Question : When does it make sense to refinance home given our situation?
I was just wondering if it made sense to refinance our 30 year fixed 6.25 home loan. We have owned our home for 3 years and 5 months. What does the interest rate have to fall to in order for it to financially benefit us to refinance?? Any help appreciated.
- asked by deucedown
All Answers:
Answer #1
I would compare your current monthly payment to aloan under current rates. The other thing toconsider is potential closing costs on new loan. The other thing to consider is whether you intendto stay in your home for a while - like five yearsor more - especially if you have to pay closingcosts.Below is a link to a refinance mortgagecalculator.
- answered by Mr_Blue
Answer #2
The question is not so much how low does theinterest rate have to fall, but whether any lenderwill give you a fixed rate loan at a significantlylower rate of interest. Unless your credit isbetter than God's and you have tons of equity inthe home, I'd say you're not going to get a muchbetter loan in the near future.
- answered by 65% water
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