Is this the right time to refinance a loan which was refinan

If that is true it is a no brainer... Do it!

It would take exactly 19 months to break even and after that you save the $100 per month. So for the remaining 341 months you would save $34,100. Rates don't get much better than that. Is this the same lender that just refinanced you?

Are you planning on moving or selling anytime soon?

Is it for an adjustable rate instead of a fixed?

Thank you so much for the prompt response. It is with the same lender, it is fixed ( dont want to think of adjustable with the currnet climate) and we do not plan to move for a while.

D.

Hi des1rees,

Welcome to this Forum.

I think Eric has given you the right suggestion. You can go for the refinance if it is right information. Most important thing is you save a handsome amount of money every month.

Thanks,
Larry

Just make sure there is no hidden costs the $1800 might just be the lender fees but there might be other fees involved. Other then that it is a good deal.

I was thinking that too Eugene. But you know sometimes they will use their loss retention to ensure that they don't lose a customer. They don't always require new title work etc. So hopefully everything is legit. If so I still think it sounds like a great deal.

des1rees,

If anything changes or you have any additional questions, let us know.

Seems like a no brainer.. but what if with Interest Cuts here in December and lets say again early next year, the RATE is around 4% or so..

than u'd maybe be saving $150 or $175 a month..

I just don't see the Fed raising rates any time soon..

Elliot,

What makes you think rates will go to 4%? Also the fed doesn't control mortgage interest rates.

There is another consideration you might want to ask about. Ask the lender to give you choices of other interest rates. For example, is the lender quoting you the wholesale rate? Or is it a retail rate? Or, maybe it would make sense to buy the rate down. I supply my clients with a spreadsheet that lists about 6 or 7 interest rates, with the corresponding prices. That way, the client can make an informed choice of whatever makes the most economic sense.

No matter what, it would be great to lock in 5.625%. Congrats!

It sounds like a good deal if you plan on owning the home for more than a couple of years.

thank you eric for pointing out the lack of control the fed has on mortgage rates. what a fallacy that is!

my only concern is that you should have put that statement in bold, italics, all caps and underlined!

Sounds like a deal! You really haven't paid anything towards principal yet on your current loan & like Eric says - 19 months to recoup your costs is great (if you can recoup your closing costs in 24 months or less it's a benefit). How about the appraisal? Are they waving this? Also - there is no application fee - right? I say go for it - if you get down to closing & the numbers have changed - don't sign & if you do - you always have 3 days to cancel provided this is your primary residence. Make sure you get a copy of the closing package when you sign & keep your "Right to Cancel" page handy if you choose to exercise that option.

You have nothing to lose except time provided there is no cost out of pocket! Have a great weekend. :lol:

Have you decided to refinance? I wouldn't bank on rates coming down much lower than they are right now. Actually on just this past Friday, mortgage rates actually hedged up a bit.

The closing costs sound too good to be true. Are you sure this isn't a bank? Banks do not have to disclose their back-end fees. So they can easily tell you that the front end cost is minimal but get their REAL money on the back.

I do agree that the closing costs do seem low but if they are truely that amount then I say go for it. Make sure you get a rate lock in writing so that they cant come back later and add points saying that they have to buy down your rate or anything else to that effect.