I have been contacted by my private mortgage lender with an offer to refinance our FHA loan after almost 2 years. I am very ignorant to this process as well as what the pro’s and con’s might be of moving forward with the refi. And i’m embarrassed to say i feel slightly skeptical given how persistent the lender has been to get us to refi. Any advice on whether or not this makes financial sense would be great!
Current Details: current rate: 3.625% Loan balance: $280,002 P&I + MI payment: $1,517
New proposed details: New fixed rate: 2.750% (3.60% APR) New Loan amount: $284, 902 New P&I + MI payment: $1,361
With refi: Payment and savings= $156 per mo
They also mentioned an interest rate credit of $2,800. What is this?