Question by kdube151: want to know about refinancing my mortgage?
Owned a home for over a year now interest rate at 6.125 with a little more than 30,000 in equity in my home, would like to know what the process is for refinancing my loan, how much will it cost and if it will save me money, if anyone has recently gone through a refi please tell me about your experience! THANKS!
Answer by pinksteel10
shouldn’t do it unless rate drops more than a point, so in your case, to around 5%. That hasn’t happened yet.
Know better? Leave your own answer in the comments!
The answer is predicated on how long you plan to stay in the house. The ability for you to recoup out of pocket costs in relation to the reduction in monthly P&I.
Rates are now at 5% and the one above me is right you want to decide how long you intend to stay in the home.
I don’t know what you owe on your house but that will also be a huge factor if it’s worth refinancing.
That when it’s all said and done, you will owe more on the house in the end no matter how the mortgage company phrase it. The market is not good for the seller, so it doesn’t matter how long you want to stay in the house, because it is going to be hard to sell. Because of the economy, your house might not be worth as much as it use to be.You should wait for 5% or lower on the interest rate. Also, people who took out money for home repairs or to consolidate bills, almost never used the money for the purpose it was intended. So now not only do they owe more on their home, but the repairs and bills did not get fixed or paid. Just please be careful in how you spend the money. If you don’t need to refinance then don’t, not in this economy anyway. If you still want to refinance, please, please, please read the small print and make sure you understand everything before you sign the contract. Good luck
Refinancing will cost thousands of dollars, there is no “free” refinance. There are refi’s out there where you pay no money out of your pocket, but you pay for it somewhere.
You may have a pre-payment penalty on your current mortgage, so you will want to check that first.
To get this to pencil, you are going to have to stay in your home awhile, probably at least 5 years, and receive at least 1% lower interest rate than you have currently.