Posted on: 11th Jan, 2010 08:30 pm
im in a 30 year loan @ 6.5 fixed, i can refinance @ 4.75 but i'm not sure if it is worth it. they estimate my monthly payment changing from 1251 to 1083. the mortgage company also wants 400 for appraisal,1,040 in estimated prepayed items(i'm not sure what that is), 2,194 in closing cost. i'm not sure if its worth the refinance or not. they have also severly over priced the market valve by around 40,000 in my opinion, will this change anything.
Whether or not you should refinance the loan will depend upon how long you plan to stay in the property. If you are planning to stay in the property for the next 7-9 years, then it would be a good idea to refinance the loan. This will help you offset the closing costs. Also, getting a refinance will depend upon the equity you have in the property. Did you check out if there's any equity in the property?
a good rule of thumb is this: if your savings in the monthly payment will compensate for the closing costs within a 24-30 month period, you should do it.
you'll make your costs back in 20 months or so...i say go ahead and refinance. the costs you noted are not bad.
you'll make your costs back in 20 months or so...i say go ahead and refinance. the costs you noted are not bad.
