Q&A: mortgage refinancing advice?

Question by gregg s: mortgage refinancing advice?
I have a 15 year fixed rate mortgage at 4.75% balance is 54,000 I thinking of getting a refi at 3.8 fixed for 15 years i have plenty of equity in the house and want to take out about 25,000 cash this loan is a no cost loan. current payment is 825 mo. new payment would be 580mo. I have 7 years left on my old loan. so I understand I would be starting at 15 years again. money is so cheap to borrow right now i cant see any negatives? any advice
I understand there is no such thing as a no cost loan- I;m going to pay a bit higher of an interest rate 3.8 instead of 3.65 thats the trade off- so im saving money up front instead of a slightly lower payment . I’ve doubled checked values so im certian about my property’s value and my fico is 815
also their are no re-fi costs- my loan will be exactly where it stands today- that’s the reason for the slightly higher rate

Best answer:

Answer by Judy
“no cost loan” – no it isn’t, do the math. But if you’re going to be in the house for quite awhile longer, could be a good idea. What about refi costs? Are those rolled into the new loan?

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