k loan back in 2021 from them and thought that was fine. Then last year I tried an online lender for a $60k cash out and ended up at 5.8% with lower closing costs. What made you switch from your old method to something different?

2 comments

2 Comments

janab8212d ago

My husband and I had a similar lightbulb moment, but it came from a different direction entirely. We realized that the closing costs on a cash out refi can vary wildly, not just the interest rate. For our $80k loan last year, one local bank quoted us $6,000 in fees while an online lender came in at $2,800 for the same loan amount. We ended up paying a slightly higher rate with the online lender but saved over $3,000 upfront, and the break-even point was only about 18 months. It really opened my eyes to looking at the total cost, not just the monthly payment.

david73911d ago

Guess I should've read the fine print on my last refi...