Should I Refinance My Mortgage

Question: Should i refinance my mortgage?

(Posted by: Brad P. on 2009-06-22 13:06:27)

I currently am one year in on a 5 year fixed ARM at 5.5 %. I can refinance into a 30 year fixed at 5 %. The payments come out to be about the same I guess from the closing costs of the refi. I know I will need to refinance before the ARM is up anyway. Is it worth refinancing now or should I hold off a couple years?

Posted by: GM on 2009-06-25, 15:27:04

Take in to consideration what is the break even point of the refinance closing costs is: You can do this by taking the total closing costs and dividing it by your monthly payment saving. For example: If the total cost is $2000 and you are saving $200 a month then your break even point would be 10 months. You gotta think about how long you will be in the house, so you can reap the benefit of the refi. Also, the fixed rates are historically low right now. 5% today is available with cost of 1point upfront, so keep that in mind when you are making your decision. Also read this article on the 6 most common mistakes to avoid when refinancing your mortgage

Posted by: sassy2 on 2009-06-22, 13:13:34

NOW rates are climbing as we speak. The banks need money and they will not be lowering the rate anytime soon.

Posted by: Fsa on 2009-06-25, 21:46:15

You will find what you are looking for here, i did: refinancemortgage.fsaenterprise.com