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Refinance?????

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Refinance

I have heard that mortgage rates are really low right now. Does that mean that it would be a good idea to refinance my mortgage in order to get a lower rate? How do I do the math to figure out if it would be worth it or not? Are there any hidden costs or fees in a refinance?

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1 Answers

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    Actually they can’t hide any fees. They have to be declared on the Truth in Lending Statement. I just locked in my rate to refinance my home. I bought my home in 2005 I had a 30yr fixed rate @ 6.625% I am currently locked in a 15yr @ 4.625% granted I bought it down a point. But closing costs will vary depending on the value of your home. Higher value home, higher closing costs. Typically you can expect anywhere from $1000 -$1200 in closing costs plus any prepaid items like interest between payments, escrowed taxes and insurance, and/or $300 for an apprasial.
    Every point you buy is 1% of your loan value up to 5 points
    so on a 200,000 loan 1 point is $2000 that will give you about .25% better interest rate depending on the situation.

    Essentially you want to move your loan at least 1% to make it worth it at any time. and .75% if you have been in the house more than 5 years with out refinancing.

    Sorry to tell you the best time to lock in rates was wednesday morning on the 23rd. Hopefully you locked already.

    Personally I went through a mortgage broker, just because if you go to a bank you’re getting retail rates, if you go to a broker you’re getting wholesale rates.

    Ryan M - Aug 14, 2012 | Reply


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