I'm exploring refinancing options and have two offers that I'm having a hard time deciding on:
Better.com
This is not my current lender. They are offering an interest rate of 2.375%
for 1.866%
. Because I'm paying points for the rate and have to re-fund my escrow, the cost of the loan is $16,700
roughly - this is all rolled into the loan. My total principal and interest savings in this plan would be $316/mo
.
This plan would make my LTV about 93.56%
.
Current Lender
They are offering and interest rate of 2.875%
for no points. Since they already own my escrow, there is also no additional funding needed there. The total cost of my loan through them would be more along $4,000
, again all rolled into the loan. My total savings in principal and interest through this plan would be around $280/mo
.
This plan would make my LTV about 90.1%
.
My Question:
What other considerations should I have when choosing between the two? I don't think I have a clear enough understanding of the long-term outcomes from these offerings and how they're different to make a confident decision. Is one noticeably better than the other?
For what it's worth, I expect us to be in this home for the next 5-10 years. My primary objective is to lower our monthly payments.