2006-12-12 04:51:44 · 20 answers · asked by Galop 1 in Business & Finance ➔ Renting & Real Estate
That is a good rate already, typically by the time you pay the fees, it would take 5-8 years at a 1/2 percent interest reduction to break even. You should carefully consider how long you are likely to live in your house and the chance that you may need to move due to a job change ect. Be careful because a lot of the rates being thrown around that sound real good are adjustable. I think it would be a rare person that it would make sense to refinance at the rate you paying and where rates are currently at.
2006-12-12 05:01:17 · answer #1 · answered by mikesco 2 · 0⤊ 0⤋
Everyone who has answered above has given a cookie cutter answer based on knowing only your rate and term. 5.875% is a good rate, but more information is needed before I can tell you whether or not you should refinance. If you answer these questions for me, I can give you a quote as to what rate I can get you and tell you what your best option is.
1) How long do you intend to live in this house? If the answer is less than 5-10 years, you should get out of your fixed rate mortgage and into an ARM. Why? Because banks charge a premium for the comfort of a fixed rate mortgage! Unless you plan on staying where you are at forever, an ARM is the way to go... The rates can be locked for 5, 7, or even 10 years so you won't actually have to worry about your Adjustable adjusting!
2) How is your credit?
3) What is your current mortgage payment?
4) What is the current principal amount?
5) How much monthly income do you have and how much monthly debt do you have?
6) What is the value of your home according to www.zillow.com
If you answer these questions for me, I will give you a personalized answer... not some out of the box "Yes" or "No" based on insufficient information. The people who said you can't get a lower rate are nuts... I just refinanced someone to a 5/1 ARM at 4.75%!!!
2006-12-12 05:37:30 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Oh, I would definitely refinance your home for 15 years, if you could possibly afford the higher payment. You would be shocked out of your mind. A home financed for 15 years versus 30 years is not that much higher than the payment for the 30 year loan. Depending upon the amount you have financed, your payment may only go up between $100.00 and $300.00 per month.
If you can save 15 years of payments on your home, by only paying a small bit higher than the current payment, then don't be foolish! DO IT!
Good luck!
2006-12-12 05:33:13 · answer #3 · answered by peekie 3 · 0⤊ 0⤋
No. You will probably not get a fixed rate with an interest rate that low. Depending on how long you have had your mortgage, you might not even have enough equity in your house to even cover the closing costs of your new mortgage. Just stick with your current loan, and you will probably end up saving thousands in interest.
2006-12-12 05:05:09 · answer #4 · answered by Anonymous · 0⤊ 0⤋
No. The primary reason to refi is so that they can lower their monthly payments. That is a good rate and whatever teaser rates you may be seeing in refi advertising won't last for the 30 yrs that your current rate is set at. Rates are higher than your 30-yr fixed.
Also, you'll have to pay closing costs again, so you might want to factor that into your calculations if you are considering to refi.
Items that you may have to pay for (again) with a refi:
Application fee
Credit check
Attorney fee(s)
Title search
Title insurance
Appraisal fee
Inspection fee
Local fees (taxes, transfers)
Doc prep
Bankrate.com has a refi calculator:
http://www.bankrate.com/brm/news/pf/YIRguide06-07/mortgage/calculator/refi.asp?caret=3
2006-12-12 05:02:42 · answer #5 · answered by mktgurl 4 · 0⤊ 0⤋
you want to artwork those numbers slightly. Assuming your loan is $500,000, your charge is presently $3078 in line with month, crucial and pastime. in case you in elementary words paid more advantageous each and each month, and paid $3,654, you'll effectively have a 20 365 days loan at your modern pastime price, without extra costs. Now, in case to procure a sparkling loan for $500,000 at 5.875%, your 20 365 days funds must be $3,539 in line with month, so that you'll save $one hundred fifteen in line with month. in case you pay one element, this is $5000, so dividing $one hundred fifteen into $5000 skill it ought to take 40 3 months only to recuperate that element. till then, you're literally not more advantageous suited off. you actually have another costs to pay, which include filing costs, legal experts, and what not, so this is going to likely be a minimum of 5 years previously you benefit some thing. you've already got the alternative of paying it as if it were a 20 365 days amortization. The pastime price is the in elementary words element you'd be gaining. Is that vast difference adequate to really justify paying a element, and dropping the ability of paying the present charge?
2016-11-30 11:48:59 · answer #6 · answered by endicott 4 · 0⤊ 0⤋
That's the same rate you could get today. So, NO.
Even if you wanted to shorten your term, you'd accomplish 95% of the benefit by simply paying what a new 15 or 20 year payment would be.
2006-12-12 04:56:20 · answer #7 · answered by Anonymous · 0⤊ 0⤋
No. The current rates are pretty high. Unless you NEED a cash out I would not recommend a refinance.
2006-12-12 04:53:32 · answer #8 · answered by Anonymous · 3⤊ 0⤋
Why would you want to re-finance? You have a lower interest rate than you could currently get, so any re-finance would mean you'd be paying more per month, PLUS you'd have the re-finance charges up front. If you want to pay it off faster, just double up on principle payments.
2006-12-12 04:54:12 · answer #9 · answered by auskan2002 4 · 3⤊ 0⤋
don't think it gets any better than that! your at a great rate right now.unless you really have to for cash out for bills or home repairs,i would not touch that.if you do,i would be sure that your rate stays low.if your rate stays low and you need the cash out,your payment should not change by much.
2006-12-13 06:51:30 · answer #10 · answered by Bobbie 4 · 0⤊ 0⤋