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Old 11-09-2016, 04:48 PM
 
Location: Phoenix-Valley of the Sun
2,462 posts, read 1,203,437 times
Reputation: 3047

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Right now, my rate is at 4.375% and I pay 1,135.99 a month for my mortgage. If I go by today's rate, it would lower my payment to $1,014.52 at 3.5% rate. I was really hoping to get my payments under 1k a month, but i just missed the opportunity to do so. (rates were slightly lower a month back) My other issue is that I'm thinking about moving in the next 3 years or so. They're building a new community closer to downtown and I was thinking about selling my current house and moving down there. My main issue is that I don't know when they're going to start construction on homes. (I think it's going to be 3 years but it may be longer) Right now, they're doing retail stores. (target, macy's etc...)

I understand the break even point. I would need to stay in my home for 40 months in order to break even if I decided to refinance but I really want to wait for a lower rate. I would kick self if I refinanced today, and next month, the rates are lower. Should I wait it out, jump on the opportunity today or do nothing? I'm leaning towards waiting it out.
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Old 11-09-2016, 04:53 PM
 
Location: San Antonio, TX
10,863 posts, read 18,902,231 times
Reputation: 25113
I just refinanced. We had 24 years left on a 30 year mortgage. The new mortgage is 20 years and our payment is less than 1K/month, so I feel like it was a good thing. We're not planning to move, so it was an easy decision for me.
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Old 11-11-2016, 09:09 AM
 
Location: NE Mississippi
11,366 posts, read 7,412,439 times
Reputation: 16969
Quote:
Originally Posted by 49erfan916 View Post
Right now, my rate is at 4.375% and I pay 1,135.99 a month for my mortgage. If I go by today's rate, it would lower my payment to $1,014.52 at 3.5% rate. I was really hoping to get my payments under 1k a month, but i just missed the opportunity to do so. (rates were slightly lower a month back) My other issue is that I'm thinking about moving in the next 3 years or so. They're building a new community closer to downtown and I was thinking about selling my current house and moving down there. My main issue is that I don't know when they're going to start construction on homes. (I think it's going to be 3 years but it may be longer) Right now, they're doing retail stores. (target, macy's etc...)

I understand the break even point. I would need to stay in my home for 40 months in order to break even if I decided to refinance but I really want to wait for a lower rate. I would kick self if I refinanced today, and next month, the rates are lower. Should I wait it out, jump on the opportunity today or do nothing? I'm leaning towards waiting it out.
Thinking of moving in 3 years? No. I would not refinance.

In fact, I think 30 year mortgages should not be used. You only have to pay off a house once in your lifetime; after that, the money always goes into the house no matter how many times you move.
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Old 11-11-2016, 09:21 AM
 
Location: Florida -
8,239 posts, read 10,002,985 times
Reputation: 15094
No - $20 per month savings with a potential near-term resale will cost you more than you will gain. There is nothing in the information you provided to suggest that a refinance is a good idea now. What do you hope to gain?
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Old 11-11-2016, 09:31 AM
 
Location: southwestern PA
20,426 posts, read 35,731,620 times
Reputation: 38829
Quote:
Originally Posted by Listener2307 View Post
You only have to pay off a house once in your lifetime; after that, the money always goes into the house no matter how many times you move.
If only that were true...
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Old 11-11-2016, 10:31 AM
 
Location: Phoenix-Valley of the Sun
2,462 posts, read 1,203,437 times
Reputation: 3047
Quote:
Originally Posted by jghorton View Post
No - $20 per month savings with a potential near-term resale will cost you more than you will gain. There is nothing in the information you provided to suggest that a refinance is a good idea now. What do you hope to gain?

My savings would be $140 a month, but if i wanted to sell my home in late 2019, then I don't know if I should.
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Old 11-11-2016, 12:04 PM
 
11,701 posts, read 16,457,103 times
Reputation: 16369
Do your numbers include fees?
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Old 11-11-2016, 02:13 PM
 
Location: NE Mississippi
11,366 posts, read 7,412,439 times
Reputation: 16969
Quote:
Originally Posted by Listener2307
You only have to pay off a house once in your lifetime; after that, the money always goes into the house no matter how many times you move.
Quote:
Originally Posted by Pitt Chick View Post
If only that were true...
It's been true for me. It may not be true if I move to an area where homes are much more expensive, but it's generally true.
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Old 11-11-2016, 02:25 PM
 
Location: N of citrus, S of decent corn
34,571 posts, read 42,741,316 times
Reputation: 57252
It's expensive to refinance. We just did, and it cost us about $6k. Our only reason was to get the payment as low as possible, and it did achieve that goal. If we were planning to sell in the short term, I think refinancing would have been a waste of money.
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Old 11-11-2016, 03:59 PM
 
Location: Vallejo
13,441 posts, read 15,050,919 times
Reputation: 11924
No, especially not if you are planning on leaving in three years. Why do you really want the lower rate when you're planning on leaving before or around the time you'd break even? You're either paying the bank more fees today or more interest over time (time value). The only way I can see wanting the lower interest rate is if it costs significantly less than the fees. Otherwise it's just not worth the effort.
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