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Spring Baby06
My two loves
Member since 5/05 3612 total posts
Name:
Jillian
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has anyone refinanced after only 1 year
I was wondering, we have only been in our house for a year and a half. But rates are so low, is it worth it? Anyone have any experience? Do I call my original borrower to start from there or others? Thanks
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Posted 12/7/11 4:38 PM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
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Re: has anyone refinanced after only 1 year
If the interest rate is 1 whole point or more, it may be. You will have to do a cost benefit analysis to see if its worth it, and ask yourself whether you plan to stay in the home for several years long enough to break even. E.g. If you are at 5.5% and you want to go down to 4.75% and you are saving $ 200/month and closing costs are 10K - it will take approximately 4 years to break even ($200 X 12 months = $2,400/yr savings X 4 years = $ 9,600 (cost of closing).
Your mileage will vary depending on the savings, closing costs, interest rate, etc, etc...hope this helps!
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| Posted 12/7/11 7:08 PM |
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caps612
In love with my little guys!!
Member since 8/10 5108 total posts
Name:
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Re: has anyone refinanced after only 1 year
We refinanced after less than 5 months after we closed on our house! It was totally worth it for us.
We almost did it again 2 years after that, but it was not going to be a full% and was not going to be worth it for us when we factored in the closing costs.
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| Posted 12/8/11 9:51 AM |
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Deeluvsvinny
DONE
Member since 10/08 4952 total posts
Name:
Whatever
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Re: has anyone refinanced after only 1 year
It may be worth it, if the rate is usually at least a % lower. You should call your current lender and ask for a CEMA (consolidation) so you won't have to pay mortgage tax again- which would keep your closing costs much lower.
The one risky thing is that appraisals are coming in very low right now. Lower than a year ago...and most lenders require you to pay for an appriasal up front, without a refund if it doesn't appraise at the value you need.
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| Posted 12/8/11 10:27 AM |
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ItsaJoya19
my cup runneth over
Member since 1/10 2949 total posts
Name:
E
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Re: has anyone refinanced after only 1 year
Posted by Deeluvsvinny
The one risky thing is that appraisals are coming in very low right now. Lower than a year ago...and most lenders require you to pay for an appriasal up front, without a refund if it doesn't appraise at the value you need.
this exactly. i just spoke to my guy over at wells fargo and he told me if i don't think the house will appraise to hold off.
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| Posted 12/8/11 2:14 PM |
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BeachGal
LIF Adult
Member since 2/10 2827 total posts
Name:
J
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Re: has anyone refinanced after only 1 year
I have owned my home for 4 years and have refinanced 3 times. The first 2 were 100% free and there were no costs involved so it was a no brainer. I am refinancing now but I am incurring closing costs. Between the 3 refinances my rate has dropped 2%. In 2007 when I bought the rates were in the 6% range.
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| Posted 12/8/11 9:45 PM |
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JDubs
different, not less
Member since 7/09 13160 total posts
Name:
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Re: has anyone refinanced after only 1 year
i always question this as well, since we closed in June 2010 with a 5% interest rate...for those that have refinanced, are you going through your original bank? not sure even where to start.
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| Posted 12/9/11 10:00 AM |
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caps612
In love with my little guys!!
Member since 8/10 5108 total posts
Name:
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Re: has anyone refinanced after only 1 year
Posted by JDubs
i always question this as well, since we closed in June 2010 with a 5% interest rate...for those that have refinanced, are you going through your original bank? not sure even where to start.
I went through my original bank!
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| Posted 12/9/11 10:38 AM |
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