I was puzzled to receive this snail mail home mortgage refinance solicitation from Ted Bishop of Roswell NM. After all, A city the size of Houston outcompetes any small town with respect to financing options.
Maybe we got on his mailing list because our daughter resided there for awhile. Anyway the sales manager for Stearns Home Loans would not get my business because it would be a long time before the refinance fees Ted charges would offset the reduction in our monthly mortgage payments!
We financed our home for 3.7%. I doubt Mr Bishop could refinance for any better than 3.5% rate. So that could decrease our monthly payment by around $35. However, the 2% refi fee on $250,000 is $5000. So we would be helping Ted much more than he would be helping us no matter what his marketing slogan says. Put more simply the break even point would be so far into the future, one would be ill-advised to refinance unless rate difference was closer to 1 per cent.