The mortgage on our old house, which we are currently renting out, is with Chase. We had a reasonably good loan (5.125%, 15 yr with 8 years remaining), but there was room for improvement. Since it’s a rental, we couldn’t get the record low rates currently offered. And we weren’t interested in paying any fees or closing costs to get a better rate. We plan, after all, on selling the house in a year or so.
Luckily, we qualified to do a streamline of the loan with Chase as part of the HARP program. (You may as well take advantage of something, even if you don’t agree with it.)
We went to a 4.25%, 10 yr loan. Our PITI went from $3,226 to $2,628 – a monthly savings of almost $600. No, we’re not paying the house down as quickly, but we’re paying less in interest and this definitely helps us get closer to cash flowing it as a rental.
It also improves our debt/income ratio and may make us eligible to refinance the mortgage we have on our new house. We haven’t even lived here for a year, but interest rates have dropped enough that we’d like to see if we can do a no-cost refi. I’ll keep you posted!