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msrsfeb
LIF Adult
Member since 2/06 1277 total posts
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when should you refinance your home...
with all the talk of interest rates being lowered how do you decide if you should refinance? Are the costs astronomical? thanks for any advice you can give.
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Posted 1/23/08 11:27 AM  |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: when should you refinance your home...
I would sit down and do the math.
Divide all the costs of refinancing by the monthly savings if you refinance. If you plan to be in the home at least as many months as it will take you to pay off the new closing costs with the monthly savings, you will see whether or not if it makes sense.
I believe that one should look into refinancing when the % rate is 2 or more points then your current mortgage rate.
Good luck!
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| Posted 1/23/08 11:37 AM |
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Smileyd17
kids
Member since 5/05 20997 total posts
Name:
Mommy
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Re: when should you refinance your home...
I just did...closing is tonite actually. We did a lot of repairs to our home and since we bought it at a good price,...refinancing helped us. We got a lower percentage rate as well.
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| Posted 1/23/08 11:45 AM |
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msrsfeb
LIF Adult
Member since 2/06 1277 total posts
Name:
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Re: when should you refinance your home...
Posted by bicosi
I would sit down and do the math.
Divide all the costs of refinancing by the monthly savings if you refinance. If you plan to be in the home at least as many months as it will take you to pay off the new closing costs with the monthly savings, you will see whether or not if it makes sense.
I believe that one should look into refinancing when the % rate is 2 or more points then your current mortgage rate.
Good luck!
How do you figure out closing costs? Sorry i am oblivious to all this stuff.
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| Posted 1/23/08 11:47 AM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
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They call me "Tater Salad"
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Re: when should you refinance your home...
Posted by msrsfeb
Posted by bicosi
I would sit down and do the math.
Divide all the costs of refinancing by the monthly savings if you refinance. If you plan to be in the home at least as many months as it will take you to pay off the new closing costs with the monthly savings, you will see whether or not if it makes sense.
I believe that one should look into refinancing when the % rate is 2 or more points then your current mortgage rate.
Good luck!
How do you figure out closing costs? Sorry i am oblivious to all this stuff.
I'm curious about the closing costs as well!
ETA - I've heard 2-3% of the loan amount in closing costs, but I think that includes escrows... (We don't escrow)
Message edited 1/23/2008 11:59:04 AM.
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| Posted 1/23/08 11:49 AM |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: when should you refinance your home...
there are a ton of online refi calculators that you get a rough estimate with.
but remember that you can go directly to whomever you have a current mortgage with. They sometimes cut you a break on the closing costs with them. Your closing costs will be comprised of the following title and escrow fees, lender fees, points (if you decide to buy any), appraisal fees, credit fees, insurance and taxes. (we don't escrow either).
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| Posted 1/23/08 12:07 PM |
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ILJ619
LIF Adult
Member since 6/06 1985 total posts
Name:
Irene
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Re: when should you refinance your home...
Can anyone recommend who they used? I've been curious about this as well. I called my bank and they said they would have to charge closing costs.
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| Posted 1/23/08 12:19 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
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They call me "Tater Salad"
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Re: when should you refinance your home...
Posted by ilt1221
Can anyone recommend who they used? I've been curious about this as well. I called my bank and they said they would have to charge closing costs.
Every lender is going to charge closing costs. Most closing costs don't go to the lender. You have to pay them regardless....
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| Posted 1/23/08 12:21 PM |
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ILJ619
LIF Adult
Member since 6/06 1985 total posts
Name:
Irene
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Re: when should you refinance your home...
I was hoping there was something out there that they would waive the closing costs I guess I am thinking of a home equity loan. Thanks.
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| Posted 1/23/08 12:25 PM |
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VickiC
Rocking the party
Member since 5/05 4937 total posts
Name:
Vicki
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Re: when should you refinance your home...
Everyone has told me that it is worth it to think about refinancing if you can get at least 1% point lower than what you have now. Obviously, the lower you can go, the better, but I think at least 1% point is the benchmark.
I know for us, 1% point will save us about $300 a month, so I'm hoping it goes down a little more!
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| Posted 1/23/08 1:54 PM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: when should you refinance your home...
Posted by VickiC
Everyone has told me that it is worth it to think about refinancing if you can get at least 1% point lower than what you have now. Obviously, the lower you can go, the better, but I think at least 1% point is the benchmark.
I know for us, 1% point will save us about $300 a month, so I'm hoping it goes down a little more!
Yes this is true. Closing costs are typically 2% of the loan amount w/o escrows and 2.5% with escrows. You migth get a break with closing costs but not much.
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| Posted 1/23/08 2:06 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: when should you refinance your home...
we refinanced about 3 years ago. We were 2 years into our mortgage. The closing costs were about 8K. We lowered our rate to 5.5% and had a piggy back loan with the fixed rate of 6% and the second loan at 8%.
We saved about $250 per month but we were able to roll some old credit card debt into it. Over all, it helped our cash flow by over $750/mo.
That enabled us to purchase an investment property.
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| Posted 1/23/08 2:20 PM |
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msrsfeb
LIF Adult
Member since 2/06 1277 total posts
Name:
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Re: when should you refinance your home...
Posted by Blu-ize
we refinanced about 3 years ago. We were 2 years into our mortgage. The closing costs were about 8K. We lowered our rate to 5.5% and had a piggy back loan with the fixed rate of 6% and the second loan at 8%.
We saved about $250 per month but we were able to roll some old credit card debt into it. Over all, it helped our cash flow by over $750/mo.
That enabled us to purchase an investment property.
wow, that is awesome that you were able to do all that!
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| Posted 1/23/08 2:22 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: when should you refinance your home...
it worked that way for us at the time. Right now we could lower our rate by .5pts but it's not enough of a savings.
The debt that we have is all at 0% so consolidating doesn't make sense.
I'm not buying any more investment properties right now..
It would help the cash flow but the numbers don't make sense overall.
Good luck with whatever you decide.
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| Posted 1/23/08 3:11 PM |
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Re: when should you refinance your home...
HI ladies Just some advice:
I work for a title company and handle purchases and refis all day, If anyone needs for me to figure out closing costs for them just FM me....Also if you closed on your home withing the last 6 months, I would def contact the title company who did your closing they should be able to give you a break in the title bill since they have already done the research...they wont have to do much work, 
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| Posted 1/24/08 5:58 AM |
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