Should I Refinance My Home

Question: Should i refinance my home?

(Posted by: mYkuL C on 2009-12-16 15:55:32)

We've only been in our house 2 yrs (actually 23 mos) but have heard that our rate of 5.9 % could be better and lower our payments. A job change this year has lowered my income by $10, 000 so a few hundred dollars a month could mean a lot less stress. We currently have Bank of America as our lender (the 3rd different company to own the loan).

Posted by: the tax lady on 2009-12-16, 16:02:18

Has your house held on to it's value? Do your payments consume more than 1/ 3rd of your income? How's your credit rating?

Posted by: WCHS1970 on 2009-12-16, 16:18:01

Call your lender and ask. At worst the monthly payment will only go down a couple of hundred, but you might have a month without a mortgage payment if there is prepaid interest at closing.

Posted by: You're Kidding on 2009-12-16, 17:45:53

I don't think that you could get a rate lower than 5% at best and the small difference between your existing rate and 5% is too small to make up for all the closing costs you would have to pay for a refi. Not a good idea. Your 5.9% is a very good rate. Try to find another area in your finances to save a couple of hundred a month.