Some advice, please. Good time to refinance?

[Condem]

12 years in on a 6.25% note. My goal is to get to a 15 year or even a 10. Now, or gamble they'll go even lower?

[trotsky]

1. Basic rule of thumb: sit tight unless you can drop a whole percentage point.

Sounds like it might be a good time for you.

[Condem]

3. Thanks, trotsky.

I hear of 4.25% floating around out there.

[Turbineguy]

2. I have a higher rate than that

and decided no to. The fees were to be $3400 and the payment would drop by only $180 per month. Better to make a bigger payment and retire the loan that way and that is what we are doing.

However, if you are thinking of maxing out your credit and walking away if your mortgage goes below value, go for it (which it doesn't sound like you are interested in).

I think that if the rates go down, the value will go with it impeding the amount you can borrow anyway.

[paulsby]

4. yes, it depends

on the amount of principle outstanding, and the time you expect to stay in etc.


otoh, i will say that if you are waiting based on the possibility of the rates going lower, that's crazy.

if you can lock in 4.6% or so, and you want to refinance, the chances of it going significantly lower are very small.

they can go much much much higher, but the floor is pretty much in.

i say this as somebody who trades, stocks, futures, bonds, etc. and i'm pretty familiar with rates.

look at a historical 50 yr chart of mortgage rates.

[Condem]

6. Thank you, paulsby

I'll let you know how it comes out. Appreciate it, sincerely!!!!

[paulsby]

7. yw nt

[Condem]

8. Bought the house at a great price with no plans of moving.

Thanks, again!

[Condem]

5. I work with someone, Turbine, that got it all done ,including appraisal..

..for less than $1500. I'm just wondering if they'll lower some more.

[dixiegrrrrl]

9. Couple of questions ( I have been thinking about same thing )

1. Who would you re-fi with? How reputable?

2. What would be terms?
Only a guaranteed fixed rate, no small print on how they could raise the rate,or call the loan,
only NO prepayment penalty, NO insurance or escrow, and at 5% would tempt me to go with a highly reputable lender, if there is such a thing anymore.

Alternative, which is what I think I will stick with:

If I pay just 2,000 a year in additional principle, I will have paid off our 30 year note in 15 years and have saved 58,000 in interest. We are 5 years in, I have paid off 7,000 of principal by making 100.00 mo extra payments.

checkout bankrate.com for the mortgage loan payment calculator,:
http://www.bankrate.com/calculators/mortgages/mortgage-payment-calculator.aspx

and
for the current mortgage rates in the country:
http://www.bankrate.com/

Hope you get a good deal.

[Condem]

10. Thanks, dixiegrrrrl

I'll keep the Economy Forum updated for those thinking of refinancing.

[phantom power]

11. One other rule of thumb...

if the reduction in monthly payments pays for the closing costs in < 24 months, it's likely to be worth it. If you are fairly sure you are there for the long haul, a payback time of > 2 years may also be reasonable.

[Condem]

12. Thanks, phantom

Definately in for the long haul.

[upi402]

13. Here's a Credit Union at 4.75%

STCU
Spokane Teachers Credit Union
Fees may be high, let me know... keep us posted!

I'm refinancing figuring it's a low low. It's all about a lower monthly payment for me, all else is bullshit and hairspray now.

[Warpy]

14. If you've got a steady income and rents are rising

now is a great time to refi to a shorter term mortgage. Rates are very low and I sincerely doubt they'll fall that much lower.