Question by Springstorm: Should I refinance my mortgage interest rate?
Should I refinance my interest rate on my home mortgage? I have been in my home for 9 years and an employee from Chase finance (Chase is my current lender) said for me not to refinance since I have paid off a good portion of the interest. Is this true? Should I refinance? My Chase mortgage interest rate is 6.5 fixed.
Answer by someone
Unless you get a rate of 4.5% don’t bother. Closing costs will eat up the small monthly savings
What do you think? Answer below!
Have a loan officer run the numbers for you. You have paid down your mortgage so your balance will be less, therefore your loan amount will be less. Look at a 20 year mortgage. If you have good credit you can get below 5%. You will skip making a payment the first month of your new loan so plan on bringing that amount to closing rather than putting all costs in your loan.
If you intend to stay in your home for several more years it may be worth it to refinance. Get opinions from several lenders. Then you can make an educated decision.
Can you refi into a 15 year loan? If you are in a 30 year loan and you refi, you’ll go back to square one to save a few bucks each month. 30 more years of payments!
If you are planning to move in the next few years and don’t think you can afford the current payments, then maybe a refi is a good option.
If you are planning on staying in the home for a long time and you dont have a problem with the payments then I wouldnt do it… If you could get a really good rate (you have good credit) on a 15 year loan and your payments are going to end up about the same I would do that for sure…