When Does It Make Sense to Refinance? Patch.com
A 30-year fixed-rate mortgage (FRM) averaged 4.22 percent with an average 0.7 point for the week ending September 1, 2011, according to the latest from Freddie Mac. A 15-year FRM averaged 3.39 percent with an average 0.6 point for the same period.
I have been in the real estate business for a long time, and these mortgage rates blow my mind!
The combination of historically low mortgage rates and decreased property values make it a prime time to buy in L.A. for those who can afford it. These rates may also make it a prime time to refinance. And it’s the latter subject I want to talk about.
When does it make sense to refinance?
A traditional refinance may be a good option if you have an adjustable-rate mortgage that is adjusting or want to secure a lower interest rate than your current mortgage, according to Freddie Mac.
If you have not missed any mortgage payments, refinancing can completely replace your current mortgage loan and provide you with new terms and a new monthly payment.
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Refinance Mortgage Rates
www.refiadvisor.com Refinance Mortgage Rates - How to get the lowest possible rate when refinancing your home without paying junk fees.
Should I refinance my home mortgage if the current fixed rate is a full 1% less than my current fixed rate?
The current rate is 5.6% and my current mortgage is 6.6%. I got the mortgage 2 years ago.
Conventional Wisdom says yes. It will boil down to the costs. If you can finance the refi costs into it, how long will it take to pay that portion off based on the savings? If the time is less than the time you plan to own your home than yea refi, if not then don't.
If you could do the refi with no costs, the answer would be an emphatic yes, but with the agencies required net yields where they are no one is making money at 5.6 on a 30 year today so, therefore, they have to charge fees in addition to all of the 3rd party costs, closing, recording and general title insurance.
For example, if you owed 100K and it costs 2K to refi and you financed those costs, you would borrow 102K and your monthly savings would only be about $52.
Divide the 2K cost by $52 savings and it takes you 38.462 months to break eve. Only after that point are you really saving money.
My bet is it will cost you $2,500 plus points (how many depends on your loan size and how much or little the lender is willing to make).
My advice would be the costs are usually not justified if they are substantial. Yesterday, I could have done a refi for $350 at 6.25, but it would be hard to get excited about that. On the other hand, the payback period is very short so it is a better deal for most people.
I hope you find this information helpful in making your decision.
How much should your current interest rate ( existing Mortgage) change, before it makes sense to refinance?
My current rate is 6% for 15 years. I want to re-fi at 5 % for 10 Years (4,500 in closing fees), but I have been paying on this current mortgage for 9 years, so currently I am past paying all interest. So does it make sense to re-fi and start all over gain with several years of just paying interest.?
6% is not bad. I wouldn't do it just because of the 5 grand out of pocket also you only have 6 years left. your almost paid off don't extend it any more.
My husband and I just got approved for a refinance with our mortgage. Our current mortgage rate is %6.37 and w
My husband and I just got approved for a refinance with our mortgage. Our current mortgage rate is %6.37 and we were approved for a lower rate of %5.75 locked in for 30 years. I just found out today that the Feds are going to make another cut of one half of a percentage point Jan. 29th-30th. We are in doubt as to what decision to make. We already locked it in at %5.75 but there is still time for us to jump out. Should we go with it or wait until the next Fed cut and get a better deal? Someone please help!!!
Any Fed rate cut will not affect long term mortgage interest rates. While it is possible to get a lower rate than you are locked at currently, I don't have all your details to know what you qualify for, so I would say that you should keep what you have; 5.75% is still a great rate.
can you afford the 5.75% comfortably?
like most things you pays your money and you take your chances.
i am one of those who believes a bird in the hand........
in short there is no way i can make this decision for you.
you still have to make the payments.
Now that you are locked in at today's rates. Do you unlock it and take a chance to see if it get lower? What would happen if it goes up instead? Your locked in today and maybe not tomorrow.
Remember Buddha's advice:
"Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense." You are the only "expert" you can trust: All brokers, and every other loan officer guru giving advice here with a .com or contact me at the end is "selling" you something (its not advice, its advertising). Don't buy "it."
With the Fed cutting rates, is this a good time to refinance my mortgage? My current rate is fixed at 6%?
Shop around.
Otherwise, closing costs will eat up your savings.
http://www.daveramsey.com/etc/askdave/?intContentId=6319
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What kind is your mortgage? Conforming, than you are really paying too much already, as this is now about the rate for a Jumbo. I have seen offers around 5.5%.
However rates differ within states and also depend on your credit rating.
What I am not sure about are the costs with refinancing.
I would ask the bank or managers what fees, taxes and costs will occur. Do you have to pay a "Mortgage recording tax?" Do you have to pay a lawyer again?
Make your decision after you have all the numbers on the table.
Do not check with one place alone. Check rates with reputable banks and mortgage brokers. Do not buy ARMs.
-> A friend of mine got a rate through a mortgage broker from a bank that was much higher, than if he would have gone to the bank directly.
I contacted few mortgage companies and inquired for '0 points and no closing' rates. Until yesterday, lowest I was getting was 5.5% (they went up today to 5.875%).
Here is what I would do - write down the loan and payments you are making today (per month).
Next call the mortgage companies and have them run a scenario (total loan, 30 fixed, 0 points, xyz credit) and ask them the cost breakdown (per month). You can then compare it with what you are paying today.
