2007-03-26 03:40:34 · 2 answers · asked by terica9 1 in Business & Finance ➔ Renting & Real Estate
The best time really depends on your needs, current mortgage terms, and the market. If you are in a fixed rate mortgage with at least a 1% lower rate and it will cost you very little to refinance (recoup cost in a year by lower payments) good. Otherwise rule of thumb is 2% lower and you need to recoup your closing costs (by the savings on the payment) within 2 years. If you are sitting on a fixed rate mortgage that is around 6.5% - don't let someone talk you into an adjustable rate mortgage (ARM)
If you are in an ARM that is getting ready to adjust with a high index, you will want to look into refinancing into a fixed rate with rates still at all time lows. Be aware if you have any pre-payment penalties these will get you.
Seek the advice of a reputable loan officer.
2007-03-26 04:06:44 · answer #1 · answered by Margaret K 3 · 0⤊ 0⤋
There's no specific "best" time. Anytime you can get lower interest or if you need to get some money out of your equity is just fine.
2007-03-26 10:45:10 · answer #2 · answered by Glennroid 5 · 0⤊ 0⤋