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brandall
11-02-2011, 11:48 AM
I really wish I was more savvy when it comes to $$$ related things. We refinanced last year and I think our rate is in the 4.85 range. Do you think it makes sense to look into refinancing again? I would love to pay less each month!
Hethyr
11-02-2011, 12:15 PM
From what I understand it's not worth refi'ing unless you can go down a full point. I could be wrong though. :)
TheValerie
11-02-2011, 01:33 PM
Susan might be able to chime in here. My two cents, unless you can like Hethyr said get something under 3% AND find a zero closing cost loan, it probably won't be worth it. Take a look at how much money you would save if you lowered it by 1 point. If you have to pay any closing costs subtract those and then see what you are saving annually because of the reduction. That might help to see if it's worth it. If you have really good credit, you might be able to find a really good rate and no closing costs. Then it might be worth checking into.
brandall
11-02-2011, 02:21 PM
Hmm...we have pretty stellar credit, but I don't know if it's worth the hassle. It would just be so nice to save a bit more money each month. I hope Susan chimes in.
TheValerie
11-02-2011, 02:26 PM
It might be worth calling around and just checking rates and then asking what a payment would be with good credit and no closing costs. If you find the right interest rate and end payment it might be worth it. You can call most places and get quotes without disclosing too much or without having to run credit.
smiley36
11-02-2011, 02:37 PM
It all depends on how long you plan to be in the house also. You take the amount it will cost you to refinance, find out how long it will take you to make up that difference with the lower payments, and see if you plan on being in the house that long. So, let's say you are going to save $150 per month and it costs you $4000 to refinance. It would take you 27 months to break even on the refinance, if you will. If you will be in the house longer than that, then it's worth it.
brandall
11-02-2011, 04:34 PM
Good point Jessica, we plan on being here for a pretty long time.
AnnaP
11-02-2011, 07:49 PM
We're refinancing with a 15-year loan and no closing costs. It's going to save a ton of $$.