Question by Hickdawg: With the emergency rate cuts by the Fed yesterday, should I refinance my mortgage? I have a 30 year at 6.125%
I bought in Oct 2006 with 20% down for a $ 250K house. Got a 30 year mortgage at 6.125%. With the emergency fed rate cut yesterday, is now a good time to refinance or do you think it will go down more? How much cash do you need to refinance? Thanks!
Answer by DirectLendingPlanet
you should have little to no costs to refinance you should be able to roll the fees into the loan but look for someon that will do the loan with minimal fees and still get you the best rate
I would look to see how much you could save doing a refinance your rate would fall about 3/4% or more of a aprox. your fees could be very low because its a refinance.see if theis calculator will help. assuming you have 680+ credit you could get a gret rate. the fees will be the determining factor here i think. if you can cut 3/4 a percent or more and are not going to refinance within the next 3 years id say yes it may be a good time! I dont think we are going to see any more huge cuts. so jumping on this opertunity may be a good idea. see what the calculator says you would save and contact someone to see if they agree! i would not let a lender pull your credit you should have agood idea what your score is and just tell them!
asuming you can get a rate of 5.30 or better you sould save about $ 36,900.00 over the lofe of your loan and should cut your payment about 160.00 monthly
if you applied the extra 160 to the new mortgage it would save youa an additional 69,649.00 in interest and you would pay off the mortgage 6 yrs and 2 months early!
total interest saved $ 106,549.00
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