If you have the loan for a while, refinance will reset your time to 30 years from 'today'. So you will obviously have bit longer to pay off. However, because the principal in mortgage payments is generally very small, few years do not really matter (for most).
I haven't refinanced yet. Will sit on it for few more days. When I do, I will try to make a deal with them that if the rates went down within few days (30 or so), then they will entertain the lower rate.
In any case, make sure they do not slap additioal cost/ fees on you. Get that in writing/ confirmation email etc...
Is it wise to refinance my home mortgage rate of 6 percent to current 4.8 percent rate?
What are the pros and cons?
4.8% is a phenomenal rate.
Here is what you want to do.
Decide how long you plan on staying in the home.
Take the total cost of the refinance and dived that by how much you will save to find your break even point.
Here is an example.
Refi cost = $4,000.00
Monthly savings with new rate of 4.8% = $128.78 ( I used a $200,000 loan amount @ 6% and then a new loan amount of $204,000 @ 4.8% to get this number )
$4,000 divided by $128.78 = 31.06 months divided by 12 = 2.5 years.
As long as you plan on staying for more than 2.5 years it looks like it makes sense.
As far as cons, well, my best guess would be for you to look closely at your current credit rating to be sure you qualify, and I'm sure the paperwork will be a pain, but other than that, I think it would be wise.
Good Luck!
20% down will also prevent you from paying that nasty PMI - throwing thousands away.
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Cash-out refis are harder to come by now without a significant amount of owner equity in the home, so you are probably talking about a straight refi of the existing loan balance. Right?
You have to qualify for the new loan. So, if your financial situation has deteriorated since you bought the house, that may be an issue.
Your house will have to appraise for the new loan amount + 10 - 20% owner equity (new lender can tell you their criteria). If property values in your area have fallen, your house may not be qualify for a loan that will cover the balance of your existing mortgage loan + the costs to refi.
There are costs involved in refinancing a loan. You are essentially buying your house from yourself. So, there is a new loan, with fees and possibly 1% origination fee. Also an appraisal, title policy, closing costs from the closing company (title co or lawyer), recording the new lien, possibly a tax stamp (depends on your local regulations).
You may be able to roll all or some of these costs into your new loan. Or, you may need to pay them at closing.
Generally the lender refinancing the loan will want you to retain a percentage equity ownership in the property, so typically they will not refinance for the full 100% appraised value of the house.
Shouldn't cost you anything to find out, though.
Good luck.
Average Rates:
30-year FRM: 6.19%, 0.88
15-year FRM: 5.88%, 1.03 points
1-year ARM: 5.81%, 0.88 points
The website below may provide some insight for you.
http://www.refinancing101.net
Good Luck.....!
current lowest mortgage refinancing rate temp. offered by Fed. govt?
rate offered mainly to homeowners in trouble
Where can I find the current mortgage rate in Oregon?
I'm going to refinance my house and I heard from friends that this coming week the mortgage rate will drop a bit.
When I called a broker last week, she said that the lowest mortgage rate was 6.5. But I believe this week will be lower.
My question is does anybody know a good website, free and without signing up, that shows current day to day mortgage rate.
I live in Portland, Oregon.
In your opinion, how would the mortgage rate would be this coming month and beyond.
Thanks
I have seen some links to free current rates at www.bestmortgageanswers.info
The rates will probably change again on Tuesday, so make sure to check back after that.
but remember that rate may change depending on your background (credit, job etc)...everybody's circumstance is different.
stay local and please stay away from internet scam offers.
good luck
I am a loan officer in Oregon and I can say the rates will be different pending credit score; how much equity you have in your house; and even the lender your actually going through. If you are going full doc or stated on your loan. It all factors sinto the rate. Rates go up and down all year long.. And the rates you see online are usually prime. Bankrate.com is a good site for mortgage information. But as I saw someone advise earlier DO NOT use the online systems to obtain a rate. they will sell your information to everyone and they will all start pulling your credit which can ding your score!!
Can I refinance my current mortgage with the same company I'm with now for a lower rate after 2 years?
Would like to know if I would have to pay the prepayment penalty if I'm staying with the same company.
If you have a fixed-rate, closed mortgage you will need to pay some type of penalty with most lending corps or banks if you change your mortgage before its term is up. You might be able to get an exception if your are in serious trouble to make payments since lending groups don't like bankruptcies or foreclosures. You should just approach your mortgage broker, they will be able to give you an exact number and you can make a decision. If it's going to pay in the end, go for it.
What is the most current interest rate to refinance my house in California?
I have a mortgage rate of 6.85%. should I refinance now or will interest rates go down more after the president signs the new bill to help mortgage companies?
To give you a definitive answer would require more information about what type of loan you have now (fixed or adjustable), how much your home is worth, how much you still owe, etc. Suffice it to say, if that 6.85% is for a fixed, 30 year, it will probably not be worth refinancing now or in the near future.
Where can I go to find the most current mortgage interest rate that is updated daily or very frequently?
I am looking to refinance but it seems there is no reliable source for the most current interest rate. The rate quoted or listed on any site can vary as much as 0.75%! Is there a gov site or a nonprofit site to check for 30yr fixed rate daily?
none. rates are by area and lender specific. they do vary as what you see published any where never takes into account any hits that your loan may get. FHA has announced some guideline changes just today. So, get with a mortgage professional in your area to get rates
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