I plan on selling in 4 years, and I have a credit score around 750. Would the closing costs outweigh the monthly mortgage savings with a lower rate? It seems I bought my house when interest rates were the highest in the last couple of years, and they look like they've gone back down for a bit (hovering around 6.0-6.25)
2007-11-29 02:09:35 · 6 answers · asked by GoTeamVenture! 2 in Business & Finance ➔ Personal Finance
It doesn't make financial sense to refinance to only drop one quarter to one half point in interest. The costs to refinance would not be reflected in the minor interest savings to be had.
2007-11-29 02:16:16 · answer #1 · answered by acermill 7 · 0⤊ 0⤋
Probably not worth it.
You wouldn't lower your interest rate by much and you plan to sell in a few years anyway. Closing costs aren't cheap either.
I'd say don't bother.
2007-11-29 11:04:08 · answer #2 · answered by Stacia Z 3 · 0⤊ 0⤋
I would call a mortgage broker and get a quote.. Estimates are free and a Broker will have several lenders that they can compare rates and closing costs from. Your credit report will only be pulled once.
2007-11-29 10:17:25 · answer #3 · answered by kta kta 2 · 0⤊ 1⤋
in 4 yrs, you're probably not going to recoup enough savings to offset .25-.50% savings - you'd probably have to pay 1700 right up front - 1%, plus possibly other costs you might be lucky if you broke even in 48 months
2007-11-29 15:45:36 · answer #4 · answered by Anonymous · 0⤊ 0⤋
probably not. THe closing cost will eat up any interest savings.
2007-11-29 10:14:03 · answer #5 · answered by Brad K 4 · 0⤊ 0⤋
based on you numbers you will lose money!!!
2007-12-03 08:23:19 · answer #6 · answered by mister ed 7 · 0⤊ 0⤋