The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Psychstache on June 13, 2019, 01:14:49 PM
-
So, I just got done speaking about getting my current mortgage refinanced as rates have dropped since I bought my house.
Here's the short of it:
Current Rate - 4.625% - P&I Payment - 2027
New Rate - 4.125% - P&I Payment - 1927
Cost rolled into mortgage for refinance - 3800~
Trying to think about whether or not this is worth it. I'm assuming that I need to think about my break even cost ($100 less payment per month means 38-40 months to recoup refi costs plus interest accrued)? Any other considerations I need to think about (I'm not moving, so I don't need to worry about that)?
TIA
-
You can do better. Should be able to get a lower rate and lower fees. You need to talk to more lenders. Right now, a good broker is likely your best approach.
-
Would the new loan be for the same amount of time you have left on the old loan, or are you 4 years into a 30 mortgage and refinancing to a new 30 term?
I know the arguments against it, but we chose to pay off our mortgage early instead of refinancing because of this issue; closing costs would have been around $4k.
-
Would the new loan be for the same amount of time you have left on the old loan, or are you 4 years into a 30 mortgage and refinancing to a new 30 term?
I know the arguments against it, but we chose to pay off our mortgage early instead of refinancing because of this issue; closing costs would have been around $4k.
We are about 6 months into our 30 year mortgage.
I'm firmly in the DNPOYM club.
-
I like to reduce the rate at least half a percent with a no cost refi. More if I'm paying fees. You should be able to shop the rate and fees lower based on what I'm seeing. Refis are a little more expensive than purchase money, but I would aim for 3.875 with some fees or 4.0 with zero to minimal fees. Again a good broker will shop rates and terms and then call you when they reach your target.