Posted on: 21st Mar, 2011 10:39 am
hi,
i am currently on a 30yr fixed @5% rate mortgage plan and its been a year. i want to know whether its advisable to go for refinancing at this point for a lower rate ? will there be any savings or advantages for me if i refinance. if i proceed with the refinancing what term & rate should i be looking at ?
thanks.
i am currently on a 30yr fixed @5% rate mortgage plan and its been a year. i want to know whether its advisable to go for refinancing at this point for a lower rate ? will there be any savings or advantages for me if i refinance. if i proceed with the refinancing what term & rate should i be looking at ?
thanks.
Hi thbala!
Welcome to forums!
You can go for a 15 year mortgage with a low rate in order to refinance your mortgage and pay off the debt faster. However, you need to pay closing costs when you refinance the loan. You'll be able to offset the closing costs only when you stay in the property for a longer period of time.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can go for a 15 year mortgage with a low rate in order to refinance your mortgage and pay off the debt faster. However, you need to pay closing costs when you refinance the loan. You'll be able to offset the closing costs only when you stay in the property for a longer period of time.
Feel free to ask if you've further queries.
Sussane
You would need to figure what rate you can qualify for. Lets say you can get a 4.5. Obviously you would pay less in interest over the life of the loan. But you would need to pay off the house to realize that. Also, you need to look at the break even point. Say your closing costs are 2k and you save 200 a month, it will take you 10 months to recover your outlay and start to really save the money. 5% in todays market it not terrible.
