According to my friend who is a mortgage broker with a large mortgage company, now is a bad time to refinance. The interest rate has risen and is expected to go back down in June or July. Unless your interest rate is very high, there is usually no good reason to refinance. If you owe 25 years on your home, your new mortgage will be for 30 years. Think about that. You're adding five more years to the loan. |
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---Susie on 4/6/08 |
The 'rule of thumb' I was given in refinacing a home was that if you can't save at least $2,000 don't do it. |
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---wivv on 4/9/07 |
Refinancing sounds simple. It usually costs money to refinance. IF (big if)your payments go down, your up front costs don't outweigh the savings, and you realize the payments will most likely be longer than now, then think about it. If you can afford to pay ahead (make extra payments--check for penalties), you may be better off than refinancing. If you need cash (really need it), it may be a way for that. But a home is most of our largest debt, and something few want to risk losing... Still thinking??? |
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---mikefl on 3/18/07 |
It all depends on how much you owe on your mortage. If only 5 years or less, then I wouldn't. But if more than 5 years, I would think about it. I only have 3 years left on my mortage, and I am exicited. |
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---Rebecca_D on 3/16/07 |
#1 Fred, I am a Realtor in California. What is your purpose for the re-fi? If you are consolidating debt and your current interest rate is high (above 8%) than it would be wise to re-fi. The rates are pretty good and depending on what property values are doing where you live a re-fi may be advisable. |
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---Ryan on 3/16/07 |
#2 Fred, Here are things you should consider:
1) Your current interest rate
2) What you owe
3) Current market conditions in your area
4) The type of loan program you are looking to re-fi into (Stay away from ARM's, interest only and "teaser rates")
5) What is your purpose for the re-fi (If you are going to consolidate debt and receive a better interest rate and lower monthly payments than I would advise you to do it)
If you have any questions I would be glad to answer them. |
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---Ryan on 3/16/07 |
#3 Fred, no one really knows what will happen to rates in the future. With the recent dip in the Stock Market many investors will begin to purchase bonds which will increase the demand for the bonds and their price will rise, consequently interest rates will go down. But, you never know when the Fed's will tighten the reigns on inflation and increse the interest rate. If you are going to re-fi I would suggest to do it in the next 1-3 months. |
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---Ryan on 3/16/07 |
Why don't you call your local credit union? |
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---Wallavenue on 3/16/07 |
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