Refinance

When should you refinance? If I have a rate at 5.25% what should a rate be for me to see a significant difference in my mtge?

Also, how much do you have to put up front to refinance?

TIA

Re: Refinance

I think the rule of thumb is it's only worth it if you're getting a full point lower.

You can call for an estimate. I am going through the process now and actual closing costs are running me about $4K.

Re: Refinance

How long does the process usually take?

Re: Refinance

IMO, at least 1.5pts lower then your current rate. Closing costs, etc... for 1 pt and under wont be worth it.

I did it last Oct and at first I was going to the bank myself, total nightmare, went back and forth for 5 months, 2 appraisals and I ended up walking away.

Went to a broker and closed in 30-days

Message edited 8/12/2010 4:33:38 PM.

Re: Refinance

See I am trying to tell DH this, we are currently at 5.125% and at 4.375% we will save $176 a month, he thinks it totally worth it to put the 5k closing costs into the mtge and pay the $500 app fee, I don't see it as being worth it since we will prob be here for 10 more years at most.

Anyone else have any yay or nays for this scenario?

Re: Refinance

To reduce your loan and save only $176/month, it'll take you about 31 months to break even from what you paid out for closing costs and app fees. It's up to you if you want to go through all that, but I wouldn't until you get to the full point lower.

We went from 6.375 to 4.875 and saved about $400/month.