Posted on: 02nd Oct, 2013 01:07 am
Should I refinance my home loan? My present mortgage interest rate is 5.25% and I am getting an interest rate of 4.75%.
Normally, it is better to refinance if you are getting an interest rate which is 2% lower than what you are paying now. This is not the situation in your case. Moreover, as you refinance, you will incur closing costs. Unless you plan to stay in the property for long, it won't make sense to refinance the loan as you will not be able to offset it.
Hi Guest!
Welcome to the forums!
Though you refinance, the interest rate will not be lowered to a great extent. So, I don't think you will be able to save too much money if you go for this option. However, the final decision will be yours.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
Though you refinance, the interest rate will not be lowered to a great extent. So, I don't think you will be able to save too much money if you go for this option. However, the final decision will be yours.
Feel free to ask if you've further queries.
Sussane
Well, it depends entirely upon you as to what you want to do. If you want, you may opt for refinancing your existing loan. However, it won't provide you much help. So, it is better that you continue making payments on your present loan.