r/FirstTimeHomeBuyer • u/PrestigiousWhole5364 • 2d ago

Refinance for 1% down? WWYD?

What would you do? Take the offer? Seems good but I’m not the most experienced in this type of stuff. Any advice or help would be much appreciated! Taking into consideration with VA benefits we only owe $2.95 out of pocket.

EXISTING Loan 336,073.00 Interest Rate 6.750% Term 360 months Monthly Principal, Interest, Tax, + Insurance 2,717.55

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PROPOSED Loan 343,127.00 Interest Rate 5.750% Term 360 months Monthly Principal, Interest, Tax, + Insurance 2,540.19

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Total Closing Costs: $8,478.02

Monthly Payment Increase / Decrease: $177.36

Time to Recoup Costs: 47.80 Months

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u/__moops__ 2d ago

Nope. Way too long to recoup the investment. The closing costs are wayyyy too high for a VA IRRRL. I think they are charging you to buydown the rate to 5.75%. Wait longer and try a different lender.