Question : Refinance?????
I have heard that mortgage rates are really low right now. Does that mean that it would be a good idea to refinance my mortgage in order to get a lower rate? How do I do the math to figure out if it would be worth it or not? Are there any hidden costs or fees in a refinance?
- asked by MikeyJ
All Answers:
Answer #1
Yes, if you have a fixed rate now around 6% or so,they may charge you HUGE closing fees that wouldmake up the difference if they gave you a 4% rate.I would only do it if you have great credit and/orand adjustable rate mortgage. Yes there are hiddenfees which differ from lender to lender. Go with areputable one.
- answered by skiairplane
Answer #2
You don't mention the rate you're currentlypaying.If there is more than a 1% difference inrate, you probably want to talk to your local bankmortgage representative about refinancing IF youare planning to stay in the home at least another5 years. That time goes down if you can get a 2%reduction in interest and is almost always a goodidea. Rates are VERY low right now if you have agood credit history and sufficient income andsufficient equity in your property.A couplecomments on how to determine if you're getting agood deal.1. Shop at least 3 local bank or creditunion mortgage lenders.2. Compare apples withapples. Be sure you're getting the same exactamount of a loan from each of the 3 offers andthat they're all talking about the same exactnumber of months in the contract. At that pointyou can compare the exact payments between eachand the exact amount of fees involved from each. Go with the best deal.3. Stay away from theonline mortgage places and stay away from mortgagebrokers. Stick with your local banker or creditunion rep. They're living in your community andwill likely be there in the future if you needfurther help. Relationships matter.Good luck andhope this helps!!
- answered by Joe
Answer #3
If you have a 30 year fixed rate loan and you'rehalf way there, you paid about 70% of theinterest. If it's fairly new and have a good rate,you can always pay down the mortgage in order toreduce the interest. Request an amortization fromyour mortgage co so you'll know exactly what theinterest/principle is.
- answered by stan c
Answer #4
Actually they can't hide any fees. They have to bedeclared on the Truth in Lending Statement. I justlocked in my rate to refinance my home. I boughtmy home in 2005 I had a 30yr fixed rate @ 6.625% Iam currently locked in a 15yr @ 4.625% granted Ibought it down a point. But closing costs willvary depending on the value of your home. Highervalue home, higher closing costs. Typically youcan expect anywhere from $1000 -$1200 in closingcosts plus any prepaid items like interest betweenpayments, escrowed taxes and insurance, and/or$300 for an apprasial. Every point you buy is 1%of your loan value up to 5 pointsso on a 200,000loan 1 point is $2000 that will give you about.25% better interest rate depending on thesituation.Essentially you want to move your loanat least 1% to make it worth it at any time. and.75% if you have been in the house more than 5years with out refinancing.Sorry to tell you thebest time to lock in rates was wednesday morningon the 23rd. Hopefully you lockedalready.Personally I went through a mortgagebroker, just because if you go to a bank you'regetting retail rates, if you go to a broker you'regetting wholesale rates.
- answered by Ryan M
Answer #5
The best thing to do is to find a loan calculator. You can put in how much you want to borrow, adat what interest rate to figure out your payments. If you owe less than the house is worth you canalso harvest equity out. So if you have a higherinterest rate, you could refinance lower, for moremoney (that goes into your pocket), and keep thesamepayments.------------------------------------------------------------Author is the lead managerof:
http://www.refinancejacksonville.com/
- answered by Refinance Guy Jacksonville
| 
