You just got into your house, so this would be a good time to do this. You know you'll be there for a while, you'll probably get a better appraised value this time so you could end up with lower PMI/mo this time around (unless you're on an FHA). If someone says they paid no closing costs, a few things could have happened:
1-They got a higher rate than they could have otherwise. The broker or lender made enough more off of the higher rate to pay the costs for them, or something like that.
2-They rolled the costs into the loan and don't realize that they still paid the fees, they just increased the loan amount rather than paying up front
3-If they stayed with the same lender, the lender may actually be making an offer for a streamlined refi of some sort to keep their acccounts. That's rare, but could be the situation.
Good advice to talk to your current lender.
Even banks sell off a lot of their loans. Most will only keep their 15 yr amort's. Some function the same as a broker and never keep their long term loans.
I know rates are better than when you locked in a few months ago. You might look into going to a 20 or 25 year amortization. ASK about a 25, or it won't get mentioned. Same for the 20. Most places do not offer a 20, others never think to mention it. I love 'em! Knock 10 years off, but it doesn't hurt as much as going to 15. Get the facts. Get an amortization on a new loan and compare to the one you got with your current loan. See just when the balances cross over and you start seeing true savings. It will take a while if you are rolling costs into the loan. The question here is "Which loan is going to make me more money when I sell the house in ____ years?" That's the bottom line, unless you are simply looking to create breathing room each month. You just bought your house, so I think this is the time to do something. Sooner the better, especially if you can alter your term. You've only been making payments for about 4-5 months, so you haven't lost much if you do go back on 30 years.
Do this as cheaply as possible to maximize the benefit. No points, no origination, unless it's at or under .25%. That can be recouped quickly, but paying a 1% fee will take a lot longer, unless the rate is a lot lower (.375% lower, might be worth it). Just get the payment figures, the total cost figures and see how long it takes to recoup.
A lot of people I deal with like the idea of just bringing to closing the equivalent of 1 month's payment. It's a middle ground. You'll skip 1 month, so apply that money here and reduce the money you need to roll into the loan.
Money saving tips:
1-Shop, shop, shop. Don't bother with online mortgages. They usually won't spell out the fees without an application, and then they dump a lot of BS fees on you.
2-Brokers have access to different lenders. No lender is the best all the time, so it's beneficial to have several tools in your toolchest.
3-Insist on using the same attorney as last time, and call them to make sure you get a "Reissue rate" on your title insurance. Title ins is one of your biggest fees. Normally it is $3 per 1000 borrowed. I.E. loan of 100,000 = $300 title insurance. Some are higher. A reissue rate will get you about 60% off of that fee. I always ask my clients who closed the last loan and go back there instead of trying to steer them to someone I know. If you didn't like that attorney, call them for a copy of your title insurance policy and find another attorney who writes with that same company. You can still get a reissue rate.
4-Tell the broker to submit the file to LP or the lender and find out if you can get away with a 2055 or 2070/2075 appraisal form. The usual appraisal is a 1004 which is typically $350. The 2055 is about $250, the 2070 or 2075 may be as little as $125. These $100 here and there add up.
5-Pay no points or origination. Watch the processing fee to make sure they don't charge a lot there, preferably nothing. That's just a padding fee, a good broker will drop that. I think your appraisal will be too old, IIRC (Chrstmas time, right?). They are good for 3 months, or 6 with a recertification (which costs about $100-200, usually). The date on yours may age it out. Only construction appraisals are good for a year, but still require a final inspection.
6-See if your current lender will subtract your escrow balance from your payoff. Most will mail you a check for that balance within 30 days, but some will take it off of the payoff. This is preferable. Then you don't have to worry about rolling in some of your costs, since it is netted out of the payoff already to bring you roughly even.
Anyone considering the bi-weekly, that's a great tool too. You can accomplish the same thing by simply making extra payments towards principle at the first of the month though. It should really boil down to what is easier for YOU based on your pay schedule and personal budget. Remember to deduct that payment every 2 weeks or it'll screw you up pretty quickly, since it'll likely be on automatic draft.
There's more, but I'll cut off there. I get wordy as it is. Let me know if you have any questions, glad to help.
HTH
I have a lot of equity in my house if that makes any diff.
